Have you been thinking about building a home to live in or planning some major renovations to your owner-occupied home in recent times? Here, we are looking at the ins and outs of the HomeBuilder grant and just what it is all about.
Designed to help the building industry bounce back after the downturn in the economy over the last 6 months, the Morrison Government has now launched the new HomeBuilder grant.
What is the Homebuilder and are you eligible to apply for it?
The HomeBuilder grant provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.
The aim is to encourage the commencement of new home builds and renovations this year. This scheme has a time limit and is only available from 4 June 2020 to 31 December 2020.
As part of the eligibility, your new build construction contract or your renovation contract must be signed within this period.
Other eligibility requirements include:
- Be an Australian citizen person (not a company or trust) and you are aged 18 years or older;
- Your income is under $125,000 pa for an individual applicant. For a couple, the threshold is $200,000 pa – based on 2018-19 tax returns or later;
- you have signed a *building contract between 4 June 2020 and 31 December 2020 to either: build a new home as a principal place of residence, where the property value does not exceed $750,000. Or **substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million;
- construction must commence within three months of the contract date.
*Owner Builders are not eligible.
**The renovation works must be to improve the accessibility, safety and liveability of the dwelling. At cannot be for additions to the property such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages (unconnected to the property).
Bonus for Eligible First Home Buyers!
The HomeBuilder will also complement existing State and Territory First Home Owner Grant programs. Also including any stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
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