If you have been thinking about building a new home or renovating on your current home, now might be the time to start working towards it. As we all know that the Federal Government’s new $680 million HomeBuilder program has been announced on 4th June 2020, which provides eligible owner-occupiers (including first home buyers) with a grant of $25,000 to help build or substantially extend or renovate their existing homes.
This HomeBuilder Scheme is a time-limited program to help the construction industry to recover back from the COVID-19 crisis, which will complement existing first home owner grant programs, stamp duty concessions and other grant schemes from State and Territory.
I know a lot of people want to know how does the HomeBuilder program works? How to apply and when to apply. Unfortunately, information on when and how to apply will only become available through the relevant State or Territory revenue office when the National Partnership Agreement is finalized. I believe the information will soon be released. While firstly people who interested in applying for this grant should all do a self-eligibility checkup before signing any contracts.
How does the HomeBuilder program work?
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- The scheme is only available for Australia citizens, who are natural people and aged 18 years or older.
- The scheme is only available for contracts signed between 4th June 2020 and 31st December 2020.
- Construction must commence with three months of the contract date.
- It is means-tested, which means one of the following income caps must be met: $125,000 per annum for an individual applicant based on your 2018-19 income or later; or $200,000 per annum for a couple based on both 2018-19 taxable income or later.
- Only available for the principal place of residence
- There are limitations on the kinds of renovations, for example, tennis courts or swimming pool are not included, and subject to a total value cap
With comprehensive research conducted and professional knowledge carrying around this industry, I believe 2020 could be the right time to enter into the property market, for both first home buyers and investors. Not only you will get the government positive incentives but also you can take advantage of the historically low-interest rates.
If you would like to discuss how you could take advantage in the midst of crisis, either for HomeBuilder program or Low-interest rates; we, Credit Hub are here to help. Feel free to get in touch and let us know what’s in your mind, we will help you achieve your dreams and goals.
Information provided on the HomeBuilder program is a selection of information taken from Australian Government sources that last updated on 18 June 2020. It may not contain all the information relevant to you.