UPDATED December 2020 – Federal Government extends HomeBuilder program for another three months but at a lower rate
The federal government’s Homebuilder program, which offers cash grants for housing construction projects has been extended, but at a lower amount.
The HomeBuilder scheme currently provides $25,000 grants to eligible people building a new home or renovating an existing one.
It had been due to expire at the end of the year but will be extended to 31 March, 2021, at the lower rate of $15,000. Thus, contracts signed between January and March next year will attract the lower rate of $15,000
The amount of time all approved applicants who signed contracts on or after June 4, 2020, are given to start construction will also be extended, from three months to six months.
What you need to know about the HomeBuilder Grant
The grant, designed to boost the economy, has caused quite a stir, but also some confusion as it can be utilised for renovations as well as new builds.
We’ve got you covered on everything you need to know on how to use the grant to your advantage.
How to receive the Homebuilder cash back
Whilst you could spend $150,000 to renovate your home in order to receive the $25,000 or $15,000 cash back, the numbers work better if you are already considering buying a new home.
The beauty of new builds is that they can go anywhere.
So why settle for a poky 400sqm block when you could achieve the lifestyle available on a beautiful 3000sqm plus block amongst established trees with all new infrastructure?
This government grant that will help boost the economy, much needed following the Covid 19 crisis, will mean you can build on your dream block with room for growth for your family.
In addition to the package, there are also economies of scale to consider when buying rural residential.
Taking Caboolture as an example, a 3000sqm block in The Peaks starts from only $105 per square metre, whereas a 450sqm block in some competing residential estates will put you back over $475 per square metre.
The Key Criteria of the Grant
So, considering the lifestyle advantages, coupled with the ability to build on a block that allows for growth, and the economies of scale of buying an lifestyle acreage block, let’s take a look at the criteria of the grant and see if you also qualify for this additional stimulus package:
- Building must be contracted within three months.
- Income capping of singles ($125,000) and couples ($200,000) apply.
- New build value is capped at $750,000.
The criteria provided means you can think bigger and look to your family’s future.
In addition to this grant, it will work alongside first-home owner grant programs (an extra $15,000 giving first home buyers $40,000 in grants), and including the federal government’s first-home loan deposit scheme and first-home super saver scheme.
This means, if you are one of the lucky ones that are in a position to build, it has never been a better time.
The Homebuilder grant excludes already contracted parties and will have a very sharp cut off of March 31.
So, if you are still wondering whether to take the leap to build your own home, take a look at all the figures of buying rural residential with the stimulus in place.
With the grant including larger blocks, you can move to an acreage block and build a home with room down the track for a pool, sheds and all that you might ever want, but still be close to amenities.
This stimulus package is ideal for those who are able to take advantage of the low interest rates.
Whilst we understand it is not package that will help everyone, it will help keep and generate jobs in the construction industry whilst helping others achieve their dream of owning their own home on acreage.
NEW! Your most frequently asked questions
Our expert property team have fielded plenty of questions around the new Home Builder grant and we have compiled this into a simple FAQ list for you.
Q: Am I eligible for Home Builder grant?
A: To be eligible you must meet the criteria set out by the Queensland Government at their application page.
Q: Are permanent residents eligible for Home Builder grant?
A: No, you must be an Australian Citizen. And if you’re applying as a couple then both people must be Australian citizens.
Q: Can Home Builder grant be spent on furniture for a new build?
A: If you have $25,000 or $15,000 of extra money of your own because you received the Home Builder grant you can spend your own money on furniture.
Q: Can I apply as an individual for Home Builder grant?
A: Yes, if you meet the eligibility criteria.
Q: Can you demolish a house with the Home Builder grant?
A: You may be eligible for the Home Builder grant if you are demolishing and building a home to live in.
Q: Does buying a block of land qualify for Home Builder grant?
A: You need land to be able to get the Home Builder grant. But the grant specifically relates to the building or renovations of a home.
Q: What do I do if I want the Home Builder grant but the land is not ready yet?
A: You must ensure your land will be ready in time to meet the deadlines for Home Builder grant.
Q: When is the Home Builder grant paid?
Once your application is approved and you’ve supplied all the supporting document.
Q: How much is the Home Builder grant?
Q: What is the minimum build cost for the Home Builder grant?
A: There is no minimum price for new house and land to apply for the Home Builder grant.
Q: What can Home Builder grant be used to spend?
A: If you have extra money of your own because you received the Home Builder grant you can spend your own money on anything you like.
Q: Why do some builders say I won’t get the Home Builder grant?
A: You must meet all the eligibility requirement and maybe you don’t. But it always good to get a second opinion to sense check whether the information you have received is correct.