What building grants are available in 2023

If you’re looking to build a new home, you’re probably wondering what grants or incentives are available, especially in 2023. While the housing market has gone up in recent months, the good news is that there are still grants available to help Bundaberg home builders develop their first home, as well as investors looking to delve into the market. Here’s everything you need to know about building grants available in 2023 and whether or not you’re eligible. 

The First Home Owners Grant in Queensland

If you’re a first-time home owner in Queensland, the first thing you’ll want to do is check your eligibility for the Queensland First Home Owners Grant. Should you secure a grant, the government will give you $15,000 towards buying or building a new house for you to live in. 

Generally speaking, to be eligible for a First Home Owners Grant in Queensland you will need to:

• Be over 18
• Be an Australian Citizen or Permanent Resident
• Have never owned a residential property in Australia
• Be buying or building a house valued under $750,000
• Move into the home within 1 year of being complete and live there as your permanent residence for at least 6 months

You can test your full eligibility for the Queensland First Home Owners Grant. 

What about the HomeBuilder initiative? 

Some of you may have heard of the government’s HomeBuilder initiative, developed during Covid to boost the construction industry by giving home builders a one-off payment towards the cost of building their house. Run throughout 2020 and 2021, applications for HomeBuilder closed in April 2021, with Construction needing to commence before October 2022. With the phasing out of HomeBuilder, the First Home Owners Grant is the only grant currently available to support home builders constructing a house in Queensland. 

The Home Guarantee Scheme

While the First Home Owners Grant is the only grant currently available for those looking to build in Queensland, there are other avenues to help you afford a house. The Home Guarantee Scheme is a nation-wide initiative first introduced in the 2017-18 Federal Budget. Rather than requiring a 20% deposit on your home, as is the standard for most lenders, if you land a place in the Home Guarantee Scheme the federal government will guarantee up to 15% of your home loan, meaning you can purchase your home with only a 5% deposit, and avoid paying Lenders Mortgage Insurance (LMI). 

There are 3 different branches of the Home Guarantee Scheme:

• First Home Guarantee (FHBG) - Available for First Home Buyers across Australia earning up to $125,000 per year for singles or $200,000 for couples
• Regional First Home Buyer Guarantee (RFHBG) - Available for First Home Buyers in regional areas (check your postcode here - hint: Bundaberg is currently eligible!)
• Family Home Guarantee (FHG) - Available to single parents earning up to $125,000 per year, with at least one dependent child (this special category of the scheme requires only a 2% deposit, rather than a 5% deposit) 

You can check your eligibility for each branch of the Home Guarantee Scheme here. 

The Help to Buy Scheme

Newly announced for 2023 is the federal government’s Help to Buy Scheme. In this new equity scheme, the government will contribute up to 40% of the property price for a new home, and up to 30% for an existing home. The government will retain this equity in your house until you are able to pay it back, at least 5% at a time. The scheme also lowers the amount you’ll need for your deposit, allowing you to purchase or build a new home with only a 2% deposit and no LMI. 

The Help to Buy Scheme will commence nation-wide in July 2023. To be eligible, you must:

• Be at least 18 years old and an Australian Citizen (permanent residents are ineligible)
• Earn no more than $90,000 per year for singles or $120,000 for couples
• Not own any land or property in Australia or overseas
• Move into the home as your primary residence

There are also regional property caps on the value of the home you can purchase, which can be viewed here.

What Housing grants are available for investors? 

If you are looking to buy or build an investment property, there are also initiatives available to help you do so. The Housing Investment Fund is a Queensland Government initiative that provides subsidies, one-off grants, and other support to encourage investors to develop affordable housing across Queensland. The fund was boosted to $2 billion in October 2022, with a variety of avenues to access and use the funding. 

You can learn more about support for housing investors here, including the Queensland Housing Investment Growth Initiative, which aims to deliver thousands of social and affordable homes to vulnerable Queenslanders.

Building a home can be a daunting experience, whether it’s your first time, or you’re a seasoned pro. If you want support in designing your dream home, getting a quote for your property, or knowing who to talk to next, your local Bundaberg home builders are here to help. Contact us today to learn how we can support you.