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The HomeBuilder extension is just the beginning – there’s plenty more reasons to build your own home in 2021.  Incentives are still available and set to drive the construction of new homes into the future.

Here’s everything you need to know if you’re building in 2021.

1.     Build the house you want

Building is perhaps the only way to get a home that fits your needs exactly, and it will also be squeaky clean and brand new.

“If you’re building brand new, you can often design it the way you want it,” RAMS Illawarra Principal and Home Loan Specialist, Matthew Clark, states. “There are financial incentives, but the primary driver is that you’re getting exactly what you want and it is brand new.” 

 
Do you want multiple ovens in your kitchen? You’ll have to build (or substantially renovate) to get them! Picture: Unsplash

Your needs may be simple. Perhaps you want more control over the size and number of your bedrooms or the layout of your kitchen. Or maybe you’re after something more outlandish, like a four-car-garage or a temperature-controlled wine cellar.

Building can accommodate the tiniest or most ‘extra’ requests.

Being brand new and not lived in previously can also mean less general upkeep and maintenance costs in the years ahead.

2.      Incentives

Eligibility requirements, rules and amounts of First Home Owner Grants (FHOG) vary between states and territories, but a common factor is that applicants must either buy a brand new home or build their own.

 
If you decide to build your dream home, don’t forget to look up the government benefits that may be available to you in your state or territory. Picture: Unsplash

It is an incredible opportunity to receive anywhere between $10,000 to $20,000 or more off your total bill if you choose to build.

One exciting measure to come from the 2020-21 Federal Budget was the extension of the First Home Loan Deposit Scheme into the new year.

The incentive scheme allows first home buyers to purchase new property with a deposit of only 5%. In 2021, this scheme will be offered to 10,000 Australians who intend to build a new home.

Price caps initially put on the scheme were also raised in some instances. These caps vary from state-to-state, regional vs. metro, so be sure to check what applies to you on your state or territory government website.

Each state and territory has its own incentives for building.  For instance, on top of a $15,000 FHOG, Queensland has its $5,000 Regional Home Building Boost Grant for those who wish to build in certain regional areas, and a First Home Vacant Land Concession for first home purchases of vacant land up to $400,000.

  
Financial grants for new builds aren’t limited to first home buyers in certain cases. Check your state or territory’s programs. Picture: realestate.com.au

It’s best to check in with your home loan specialist, conveyancer or state revenue office website to find out which incentives apply best to you.

3.     Building to invest

The aforementioned incentives apply if you’re building a home to live in, but there is also an incentive if you’re building to invest.

Clark points out that many investors opt to build as they can claim the depreciation on tax.

“If you’re looking at building from an investment perspective, you can claim the depreciation [on your tax declaration] which can help with your tax minimisation strategy,” he explains, adding that you should always seek advice from an accountant specialising in tax when analysing this path.

“Often investors or investment companies will talk about building investment properties for that reason.”

Whether it’s to live in or invest, it’s a good time to consider building your own home. Next step, planning!

This article was originally published on realestate.com.au ‘3 cases for building your own home in 2021’