Unfortunately, the HomeBuilder grant does not apply for those who are looking at building a property for investment purposes. While the exclusion of investment properties from the grant comes as a surprise, we know that this stimulus may be helpful for those of you who are looking at renovating your home. We have outlined the major details of the grant below.
The Federal Government will give eligible Australians $25,000 to build or substantially renovate their homes in an effort to boost demand in the construction sector and keep builders employed. The handout is available for a very short time – from today, the 4th of June until September 31st, and construction must start within three months of the contract date.
Who is eligible?
- Singles who earned no more than $125,000 the previous financial year and couples who earned up to $200,000 will be eligible for grants
- The grant is available for new homes and renovations valued at no more than $750,000.
- For a renovation to eligible, it will have to cost above $150,000 (and below $750,000 as mentioned above).
- The pre-renovation value of the house must not exceed $1.5 million.
- Sheds, granny flats, pools, and tennis courts as well as any other structure not attached to the home will not be eligible.
- You must be an Australian citizen to qualify.
The HomeBuilder grant is being conducted under a $688 million program that aims to build 30,000 new homes by Christmas. Policy designer and Assistant Treasurer Michael Sukkar has said that the scheme was designed so as not to cause a blowout in house or renovation costs, which has happened with assistance schemes in the past. As HomeBuilder can only be used to construct new or substantially renovated properties, its eligibility criteria manages the risk of longer-term affordability challenges by increasing supply. Before COVID-19, new home builds were forecasted to be 171,000, and that has now fallen to 111,000. The scheme aims to address this shortfall of 30,000 new builds over the second half of this year and is a short-term, uncapped, targeted program that is now available.
We recommend having a look over the HomeBuilder FAQs, if you are in need of some more information.
https://www.pgaadvisory.com.au / “Homebuilder Grant”/ Carly Tomadin
Brought to you by David Philipsen of Parker Finance