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Home Builder grant dual occupancy

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kabir | 05 Jun 2020, 11:12 PM Agree 0
Hello

My friend and I bought a large block of land ($595k) in Canberra to build dual occupancy. We jointly (50% each) own the land and settled on the land by having a loan from a bank. As a dual occupancy, i plan to live in one premise (owner-occupier) and my friend want to rent out (investment) the other premise. We have been working with a bank to get building construction loan. the lender was preparing one loan (of investment type) for the entire construction of dual occupancy with total construction cost of $810k (50% each). As Homebuilder grant is announced today, I am eligible for the grant (income is fine, want to stay on the property, citizen, total cost of half of land and one premise is under $750k, citizen etc) however, my friend is not eligible. my bank lender advised that this loan application will not affect me getting the grant even though it is one loan of investment type. the lender can't split the loan as investment type and owner occupier type as it is one loan. fyi, the builder is happy to have separate building contract no issues. after further discussion, he was indicating that we may need two building contelract and two loan applications of two types but he is not sure if he can do that as we jointly own one land. so, in a nutshell, he advised your grant is not dependent on what type of loan we took from bank. as long as I have money for construction and I am living in the property that I am going to build, government will never use the bank loan type to determine the eligibility to the grant.

in this situation, can someone advise what to do?
  • Sureshkumar PATEL | 07 Jul 2020, 08:27 AM Agree 0
    Hello Brother. Call me on 0411072012 and we can have more chat. I am an investor with big property portfolio so I can sort this out for you.
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