Things to consider with the $25k HomeBuild Grant

Hi All,

We a planning a move to a new suburb in the new year when my kids start at their new school.

We are seriously consider purchasing a home and land package as there is very little stock in the area in terms of existing homes.

The cost to build a new home (about $500k) is cheaper than buying an existing home in the area (similar spec).

Whats swaying us towards a new build ($500k) opposed to buying an existing home (+ $520k) is the $25k home builder grant and not having to pay stamp duty (about $10k)... also the fact we will be getting a brand new house for alot cheaper than buying an existing home.

With regards to the $25k home builders grant, is there anything i should consider or be careful about about? Is it guaranteed on completion? What happens if builder isnt able to start building within 3 months of signing contract? (which is a condition of the grant).

Keen to hear everyone's thoughts.

Cheers,
Robbie

 

Hi Robbie,
In my state they are allowing a 3mth extension if you can't get slab down within 3mths from contract - this is to allow for situations outside of your control such as delays in council approvals, builder unable to start due to being too busy

It is however advisable not to rush into doing contracts but time it so that the contract is signed as late as possible.

Your state department which handles it should have more details on their website which clarify things for you.

 

@Westminster Thanks for the reply. In QLD, they are also offering the extension (see below).

With regards to not rushing into a contract.. lets say the land becomes available in a few weeks and i put down my small holding deposit. The next step will be to finalize the building design (which then becomes a contract), once thats done, i then apply for finance (land and build). Are you suggestiing that i try slow down things when it comes to the house design (pre-contract) and only look at signing a contract closer to the end of the year?




3-month extension
If commencement of construction is delayed due to factors that are unforeseen and outside of the control of the parties to the contract, the Commissioner of State Revenue may grant a 3-month extension to allow for late applications.

Examples include:

• delays in obtaining council approvals
• difficulties in obtaining construction materials and/or sub-contractors
• inclement weather, where the disruption is substantial
• health problems relating to, or the death of, a person critical to the commencement of the project
• prolonged industrial disputes
• natural disasters.

The Commissioner is unlikely to grant an extension when:

• an applicant does not undertake appropriate due diligence when entering a contract, or makes deliberate informed choices that make them ineligible
• delay results from the builder contracting to undertake more work than they could be reasonably expected to complete in the relevant timeframe
• construction is delayed because the land developer has set pre-development sales targets that have not been met.

 

Is the land size the same in your comparison of new build compared to existing house?

 

No I don't mean wait closer to end of year but just be mindful that building companies love contracts as it locks you in so may pressure you to sign early and then you run out of time.

 

Yup, both 600sqm

 

Once the deposit is put on the land, is there specified time-frame to finalize the contract (which will be required when obtaining finance)?

 

it all depends on what your land contract says and if you are trying to get a combined loan for the land and construction