The Governments New “Homebuilder” Grant , What Is It?
Today a new $25000.00 grant has been announced by Josh Frydenbeg to help stimulate the building industry and kickstart the Australian economy. The government is hoping this will help counter the effects COVID-19 has had on the building industry who are experiencing a large downturn in the number of builds being started this year. While this news is still hot off the press, I do think there will be a bit of tweaking to come still, and we may even see a few of the states jump on board with an extra amount to compliment this. It’s early days, but here is what we know so far.
The $25000.00 grant is available for building a new home or renovating and is available to first home buyers and those who have owned a property before alike. One of the requirements here, though, is that the home is your owner-occupied residence and not an investment property. You will also need to be over the age of 18 and an Australian citizen to receive the grant The government has positioned this grant so as not to be cash in the pocket for the super-rich, but aim it more at those who would really benefit from it. That is their words, not mine. To ensure this, the grant is means-tested. A single person would need to earn under $125000.00 per annum to be eligible for the scheme while a couple would need to earn less than $200000.00 per year.
The minimum amount you need to spend to receive this grant is $150000.00 from the recipients. The government is touting interest rates being at all-time lows, so I am sure they are trying to get the finance sector going too. Most people do not have a spare $150000.00 lying around the house. New builds will be capped at $750000.00 while renovations that are eligible can be between the $150000.00 minimum and $750000.00 as long as the final home value does not exceed $1.5 million.
With regards to the renovation aspect of the grant, the government is trying to avoid the “pink bat cowboys” saga by having the requirement that the renovations are conducted by a licensed or registered builder. Renovations cannot be to structures that are not part of the main building, like a shed or a pool, for instance.
Whether you are renovating or building the time frame for this grant is capped at the moment. Contracts need to be entered into between the 4 of June and the 30 of December to take this offer up. The building needs to commence within three months of the contract date.
To apply for the grant, you would need to apply to your state government. We will know shortly how and when we will be able to do this. Many good mortgage brokers help their clients when it comes to getting this sort of paperwork submitted. Castle Mortgages are excellent mortgage brokers who are based in Adelaide. We would be more than happy to assist you in applying for the grant and setting up any finance that you require for it too. Why don’t you get in touch for an in-depth chat today?