It’s no secret that the Australian real estate market has stagnated due to the COVID-19 pandemic. However, in an attempt to assist the residential construction market to bounce back from the crisis, the Australian Government has actively decided to provide funding to encourage the commencement of new home builds and renovations this year. This is known as HomeBuilder.
Here, we’ll address some commonly asked questions to help you get a better understanding behind this exciting new initiative.
What is the new HomeBuilder Grant?
HomeBuilder is an uncapped, time-limited program to the value of $25,000 for owner-occupiers to build a new home or considerably renovate an existing home. The contract must be signed between 4 June 2020 and 31 December 2020, with construction commencing within three months of the contract date.
Renovations must be undertaken by a registered or licenced building service contractor, and named as a builder on the building licence or permit.
Who is eligible for the New HomeBuilder Grant?
To access HomeBuilder, you must meet the following criteria:
- You must be the owner-occupier of the new home build/renovation
- You are a natural person, and not a company or trust
- You are aged 18 years or older
- You are an Australian citizen
- The property you wish to buy must not be used as an investment property
Furthermore, you must meet one of the following two income caps:
- $125,000 per annum for an individual applicant (based on 2018-19 tax returns or later); or
- $200,000 per annum for a couple (based on both 2018-19 tax returns or later)
Additionally, when entering into the building contract between 4 June 2020 and 31 December 2020, you either:
- Build a new home as the primary place of residence, where the house and land value does not exceed $750,000; or
- Renovate your existing home considerably (where it is the primary place of residence), with the renovation contract being $150,000-$750,000 and the value of your house and land doesn’t exceed $1.5 million.
What constitutes a renovation?
For the renovation to be eligible for HomeBuilder, the work must be to improve the accessibility, safety and liveability of the dwelling. Therefore, the following additions are not included:
- Swimming pools
- Tennis courts
- Outdoor spas and saunas
- Sheds or garages (unconnected to the property)
- Standalone granny flats
How do I apply for the HomeBuilder Grant?
If you are eligible, you’ll be able to apply for HomeBuilder once your State or Territory Government (that you live in, or plan to live in) signs the National Partnership Agreement with the Commonwealth Government.
In the interim, you can register to receive updates when more information becomes available by subscribing at the official HomeBuilder Treasury page.
Ready to renovate your home on Sydney’s North Shore?
If you are interested in taking advantage of the HomeBuilder Grant, get in touch with the team at Family Home Designers & Builders. Call us on (02) 9417 5777 or drop an email at email@example.com for more information.
Our team of quality professionals can help you navigate your way around the ever-changing building landscape, especially to help you understand how you can get a stunning renovation or extension with the HomeBuilder Grant. Are you ready to transform your home? Contact us today!