When it comes to the new $25,000 HomeBuilder Grant…

 

Don’t Rush. Don’t go around in Circles. Seek Sound Advice. Choose Carefully.

We have had been inundated with enquiries and questions about the “HomeBuilder” stimulus grant and building a new home.

A lot of people we have spoken to were already considering building and realise it is time to finally “do it”. (And why not, the $25,000 HomeBuilder grant absolutely is a good reason to “do it”.)

There are also many who are only now considering building because of this wonderful opportunity.

However, quite a few people are telling us they just don’t really know where to start.

Regardless of where you are in the process, there are a few key considerations in relation to the HomeBuilder grant and building a new home.

The Best News

  • HomeBuilder is NOT just for people building their first home. So you can get this grant to build a new home even if you own or have previously owned a home.
  • If you are looking to build your First Home, you may be able to get the $15,000 First Home Owner Grant as well as the $25,000 HomeBuilder Grant. That is 40,000 reasons why now is a good time to build your new home!!

Are You Eligible For HomeBuilder*

  • You must live in the home yourself.
  • You must be an Australian citizen, at least 18 years of age.
  • Your income must not be greater than
    • $125,000 per year for an individual applicant, or
    • $200,000 per year for a couple applying for the grant.
  • You need to enter into a building contract between 4 June 2020 and 31 December 2020.
  • The completed value of the house and land it is built on must not exceed $750,000.
  • Construction must commence within three months of the Building Contract date.

Home Loans, Deposits and the Grant

Many lending institutions still haven’t determined their policy in regards to how this grant will be considered in finance applications.

Some may allow it to be part of a minimum deposit requirement; others won’t.

The Queensland Government is still to announce how and when this grant will be distributed. This will impact how lenders will treat it in relation to finance applications.

Knowing how much you can borrow is the best place to start. You really need to speak with a Lender or Mortgage Broker who can help you properly understand your position.

If you are relying on this grant to form part of your deposit, they may not be able to give you anything definite until the Qld Gov announces the final details of how they will manage this grant.

If you already have your deposit they will be able to advise you how to make the most of the grants available to you.

A pre-approval from a couple of months ago should be updated as a lot has changed in a short period of time with significant implications in relation to “jobkeeper” and “jobseeker”.

Timing

As mentioned earlier, you have until December 31 this year to enter into a contract to build a home.

The first thing to do is meet the lender or mortgage broker establish how much you are able to or are prepared to pay the house and the land combined.

Without this critical information you will end up going in circles falling in love with something only to find it is outside your budget, or not knowing if you can have certain things included in the home or not because you don’t know how much you can invest.

You need a block of land to build on.

If you already have land or have secured a block that is fantastic. If not, our advice is to make a quick, but well informed, decision on land.

There are quite a few blocks of land for sale now, and more that will be available ready to build on before the end of March next year which is when construction must commence.

There is of course an increased demand for land with this grant and the land developers will not necessarily be able to meet that demand.

Land Availability

We receive regular updates from land developers on what blocks are currently available. We are also advised if any discounts/incentives apply to different blocks, and are also kept in the loop as to what land is coming onto the market in the near future.

Given the time considerations for the HomeBuilder Grant, this information is especially useful to you to ensure you can claim the grant.

You really DO need to take care. It is very easy to purchase a block of land and then not be able to build the home you want. Do your research first.

Get help with choosing the right block of land.

Things to consider when choosing land include:

  • What size block of land do you want?
  • What do you want to live close to?
  • What facilities should be close handy?
  • How much will you have left to build if you buy this block of land rather than that block of land?
  • What type of house do you want to build?
  • What layout of home do you want?
  • Do you want any extras on your block like a shed, space for a boat, or pool?

We spend a lot of time with our clients helping with their decision on which block of land to purchase. We help you understand what impact your land purchase will have on the your choice of home design.

We can talk to you about:

  • Cyclone rating applicable to the land.
  • Soil types and their effect on slab design and building costs.
  • Site orientation in respect of sun and shade and making the most of our cooling sea breezes
  • Home design to suit the block of land

House Design

Our display homes are a great place to spend time considering the best home design for you.

You might just fall in love with one of them and depending on your established budget simply decide that is right for you.

Or you will sit down with one of our New Home Consultants who will get an understanding of what is important in your home and will be able to recommend the best possible home that fits within your budget.

Start Your Research Now

Building a new home does take a little time, so to make sure you’ve got all of your planning and contracts in place to claim the HomeBuilder grant, start the process now.

We would love the opportunity to see if we might be able to help you with building your new home.

Visit a Grady display home this week or send us enquiry right now.

Display Homes Open This Weekend

Grady display homes will be open this weekend in Townsville.
Click the button below for opening hours and directions.

*Eligibility Rules information sourced from Official Federal Government Fact Sheet.

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