When the HomeBuilder grant was announced in June, it caused a flurry of activity for new home buyers, as people scrambled to take advantage of what was essentially a tax free gift of $25k.
In response to the announcement, many people who had been considering building a new home took the opportunity to purchase land, with a view of taking advantage of the grant within the scope of their new build.
What we’re needing to communicate with some urgency, however, is that in order to secure your $25k grant, you need to have signed your build contract before the stimulus window closes – and while HomeBuilder has been granted a 3-month extension for construction commencement to accommodate the restrictions here in Victoria, new home buyers still need to complete the contract signing process prior to December 31 of this year.
According to some land agents, up to 60% of those who have purchased land since June are yet to select a builder and work through the contract steps. For the uninitiated, it might seem that getting to the contract stage is a process that’s quick and quite simple to execute. In reality, by the time a builder completes due process around floor plans, colour selections, and the tender process, it’s usually a process that spans a number of months.
A lot of builders have hit capacity when it comes to new clients and can’t get any more customers to contracts on time, while others are promising customers they’ll get them to contracts on time – knowing full well they won’t be able to deliver on that promise. We recommend proceeding quickly, but also with a degree of caution. Is the builder you’re looking at able to make a contract date guarantee?
If you are looking to take advantage of the $25k HomeBuilder grant, you’ll need to select a builder that can guarantee they’ll be able to complete your contracts by December 31.
Ultimately, the HomeBuilder grant is an incredibly generous incentive, and we’ve got a real appreciation for how much support its introduction has provided to our industry. If you’ve been meaning to take advantage of the grant but would like to know more, you can get in touch right here.
For more information on the HomeBuilder grant, please visit the SRO website.