Homebuilder Scheme – Why the time to buy is now

Published Wed 11 Nov 2020

If you’ve been considering building a new home by now you will have heard about the Federal Government Home Builder Scheme or Grant. Homebuilder is intended to bolster the property market and construction industry due to the COVID 19 pandemic by offering a $25,000 cash incentive from the government towards building a new home.

Homebuilder Scheme – Why the time to buy is now Due to the high demand in Warralily and the broader Geelong region there are many builders who have closed the books on HomeBuilder as they simply can not meet the requirements of the grant. Stage 2 of The Greenway at Warralily however, has been fastracked after the sell out success of Stage 1 and is Homebuilder eligible.  So not only will you be able to purchase a stunning modern Metricon townhome you will also be able to save up to $45,000* on the purchase price!

There are however some guidelines around the Homebuilder Scheme and certain conditions in order to be eligible to receive the grant. There’s a little more to it than just signing a building contract before the 31st December 2020 and going on your way. While the Homebuilder Scheme is a Federal Government initiative (thanks Scomo), the state revenue office will determine eligibility and payments and this can vary from state to state. The guidelines below are for Victorian homebuyers.  

Here’s everything you need to know before you buy.

Who is eligible for HomeBuilder?

If you’re an owner occupier looking to purchase a new home (new construction) the Homebuilder scheme will provide $25,000 to eligible homeowners. You don’t need to be a first home buyer to receive the grant, you just need to ensure that the home you are building will be your principal place of residence. i.e. you intend to live there.

There are some terms and conditions around grant eligibility, so you need to ensure that you fulfill all the eligibility criteria.
  • The Homebuilder Scheme is for owner occupiers. The scheme does not apply to investment properties.
  • You are an Australian Citizen, and you are 18 and over. No companies or family trusts will be accepted.
  • For new homes you must live in the home for at least 6 months after you settle on your home.
  • You meet one of the following two income caps: $125,000 per annum for an individual applicant based on your 2018-19 taxable income or later; or $200,000 per annum for a couple based on both 2018-19 taxable income or later.
  • Off the plan contracts like townhouses are eligible provided they meet the other requirements such as price and construction timeframes.
  • The cost of your build or off the plan contract must not exceed $750,000 (inclusive of GST).
  • No owner-builders are authorised, you must build with a registered builder.
  • You must sign a building contract between 4 June 2020 and 31 December 2020 and construction of the home must starts within six months of the date of the contract. E.g., if you signed a contract on the 1st December 2020 your builder must start building by the 1st June 2021.
  • The grant paid from the HomeBuilder is tax free.
  • If you are a First Home Buyer then the Homebuilder Scheme will be paid in addition to the $20,000 Regional First Home Buyers Grant, First Home Buyers Low Deposit Scheme and Stamp Duty Savings for First Home Buyers. That’s a lot of savings!
What type of construction is allowed under the HomeBuilder Scheme?

There are three types of building contracts that allowed under the Homebuilder Scheme.
  • A new home building contract on your land.
  • A renovation with a builder on your home for $150,000 to $750,000 and where the value of your home does not exceed $1.5milliom
  • A build contract to purchase an off-the plan home/townhome.
The Greenway at Warralily a townhome so it is considered off-the plan. This is a huge benefit for purchasers for a number of reasons. Firstly, you pay just 5% deposit to secure your home, sign your contract by the 31st December and secure the Homebuilder Scheme.
Secondly, you will pay no more progress payments until the home is complete. This gives you ample time to save a little more and secure your finance for settlement when the home is completed at the end of 2021.  What’s more you will be securing your home at todays prices and enjoying the investment potential of higher property values and more equity in your home in a years’ time.

Finally, all townhomes at The Greenway are turn key and boast an array of inclusions that make a home well, a home like high ceilings, large bedrooms, timber floors on the ground level, full landscaping, blinds, and more. All you need to do is choose your preferred colour scheme and wait for your home to be built. All the guesswork (and stress) has been removed - it’s a fixed price so there are no hidden extras and you will have certainty in knowing your home at The Greenway Warralily is eligible for the Homebuilder Scheme.

Homebuilder Scheme when do I apply?

You need to apply for Homebuilder Scheme before the 31st December 2020 so the best time to be securing your home and getting your application in order is now. You will require supporting documentation of course to enable the state Revenue Office to process your application.  You will find the supporting documentation required and the HomeBuilder Scheme application form here.

When you receive payment of the HomeBuilder Scheme also depends on whether your application relates to a new build, substantial renovation, or off-the plan / new home purchase. For off-the-plan purchases at The Greenway – grants will be paid after the applicant(s) name is registered on title. You must also be registered on the certificate of title as the owner of the property by no later than 31 October 2022.

With interest rates at their lowest and $25,000 tax free in your pocket ($45,000 for First Home Buyers) there has never been a better time to buy a new home in Armstrong Creek.

For more information on Homebuilder Eligible Townhomes at The Greenway contact Anna Kichakov on 1300 458 193 or register here . *Conditions Apply
 

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