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Extension To Commence Construction For HomeBuilder Scheme

Assistant Treasurer and Minister for Housing Michael Sukkar, announced on the 17 April, that the Federal Government is extending the deadline to commence construction for homes participating in the national HomeBuilder scheme.  It is now pushed out to 18 months and will now conclude on 30 September 2022.

Since HomeBuilder was introduced in June 2020, in excess of 121,000 people have applied for the scheme.  The latest ABS data details that housing commencements increased by 27 percent in the fourth quarter of 2020, which is the highest level since March 2000.  Applications for HomeBuilder closed at the end of March this year.

Red23 Managing Director Terry Portelli, has welcomed the decision by the Federal Government saying, “This announcement has taken pressure off our Builder and Developer partners in managing their congested construction pipeline brought on from the successful scheme.  It will also provide our buyers with the extra confidence that their new home will meet their timing and quality expectations.”  

Terry continued, “HomeBuilder has been a great success in providing stability and support for our new homes industry and we are pleased that so many jobs will remain secure because of this announcement.  Our industry will continue to play a critical role to the economic recovery from Covid-19.” 

For those who were not in a position to purchase a new home during the HomeBuilder Scheme period, it is still an outstanding time for First home Buyers to purchase in Melbourne and Regional Victoria.  

First Home Buyers can still take advantage of 3 Federal and Victorian Government financial initiatives:

 

1. Stamp Duty saving

The State Government land transfer (stamp) duty waiver is for purchases of Victorian residential property with a dutiable value of up to $1 million.

For new residential properties, this means a 50% land transfer duty waiver for the purchase of a new home. This requires the residence to be built at the time of the transfer.

For further information on the stamp duty waiver, visit the State Revenue Office’s Land transfer duty waiver page

 

2. First Home Loan Deposit Scheme

The ‘First Home Loan Deposit Scheme’ (FHLDS) is co-ordinated by The National Housing Finance and Investment Corporation (NHFIC).  It is eligible for the first 10,000 borrowers who apply each financial year.

Homes in Melbourne and Regional Victoria have a property price threshold (maximum property purchase price under the Scheme) of $600,000.

Visit NHFIC’s website for essential information on the Scheme

 

3. First Home Owner Grant

The State Government’s First Home Owner Grant (FHOG) provides a $10,000 Grant when you buy or build your first new home in Metropolitan Melbourne.  Regional First Home Buyers can receive a $20,000 Grant.

For further information on the First Home Owner’s Grant, visit the State Revenue Office.

 

Red23 can help find your first brand new home

Red23 are leaders in the new homes market across Melbourne and Greater Geelong.

We assist First Home Buyers in sourcing and securing the right house design and land lot in communities that our buyers want to call home.

Our experienced team of property professionals understand the financial and lifestyle objectives of First Home Buyers and present a range of housing options for an informed decision. 

Contact Red23 for a no obligation discussion on your first new home requirements.

 


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