The government is keen to keep the construction sector humming along in the wake of the Corona Virus shut down. It’s no secret that it’s a key plank of our economy. In order to spur things along the federal government is looking to cut you a cheque for $25,000 if you build a new home or undertake a ‘major’ renovation starting between June 4 and Dec 31 this year.
Photo by Charles Deluvio on Unsplash
In case you have been living under a rock, it’s called the HomeBuilder Program.
The best news for all of us is this is an uncapped program. Anyone who follows the rules and meets the criteria will get the grant. Unlike the first home loan deposit scheme which has a capped number of applications – which created a bit of a rush, Homebuilder will be granted to every applicant.
You can apply for multiple programs with a single project based on your eligibility – such as state level first home owners grants, stamp duty concessions, First Home Loan Deposit Scheme and First Home Super Saver Scheme.
To be eligible you must
- Be a natural person (not a company or trust);
- Be aged 18 years or older;
- Be an Australian citizen;
- Meet one of the following two income caps:
- $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- You enter into 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.
Each state and territory has to sign a partnership agreement with the federal government. We’ll be keeping a close eye on which states sign on and when. Once signed on, the state/territory will backdate acceptance of these applications to 4 June, 2020.
The other key caveat is these grants are not available for investment properties or owner-builders.
The hardest part of accessing this grant is going to be sorting out the finance. Banks are still being fickle with their lending. So be patient and remember we are working to earn you your $25,000. If you are thinking about building or renovating then get in touch. We can help you figure out what the best path to building a new home or renovating your home is going to be, give me a call on 1300 397 287 or email craig@maphomeloans.com.au and I’ll help you get it sorted out.
