First Questions About New Home Grant Scheme

[leann]

Hi, I'm new here and I hope this is the right place to post this.

I would like to know if I was to purchase a small block of land for less than $10,000 in a more remote area to be able to get something cheap would I be eligible to have the $5,000 from the "New Home Grant Scheme" to cover a majority of the price?

I recently lost my job and I got in some financial issues. I do have one investment property I purchased some years ago and if valued today it might get me $80,000 equity. I have very little cash or savings or recent income history so getting a loan right now won't be easy I guess. Last night I came across this grant when browsing and I thought, this could be an opportunity for me to buy some land and to hold it for future building.

I really don't know much about it and this is where I hope to get some more advice here. I'm a little confused about some of the wording on the grant page here

How is the grant paid?

The grant is paid as a credit against your liability for duty on the agreement or transfer.

If the duty payable is greater than $5,000, only the difference between the duty payable and the $5,000 grant is to be paid.

If the duty payable is less than $5,000, no duty is required to be paid and a payment of the difference between the grant and the duty payable will be paid by cheque.

If the total amount of duty payable (whether greater or less than $5,000) is paid, the $5,000 grant will be paid by cheque.

I need to clarify, does this mean if I purchased a lot for say $8,000 would I get the grant of $5,000 for the purchase price or does it just cover fees like Duty or something?

it also says:

that is intended to be used as the site of a new home and which is not an off the plan purchase (vacant land purchase). Construction of the home, by way of laying foundations, must commence within 26 weeks (or a longer period allowed by the Chief Commissioner) of completion of the purchase. However, there is no limit on the time of construction.

What would I need to have as foundations? Would a small cheap granny flat foundations be sufficient? I'm talking about a box basically at the cheapest possible price. So would a few concrete blocks be sufficient for foundations, would I need to get a plan from an architect etc? What would be the minimum cost for the cheapest place to build. Could I do this myself or does it have to be done by tradesmen, certified etc?

My plan is to lay some very simple foundations at the cheapest price. As the foundations are all that is required then I would hope that is all I need to do for the time been. Later I would build the granny flat and then in the future after I have been working for a couple of years, have a good saving record then I could apply for a loan and build a house on the property.

Now If everything is OK to this point then what other costs would I be looking at for a piece of land at $8,000?

• Duty fees?
• Legal costs?
• Tax?
• other?

Also, do I need to have utilities connected for it to pass the grant?

I also see that I can have 1 each financial year so I could buy one soon and then another in July?

Am I missing something?

 

[Paul@PFI]

This scheme is for eligible property and gives a $5K maximum relief for the STAMP DUTY. On a $8k block the duty wouldn't be much. The same for the grant. Its a duty concession not a free gift for acquisition. The only relationship to purchase price is that the price is used to calculate the total duty.

Quote : How is the grant paid?. The grant is paid as a credit against your liability for duty on the agreement or transfer.

I think you are overthinking this. The foundations must commence and the rest of the build as well !!! Commence doesn't mean stop.

 

[leann]

ah well, yeah this was what I was thinking but I was optimistic that it might have meant I would get it towards the purchase cost. I was thinking I could pick up cheap land, 1 per year, lay a few bricks and sit on them but as the saying goes if it looks to be good to be true it is.

 

[Lord Shanghai]

Hi, I'm new here and I hope this is the right place to post this.

I would like to know if I was to purchase a small block of land for less than $10,000 in a more remote area to be able to get something cheap would I be eligible to have the $5,000 from the "New Home Grant Scheme" to cover a majority of the price?

So you want the government to pay 50% of the cost of your next property. And yet, on another thread, you were having a go about dole bludging immigrants bleeding this country white and over-running our beautiful 'Straya. Shame on you for your hypocrisy.

 

[mikezen]

So you want the government to pay 50% of the cost of your next property. And yet, on another thread, you were having a go about dole bludging immigrants bleeding this country white and over-running our beautiful 'Straya. Shame on you for your hypocrisy.

And look at you having a dig at some random guy cause he's trying to be creative in getting ahead, but what if he was entitled to the concession? Imagine then how you would feel you would be having your knickers in all sorts of twists then wouldn't you Sheila?