Government $40-50k stimulus rebate on new builds

world2160 · Jun 04, 2020 10:45 pm

I am looking to add storey to existing house.

So many questions:

1. Can I sign the building contract before getting council approval?
2. What if I signed the contract but council don't approve the plans?
3. How is 6 months enough for DA approval?
4. Valuation of the existing house must be less than 1.5m, who valuates this? My house is on the borderline.

Ship2shore · Jun 07, 2020 12:15 pm

So it seems the WA government is announcing an additional 20k on top of the already 10k, and 25k national government package?

55k towards a new house in WA. Not against some help for the economy but that amount of money feels like a bit of a slap in the face to anyone building or recently built.

Bobjane · Jun 07, 2020 12:43 pm

Ship2shore

So it seems the WA government is announcing an additional 20k on top of the already 10k, and 25k national government package?

55k towards a new house in WA. Not against some help for the economy but that amount of money feels like a bit of a slap in the face to anyone building or recently built.

Do you have a link to that announcement? As far as I know it’s the 25k Homebuilder grant and 10k FHOG so 35k.

Ship2shore · Jun 07, 2020 12:59 pm

Bobjane

Ship2shore

So it seems the WA government is announcing an additional 20k on top of the already 10k, and 25k national government package?

55k towards a new house in WA. Not against some help for the economy but that amount of money feels like a bit of a slap in the face to anyone building or recently built.

Do you have a link to that announcement? As far as I know it’s the 25k Homebuilder grant and 10k FHOG so 35k.

Just announced by our premier. 55k now in WA it seems

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KodaCujo · Jun 07, 2020 10:15 pm

Ship2shore

So it seems the WA government is announcing an additional 20k on top of the already 10k, and 25k national government package?

55k towards a new house in WA. Not against some help for the economy but that amount of money feels like a bit of a slap in the face to anyone building or recently built.

Our earthworks start on Wednesday 😭 absolute kick in the guts missing out on $45k of grants!

Especially when we put $200k of our own money into it all 🤮😭

friedr1c3 · Jun 08, 2020 8:55 am

Hi all,

Great scheme for those eligible ... but am interested in the following detail/clarification.

We’re eligible for FHOG, and are now looking into HomeBuilder.

We haven’t signed our “final” contracts with our builder yet. We’ve only signed preliminary. We should have final contract this week with engineering etc. Would this be considered having entered into a contract after June 4th?

I haven’t seen much detail about the types of contracts needing to have been signed.

StructuralBIMGuy · Jun 08, 2020 9:31 am

friedr1c3

We’re eligible for FHOG, and are now looking into HomeBuilder.

We haven’t signed our “final” contracts with our builder yet. We’ve only signed preliminary.

Great Welcome to the forum.
Then you don't know the final pricing then?
Make sure sure you get a share of the grant pie by the way of an extra discount!
There are builders/tradies out there that will pull their profits/pants down for your business
seek them out.
Unfortunately if you have signed up with one builder or the builder owns copyright it will be a different story... move quickly
Cheers
Chris

friedr1c3 · Jun 08, 2020 9:39 am

StructuralBIMGuy

friedr1c3

We’re eligible for FHOG, and are now looking into HomeBuilder.

We haven’t signed our “final” contracts with our builder yet. We’ve only signed preliminary.

Great Welcome to the forum.
Then you don't know the final pricingthe?
Make sure sure you get a share of the grant pie by the way of an extra discount!
There are builders/tradies out there that will pull their profits/pants down for your business
seek them out.
Unfortunately if you have signed up with one builder or the builder owns copyright it will be a different story... move quickly
Cheers
Chris

Hey Chris,

That’s right. We’ve got an indicative contract (prelim) with basic high-level plans and elevation views, with one small increase due to price hold expiring. Most pricing clauses such as site costs were subject to soil and engineering, which is all done now.

Theoretically haven’t received the absolute final costs (and contract).

We have been signed with the builder for over a year now.

Our situation doesn’t change with or without the grant, but as you say, get a slice of that pie!

I’ll run it past our file handler with the builder and see what their thoughts are ...

StructuralBIMGuy · Jun 08, 2020 10:20 am

If it were me I would be threatening to pull out immediately, LOL but that's just me
Fast track a new set of Plans, Engineering into DA
Then approach 3 builders with the data and approx quantities tell em to sharpen the final prices
OT I am getting swamped with requests for the above and the money won't last long
cheers
Chris

keyman · Jun 08, 2020 2:17 pm

Does anyone know what the official government/tax office definition of an "investment property" is? Are all properties that are not the principal place of residence automatically defined as an IP? The reason I ask is because of this clause:

"Owner-builders and those seeking to build a new home which will be used as an investment property, or renovate an existing home which is an investment property, will not be eligible for HomeBuilder."

We are settling on property purchase this month and are intending on performing a knock down rebuild which will be our eventual "forever home" once completed. So to the first point, we are building a new home as our future principal place of residence, not as an investment property. With the second point, I'm not sure if the existing home is considered as an investment property as there are no tenants currently and there will never be any tenants after we settle as we will begin the construction immediately.

I can't find any official definitions from a government website but based on a simple google answer:

"An investment property is real estate property purchased with the intention of earning a return on the investment either through rental income, the future resale of the property, or both. The property may be held by an individual investor, a group of investors, or a corporation."

We have no intention of earning a return through rental or future resale as we will be living in it.

perfecthome · Jun 09, 2020 11:37 am

Is cancelling the building contract and then resigning an option? I am not sure if the builders would agree to it also?

pickle · Jun 09, 2020 3:36 pm

perfecthome

Is cancelling the building contract and then resigning an option? I am not sure if the builders would agree to it also?

we are in the same boat, i have asked our builder coral homes for more information but until there are clear guidlines from the state revenue department they can not divulge any useful information either.

KodaCujo · Jun 09, 2020 4:19 pm

pickle

perfecthome

Is cancelling the building contract and then resigning an option? I am not sure if the builders would agree to it also?

we are in the same boat, i have asked our builder coral homes for more information but until there are clear guidlines from the state revenue department they can not divulge any useful information either.

We are the same here in Perth. Our earthworks start tomorrow and we've asked what's possible, if anything. They've came back and said they're waiting on external sources to provide them more info, and if possible they're happy to do it to help their customers out. Got a feeling it's way too late for us though .. but got that 1% hope!! Haha 🤞

perfecthome · Jun 09, 2020 4:33 pm

Hi pickle and kodacujo, please let me know what happens! I will be contacting my builder in a few days too.

friedr1c3 · Jun 09, 2020 4:56 pm

I spoke to our builder. As we’d already signed way back, any changes to the final contract such as contract engineering and fixing site costs, their process is to append these as a post-contract variation which is only short form, and not long form such as the HIA one.

Bummer!

perfecthome · Jun 11, 2020 12:24 pm

pickle

perfecthome

Is cancelling the building contract and then resigning an option? I am not sure if the builders would agree to it also?

we are in the same boat, i have asked our builder coral homes for more information but until there are clear guidlines from the state revenue department they can not divulge any useful information either.

Hi Pickle, as I live in SA, should i be contacting revenueSA first or my builder? I am pretty sure we are still lacking on information. . .

pickle · Jun 11, 2020 12:41 pm

perfecthome

pickle

perfecthome

Is cancelling the building contract and then resigning an option? I am not sure if the builders would agree to it also?

we are in the same boat, i have asked our builder coral homes for more information but until there are clear guidlines from the state revenue department they can not divulge any useful information either.

Hi Pickle, as I live in SA, should i be contacting revenueSA first or my builder? I am pretty sure we are still lacking on information. . .

The first point of contact should definately be your builder,if they let you resign the contract then you can take the process further with your bank as there might be a new approval needed from the lender.

perfecthome · Jun 11, 2020 1:30 pm

pickle

The first point of contact should definately be your builder,if they let you resign the contract then you can take the process further with your bank as there might be a new approval needed from the lender.

Yeah I dont think we'll be eligible then what a bummer!

Morris45 · Jun 13, 2020 12:22 am

Can this 55k grant be used as a Deposit?

If not how is it used?

Sparkyf · Jun 13, 2020 12:53 am

You have to purchase house AND land valued at less than $750K, sign the contract and start building before Dec 31st. And it's $25K only (plus the $10K or $20K First Home Buyer's Scheme if you are eligible).