You might have heard that the federal government will give eligible Australians $25,000 to buildor substantially renovate homes as part of the new HomeBuilder scheme. Adam Rigoni our Mortgage Broker from Loan Market Today has summerised below exactly can qualify for the initiative.
The $680 million program, which is part of the federal government’s economic response to the coronavirus pandemic, aims to support more than 1 million builders, painters, plumbers and electricians across the country.
It’s also a win for many Australians wanting to buy a new home or begin an overdue reno, as the $25,000 grants are non-taxable and will complement existing state and territory first home owner grant programs, stamp duty concessions and other federal schemes.
So, without further ado let’s see whether or not you might be eligible.
To access HomeBuilder, owner-occupiers must:
– be an individual, not a company or trust;
– be aged 18 years or older;
– be an Australian citizen; and
– have an income of less than $125,000 per annum for an individual applicant, or $200,000 for a couple (income caps are based on 2018/19 tax returns or later).
Additionally, you must enter into a building contract between 4 June 2020 and 31 December 2020 to either:
– build a new home as a principal place of residence valued up to $750,000 (including land); or
– substantially renovate your existing home as a principal place of residence, with renovations valued at between $150,000 and $750,000, and with the dwelling not valued at more than $1.5 million before the renovation.
Construction must be contracted to commence within three months of the contract date.
All dwelling types – including houses, apartments, house and land packages and off-the-plan dwellings – are eligible.
However, HomeBuilder cannot be used for additions that are unconnected to the principal place of residence, such as swimming pools, tennis courts, outdoor spas and saunas, and detached sheds or garages.
HomeBuilder is also not available for investment properties or to owner-builders.
The $25,000 grant will go directly to the applicant, not the contractors.
Renovations or building work must be undertaken by a registered or licenced building service contractor.
To help protect against inflated quotes and pricings, the registered or licensed builder must be able to demonstrate that the contract price for the new build or renovation is no higher than the cost of comparable works done back in July 2019.
To find out more about what the HomeBuilder grant might mean for you, check out the case studies at the bottom of this Treasury HomeBuilder factsheet.
They run through scenarios involving a house and land package, a renovation, an off-the-plan apartment, knocking down and rebuilding a house, and building on a vacant block.
So, that covers the scheme’s eligibility details. If you’ve ticked the above boxes, the next thing to tackle is financing the project.
And that’s where Adam Rigoni can help. Contact Adam on 0412 998445 or firstname.lastname@example.org.