Federal Government Extends HomeBuilder program for another 3 months
The HomeBuilder grant has been extended until 31 st March 2021
Contracts now signed between January and March next year will attract a HomeBuilder rate of $15,000
Currently until end December 2020 the HomeBuilder grant is $25k, where a property being purchased needs to comply in order to qualify for the grant.
In Victoria property price caps have been increased to $850k and in NSW up to $950k during January to March
The Commonwealth Governments decision to extend the HomeBuilder initiative will certainly help stimulate the economy for you the home buyer, for construction jobs, for industries that supply to construction etc as Australia recovers from the economic effects of Covid-19
“We know HomeBuilder is already working to boost new housing construction and the economic activity that follows, so the Government has taken the smart decision to run with a proven winner,” said UDIA National President, Simon Basheer.
“Jobs, wages and activity up and down supply chains will flow from the extended application of HomeBuilder – and thousands of young Australians will find it easier to access the dream of home ownership.
“Housing and construction contribute 750,000 direct and indirect jobs to the nation, so it is well placed to fill the gap caused by border restrictions and slower population growth due to current immigration levels.”
Research is proving that residual domestic demand for new housing remains substantial and can play a crucial role in lifting economic activity over the short to medium term until immigration returns to more sustainable levels.
“The government has sensibly recognised that the advantages for extending the time frames for consumers entering contracts to 31st March next year to keep the momentum going.
In addition, raising the pricing caps for Sydney and Melbourne to $950,000 and $850,000 to better reflect pricing in these cities is a step in the right direction – as is extending commencement time frames from 3 to 6 months from date of building contract signing which will enable a more orderly roll out of construction programs” Mr Basheer said.
New South Wales is modifying Stamp Duty which will save both Owners and Investors significant dollars as is Victoria.
The recent Victorian Budget has a focus on Infrastructure Spend, Jobs and Housing. With just under $20bn to be spent each year until 2024 on infrastructure, altering the face of Victoria forever.
Tax Relief on Stamp Duty for residential property transactions of up to $1m includes a waiver of 50% for NEW residential properties on contracts entered until 30 June 2021.
This is an incredible savings for purchasers in Victoria equating to around $27.5k on a new property and $13.7k savings on an established dwelling. That is 50% on new homes and 25% on existing homes.
First Home Owners Grant
Victoria has extended the First Home Owner Grant of $20,000 to those buying or building a new home in Regional Victoria, applying to contracts of sale entered into up until end June 2021.