WHAT GRANTS ARE AVAILABLE
FIRST HOME OWNERSHIP GRANT, FHOG - $10,000
The first home owner grant (FHOG) is a one-off payment to encourage and assist first home buyers to buy or build a residential property for use as their principal place of residence. The grant is $10,000 or the consideration paid to buy or build the house if less than that amount. Only one grant is payable per eligible transaction, so two people purchasing a house together may only receive one grant. Find out more at: https://www.wa.gov.au/organisation/department-of-finance/fhog
HOMEBUILDER GRANT FEDERAL - $25,000
HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home. HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations. For more information: https://treasury.gov.au/coronavirus/homebuilder
BUILDERS GRANT – STATE - $20,000
Building Bonus grants are available for people who enter into a contract to build a new home on vacant land or purchase a new home being constructed under a single-tier development on a strata plan or other land survey type. Two grants are available to promote investment in the WA residential market and stimulate jobs in the construction industry.
A grant of $20,000 is available for eligible applicants who
- enter into a contract to build a new home on vacant land or
- enter into an off-the-plan contract to purchase a new home as part of a single-tier development on a strata plan or other land survey type.
More information: https://www.wa.gov.au/service/community-services/grants-and-subsidies/apply-new-home-construction-grant
WILL THE BANKS TAKE THE GRANTS INTO CONSIDERATION AS MY DEPOSIT
Unfortunately, at the moment the Banks are indicating to the industry that the available HomeBuilder both state and federal grants will not be classified as your deposit. However the FHOG of $10,000 will be included as your deposit towards the transaction.
Some further considerations to weigh are as follows:
- Do you have a deposit? Most financiers require a min of 5% deposit based on genuine savings
- What is your income position and how long have your been employed for?
- What are your current living expenses and what will be your future living expenses when you move into the property?
- Do you have any current debts (credit card, personal loan etc)?
- Speak to your broker prior to placing an offer on the land to ensure you can borrow the funds
- Ensure you have the correct finance clause and other clauses recorded on the contract
- Are they any restrictions or covenants placed on the property?
- Set appropriate dates for finance approval and settlement
CHOOSING YOUR DESIGN
- Work with your builder to ensure the building is suitable for the land your have chosen
- Understand what items are included in the initial quote for construction
- Have you sufficient funds are construction for items such as carpets, window treatments, landscaping that may not be included in your contract?