HomeBuilder scheme

Well - I did get a little hopeful at yesterday's announcement, until I looked into the detail. We're about to starting building in around August so thought yippee as we qualified under everything initially announced ... until read the fine print today:

"For new builds, the total value of the completed home needs to be less than $750,000, including land"

$750k doesn't get one much of a house and land nowadays - mutter mutter - with most blocks of vacant land in new estates selling for around $4-600k even in outer Newcastle. Our land alone was $700k as it's a knockdown and rebuilt jobbie

Access to the Government's HomeBuilder cash won't come cheap. Here's what you'll need

Will wait until it becomes official, via the States, and sus it out again

 

This will help our building industry and should be used to help those that need it the most.

 

Is it to help the home builder - or the tradies? It's being sold as "for the tradies"

If that's the case, to help those in need, then perhaps it should be spent on low income housing/social housing/disability housing/housing for homeless ...

Otherwise, base the qualification on the value of the build itself, not the land

 

Builders/tradies same thing, builders sub contract tradies

Yes agree, i think it should be targetting a different market
FHB market??

 

How are they assessing the income?

Is it the taxable income ( total income minus all losses)?

What happens if you are over slightly? 5K?

Also, for how long do you have to stay in the house and make it PPOR??

What happens if someone gets in the house and move after 12 months...

Asking for a friend who was slightly happy but seems they will miss out by a bit as their adjuSted taxable income is over by 5K

 

I'll wait to see what the requirements are when officially released by the State ... sounded good in the promo but 99.99% of people who were thinking of building won't qualify

 

Probably the easiest way of doing that is to deduct the threshold required for spend somewhere considerably south of $150k. There's probably a reluctance to do that because it might add considerably more red to the budget so perhaps introduce a separate lower separate level for FHB's which may have less of an overall budgetary impact? (impossible to say without crunching the projected numbers ofcourse).

 

Depending on other details of your personal circumstances to qualify, but if you read the fact sheet and the example given (No 4 I think) a knock-down and rebuild will qualify if build contract is less than 750k and original house value (Pre knock down) is less than $1.5M.
Again this is fact sheet only and not legislation as yet.
Worth looking again.

 

Will definitely look again .... When it comes to fruition

 

This is Federal, what about State incentives/grants?

In WA government is giving $20k per each new build. No testing, no nothing to quality, it can even be in business name/trust

you must have a signed building contract by December 2020. I am building 3 villas, so hoping to get $60k

Each build/villa will need a separate build contract

Finer details will be out shortly

I hope other States do similar,

 

No other grants in NSW, unless one is a first home buyers ... but by jove ... craigc might be right (if it gets thru legislation)

https://treasury.gov.au/sites/default/files/2020-06/Fact_sheet_HomeBuilder.pdf

"Owner occupiers Jacqui and Henry decide to knock down and rebuild their existing home Jacqui and Henry enter into a building contract to knockdown and rebuild their existing home on 24 August 2020, with the knockdown and rebuild contract valued at $400,000. The value of the property is $800,000 (including the current value of the dwelling and land). The couple pay the builder $15,000 to commence the knockdown and rebuild on 14 September. Jacqui and Henry’s bank applies on the couple’s behalf to the relevant State or Territory revenue office to receive the HomeBuilder $25,000 grant.

The revenue office conducts the eligibility checks and confirms that the couple own the property, are Australian citizens, over the age of 18, have a combined taxable income under $200,000 based on their 2018-19 tax return, and the value of their existing home and land pre-renovation is less than $1.5 million. The building contract is also within the HomeBuilder renovations price range (between $150,000 and $750,000) and the couple have made the first progress payment on the renovations. The revenue office approves the application.

As Jacqui and Henry already own their own home, they are not eligible for the First Home Owner Grant, the First Home Loan Deposit Scheme or the First Home Super Saver Scheme."

 

Yep that’s the one - don’t be afraid to let my wife know that too (the being right part - not the $400k knockdown & rebuild part! )

 

I haven't been able to find any information about WHEN the knockdown needs to occur. If it's prior to June 4th and new construction is after June 4th does it qualify for the renovation part example.
I'm assuming if both are after June 4th then you're AOK
Waiting for proper details is frustrating!
If you find/know the answer can you let me know?

 

Sorry Myf - unknown as yet. Will also depend on what the states do (administered by state SRO / OSR’s) or if they use exact instructions from commonwealth grant.
Awaiting legislation but agree all contracted and done after would likely be ok (tbc***)
*** - unknown t&c’s apply

 

Ta!
I have a client who demolished earlier this year but HIA contract is after 4th June so I live in hope for them BUT won't hold my breath. They are very fortunate that they do qualify for 2 x $20k WA state grants for their detached duplex build. If they can qualify for 1 x $25k Federal grant for the PPOR half of the project they will be over the moon.

 

Waiting for the detail is frustrating ... one would've thought they have it all sorted before announcing because, if it troops, they all look like gooses.

If it goes to plan week qualify on both the knock down and build ends ... fingers crossed as, Lord knows, we give more than enough to the government as is

 

My view is that grants has nothing to do with knockdown timing if you do it outside of building contract. Federal grant checks for eligibility and contract to be signed between 4th June and 31st December, construnction to be started after 3 months from contract date - these are 2 major condition. I reckon it will be modeled on FHOG, so 25K can be utilized towards deposit. But agree with general sentiment that lack of clarity is frustrating. We are not alone in this frustration. Look at Ben Dufall thought HomeBuilder would help his dream come true, but instead he's at a dead end

 

In this particular real life case I'm certainly hoping it will work out that way
It's a swiss hole issue. In this instance the client demolished the house earlier this year, the new build value is over the federal grant limit for a new built but the federal grant considers a knock down rebuilt to be under the renovation limits which are higher and the limits work for that. So the house was demolished prior to grant announcement, the HIA contract will be after grant announcement (4th June) and will begin construction within the time, is a PPOR and income levels work.
I guess we work on the proviso they might not qualify with the early demolition but if they do then treat it as a bonus

 

Creeping closer as now acknowledged and clarified on the OSR NSW page ... just waiting for it to become available and - whammo - in goes the application

HomeBuilder program

 

Email from the State Revenue Dept ... link for "application sample/guide"

https://www.revenue.nsw.gov.au/gran...r/HomeBuilder-Grant-Application-and-Guide.pdf