Australians looking to build a new home or renovate are set to receive a cash boost from the Federal Government.
The HomeBuilder scheme, launched by Prime Minister Scott Morrison on 4 June 2020, will provide a $25,000 grant for eligible new builds and renovations.
Why do we need the HomeBuilder scheme?
The scheme has been introduced to support the construction industry and the many hard working tradies who help underpin the Australian economy.
The government hopes this grant will ease the pain of the economic downturn, boost construction demand and keep people employed.
Are you eligible for the HomeBuilder grant?
The grant applies to all owner-occupiers and is tax free. It is applied in addition to existing first home buyer grants and other state and federal incentives and schemes.
To qualify, you need to meet the following criteria:
- Earning an income of less than $200,000 for couples and $125,000 for singles.
- Building a home worth less than $750,000, including land value.
- Spending between $150,000 and $750,000 on a home renovation project on a property that has been valued at less than $1.5 million.
- NOT an owner-builder planning to build or renovate an investment property.
- NOT spending the grant on property works external to the home, such as a swimming pool, tennis court, outdoor spas and saunas, sheds and garages.
- Australian citizen aged over 18, and an individual (not a company or trust).
The grant period
The grant is available for contracts made from 4 June 2020 to 31 December 2020, at an expected cost of $680 million to the tax payer.
Find out more about HomeBuilder here.
How to make the most of HomeBuilder
The HomeBuilder grant is a rare opportunity for first home buyers and those in the market for a new build. Renovators also have the chance to create even more value in their properties.
The key is to use this government boost well. With the right advice from a finance architect, you can combine the extra cash with the best possible loan deal from the many available lenders, and set yourself up for sustainable, long-term success.
Bushy talked more about HomeBuilder live on Facebook – tune in:
Finance architects do more than your average mortgage broker. We help you get the right home loan to suit your goals without the stress, sweat and mess.
Let’s talk about your options. Contact us for a free, no obligation chat about where you’re at.
By Bushy Martin – KnowHow founder, one of Australia’s Top 10 property specialists, investor, author and Get Invested podcast host.