The Building Boost

The Queensland Government intends to introduce the Building Boost on 1 August 2011. What are the rules and what does it mean for agents?

This grant will be available to buyers of New and Substantially Renovated homes valued at less than $600,000. Below are some key points to note. More details will be available closer to 1 August:

Eligible Homes
– Not previously occupied or sold as a place of residence; or
– Substantially renovated.
Substantially renovated:

– The sale contract is a taxable supply under the GST law (eg a builder/ professional home builder/renovation specialist is selling, not Mum and Dad renovators)

– Since renovated, the home has not been occupied or sold as a place of residence

Eligible Buyers
Anyone over 18, first home buyers, investors incl. companies, trusts etc. No limit unless buyer is an owner builder in the business of building homes.

Eligible Contracts
For the purposes of this advice to the sales team, these include the following contracts formed between 1 August 2011 and 31 January 2012:
– house and land and unit contracts;

– vacant land contracts provided that building work starts within 26 weeks of the date of contract and is completed within 18 months from start of building work.
– off-the-plan contracts, as long as the building work is completed by 31 July 2013

Ineligible contracts
– Contracts entered into before 1 August that have been cancelled by agreement so Buyer can take advantage of this new offer.
– Options signed before 1 August, but exercised after 1 August.

When vacant land:
– if using a builder: work must start within 6 months (actually 26 weeks) of contract date, and be finished within 18 months of that work starting;
– if owner builder: work must be finished within 18 months of work starting (note no start date as yet)

– if off the plan: work must be completed by 31 July 2013

The home must be occupied as a place of residence while applicant owns it. Note that the applicant does not have to live there.

How many grants?
As long as each purchase satisfies the above requirements, there’s no limit.

Building Boost plus FHOG?
Yes. $17,000.

Via OSR – forms available soon. We’ll be in touch.

Further information

Click here for the State Government media release.
As more information is available we’ll be in touch.