On July 31, the Queensland State Government opened applications to the HomeBuilder Scheme, meaning a suite of financial incentives are now available to people looking to buy, build or renovate a property.

Many will expire by the end of the year, so if you’re looking to purchase real estate, now is the time to get up to speed on the grants you may be eligible for.

Here’s a quick recap of the property grants currently available in Queensland…

HomeBuilder

Funded by the Federal Government, but administered by each state and territory, the HomeBuilder Scheme is designed to spur interest in property construction.

At present, there are two types of grants available: new builds and renovations. Each has fairly stringent conditions and a sunset clause of December 31 this year, but sees property owners eligible for $25,000 in assistance.

In terms of new builds, the conditions are as follows:

• The constructed property must be your principal place of residence
• Your 2018–19 or 2019-20 annual taxable income must be below $125,000 for an individual or $200,000 for a couple.
• The combined value of the land and build must be less than $750,000
• The contract must be signed between 4 June 2020 and 31 December 2020 to buy an off-the-plan or new home valued at $750,000 or less and construction must not have started before 4 June 2020, or build a new home valued at $750,000 or less (house and land)

When it comes to renovations, they need to be substantial and valued between $150,000 and $750,000, while the value of the house and land before renovation must be less than $1.5 million.

Queensland First Home Owners Grant

As the name implies, this is a State Government grant available to first-time buyers. Like HomeBuilder, it is also targeted at new builds, whether that’s a property you intend to have built on your behalf or a new property that you buy.

Ultimately, this grant sees buyers eligible for $15,000 and conditions stipulate you must have entered into a contract after July 1, 2018, while the property (including land) cannot be valued at more than $750,000.

You must also move into the new home as your principal place of residence within one year of the completed transaction and live there continuously for six months.

You find more information and check your eligibility for the First Home Owners Grant here.

The First Home Loan Deposit Scheme

This is not so much a grant as it is a Federal Government-backed guarantee that is available to up to 10,000 first-time home buyers each year.  

At present, there’s talk that the government might be expanding on it in the coming months due to demand, but nothing concrete has so far been announced.

And it works like this: If you are a first-time buyer, the First Home Buyer Deposit Scheme can help you get into a property sooner by allowing you to purchase a property with as little as five percent of the deposit saved and without the need for Lender’s Mortgage Insurance.

Normally if you have less than 20 percent of a deposit for a property, the bank will require you to take out Lenders Mortgage Insurance and the costs of this can quickly add up over time, so this scheme is also targeted at making the property more affordable for first-time buyers.

As you would expect, there are conditions attached. These include:

• A salary threshold – individuals cannot earn more than $125,000 per annum, and couples cannot earn above $200,000.
• The property must be your principal place of residence
• On the Sunshine Coast, the property cannot be valued at more than $475,000
• Your loan must be principal and interest
• You must have demonstrated savings of at least 5 percent (the First Home Owners Grant does not count towards these demonstrated savings)

You can read more about the First Home Loan Deposit Scheme here.

A good time to buy

As you can see, there are a raft of incentives currently available in a bid to support buyers when it comes to purchasing a property. Meanwhile, interest rates are at a historic low, and together, that’s making now a great opportunity for buyers to enter the market. Reliable real estate agents Noosa area is what you need.

If you’re seeking out a property or considering selling, you can contact the imsold team and we’ll be happy to assist you.