HomeBuilder grant

HomeBuilder grant: Home buyers warned against buying cheaper house packages with unregistered land

PHOTO: HomeBuilder grant | Domain

First-home buyers have been warned by experts to stay away from housing packages involving unregistered land if they are banking on the federal government’s $25,000 HomeBuilder grant to get them over the line.

Unregistered land and house packages are typically sold more cheaply than registered packages but run the risk of taking years to complete as the developer has yet to register the land with council.

The scheme has a looming deadline, meaning buyers left waiting too long for their build to start could miss out on the cash.

In order for buyers to be eligible for the $25,000 grant for new builds in NSW, a building contract needs to be signed by December 31, 2020 at the latest and construction needs to begin within three months of the signed contract date.

Demand for home loans for residential land surged in July, figures from the Australian Bureau of Statistics show, in the wake of the federal government’s HomeBuilder scheme, which was announced in June in a bid to throw a lifeline to the construction industry and encourage new builds.