Applying the First Home Owners Grant to Granny Flats

Looking to find your own living space but worried about finances? Building a Granny Flat is a great solution for getting a step up on the property ladder in Australia.

Even better, with the help of the NSW First Home Owner Grant, your journey to your own home just got that little bit easier.

Using this homebuilder grant to build a Granny Flat on a relative’s property can help you get the benefits and amenities of a regular home (3 or 4 bedrooms, bathroom, laundry, spacious kitchen and living areas) without the cost or stress of a whole house.

What is the First Home Owner (New Homes) Grant?

The First Home Owner Grant from the New South Wales government is a financial boost for first-time home buyers. Funding of $10,000 is available for a first home that is either new construction, purchased off the plan or has been substantially renovated.

It is not available to first-time home buyers looking to purchase an established home. The first home can be a house, townhouse, apartment, or even a second dwelling such as a Granny Flat.

For newly built homes, the purchase price can’t exceed $600,000. If you plan to build your own home, the purchase of land and the value of the building contract can’t exceed $750,000. In the case of building a Granny Flat on a relative’s property, this would include the value of the portion of land where the Granny Flat sits and the value of the building contract.

Eligibility Criteria for the First Home Owner Grant

To be eligible for the grant, you must meet certain requirements.

• The home cannot have already been lived in or previously sold.
• Applicants to the program must be over 18 years of age and at least one must be a permanent resident or Australian citizen.
• The applicant, their spouse or co-purchaser must not have previously owned a home before 1 July 2000.
• The applicant must move into the home within 12 months of construction or purchase and live in it for 12 months continuously.

The process of applying for the grant depends on several factors. You can either fill out the application yourself, have an agent complete it on your behalf, or apply through your bank or financial institution.

Before you get started on your First Home Owners Grant application, read more about regulations for secondary dwellings on properties in New South Wales.

Legal Protection for a Granny Flat at a Relative’s Home

It’s important to remember that a Granny Flat, or secondary dwelling, cannot normally be subdivided from the main residence and the title of the land will remain with its owners. Therefore, you should clearly and openly communicate with the titleholders about legal obligations and the division of financial responsibilities.

For example, if the property is sold, how will you be reimbursed? What if you decide to relocate? Can the Granny Flat be rented out? Will the owner of the primary home buy you out? A Granny Flat Arrangement or other legal contract may be necessary to protect everyone’s interests.

Granny Flats are an Affordable Housing Solution

Granny Flats are a cost-effective first-home solution. If you have a relative who’s willing to let you build on their property, you can have all the space and privacy you require without the stress of paying off a substantial mortgage.

Building a Granny Flat is significantly less expensive than buying a block of land and building a home or even buying an apartment or unit. A Granny Flat allows you to build equity quickly and upgrade to a more traditional home if you wish. This way you can treat the Granny Flat as an investment, using the rental income to offset the cost of your new home. A brand-new dwelling of a smaller size is also cheaper to run, saving you even more money.

Upon completion, the addition of a Granny Flat can boost the value of the primary residence. In the future, it could provide rental income or be used to house other family members. Therefore, both parties benefit from the addition of a Granny Flat.

To find out if you are eligible for other financial incentives, visit this page about home buyer grants and assistance schemes.

Why Choose Granny Flat Solutions as your Builder?

Granny Flat Solutions are more than just Granny Flat builders. We can help you understand your eligibility to build a Granny Flat and the requirements at your selected site, with Complying Development Certificates or council and building approval.

We’re here to help first-time home buyers in any way we can.

From the design stage through to planning and construction, we understand that building a first home is exciting, but it can also be stressful. Our dedicated customer service team can help you obtain essential documents and ensure you’re following regulations and meeting requirements. We are even flexible about the level of involvement you wish to have in your Granny Flat build with our customised, fast-track and concierge levels of participation.
Find out more about Granny Flat Solutions or learn about how to get started with a Granny Flat build.

Take Advantage of Financial Incentives and Build a Granny Flat

Granny Flats are comfortable, modern homes for couples, those with children, singles and for first-time home buyers, whether they’re in their 20s or their 60s. Whoever you are, a Granny Flat can be customised to suit your needs. With the help of a relative and a financial assistance grant, a Granny Flat is a great opportunity to get into your dream home sooner.

Granny Flat Solutions are multi-award winning Granny Flat builders providing sustainable housing solutions across Sydney, the Central Coast, Illawarra and Hunter regions. We have a reputation for designing and constructing high-quality Granny Flats to suit every block and budget. Contact us today on 1300 259 677 or visit our website to see what’s possible for your first home.