Western Australia has unveiled the Building Bonus Package, which aims to support would-be homeowners and the state's residential market and economy. The support package is part of the state government's efforts to stimulate demand for homes and cushion the impact of the COVID-19 outbreak on the construction industry.
Are you a would-be homeowner who would like to explore if this grant is for you? This guide will help you understand the eligibility requirements and the benefits of the grant.
What does the Building Bonus Package entail?
Under the Building Bonus Package, you will be able to apply for a $20,000 grant if you enter into a contract to build a new home on vacant land or sign an off-the-plan contract to purchase a new home as part of a single-tier strata scheme. The grants will be available for contracts entered from 4 June to 31 December this year. The money from the Building Bonus Package will be paid to you directly.
Both owner-occupiers and investors are allowed to apply for the grant, as long as their contracts meet the qualifications. Unlike the other grants available, applicants do not necessarily have to reside in the state or in the home they are applying for.
The package imposes no price caps on the purchase price or the value of the property. You are allowed to apply for several grants provided that each property that you are applying for meets the criteria.
Criteria for new detached homes
When you apply for the grant, you must be the registered owner of the vacant land on which the dwelling will be constructed. One grant will be paid for each vacant land, regardless of how many homes will be built.
If a building is already constructed on your land, you need to have it demolished first before being able to apply for the grant. This means that the construction of granny flats will not be covered under the grant.
The home that you are constructing should be a detached residence: it should not share walls or roof structures with any other buildings. You cannot use the eventual home for short-stay accommodations.
The construction of the house should start within six months of entering the contract. You can apply for the grant as soon as the construction of the home commences.
Criteria for new dwellings on a single-tier strata plan
If you are entering into an off-the-plan contract to purchase a new home in a single-tier strata scheme, you are also eligible for the Building Bonus Package.
However, you need to make sure that your contract is not a replacement transaction. It also cannot be for a completed dwelling that is held by the developer or another person. Furthermore, your agreement should not be for refurbished developments.
For this one, you can only apply for the grant once the construction has been completed and you are officially the registered owner of the property.
Applying for other similar grants
Even if you qualify for the Building Bonus Package, you will still be eligible to apply for other similar grants available including the HomeBuilder scheme and the First Home Owner Grant.
If you are a first-home buyer, you could potentially be eligible for $69,440 from all the grants available.
You can apply for the grant by clicking this link.