How The Federal Government HomeBuilder Grant Can Help You
The Federal Government has introduced a $25,000 grant for people who plan to build or renovate in the second half of 2020.
The HomeBuilder scheme was introduced to stimulate the construction industry after it slowed down due to the impact of COVID-19.
The grant is open to Australian citizens 18 years or older and applies to substantial renovations and home builds valued between $150,000 and $750,000.
If you’re eligible, you can use the grant towards the costs of buying off the plan, buying a house and land package, undertaking a big renovation or even doing your own knockdown rebuild.
What type of construction does HomeBuilder cover?
The HomeBuilder grant offers $25,000 towards:
- Off-the-plan purchases under $750,000
- Buying a house and land package under $750,000
- Building a home on land you already own, with construction costs of between $150,000 and $750,000
- Undertaking a substantial renovation on an existing property, so long as it’s valued less than $1.5 million and construction costs are between $150,000 and $750,000
- Completing a knock-down rebuild on an existing property valued at $1.5 million or under, so long as construction costs are between $150,000 and $750,000.
What other criteria do you need to fulfil?
There is an income cap of $125,000 a year for singles and $200,000 a year for couples. This is based on the 2018-2019 tax year or later.
The grant is only available to owner-occupiers and you must use the property as your principal place of residence. Investors, owner-builders or companies and trusts aren’t eligible.
You must also sign a building contract between 4 June 2020 and 31 December 2020 and begin construction within three months.
HomeBuilder is really good news for First Home Buyers
First home buyers often buy house and land packages, off-the-plan apartments or older homes that need to be renovated. So HomeBuilder should be welcome news for this demographic.
What’s even better is that first home buyers can apply for HomeBuilder alongside the other grants and schemes for which they’re eligible, such as:
- The State Government’s $15,000 First Home Owners Grant
- Stamp duty concessions
- The Commonwealth’s First Home Loan Deposit Scheme
- The First Home Super Saver Scheme
In fact, if you’re a first home buyer and qualify for the HomeBuilder Grant and the QLD First Home Owner Grant you could receive a total of $40,000 and save up to $15,925 in stamp duty. That makes owning your first home a much more affordable proposition.
How to apply for HomeBuilder
You’ll be able to apply for the HomeBuilder grant once the QLD government formally signs on to the scheme. In the meantime, you can find out more and download a factsheet at treasury.gov.au/coronavirus/homebuilder.
An extra $5000 from the State Government’s regional home building boost grant
The Queensland Government has also introduced a boost grant for eligible buyers of new homes in regional areas, including Toowoomba. Eligibility requirements are similar to HomeBuilder, and if you qualify you could receive an additional $5,000 towards the purchase or construction of a brand-new house, unit or townhouse valued at less than $750,000.
If you’re looking to buy or sell in Toowoomba, contact our experienced team today.
