If you are a first home buyer and you want to use your First Home Buyers Grant as your deposit, you must build a new home… (Myth 4)

Myth 4: If you are a first home buyer and you want to use your First Home Buyers Grant as your deposit, you must build a new home…

While the First Home Buyers Grant is not a bank funded grant, there are certain requirements to qualify for this grant. However that you must build a new home is not one of them.  Follow the link to look at the exact requirements.

https://www.qld.gov.au/housing/building-home/first-home-grant/

Many buyers do not like building their first home because they are required to make loan repayments while the build is happening. This is usually a double-edged sword, mainly because if you are using your First Home Buyers Grant as your deposit it generally means you can pay your bills on time however, you do not always have spare savings to put away, or in this case pay progress payments while building.

There has never been such a thing as a free lunch and will all offers “too good to be true” one has to consider does this offer actually make sense.  Think about the situation that you are looking at.  If a build process takes 6 months to complete surely there are some costs incurred that need to be paid within that period.  At the very least I would believe the chippy and the plumber are going to be looking for a feed before 6 months has passed.  Okay, so there are business cost to building.  How about staying in your current rental.  The landlord is a nice person for sure but they have commitments as well, rates, repairs and the like to continue to pay.  So there are costs to stay in the house I am living in.  Makes sense.  If someone says that magically I will make these costs disappear hmmmmm….

What can be done, and is perfectly kosher, is to structure either the loan payments or the builder payments to accommodate your cash flow needs.  Now that might take some clear/ honest discussion with both the builder and the financier but can be achieved with some calm discussion.

We have found products that allow you to use your First Home Buyers Grant as well as not pay the builder progress payments.