The HomeBuilder grant
Posted by Rebekah Hutton on Tue, Jul 2020
The Morrison Government has introduced a new tax-free initiative to stimulate the residential housing sector in response to the economic downturn created by COVID-19. If applicants meet the eligibility criteria, they will receive a grant of $25,000 to either assist with building a new home or renovating an existing home. The HomeBuilder program is specifically targeted to kickstart activity in both the building and real estate industry.
Real Estate Agents across the country have already being inundated with enquiries about how they can leverage from this program which is essentially ‘free’ money. Now could be the perfect time to sell your current property to ultimately find your dream home. Both buyers and sellers are ready to make their move and utilise this grant.
Eligibility for the HomeBuilder grant:
– You need to be an owner-occupier
– You are an Australian citizen aged 18 or over (not a company or trust).
– Your annual income must be less than $125,000 for individual applicants, or less than $200,000 for a collective couple based on your 2018-19 tax returns or later.
– If you are renovating, your renovation costs must exceed $150,000.
– When building a new home, it must be less than the national price cap of $750,000.
– If you are renovating an existing dwelling it needs to be worth less than the national price cap of $1.5 million.
– The building is required to improve the liveability, accessibility, or safety of your home.
– All dwelling types are eligible for the scheme; houses, units, flats apartments, house and land packages and off-the-plan purchases.
– You are required to enter the building contract during the period of June 4, 2020 and December 31, 2020. Construction is then required to start within three months.
For more information on eligibility or to read the HomeBuilder fact sheet click HERE.
The HomeBuilder program is predicted to cost the Government $688 million. It is uncapped meaning anyone who qualifies will receive the grant. There have been a lot of buyers and sellers who have been sitting on the fence and apprehensive about making their next move during the pandemic, but this is going to be the kick that puts them over the edge.
Please reach out to your local Hodges Agent to discuss your options regarding the HomeBuilders program and how we can help you achieve your property dreams.