The HomeBuilder scheme was first announced in the clutch of the pandemic as an impetus for building contracts signed between Thursday the 4th of June 2020 and Thursday the 31st of December 2020.
The reaction from first home buyers has surpassed expectations and ignited the building industry.
As a result of this increasing demand the State Government has now extended the building commencement criteria from three to six months.
This is great news for Adelaide First Home Builders looking for a new land and house package.
Here is an overview of what this might mean for you…
Key Points (Too Long Didn’t Read)
- On Monday the 23rd of November 2020 the State Government extended the building commencement criteria to six months.
- Previously the building commencement criteria was only three months.
- This means that to be eligible for the HomeBuilder Grant, construction must start within six months of the date of the agreement.
- This extension to the building commencement criteria is in response to the increased demand for new home sales since the HomeBuilder Grant was introduced on Thursday the 4th of June 2020.
- Whilst the building commencement criteria has increased the deadline for HomeBuilder Applications remains the same: Thursday the 31st of December 2020.
HomeBuilder Grants Increasing New Home Sales
According to the Housing Industry Association, new home sales have improved by nearly fifty per cent in the four months since the scheme was announced compared to a related time frame in 2019.
However a condition to start construction within three months was challenging the capacity of the building industry also.
A key pain point for many is that the grants aren’t paid until work starts with the short time frame floating concerns about a hold up of work.
The money is released for:
- New builds when the foundations are laid
- Renovations when work starts, or
- For off-the-plan jobs when a name is recorded on the title.
But in each case construction had to start within three months after the agreement is signed unless there are “unforeseen factors outside the control of the parties to the contract (e.g. building or planning approvals)”.
An Extension To The Building Commencement Criterion From Three To Six Months
On Monday the 23rd of November 2020 the State Government announced that the building commencement criterion has now been extended to six months.
This is an extension of the construction start time frame by three more months which means that to be eligible for the HomeBuilder Grant, construction must start within six months of the date of the agreement.
Commencement must be reinforced by proof such as a statutory declaration from the builder or a mandatory notification form which is used to inform local councils of stages of work.
The Deadline For HomeBuilder Applications Remains The Same
Another key point to keep in mind is that at this stage applications must still be submitted no later than Thursday the 31st of December 2020.
So whilst the building commencement criterion has increased from three to six months.
The deadline for HomeBuilder Grant applications remains the same.
Start Your Success Story
Are you an Adelaide First Home Buyer looking to take advantage of the HomeBuilder Grant?
As South Australia’s only First Home Buyer Advocate service we are proud to have helped hundreds of Adelaide residents leave renting and get into their own home.
With up to $40,000 in total available grants, there has never been a better time to be an Adelaide First Home Buyer.
Contact us to learn more about how we can help you work out:
- How much you can borrow?
- Which grants you qualify for?
And we can even help you find a block and choose a housing builder also.