The Government's Home Builder Scheme - Can you use it to kick start building your home?
As part of the Federal Government’s economic stimulus to help our economy ride our the COVID-19 pandemic, they are handing out $25,000 cash grants to people to renovate their properties or build new homes!
It sounds like a great opportunity to use for you to kickstart that buying land to build your dream home.
However - there are certain things the grant can be used for, and specific criteria for qualifying.
So who is eligible and what can you use it for?
HomeBuilder scheme - who is eligible?
To qualify, you can't be earning more than $125,000 a year as an individual - or $200,000 as a couple.
The scheme is also time sensitive so (if you meet the criteria) you need to apply between now and December 31, with the work contracted to start within three months of the contract date.
There are also other requirements, such as the contract needs to be negotiated at a fair market price and you are not allowed to have a special relationship with your contractor (like a family friend or relative.)
For a full outline of HomeBuilder eligibility, read the government's factsheet here.
What can the HomeBuilder grant be used for?
To receive the $25,000, the money needs to be used to either
build a brand new home (which has a maximum value of $750,000) or
make large scale renovations to your existing home - worth between a minimum $150,000 and a maximum $750,000.
The scheme cannot be used to build a
swimming pool
new patio
tennis court
outdoor shed
garage
or small scale renovation of the bathroom or kitchen.
Important things to note
As the building contract is entered into before the grant is approved, it will be important that the grant is not essential to finance the building project, just in case the grant is not approved.
In addition, as the builder needs to commence work within three months of the contract date, it will be important to ensure that the contract recognises the commencement dates.
What does this mean for people wanting to build?
The Housing Industry Association has suggested that states and territories might look at how they can relieve some of the costs involved in the home ownership process - like stamp duty.
All signs are pointing towards the HomeBuilder scheme giving the sector a boost.
If you have been biding your time to commit to land you wish to buy, watching the market, with their deposit ready - now presents a unique opportunity to build your dream home.
If you’re already in the market - or have been in the past, then this scheme is great news for you too, as the Home Buyers Grant is not limited to first home buyers.
If you’re wanting to take advantage of this scheme and have your finance ready to go, or almost ready to do, now is the time to commit to your parcel of Delroy Park estate.
We have the perfect block just waiting for you.