The federal government recently announced the HomeBuilder grant to encourage Australians to build a new home or complete a major renovation on their existing home.
Designed to stimulate the economy and boost the construction sector, the grant offers $25,000 to applicants who meet the eligibility requirements.
Who is eligible?
While it may seem like a good opportunity to save some cash, it’s important to ensure that you are eligible before making any commitments.
To access the grant, you must sign your building or renovation contract between 4 June and 31 December 2020 and construction must begin within three months of the contract date.
If you are applying alone, you must be earning $125,000 per year or less. If you are applying as a couple, your combined income is capped at $200,000.
How can I use the grant?
The grant can help fund new builds valued up to $750,000 including land or major renovations costing between $150,000 and $750,000.
For renovations, the pre-renovation value of the property must be below $1.5 million, and the property must be your principal place of residence rather than a holiday home or investment property.
There are also some other exclusions. While the grant can help cover bathroom and kitchen renovations as well as knockdown rebuilds, the renovations must improve the liveability of the property.
So, if you were planning to add a pool or a detached garage, you’ll need to fund this separately.
Is there other support available?
HomeBuilder complements existing state and territory grants and concessions, like the First Home Loan Deposit Scheme.
If you do not meet the eligibility requirements, there are options available.
A Liberty Adviser can help you find the right lending solution to fund your new build or home renovation.