It’s a cash boost you can only get until the end of the year, so now is the time to stake your claim on the first ever $25K grant for new home builds.
If the Gold Coast is where you want to live, have a look at this step by step guide to buying and claiming your grant.
How the cash boost works
The HomeBuilder Grant is a government cash injection for home buyers building new homes (or substantially renovating an existing home, but for the purposes of this guide, we’ll just stick to new constructions).
To be eligible, you must sign a contract for a new home build between June 4 and December 31, 2020. Construction needs to begin within three months of signing, and you have to be purchasing the home as your principal place of residence.
Now, let’s look at exactly how you can claim your free $25K on a new home build on the sunny Gold Coast.
1. Check your eligibility
There are criteria you need to meet to unlock the HomeBuilder Grant, and it can differ between states. The full list of Queensland criteria can be found on the Qld Government website, but let’s cover at a few of the most important ones:
- You must be over 18 years old
- You can’t have received the HomeBuilder Grant before
- You must live in the home you’re building for at least 6 months
- Your income can’t exceed $125,000 for individuals, and $200,000 combined for couples
- The value of the house and land must be less than $750,000
2. Choose a home that fits the criteria
As we just saw, your new home must be valued at under $750K to qualify for the cash grant. And, fortunately for buyers, the Gold Coast offers excellent opportunity for building a new home from $400,000 and up, making it a prime piece of paradise to live in.
House and land value is the only stipulation on the type of home you can build – after that condition is met, you can choose whichever type of home you’d most love to live in.
When you’re building brand new, you’ll likely work with a property group who can help you:
- Calculate your borrowing capacity, choose a lender and help structure your finances
- Locate a block in a neighbourhood that suits you and your family
- Decide on the right type of home to fit the block. This is where you get to design your ideal home, its fittings and function
3. Sign the construction contract and break ground
You can’t apply for the HomeBuilder Grant until construction has officially started.
After you’ve officially signed the new home contract, and finance has been finalised, construction will commence. If a property company is overseeing the project, they’ll take care of all the details for you, and you can sit back and watch your home take shape.
Once the foundations have been laid and the first progress payment has been made to the builder (construction finance loans are paid out progressively at each stage), you can apply for the HomeBuilder Grant.
When the Qld Government receives the evidence of the foundations and first payment, the HomeBuilder Grant money is paid directly to you, or you can arrange to have it sent to your lender.
4. Applying for HomeBuilder for your new Gold Coast home
First and foremost, you’ll need to apply before December 31, 2020. That’s why it’s vital that if you’ve thought about building a new home on the Gold Coast, you start exploring your options now, and talking to reputable new home builders.
After you’ve initially applied, you have until October 31, 2022 to submit all the supporting evidence – and there’s quite a bit, so it helps to have a property group on your side who can make sure you have everything you need, and walk you through the process.
Along with standard photo ID, you’ll need to provide other evidence of your purchase, such as:
- The building contract
- Land value evidence
- Current council rates notice
- Your Notice of Assessment to provide evidence of your income
- A registration confirmation statement to show your name on the property title
The good news is your property group will be able to provide plenty of the paperwork you need, so the application process isn’t as daunting as it might seem.
5. Apply for any other eligible grants
The Federal Government has a number of homebuyer incentives on offer that you might also be eligible for.
- The First Home Buyers Grant is a $15,000 cash boost for brand new buyers.
- The First Home Loan Deposit Scheme offers a government guarantee for 15% of your 20% deposit, saving you on Lenders Mortgage Insurance.
- Stamp Duty Concession is available for new homes on the Gold Coast under $550,000, saving up to $8,750.
Move into your new home, $25K (or more) better off
After completion of the property, you’ll get your keys and move into your new Gold Coast home.
As Scott Morrison said, the $25K is to “support those families and those Australians whose dream it was to build their home…we’re going to keep that dream alive for them.”
To get you started on your own dream home, you can have a look at the new house and land options available on the Gold Coast that fit within the HomeBuilders Grant criteria.