If you’ve been putting off that renovation or new build, there’s never been a better time to do it.
In exciting news for Australian homebuyers, the Federal Government is giving a one-off, $25,000 tax-free grant to eligible owner-occupiers – but you must enter into a building contract by 31 December 2020.
It’s a win for those planning on building their dream home or carrying out major construction work on their existing house. Better still, this scheme is open to all buyers, not just first home buyers.
Now you can buy where you perhaps couldn’t afford before, build a larger home than you’d planned, or even upsize your current home.
The $25,000 grant is a great helping hand, but it’s not a free for all. There are price and income caps on the grant – and it’s only available for the latter half of this year.
The scheme is designed to help first home buyers enter the property market sooner, give a stimulus boost to those considering constructing a new home to live in, as well as help recent bushfires victims to rebuild.
Whether you’re looking for your first home, wanting to upsize, rebuild, or downsize in retirement, Clarendon Homes has a range of home solutions that meet the HomeBuilder grant criteria.
Here’s a quick run-down on what the scheme entails and what you need to do.
First, check your eligibility.
You must be an Australian citizen and owner-occupier. The grant is also means tested. Singles must earn less than $125,000 a year, or $200,000 for couples.
The grant is only for your principle place of residence. Investment properties do not qualify.
Home builders and renovators are excluded, and only builders registered and licensed before the announcement of the scheme can participate.
Check the value of your new home or renovation.
For new home builds, there’s a house and land price cap of $750,000.
For renovations, you’ll need to spend between $150,000 and $750,000 on an existing home previously valued at less than $1.5 million. Renovations must be for your main house only. Swimming pools, tennis courts and shed are not eligible.
Notably, the scheme has measures in place to stop artificial price hikes and ensure you’re getting the best deal.
Check your build timings.
The one-off HomeBuilder grant is only available for a limited time.
Your building contracts must be signed between 4 June 2020 and 31 December 2020, and construction or renovation must start within three months of the contract date.
To take advantage of this time-limited grant, Clarendon Homes has home and land packages ready now in communities across NSW and Queensland.
How do you apply for the HomeBuilder grant?
Applications for the grant will be handled by the State or Territory revenue office in which you live (or plan to live in).
You’ll need to provide proof of your identity, a copy of the contract with your licensed builder, your tax returns and other property documents such as council approvals and building contracts.
What about other government grants?
The good news for first home buyers is that you’re still eligible for other grants and schemes.
The $25,000 HomeBuilder grant can be used alongside existing State and Territory first home owner grant programs, stamp duty concessions, and other grant schemes including the Federal Government’s first home loan deposit scheme and first home super saver scheme.
Want to learn more?
With such a new grant scheme, you’re sure to have many questions. Feel free to speak with one of our Clarendon Homes representatives who will help guide you through the process.
You can also find the latest up-to-date information on the HomeBuilder grant and application process on the Australian Government’s Treasury website.
Remember, the one-off $25,000 grant is time limited. If you’re eligible, take a moment to explore our house, and home and land packages. You run the risk of missing out if you don’t apply soon and get your building contracts signed in time.