Australian couple to build a home on government Covid-19 grants and super changes

The Covid-19-induced economic downturn may have shattered the dreams of many Australians who had been saving to own their first home, however one resourceful Brisbane couple are taking advantage of a slew of government stimulus initiatives and other grants to entirely fund their new house.

After his partner Christie lost her job in fashion, Chris Gorter, who runs a snake-catching business in south-east Queensland, discussed with her a more affordable living arrangement.

The pair had been eyeing a cheap plot of land, specifically on Russell Island, about 45km east of the Brisbane CBD, for some time, noting real estate on the island was far cheaper than in the city’s suburbs, in part because a ferry is required to get to the island.

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When Gorter heard about the government’s homebuilder initiative in June, which offers $25,000 grants for new homes, he explored whether he could access it in conjunction with a state government offer.

After learning they could also access the Queensland government’s existing $15,000 grant for building a new home, the couple decided to each withdraw $20,000 from their superannuation as part of the federal government’s early super access scheme, which allowed for $10,000 to be taken out in the 2019-20 financial year, and again after 1 July, tax-free.

“We realised we had about $80,000 to play with,” Gorter, 39, told the Guardian.

The couple has since purchased a lot of land on Russell Island for $21,000, which needs to be cleared of trees before they build on it. Gorter said that while the pair “meet all the criteria for all the grants”, they have yet to commence the project.

With the $59,000 they have remaining, they plan to buy a one-bedroom prefabricated “kit home”, as well as a deck and a shipping container to give the couple more storage outdoors.

“Basically we’ve had soil testing and pre-drainage work done, and we’ve got some site plans and a builder that will sign off on the project,” Gorter said.

The pair believe the home can be built before the end of the year, and plan to use future savings on landscaping and beautifying the lot.

Gorter believes it will compare well to his friends buying homes closer to the city, despite spending “a fraction of the cost”. He thinks the commute to the city in peak hours will be similar to if he was driving to Brisbane from West Ipswich.

“We’re planning to live there long term, so it’s not just going to be a cheap house, it’s going to be nice,” he said.

“It’s always perplexed me how cheap land is outside of the city. I’d always been keeping an eye on land here, but a lot of young couples who are priced out of the housing market, they should think about this,” he said.

According to Domain, residents of some states can access even more than the $40,000 in grants available to Queenslanders who want to build their first home, and take advantage of the homebuilder initiative.

Up to $45,000 is available as a combination of state and federal grants for Victorians who choose to build a new home in a regional area.

A Western Australian government initiative announced after homebuilder was introduced, for $20,000 for new homes, in addition to homebuilder and an existing $10,000 scheme for new homes, means up to $55,000 in grants are available for a similar project in the state.

To access the $25,000 homebuilder grant, the combined value of the home being built and the land cannot exceed $750,000.