Up to $55k to Build - What we know; WA State 'Building Bonus' & Federal 'HomeBuilders Grant'
Updated: Jun 7, 2020
This morning Mark McGowan has come out and announced the states part of the new building stimulus package. There is potential if you qualify to have access to $55,000 in grants & $10,000 in stamp duty concessions if you're a first home buyer. See more below.
Original Post 4/6/2020
Late last night news outlets started running stories that the Federal Governments 'HomeBuilder' stimulus package was confirmed, and who could get it.
Since then, my phone has exploded - I've had calls, messages, Facebook & Instagram messages & of course plenty of emails. Understandably, everyone is looking for the information as this is something we haven't seen before. The grant is not only applicable to first home buyers, but everyone (with conditions) and it's not capped on how many can take this offer up, as long as you do it within the short, sharp period the Government has run with.
Over the coming days, weeks & months you will see all sorts of different marketing tactics to try and draw your attention to whatever particular offering, that every single builder will be throwing out there. Some will be genuine & helpful, most not so much.
Within just day 1 of the grant, there are already half a dozen examples of scenarios that aren't clearly marked out on the Government websites. For that reason I want to create a central location (mainly for myself, initially) to gather all of the details.
I will outline in this post what we know from both a Federal & State level and update as more information comes to light.
WHAT WE KNOW
FEDERAL GOVERNMENT $25k Stimulus (As of 4/6/2020)
When is this available? It is available from Contracts* entered into from June 4th 2020 until 31st December 2020.
You must be an Australian Citizen *
Singles, income must not exceed $125,000 on your latest tax return
Families, income must not exceed $200,000 on your latest tax return
You must; Build a new home as a principal place of residence, where the property value (house and land) does not exceed $750,000; or
Substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property (house and land) does not exceed $1.5 million;
Construction must commence within 3 months of signing your contract**
There is no limit on how many can take this grant up, just the time limit.
If you own a property (house and land), and knock the house down to rebuild – this will be counted as a substantial renovation, and therefore subject to the renovation price range of $150,000 to $750,000 provided the total value (house and land) of the property does not exceed $1.5 million prerenovation;***
If you own vacant land before 4 June 2020, and then build, the total value of the land and new build cannot exceed $750,000; or
If you buy the land after announcement, and then build, the total value of the land and build cannot exceed $750,000.
Applicable to all Home buyers, not just first home buyers like previous grants. Subject to meeting all conditions (income, etc)
WA STATE GOVERNMENT - (As of 7/6/2020)
$20k Building Bonus Grant
$10k First Home Owners Grant (FHOG)
$10k First Home Buyers Stamp duty concession
All confirmed this morning, there is still a heap of info we do not know - As always i'll update as we go.
'$20K BUILDING BONUS GRANT'
When is this available? It is available from Contracts entered into from June 4th 2020 until 31st December 2020.
Open to All West Australians
Not means test - anyone can apply regardless of personal/family income
No Cap on property value
FIRST HOME BUYERS IN WA
Eligible for the 'Building Bonus' grant of $20,000
Eligible for a $10,000 Grant on new builds for owner occupied properties
Maximum Home & Land of $750,000
No Stamp duty applicable on land up to $300,000 (sliding scale over $300,000) - Approx saving of $10,000 on a $300,000 land purchase.
ADDITIONAL POINTS & UNKNOWNS
7/6/202 - Lots of unknowns here from this mornings announcement, we don't know if the WA Grants are open to PR - It says 'all West Australians' only. TBC
*I have had questions today around whether someone who is a Permanent Resident (PR), or only one half of a couple is a citizen, as to whether they are eligible. The document states Citizen only, but this would be an odd rule and we are waiting on clarification.
***If you own a property and wish to demolish it, you will fall under the renovation guidelines. What is not absolutely clear is whether you would be eligible if you purchased an established property after June 4th 2020, settled on it & then got a separate loan for the demolish & rebuild contract.
**A contract as stated is in reference to the HIA Lump Sum Build Contract
**This one is important, the section that states "Building must commence within 3 months of signing your contract" is in reference to the HIA Lump Sum Build Contract, not the Prelim Contract you will sign when you pay your deposit and commit to your building company. This is important to note, as this will need to be a consideration towards the end of the year. If you signed up in November/December I would recommend having a clause in the Preliminary Contract stating that you will have your LUMP Sum Contracts prior to Dec 31st.
^ This is part of a Lump Sum Contract
As it currently stands, if you are;
A first home buyer in WA, looking to build a new home - you may be eligible for $55,000 towards your new build, plus a $10k concession on stamp duty for land.
If you are not a first home buyer, looking to build in WA, you may be eligible for $45,000 towards your new build.
If you are not a first home buyer in WA, looking to build, you will be eligible for the $20,000 'Building Bonus' grant, subject to meeting the T&Cs
Get in contact if you have any questions at all!
Cheers - Max Williams
0418 905 120