The Federal Government has revealed its new $688 million ‘Home Builder’ scheme. This scheme will see eligible owner-occupiers and first home buyers be able to apply for a one-off $25,000 cash grant from June 4 to December 31 to entice investment in the sector.
Together with our team of expert brokers, we have broken down all the key facts you need to know in order to understand if you’re eligible or not, and if so how to take advantage of this opportunity.
Who is and isn’t eligible?
Firstly, you need to be an Australian Citizen aged 18 years or over. The scheme is also means-tested so you need to be earning less than $125,000 p.a if you’re single, or, on a combined income of less than $200,000 p.a if you’re a couple.
This scheme is available to individuals only, this means that trusts and companies cannot apply for the scheme and it is not available to investors or owner builders.
What can it be used for?
- Renovations on existing owner-occupied properties, valued at less than $1,500,000
- Building a new owner-occupied property valued at $750,000 or less
- It can be used on all dwelling types, that is houses, apartments, house & land packages, or off-the-plan
What can’t it be used for?
It cannot be used for additions that are not connected to the principal place of residence. So you won’t be able to use it for something like pools, tennis courts, granny flats for example.
What’s the “catch”?
- You need to enter into a contract between Thursday 4th June 2020 and Thursday 31st December 2020
- Construction must begin within 3 months of the contract date
- The building or renovation cost needs to be between $150,000 and $750,000
- You’ll need to spend $150,000 of your own money
- Any building or renovation contract entered into must be at “arm’s length”. This means two parties are entering into the contract freely and independently of each other
What are the opportunities?
This is a fantastic opportunity if you’re a first home buyer.
Combine this with the First Home Buyers Grant, any stamp duty concessions available in your state as well as other grant schemes available and this could make it a pretty sweet deal.
It is a great reason to get in touch with one of our brokers today to see what’s available.
Or check out some of the other great resources we have created to help first home buyers along the journey.
- First Home Buyer Toolkit
- What first home buyers should look for in a property
- What first home buyers need to know when they apply for finance
How do you apply?
You can apply for HomeBuilder through your relevant State or Territory revenue office or equivalent authority once the National Partnership Agreement has been signed by the State or Territory you live in (or plan to live in).
Or, simply reach out to one of our talented team of brokers for help or to find our more here.