6 Points to consider before you apply for the HomeBuilder Grant
As you may already know, the Federal Government recently announced a construction stimulus package, the HomeBuilder Grant. The idea is to assist the residential construction market by encouraging the build of new homes and renovations.
Australian citizens who are looking to build a new home (including first home buyers) or renovate their principal residence can receive a grant of $25,000, provided the eligibility criteria are met.
Click Here to apply for your New Home and take advantage of this once-in-a-lifetime opportunity!
If you consider building a new home, or renovate your existing home and want to take advantage of the HomeBuilder Grant, there are a few factors to take into consideration if you plan to apply for the Grant.
Points to consider:
- Be organised and know your timeline:
It is expected that there will be some administration work involved between the time that you express your interest in a block of land and signing the contracts. This process can take up to 6 weeks, depending on each individual situation.
According to the HomeBuilder Fact sheet, construction must start within three months of the date your contract is being signed with the builder. Keep in mind that a maximum extension of an additional three months may apply on a case by case basis. However, the relevant Revenue Office must be satisfied that the delay in the start of construction is due to unforeseen circumstances, not being in the control of the parties to the contract.
If you want your application to go as smoothly as possible, we advise you to start doing your research regarding your new home and get in touch with a good builder as soon as possible.
- Determine what your budget is:
Purchasing a property may be one of the biggest financial commitments you will make throughout your life. Even if it’s not your first property you want to buy, you’ll have important decisions to make.
To take one step closer to becoming a property owner and make an informed decision, speak to a good mortgage broker or lender first to determine what your budget is. Knowing what your borrowing capacity is, will prevent disappointment and save you time.
Having a pre-approval not only gives you an idea of what your budget is, but it also makes it easier and faster for you to buy your home. Let me give you an example… There is more than one buyer interested in the same home. The person who has the pre-approval ready will be the one that purchases the property on that day. Let that person be you, and not one of the others.
A good mortgage broker will also advise you regarding other existing Government Grants and Schemes that you may qualify for on top of the HomeBuilder Grant. Engaging in a discussion with them will assist you in choosing the loan that is right for your individual circumstances.
Remember that pre-approval of finance is:
- Obligation-free and
- Valid for three months
- Be aware of additional costs:
Keep in mind that not all builders offer Fixed Price, Turn-Key solutions. Some builders may offer house and land packages at a very attractive price but the site costs may be excluded in the price. Some builders exclude several elements in the original price that is advertised.
Other costs that should be taken into consideration as well:
- Moving home. You may have to pay the movers or hire a truck if you want to do it yourself.
- Stamp duty. If you are a first time home buyer, you may want to check what incentives and grants are available in your state.
- Legal fees. These are charged by your solicitor or conveyancer to carry out the legal work involved in purchasing real estate.
- Loan application costs may be: the loan application fee; Lender’s property valuation fees; Lenders Mortgage Insurance (unless you can put down a deposit of 20% or more)
- Property transfer fee – a State Government charge to register the transfer of title of the property from one person to another.
- Mortgage registration fee – an administrative charge imposed by the Land Titles Office or equivalent for registering the lender’s mortgage on the title record for the property.
- Homebuilding and contents insurance – this is important to protect you financially if your home or belongings are damaged by fire, natural disaster or you experience loss through burglary. Lenders may ask that your property is insured because they have a vested interest in it.
- Mortgage protection insurance – this takes care of part (or all) of your mortgage repayments if you are injured or become ill, leaving you unable to work, or if you pass away. Your Costs may vary according to the extent of the cover you need.
- Price of your Build or renovation:
Remember that there is a maximum property price that will be taken into consideration. If you’re going to buy a house and land package, the maximum value of the property (house included) is $750,000 and the price of the renovation is between $150,000 and $750,000. The maximum value of the property (for the renovation) is $1,500,000.
Regarding a house and land package: Don’t get too caught up in the advertised price of the package, since (as mentioned before) some builders exclude some elements from the price.
Remember that the display homes are designed to present the best that a builder can offer and it’s important to evaluate the list of inclusions that are offered. Remember that each builder may offer different standard inclusions and you should be able to compare them.
It may be a good idea to negotiate a fixed price with the builder. If you’re not sure how to do that, we may be able to help. All the packages that are available through Buy Real Estate Australia, are Fixed Price, Turn-Key solutions with quality inclusions.
That means that all the inclusions are listed before you sign the contract. And after signing all the documents, you can sit back and relax. Everything will be taken care of for you and you’ll be kept up to date as the building of your house progresses…. It’s that simple. And you’ll have no surprises along the way.
Apart from the quality inclusions from the builders, we’ve decided to add additional surprise features to the deal, that’ll actually save you money. Please inquire about these, as we tailor them to the specific needs of each individual.
- Who should your builder be?
In order to apply for the HomeBuilder Grant, you are allowed to only engage in a reputable, licensed builder. Whether you’ll be building a new home or doing a renovation, you may not do it yourself as an owner-builder. Also, the builder that you engage in, may not be a family member, even if he is a licensed builder.
And remember…. don’t rush! Make sure that you are financially ready.
However, if you are ready, this is a great opportunity to take advantage of the HomeBuilder grant to ad instant equity in your home.
- Access other Government Incentives:
If you are a First Time Home Buyer, you will be eligible to take advantage of the First Home Buyer Grant and/or incentive in your state or territory as well, in addition to the HomeBuilder Grant.
Want to take advantage of this grant(s) and buy a new property?
With the current low-interest rates, now is the perfect time!
Feel free to call us on 0428 042 555 or click HERE to get a callback.