Australian homeowners will be offered grants of around $25,000 to build new, purchase new or renovate their existing homes as part of the HomeBuilder Scheme as announced by the Federal government last week.
The scheme was developed to protect the residential construction industry, particularly tradies’ jobs, in the wake of the COVID-19 pandemic. The scheme represents a significant opportunity for first home buyers and existing owner occupiers, but eligibility criteria and value thresholds do apply, so we’ll keep it Simple.
What you need to know:
- First home buyers are eligible for the scheme, but you do not have to be a first home buyer to qualify.
- The HomeBuilder scheme is uncapped but time limited. HomeBuilder will provide eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home where the contract is signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date.
- There is a value of dwelling / renovation threshold that applies:
- Where building a new home as a principal place of residence, the property value must not exceed $750,000 to be eligible for HomeBuilder;
- Where substantially renovating your existing home as a principal place of residence, the renovation contract must be between $150,000 and $750,000, and the value of your existing property must not exceed $1.5 million.
- Off the plan apartments are included as new builds and therefore people purchasing off the plan will be eligible for HomeBuilder
- To access HomeBuilder, owner occupiers must meet the following eligibility criteria:
- Be a natural person (not a company or trust)
- Be aged 18 years and older
- Be an Australian citizen
- Meet one of the following two income caps:
- $125,000 per annum for an individual applicant (based on 2018 – 2019 returns or later)
- $200,000 per annum for couples (based on 2018 – 2019 returns or later)
- HomeBuilder will complement existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
- Owner-builders and those seeking to build a new home or renovate an existing home as an investment property are ineligible for HomeBuilder.
- The renovation works must be to improve the accessibility, safety and liveability of the dwelling. It cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).
As digital and mobile brokers, if you’re looking to purchase your first home, or you finally think you might be ready to make substantial home improvements, we’ll take the pain away from arranging finance. Later this week, we’re releasing our updated eBook with real life examples as to how you might access HomeBuilder as a first home buyer or using equity in your existing home. Stay tuned to our channels to find out more.