In early June 2020, the West Australian Premier and Treasurer announced a $20,000 housing construction grant for new residential builds.
Unlike the federal government’s HomeBuilder scheme, this state-based grant is available to investors as well as owner-occupiers.
What is the Building Bonus grant?
Known as the Building Bonus grant, the WA scheme applies both new home builds and purchases of “single-tier” strata buildings. This includes townhouses and villas.
Owner-occupiers, owner builders and investors can all qualify for the Building Bonus. In fact, you don’t even have to live in WA to access the scheme. Australian citizens and overseas residents are eligible, as are corporations and trustees.
The Building Bonus is not means-tested and there’s no cap on the value of the property.
How do you qualify?
To be eligible, you must sign a contract between 4 June 2020 and 31 December 2020 and start work within six months. You must also be:
- building a new home on vacant land, such as a knockdown rebuild, new build or house and land package, or
- purchasing a new off-the-plan apartment as part of a single-tier strata scheme, such as a villa or townhouse.
If you’re buying a multi-tiered off-the-plan development, you won’t qualify. However, you may still be entitled to the Off-the-Plan Duty Rebate, which we discuss below.
Unlike the Federal Government’s HomeBuilder grant, the State scheme doesn’t apply to renovations. It also doesn’t apply to granny flats or mixed-use and commercial developments.
Can you combine Building Bonus with HomeBuilder?
Owner-occupiers can combine the Building Bonus with HomeBuilder but investors aren’t eligible for the Federal Government’s HomeBuilder.
Does the first home buyer grant still apply?
You can apply for the Building Bonus and still receive the First Home Buyer Grant.
In fact, when you combine the Building Bonus grant, the Federal Government’s HomeBuilder grant, the First Home Buyer Grant and the first home buyer transfer duty concession a first home buyer could potentially qualify for a total of $69,440.
That’s a reasonable amount to put towards a first step on the property ladder.
How does the Off-the-Plan Duty Rebate work?
The WA government has also extended the existing Off-the-Plan Duty Rebate Scheme, which applies to “multi-tier” strata buildings.
For the “multi-tiered” apartment market, the Duty Rebate offers a rebate of 75% of the duty paid on multi-storey off-the-plan apartments. This is capped at $50,000 for a pre-construction contract and $25,000 for contracts where construction has already begun.
This rebate has been extended until 31 December 2020.
Perth becoming a great place to invest
With the Perth population expected to grow in the coming years and new infrastructure on the way, Perth is a great place to invest in residential property, including in new builds and off-the-plan properties. After all, every new person moving to our State will need somewhere to call home.
If you’re looking to invest in Perth’s property market contact our specialised team of property managers today.