Corona Virus has certainly brought with it both health and economic challenges. For buyers looking to buy or build brand new, the Australian government is offering monetary incentives call the HomeBuilder Grant for people looking to build brand new in order to create more construction jobs and bolster the economy. Until 31st December 2020, $25,000 is being offered under the HomeBuilder Grant, all around Australia by the federal government. (Offered to Australian citizen home buyers only, means-tested, and to a maximum completed property value of $750,000).
However, there may even be a state-based building bonus. Take Western Australia for example, the WA government is offering an additional $20,000 building bonus for anyone entering into a building contract, not means-tested and available to both home buyers and investors. On top of this, any first home buyer grants would be added on top (being another $10,000 for a new build or property and stamp duty concessions under $530,000 in WA).
Examples of how certain groups of buyers may benefit from the 2020 building incentives
Here are a few examples of how certain groups may benefit in WA (who sign a building contract before 31st December 2020):
- First Home Buyers building on a block: $25,000 federal grant + $20,000 state grant + $10,000 FHOG (First Home Owner's Grant) + stamp duty savings (e.g. around $5,035 on a $200,000 block). This totals around $60,035 of building incentives
- Other Owner Occupiers building on a block: $25,000 federal grant + $20,000 state grant. This totals $45,000 of building incentives
- First Home Buyers buying a dwelling where construction has not started: $25,000 federal grant + $20,000 state grant + $10,000 FHOG (First Home Owner's Grant) + stamp duty savings (e.g. around $14,440 on a $430,000 purchase). This totals around $69,440 of building incentives
- First Home Buyers buying a dwelling under construction: No federal grant, however, $20,000 state grant + $10,000 FHOG (First Home Owner's Grant) + stamp duty savings (e.g. around $14,440 on a $430,000 purchase). This totals around $44,440 of building incentives
- Investors buying or building a dwelling before completion: State grant applies. This totals $20,000 of building incentives
Incentives aside, choosing the right location for your new home is the most important part.
Opportunities to watch for to qualify for building grants
To stay in your preferred suburbs you could:
If either of these options sound a little daunting, don't fret, because that's what we're all about at Catalyst Developments - we have the right specialist to help you:
- acquire the right property,
- finance,
- build,
- or even sell
your next property. Just reach out to us via our Contact Us page, or if you're not confident in subdividing and selling a lot on your own, why not register your details for free to team up with a like-minded buyer and join forces to subdivide together?