Homebuilder Scheme – Why the time to buy is now

Published Mon 23 Nov 2020

Due to the high demand across northern Melbourne there are many builders who have closed the books on the HomeBuilder Grant. However, at Mandalay we have partnered with Australia’s Leading Home builder Metricon to fast-track 19 of their most popular home designs and they are all Homebuilder Eligible. With interest rates at their lowest and $25,000 tax free in your pocket ($45,000 for First Home Buyers) there has never been a better time to buy a new home at Mandalay.

Homebuilder Scheme – Why the time to buy is now If you’ve been considering building a new home by now you will have heard about the Federal Government Home Builder Scheme or Grant. Homebuilder is intended to bolster the property market and construction industry due to the COVID 19 pandemic by offering a $25,000 cash incentive from the government towards building a new home.  
Due to the high demand in Mandalay and across northern Melbourne there are many builders who have closed the books on HomeBuilder as they simply can not meet the requirements of the grant. The Sill Release (Stage 65) at Mandalay however, is different. The release offers 19 Metricon house and land packages that have been fastracked and are Homebuilder eligible.  These are not townhomes but a selection of Metricon's most popular home designs. So not only will you be able to purchase a stunning modern Metricon home adjacent to parkland, you will also be able to save up to $45,000* on the purchase price!
There are however some guidelines around the Homebuilder Scheme and certain conditions in order to be eligible to receive the grant. There’s a little more to it than just signing a building contract before the 31st December 2020 and going on your way. While the Homebuilder Scheme is a Federal Government initiative (thanks Scomo), the state revenue office will determine eligibility and payments and this can vary from state to state. The guidelines below are for Victorian homebuyers.  
Here’s everything you need to know before you buy.

Who is eligible for HomeBuilder?
If you’re an owner occupier looking to purchase a new home (new construction) the Homebuilder scheme will provide $25,000 to eligible homeowners. You don’t need to be a first home buyer to receive the grant, you just need to ensure that the home you are building will be your principal place of residence. i.e. you intend to live there.
There are some terms and conditions around grant eligibility, so you need to ensure that you fulfill all the eligibility criteria.
  • The Homebuilder Scheme is for owner occupiers. The scheme does not apply to investment properties.
  • You are an Australian Citizen, and you are 18 and over. No companies or family trusts will be accepted.
  • For new homes you must live in the home for at least 6 months after you settle on your home.
  • You meet one of the following two income caps: $125,000 per annum for an individual applicant based on your 2018-19 taxable income or later; or $200,000 per annum for a couple based on both 2018-19 taxable income or later.
  • The cost of your build or off the plan contract must not exceed $750,000 (inclusive of GST).
  • No owner-builders are authorised, you must build with a registered builder.
  • You must sign a building contract between 4 June 2020 and 31 December 2020 and construction of the home must starts within six months of the date of the contract. So, if you signed a contract on the 1st December 2020 your builder must start building by 1st June 2021.
  • The grant paid from the HomeBuilder is tax free.
  • If you are a First Home Buyer then the Homebuilder Scheme will be paid in addition to the $20,000 Regional First Home Buyers Grant, First Home Buyers Low Deposit Scheme and Stamp Duty Savings for First Home Buyers. That’s a lot of savings!
What type of construction is allowed under the HomeBuilder Scheme?
There are three types of building contracts that allowed under the Homebuilder Scheme.
  • A new home building contract on your land.
  • A renovation with a builder on your home for $150,000 to $750,000 and where the value of your home does not exceed $1.5milliom
  • A build contract to purchase an off-the plan home/townhome.
Homebuilder Scheme when do I apply?
You need to apply for Homebuilder Scheme before the 31st December 2020 so the best time to be securing your home and getting your application in order is now. You will require supporting documentation of course to enable the state Revenue Office to process your application.  You will find the supporting documentation required and the HomeBuilder Scheme application form here.
When you receive payment of the HomeBuilder Scheme also depends on whether your application relates to a new build, substantial renovation, or off-the plan / new home purchase. For off-the-plan purchases at The Greenway – grants will be paid after the applicant(s) name is registered on title. You must also be registered on the certificate of title as the owner of the property by no later than 31 October 2022.
With interest rates at their lowest and $25,000 tax free in your pocket ($45,000 for First Home Buyers) there has never been a better time to buy a new home at Mandalay
For more information on Homebuilder Eligible Metricon Homes now selling at Mandalay contact Dimi Rokka on 1300  or register here . *Conditions Apply

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