You may have heard about the new Government HomeBuilder Stimulus package and be wondering if you could benefit?
HomeBuilder provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home.
HomeBuilder will assist the residential construction market by encouraging the commencement of new home builds and renovations.
Here, we answer some of our most frequently asked questions:
When can I access HomeBuilder?
HomeBuilder will be available for building contracts signed between 4 June 2020 and 31 December 2020, where construction or renovation commences within three months of the contract date.
How can I access HomeBuilder?
You should contact your relevant State or Territory authority on when and how to apply for HomeBuilder. You will be able to apply for HomeBuilder when the Government of the State or Territory that you live in, or plan to live in, signs the National Partnership Agreement with the Commonwealth Government.
When will I receive Homebuilder?
HomeBuilder grants will be paid by the relevant State or Territory authority provided the applicant meets the eligibility criteria.
Am I eligible to receive HomeBuilder?
To access HomeBuilder, owner-occupiers must meet the following eligibility criteria:
- you are a natural person (not a company or trust);
- you are aged 18 years or older;
- you are an Australian citizen;
- you meet one of the following two income caps: $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- you enter into a building contract between 4 June 2020 and 31 December 2020 to either: build a new home as a principal place of residence, where the property value (house and land) does not exceed $750,000; or substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property (house and land) does not exceed $1.5 million;
- construction must commence within three months of the contract date. Owner-builders and those seeking to build a new home which will be used as an investment property, or renovate an existing home which is an investment property, will not be eligible for HomeBuilder. The registered or licensed builder (depending on the state or territory) must demonstrate that the contract price for the new build or substantial renovation is no more than a comparable product (measured by quality, location and size) as at 1 July 2019, if requested by the purchaser.
Is there a limit to how many people can get HomeBuilder?
No. HomeBuilder is an uncapped, time-limited grant.
I already own land but have not signed a contract to build a new house – am I still eligible?
Yes, if you meet the following criteria:
- If you own a property (house and land), and knock the house down to rebuild – this will be counted as a substantial renovation, and therefore subject to the renovation price range of $150,000 to $750,000 provided the total value (house and land) of the property does not exceed $1.5 million prerenovation;
- If you own vacant land before 4 June 2020, and then build, the total value of the land and new build cannot exceed $750,000; or
- If you buy the land after announcement, and then build, the total value of the land and build cannot exceed $750,000.
For further information, please feel free to visit the Government website: https://treasury.gov.au/coronavirus/homebuilder
If you are thinking about building your new home, now is a good time.
If you would like to discuss finance options we are always here to help.
Please feel free to contact our office on (02) 4732 3844.