Construction Incentives To Boost Confidence; What’s in it for you?
If you’ve been unsure about your plans to buy or sell or have put them on hold since the corona virus emerged, then you are not alone.
A Bank SA survey found that during the pandemic 36% of South Australians were put off from buying or selling during the height of the pandemic. However, in a good indicator of the resilience of our local market, 53% of South Australians thought that it was a good time to buy property.
The recently announced Federal Government’s Home Builder Scheme is providing an added boost to confidence. The scheme enables eligible couples with a combined income of up to $200,000.00 or singles with an income up to $125,000.00 to secure a $25,000.00 grant to build a new house or substantially renovate an existing property worth between $150,000.00 and $750,000.00- with terms and conditions.
The scheme is designed to lift economic activity in the construction industry over the next 12 months and stimulate jobs growth, it has already received a strong response.
The Federal Government budgeted for 27,000 applications nationally, but since its introduction has received more than 30,000, including more than 4,200 South Australians.
If you an eligible borrower who was planning to buy, build or renovate, then it is the ideal time to take advantage of this offer.
First-time home buyers need to navigate their way through all the options, conditions and qualifications for assistance with buying their first home, and each state has differing conditions.
In addition to state schemes, the national First Home Loan Deposit scheme permits a mere 5 per cent deposit on a first home, but even conditions for that can vary depending on where you live.
There’s also the national First Home Super Saver Scheme, which lets first-home buyers save money inside their superannuation fund to accumulate a deposit faster.
South Australian First home buyers
HomeBuilder provides eligible owneroccupiers (including first home buyers) with a grant of $25,000.00 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within 3 months of the contract date. HomeBuilder compliments existing State and Territory first home owner grant schemes, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and the First Home Super Saver Scheme.
In addition to the $25,000.00 the South Australian first- home buyers are eligible for a grant of $15,000.00 available for new properties valued at less than $575,000.00. You must never have owned property in Australia, at least one of the first-home buyers must be an Australian citizen, and you generally have to live in the property for a period of time continuously, starting in the first year after completion.
For information on how to access Home builder and other state’s and territories first home buyers incentives, visit their relevant government departments. In many cases the conveyancers/solicitors or finance broker in each state are quite often familiar with the first home owners grant.
Regardless of the incentives on offer, always make sure you do your research thoroughly and seek financial advice so you can make the right decision based on your individual circumstances.