$25,000 Home Builder Grant
If you have been thinking of renovations for your home or even building a new house, now might be the best time. The new HomeBuilder scheme will provide $25,000 cash injections for both home improvements and new home building. Prime Minister Scott Morrison was quoted as saying the plan is meant drive a “tradie-led recovery.” You can use the HomeBuilder scheme for your home too. Check with us at Xpact Constructions in Sydney, NSW to get a start on your project.
Home Builder Scheme Specifics
The $25,000 cash injection under this plan comes as part of the fourth stimulus plan in the wake of the Covid-19-induced economic crisis. To qualify for the cash injection you must sign a contract for building a new home or for home improvements. You can do this any time but make certain to do so before the end of the year. The government expects to see support for as many as 140,000 direct construction jobs as well as 1,000,000 in the broader residential building sector. This will directly affect materials suppliers, manufacturers, engineers, and architects as well as those in the building trades.
The Prime Minister noted that the combination of historically low interest rates and an extra $25,000 will create an ideal situation for those who have been putting off home remodelling projects or construction of new homes.
The new measures come as the housing and construction sector has seen a 30% downturn with forecasts for new building going down from 171,000 before the coronavirus outbreak to 111,000 since the pandemic has spread.
Getting the $25,000 Home Builder Grant
This will be a means-tested programme similar to the first home deposit scheme. Those eligible will be single Australians earning up to $125,000 a year and couples earning up to $200,000 a year. The grant may be used for new home construction on projects where the home, including land value, does not exceed $750,000. For home improvements the grant will be available for renovations ranging from $150,000 to $750,000, providing that the home value before the project begins is no higher than $1,500,000.
The stipulations are that the renovations have to be at least $150,000 with a home value of no more than $1.5 million (including land, before the work begins) The home owners need to earn less than $125,000 as an individual, or $200,000 as a couple.
It has to be for interior renovations (not outside pool, sheds, decking etc)
For home building, the work has to cost at least $750,000, with the same stipulations, of income and home value, before the work is done.
Furthermore, you will need to confirm that the money will go to a large job like home remodelling or a new home. The money cannot be used for projects outside of the home itself so that sheds, garages, saunas, spas, tennis courts, or swimming pools are not included. And, the job needs to be done by a licensed builder like XPact Constructions in Sydney, NSW and not be a do-it-yourself project.