Although the past 12 months have caused financial stress to many Australians, the government has continued to create incentives designed to keep our economy afloat. Within the property sector, the HomeBuilder grant has been welcomed by many as a great opportunity for buyers and current homeowners to undertake renovations and home building plans that otherwise would have been put on the back burner.
Designed to provide financial assistance towards construction to eligible applicants that wish to upgrade or enter the market, this incentive is set to expire on March 31st. In this article we have broken down the main points to ensure you are equipped to take advantage of this opportunity.
What is the HomeBuilder Grant?
The HomeBuilder grant is an Australian Government initiative that provides eligible homeowners with a grant to build their dream home, undergo substantial home renovations on their existing home, or to buy an off-the-plan home. Homeowners and buyers now have until the 31st of March 2021 to take advantage of the grant since the government announced an extension.
The scheme offers a new $15,000 tax free grant for building contracts, new builds, and substantial renovations that are signed between 1 January 2021 and 31 March 2021. For any renovations signed for on or after June 4, 2020, The Government will backdate the grant to the same value. Importantly, an extension to the construction commencement timeframe has increased from three months to six months for all applicants.
Who is eligible for the HomeBuilder Grant?
This grant is designed to support Australian’s across every stage of their property journey. For those looking to buy, consider how the $15,000 stipend could be factored into your budget in the form of purchasing a property that requires small upgrades or favoring off-the-plan options.
For current owners, review the current property and how the grant can offer financial assistance that could contribute to renovations and upgrades that will add value to the property when it comes time to selling. First home buyers should evaluate the HomeBuilder grant as it could be the added financial boost needed to enter a preferred real estate location.
There are several qualifying criteria for those seeking the HomeBuilder grant. This includes the type of property, personal income, and who you contract to build your home. The key criteria includes:
The total money spent on home renovations must be between $150,000 and $750,000
The property’s value that is being renovated must not exceed $1.5million
For new home builds the property’s value must not exceed $750,000 or in New South Wales and Victoria, $950,000 and $850,000 respectively
You must be an Australian citizen, 18 years and older.
What are the benefits of the HomeBuilder Grant?
The HomeBuilder grant opens the door for more opportunities for buyers and owners alike. The government has a vested interest in driving uptake of this grant, making the offer tax free for all recipients and providing six months to contract in a builder for construction.
The $15,000 allotment can create a meaningful difference for first home buyers and support a new generation of homeowners. It provides more budget to consider an off-the-plan properties that previously would have been out of their price range while the option to renovate can allow them to consider existing homes that may not have met their criteria previously.
Subsidising renovations will create a new wave of renovated houses with increased values, modernizing the housing market and supporting homeowners investments. With more people working remotely and buyers searching for homes that support lifestyle over centrality, the HomeBuilder grant is a great opportunity to build a new home on land in regional locations that are expected to go up in value.
On the grant, Nick Boyd, Belle Property’s Head of Growth says, “With the Australian residential real estate sector already enjoying a positive recovery, this scheme is a valuable resource for buyers and owners to strengthen their own position on the property ladder. Not only does it increase the value of existing properties, first home buyers and homeowners now have more opportunity to create and enter into their dream home”.