45K grant not upfront

Is it true the 45K is not upfront? So you cant price this into your finance to build?

 

Yes it's true. It can't be used as funds to complete a purchase.

 

yep

 

well that sucks

 

The State grant is paid when slab is laid so not up front. The Federal grant hasn't been confirmed or not when it will be paid and hasn't gone through parliament yet. If it's like the First Home Owner grant then it might be able to be used as a deposit but it will be up to the banks also if they accept it in conjunction with savings.

 

Assuming it gets paid with FHBG, you will be able to use it as funds to complete...but you'd still need to show gen savings etc as per lender policy, so not a replacement for those that don't have a deposit currently.

Without more info coming from the government, we're playing on as though it's all not able to be used. Which is true, for now.

 

So I cant use the 45K as funds to complete? for the time being?

 

Correct.

 

Apparently westpac are allowing the state grant to be included?

 

Does anyone know if this has passed legislation and when we’ll now how the grants will be paid ? What kind of time frame are we looking at ?

 

I contacted one of my banks 2 weeks ago to apply for a loan to build. They haven't asked for any paperwork from me yet and said they are very busy due to these building grants. I wonder if everything will be extended

 

The new $25K home builder grant can only be paid AFTER ownership completes. The laws for that are complex. The Commonwealth announced it but it is paid and administered by each state and yes the rules can and will vary. Your state office of state revenue will administer it ONCE laws pass. And its not necessarily that its a single $45K as its $20K and $25K. Each will have different if not similiar rules. So potentially four grants (incl duty).
- Home Builder
- First home owner
- WA Home construction grant
- Duty concession (OTP)

Apply for a new home construction grant | Western Australian Government

 

No word yet on when it's scheduled to go through WA parliament

 

From what I have read, it looks like the grant is received when the first progress payment is made.

And also, a knock-down rebuild is considered a major renovation, see below.

 

after the first progress payment is made as the constructionMUST commence within 3 months of the contract (subject to exceptions for delayed approvals) . I would have doubts if any state dept will action it quickly and its more likely on payment of that amount its the trigger to then submit a number of docs and apply formally. Each state has to agree to particpate and make equivalent laws the Commonwealth agree on. Qld arent yet on board - That Premier is making her own rules.

The Commonwealth is pleased to announce that Tasmania, South Australia, the Northern Territory, Western Australia, Victoria and New South Wales are now signatories to the HomeBuilder National Partnership.

FAQ :

HomeBuilder is being implemented in partnership with States and Territories. For new builds, grants will be paid in line with the timing of payments for first home owner grants or at the discretion of your State and Territory if there is no first home owner grant schemes in place.

basically it will be in the hands of each state but some integration with other schemes may assist some elements.

 

hi Paul,

to qualify, do you only have to have signed a contract with a builder before december 31?

thanks

 

And construction must commence within 3 months of contract date

 

No. The information that is known so far is on the state OSR and Treasury websites. Qld isnt party to it at all yet

 

Does anyone have an update on whats happening with the grants? Can they now be used towards funds to complete (for finance purpose)? Also, any chance WA are extending their build deadlines given all the bank back log at the moment?

 

The only part about that I know is that there will be a 3mth extension possible in WA for the Federal grant which you can apply for if you need more than 3mths to get to site due to things outside of your control - banks, builders, councils