Now is the time to Build - Take Advantage of Government Grants and Low Interest Rates
It’s been a tumultuous year and making big decisions like building a home has been easy for some and not so easy for others.
The government has encouraged families and couples to look beyond the current COVID crisis by planning their future home knowing that, even though interest rates are on hold at record all-time lows, when things return to normal land prices may increase and builders will be difficult to pin down. Bellriver Homes is here to help you make sense of the grants available during this time.
The Federal Government New Home Builder Grant
“The Federal Government has released details of how the HomeBuilder program will operate for homebuyers,” said Bellriver CEO Chad Sandeman.
“The grant provides eligible owner-occupiers (including first home buyers) $25,000 towards the cost of building or buying a new home. Bellriver offers several land and home packages that would be perfect for this injection of funds which is available at commencement of construction.”
The Homebuilder grant is an Australian Government initiative that will be administered by the NSW Government through the Department of Treasury and Finance, Revenue NSW.
“Building a home is a big decision and in these uneasy times, it helps to have an expert who can explain how the grant works and guide you through the process,”Mr Sandeman said. “We can put potential home owners in touch with a mortgage broker who we believe is an enormous asset to anyone about to go on the journey of property purchasing and home building.”
A copy of the grant details including the application form and lodgement guide are available from RevenueNSW.
“All HomeBuilder applications are to be lodged via an online portal, which will be available shortly,” Mr Sandeman said. “We encourage anyone interested in building a new home to contact our team to discuss the application and to discuss the type of home they would like to build.
“We understand that these are uncertain times but opportunities like this provide some certitude and assurance that people need. Things will get better and Bellriver is here to help.”
First Home Buyers Grant and Stamp Duty Freeze
In addition to the HomeBuilder grant, there is the ongoing First Home Buyers government grant where first home buyers building a new property are entitled to a $10,000 grant on homes priced up to $750,000. First home buyers purchasing a new property priced up to $600,000 are entitled to a $10,000 grant. This policy was introduced to provide assistance to first home buyers and stimulate the construction of new dwellings.
On August 1 the NSW Government also introduced a stamp duty freeze for first home buyers. The year long initiative will benefit “thousands of people” and “get more keys into more front doors of more new homes,” NSW Premier Berejiklian told media.
Starting on the 1st of August 2020 and running for 12 months, the threshold for having to pay stamp duty on new homes for first home buyers will jump from the current $650,000 to $800,000 with the concession reducing on higher values before phasing out at $1 million.
An example of the financial benefit for an eligible first home buyer purchasing a $700,000 new build house and land package would save $45,000 with combined grants and stamp duty savings.