The current pandemic has taken a toll on various industries in the country and one industry that’s been heavily affected is the property construction industry. To help boost the economy and save the industry, the Federal Government has announced a $25,000 HomeBuilder government stimulus package. The WA State Government then announced a $20,000 Building Bonus grant of $20,000 to boost the effects on the state’s construction industry.
Combined with the existing $10,000 First Home Owners Grant, these programs offer up to $55,000 grants to home buyers to build a new home, which is great news for home builders who’ve put off the plan to do so this year. So if you’ve been planning to build a new home, now is the time to do so!
How Does the Federal HomeBuilder Scheme Work?
The new stimulus plan is targeted at new home builders who are building a home worth up to $750,000 (including the land value). The grants will be means-tested allowing singles with an income of less than $125,000 and couples earning less than $200,000 in the previous financial year to be eligible.
The grants are offered to approved building contracts within the 4th June 2020 and 31st December 2020 period, with construction to begin within three months of the contract date.
All dwelling types will be eligible for the grant, which includes houses, apartments, house and land packages and more.
The HomeBuilder scheme will also work with existing state and territory stamp duty concessions, first home owner grants and other schemes including the federal government’s first home loan deposit scheme and first home super saver scheme. This provides even more savings for new home builders looking to settle down.
How Does the WA Builder Bonus Grant Work?
The State Builder Bonus grant is similar to the Federal HomeBuilder grant, but with a few key differences. It offers $20,000 to eligible homebuyers who enter into approved building contracts between the 4th June 2020 and 31st December 2020.
However, it does not include income limits. This is great news for buyers who might’ve just missed out on the HomeBuilder grant due to income. There is also no cap on the property value, where the Federal grant only applies to dwellings worth up to $750,000, the state grant will also apply to homes over this value.
Combined with the WA State Government’s First Home Owners Grant of $10,000, eligible home builders within Western Australia could have access up to $55,000 of cash relief.
How The Grant Minimises Safety and Financial Risks
If you’re planning to build a home on your own, you should know that this government stimulus will only be available to owners who hire registered builders. By requiring owners to employ the services of experienced and registered builders like GO Homes, the scheme will ensure that all construction work is carried out according to the highest safety standards.
To ensure the scheme can be delivered to you smoothly and to minimise the risk of fraud, it will be delivered through existing government systems which are the states’ respective revenue offices.
With the slump in the economy and housing market, this government stimulus can greatly help the construction industry to sustain itself and new home builders to obtain their dream home. Being a trusted builder in Perth, GO Homes can help you build the perfect home without exorbitant costs. To learn more about the new HomeBuilders scheme and the WA Building Bonus, please use our simple online eligibility tool.
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