The government is acting fast and loose with the public purse. It can be confusing for the average punter to get their head around what is possible and available. Especially as it is changing every day. Australians will be offered $25,000 grants to build a new home or start a major renovation under near-$700 million federal government housing package in a bid to boost the economy and act as a lifeline to the home construction industry.
Called ‘HomeBuilder’, the grant will complement existing State and Territory grants and schemes. Do you meet the criteria? Here are some of the main details around the grant and its eligibility criteria:
- The scheme is restricted to people on middle incomes and to new homes and major renovations valued between $150,000 to $750,000
- Pre-renovation value of the house must not exceed $1.5 million
- Excludes sheds, pools, granny flats and any other structures not attached to the property
- It’s a temporary scheme that will last until the end of 2020 and aims to build 30,000 homes by Christmas
- The contract must be signed between 4 June 2020 and 31 December 2020. Construction must commence within three months of the contract date
- The grant will be means-tested, allowing singles who earned up to $125,000 the previous financial year and couples who earned up to $200,000 to access the scheme
More than a month after the announcement of grants, there seems to be a hold up in the implementation of the scheme, waiting for the states to sign on. Despite this, it seems that people are already making plans to take advantage of the scheme. The federal minister for housing, Michael Sukkar has commented that he has been receiving feedback from tradies of increased workflow for the back end of 2020.
Sukkar also recommends prospective home buyers use Homebuilder as a catalyst to take a leap into buying or rebuilding that they may have been facing with trepidation in the earlier part of this year. This is obviously a significant opportunity for anyone looking to build or renovate but you’ll need to be prepared and have your finances in place so you can jump into action as soon as your state signs the agreement.