Using building grants available in Perth

Hi all,
My wife and I are planning on signing a contract to buy a villa currently under construction in Perth. It is due to be completed in February. Construction of the villa commenced after 4 June 2020 and we are planning on signing the contract in the next few days, before the 31 Dec 2020. Based on this I believe we are eligible for both the Building Bonus and the Homebuilder grant, as we intend to live in it.

The villa is on a built strata lot and we didn’t contract to build it - we are only contracting to purchase the villa once it is completed in a few months time. From my reading of the eligibility conditions for the grants I believe we are eligible for both of the grants - can anyone confirm if this is the case?

My main concern has to do with the fact that we are signing a contract after construction has already commenced, but before completion - can anyone provide some clarify?

Many thanks

 

As far as I know I believe you are correct at least for the state grant - I'm not as well versed on the federal grant. When are you moving to Perth and do you meet the income criteria for the federal grant?

With the state grant you will be eligible to get the grant once titles are transferred into your name at the end of construction. You will need to provide some various pieces of documentation to support your claim - these are listed on the WA website - such as proof of when construction commenced etc

PS there is a telephone number you can call to confirm with the department.

 

Hi Westminster
Thanks so much for lending your expertise. We are looking at moving to Perth in June 2021 to live in it for 6 months and meet the occupancy requirements for the Federal Grant and the WA FHOG. We certainly do meet the income requirements, combined we only earn about 80k pa. Re Homebuilder- the fact sheet says the following:
‘What types of contracts are eligible under HomeBuilder?
HomeBuilder is available for contracts signed between 4 June 2020 and 31 March 2021 (inclusive).
For new builds and substantial renovations, the relevant contract is the building contract.
For developer projects, including off-the-plan builds, the contract is the sales contract, where construction commenced on or after 4 June 2020.’
It also says:
‘To access HomeBuilder, applicants must either...
- build a new home as a PPOR, where the property value (ie house and land) does not exceed 750k
- substantially renovate etc...
- purchase an off-the-plan/new home as a PPOR where the contract price does not exceed 750k and construction had not commenced prior to 4 June 2020’
So as far as I read it, we are purchasing a new home which is a developer project, the relevant contract is the sales contract, and construction commenced after 4 June 2020.. so it seems we should be eligible (fingers crossed!!)

With the state grant - that’s great to know. We will apply once the titles are in our name. The builder has provided us with a signed letter stating the date when the slab was laid, and a copy of his registration.

Thanks for your help!!
Cheers

 

Looks good to me too.

I'm pretty sure you need to get the federal grant application in before the end of the year - even if you don't have all the documentation yet. The state grant will wait until you own it.

 

One last thing - the villas were built on a triplex block, and the existing house had to be demolished for the villas to be built. The question is: How is commencement of construction defined in WA? I have a letter from the builder saying the slab was laid in July, but is it possible that the commencement of construction may actually be defined as when demolition of the existing house occurred?

 

What you have should be sufficient as the demolition of the house doesn't concern your off the plan purchase.