Building A New Home With The Help Of Government Grants
September 9, 2020
Building a new home is an exciting time. You are in the process of putting your dream home into action. It is no longer just a thought in your mind or a plan on a piece of paper. When deciding to build your new home, there are a couple of options you should investigate that may be able to provide you with assistance. The Government has several different grants available that you may be eligible for. These grants can help to take a bit of financial pressure off you during the different stages of your purchase and build. Grants can come from both the Federal and State Governments, so make sure you check which ones are for your area.
For help with identifying the different grants available, we have put them all into one handy list for you. Check them out below!
Home Builder Grant
In 2020, the Federal Government put in place a new grant to assist with the building of a new home or substantial renovations to an existing home. This grant was added into the schedule as a way to assist people during the current Corona Virus Pandemic. The grant is up to the value of $25,000 and can be used towards a new home build or making renovations to your existing home.
The grant requires you to complete an application and be verified to confirm if you are eligible or not. Each state has their own requirements, so make sure you apply through the correct state guidelines.
To find out more, click the below link.
First Home Buyers Grant
If you are just starting out in the property buying or building sector, then you are classed as a First Home Buyer. This means that you may be eligible for the First Home Buyers grant. This grant is in place to help people secure the mortgage for their first home.
The way that it works, is that the Government acts as the guarantor on your loan. This gives you the benefit of then having to only save a 5% deposit to secure your loan.
This can be used towards an existing home or a new home build. There are different price limits and requirements per state, and it is important to read the criteria before applying.
Visit the below link to find your state requirements.
In New South Wales you may also be eligible for a $10,000 grant for a new home build or purchase of a recently constructed home. This is only available for first home buyers. This can not be applied for if you are purchasing a home that is a few years old or if the home and land that you are purchasing and building on has a value of more than $750,000.
First Home Super Saver Scheme
This scheme does not provide you with a cash amount from the Government, rather is a way to help you save quicker for your deposit.
The way in which the scheme works is that you can make voluntary contributions into your superannuation fund that can then be used towards your deposit.
There is a maximum of $30,000 that you can voluntarily add into your superannuation fund, capped at $15,000 per year.
Because voluntary contributions are taxed at a lower amount, it means that you can save quicker. Not to mention with it being in your superannuation fund – it is not easily accessed. Say goodbye to those impulse buys that eat up your savings.
The Australian Taxation Office website provides all the information you need on this scheme.
Each state also has their own grants that they have made available including additional financial assistance for those who are buying or building their home. Before you go ahead and accept that you will be paying X amount for your home, do a bit of research. Look into the grants that both the Federal and State Governments have available. Check if the building company you are using have any grants of their own that you may be eligible for. By doing this you may be able to save yourself thousands of dollars on the cost of your build.
Enjoy the process, get excited and take each step as a step forward into your life as a home owner.
With love from HH.