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?
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.
On the grant, Carolyn Wheatley from Belle Property 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”.
If you would like to know more please call Carolyn Wheatley 0407 120 483 or email [email protected]