To counter the impact that the COVID-19 pandemic is having on our construction industry, the Commonwealth Government has introduced a construction stimulus package called HomeBuilder.
If you’re planning a renovation or considering building (or rebuilding), here’s what you need to know about it.
What is HomeBuilder?
HomeBuilder is a Commonwealth Government grant that offers eligible owner-occupiers $25,000 towards building a new home or undertaking a substantial renovation. It’s designed to encourage owners to start home builds and renovations this year, to counter the effect of COVID-19 on the construction industry.
Who is eligible for HomeBuilder?
Owner-occupiers, including first home buyers, are eligible to apply for the scheme, so long as they’re Australian citizens over 18 years old. However, the grant is means-tested and an income cap of $125,000 a year for individuals or $200,000 a year for couples applies.
The grant covers two types of residential construction:
- Building a new home as a principal place of residence up to a value of $750,000.
- Substantially renovating your existing home as a principal place of residence. The existing property needs to be valued at less than $1.5 million before the renovation and the renovation contract must be between $150,000 and $750,000.
You need to enter into a building contract between 4 June 2020 and 31 December 2020, and construction must begin within three months of the contract date.
Companies or trusts aren’t eligible, neither are owner-builders or investors.
The grant doesn’t apply to external improvements such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages that are unconnected to the property.
Can I buy off-the-plan or a house and land package?
Yes, off-the-plan purchases and house and land packages are eligible. However, the purchase price must be under the $750,000 cap. You’ll also need to fulfil the salary cap and other requirements.
Are first home buyers eligible?
Yes, first home buyers are eligible to apply. They can also apply for the State Government’s First Home Owners Grant and stamp duty concessions, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme. When combined, these could create significant savings for people looking to get their foot on the property ladder.
I’m planning to knock-down and rebuild, can I apply?
Yes, knock-down rebuilds are eligible for HomeBuilder, so long as the existing property is valued at less than $1.5 million and you meet the salary cap and construction cost caps.
How do I apply?
If you’re looking for a home in a great suburb on Sydney’s Upper North Shore contact our team today.