What is the new $688 million dollar HomeBuilder program?
As of this week The Australian government have formalised and launched the Home Builder program, offering grants to you, to sign a new home owner build contract or to contract to substantially renovate your home. Applicable from now until the end of the year.
The purpose of the $25,000 grant being to stimulate the building industry which has been substantially affected through banking changes a year ago when APPRA altered the way Banks could lend and affected again due to the recent Corona virus outbreak.
On the other side of the coin, the demand for new dwellings continues to increase but unfortunately building approvals continues to decline read more here.
What this means to you is that demand in most areas is the exceeding supply, and this could be inflationary, and lead to property value increases. Meaning the sooner you get your plans underway to own your property the less you could be paying for it.
Ask us about giving you access to “Fixed Price, Full Turnkey, ready to move into House and land Packages in the areas you want to live in.”
Prime Minister Scott Morrison says this initiative will stimulate and drive the tradie lead recovery of the economy, which is an important aspect of our Australian economy.
Eligibility for HomeBuilder Grant
The grants are open to people earning less than $125,000 a year, or as a couple $200,000 pa
The $25,000 grant can be used for a major internal renovation of an existing home, or to build a brand new home. If for a brand new home its valued must be $750,000 or lower (including the land) in order to qualify.
If a renovation, could only be on renovations worth $150,000 and $750,000, which would result in their property price Bing at $1.5 million or less.
The work has to be done by a licenced builder, meaning home renovators, DIY or owner builders miss out on the grant.
Prior to Covid there was an expected 171,000 new builds to start; this figure has dropped off too only 111,000 new builds and is a worrying factor not only for the construction industry, but for want to be buyers and or investors. A low reduced supply and a high demand is a recipe for property price increases.
The Master Builders Australia chief executive Denita Wawn said the HomeBuilder programme would be a lifeline for the embattled industry, it will mean more new homes, more small business and jobs providing a stronger bridge to the economic recovery for our country. The program is expected to support 140,000 direct construction jobs and 1 million workers in the wider residential building industry.
The HomeBuilder Program is for owners and excludes investors.