$55,000. That is the total amount of money in building grants the State and Federal Governments are willing to provide eligible Western Australians, who are thinking of building a new home.
Sounds great, doesn’t it? For many, the building grants in Western Australia are an opportunity to build that custom home they have been dreaming about. However, not everyone will be eligible for each grant, and there is a strict timeline on when they will be available.
Let us go through some of the fundamentals of the Homebuilder’s Grant and cut through the Government hype, and answer one simple question – is it achievable?
First, are you eligible? The $55,000 total consists of three grants: $10k for the first homeowners grant, $20k for the WA state building bonus and $25k for the Federal Homebuilder Grant.
All grants require you to be an Australian Citizen. The First Home Buyer’s Grant is rather self-explanatory: you need to be a first-time homeowner. The $20k and $25k State and Federal grants is where it gets a bit more complicated. The State grant is not means-tested, and investment buyers may be eligible. The federal grant is means-tested with max earnings at $125k as a single income or $200k as a couple. It is also not available for investors, veteran home builders (AKA this isn’t your first show on the road). The land value cannot exceed $750,000 either, prior or after development.
If you do meet the requirements of one, or all the Homebuilder Grants, there is the question of time. Both the Federal and State Homebuilder Grants require HIA contracts to be executed by the 31st December 2020.
This strict timeline has a lot of consequences for home builders in Perth. One consequence is that there will no doubt be a steep rise in demand for bespoke builders and tradesman. With the increase in demand, there often comes an increase in price, as skilled Perth builders become harder to find.
Perhaps the severest consequence of the strict timeline though is that it leaves little margin for error. Any delays between finding a builder, planning, financing, and obtaining approvals might delay building and ultimately threaten your grant.
Any custom home builder in Perth will tell you, it is often not planning that fails, but people. That is why it is necessary to work with experienced, trusted, and knowledgeable builders, especially when there is no room for error.
So, in short: is the Homebuilders Grant achievable? Yes. Does it come with some risks? Unfortunately, also yes.
At Bellagio Homes, we are the premier custom home builders in Perth. We have worked on a wide range of unique projects and always pride ourselves on our transparency. As Perth is such a small city, reputation is everything. That is why since 2005, we have worked hard to gain the trust and appreciation of our customers. We deliver quality, luxurious custom-built homes to strict deadlines, year in year out.
Give us a call today and ask about how we can help you navigate the Homebuilders Grant here in Perth.