The Federal Government’s new HomeBuilder grant was announced on Thursday last week (04/06). For a limited time the HomeBuilder program will deliver $25,000 grants to help boost the building industry after Coronavirus hit. Under the scheme, eligible owner-occupiers – including first home buyers – will get the payment to build a new home or “substantially renovate” an existing one. Questions have already been raised regarding who can access it, so we have tried to answer as many of them as we can.
- The contract must be signed between June 4 and December 31, 2020. Construction must commence within three months of the contract date.
- To access the grant you must be an individual (not a company or trust), aged 18 years or older and are an Australian citizen.
- You meet one of the following two income caps: $125,000 per annum for an individual applicant based on 2018/19 tax return or later; or $200,000 per annum for a couple based on your combined on 2018/19 tax return or later.
- You are building a new home for your principal place of residence worth less than $750,000.
- You are undertaking renovations worth between $150,000 and $750,000 that will result in the property being priced at $1.5 million or less.
- The cash can’t be used on investment properties or to construct things outside the house such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages, and the work must be carried out by a licensed builder.
WHO GETS IT?
First Home Owners: Building your first home has never been easier… In addition to the $25,000 available through HomeBuilder, you will be also be eligible for the First Home Owner Grant, valued at $15,000 – meaning you now have a huge $40,000 towards your first home!
First Home Builders: You might be renting and looking at finding your own place? Or you might already own a a house but its time for an upsize? Downsize? As long as you are building a new house, you are eligible for $25,000.
Renovators: If you love your home and location, but you still want more; the HomeBuilder scheme has $25,000 grants available to those who are undertaking renovations valued between $150,000 and $750,000 that will result in the property being priced at $1.5 million or less.
The grants will be administered by Queensland government. Once they are ready to start accepting applications, they will be able to backdate acceptance to 4 June 2020.
HOW WILL IT BENEFIT YOU?
This grant will mean different things to different people and provide various opportunities. At OJ PIPPIN HOMES we are able to work closely alongside you and discuss the best use of the $25,000. It might be a larger deposit, the ability to buy a larger block of land, OR a bigger house plan. Maybe it means you can afford the extra upgrades you’ve always dreamed of? A pool? Media room?
To help make this process even easier for you we have joined forces with Brokr Home Loan Advisors, a small team of mortgage brokers who specialise in construction finance. They will be able to guide you through the paperwork and legalities of a new home loan and the HomeBuilder grant.
So there you have it! A quick breakdown of the HomeBuilder Grants and how we can help you make the most of it.
This post was written by OJ Pippin Homes