It’s no exaggeration to say that we’ve been inundated with enquiries since the Australian Government announced its new HomeBuilder program on June 4, 2020.
Essentially, HomeBuilder will provide owner-occupiers (including first home buyers) with a grant of $25,000 to build a new home or substantially renovate an existing home, where the contract is signed between June 4 and December 31, 2020. Construction must commence within three months of the contract date. The program will complement existing State and Territory First Home Owner grant programs, stamp duty concessions and other grant schemes – as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
My Expert® welcomes the program, which is aimed at driving activity in the residential construction sector. While we see it as a positive initiative amidst the challenges the economy has endured over the past three months, the program has at the same time created its fair share of confusion.
As a result, we and other key stakeholders in the finance industry are currently seeking further clarification from the government on the full details, workings and requirements of the program.
“Right at this moment, we’re advising all clients and new enquiries that they need to be particularly wary as to how they think the grant might benefit them in their quest to secure a loan for a new build or renovation,” says My Expert® Founder and CEO, Brett Wadelton.
“The finer detail is still being worked out. It’s therefore crucial that you contact us before making any decisions, so we can guide you on the facts and how the flow of money is going to work.”
What we know so far at a glance:
|Key Criteria – Australian Government HomeBuilder Program|
|Building contract must be signed||Between June 4 and December 31, 2020.|
|Eligibility||Individuals 18 years of age or older. Must be an Australian citizen.|
|Qualifying income||Equal to or less than $125,000 in FY19 for individuals, or $200,000 for couples.|
|New build cost||Equal to or less than $750,000.|
|Renovation cost||Between $150,000 and $750,000.|
|Maximum property value||$1.5 million.|
|Construction must commence||Within three months of signing the building contract.|
There is a very informative fact sheet and frequently asked questions available on the Treasury website.
We will also advise you of any further updates as soon as they come to light. In the meantime, if you’d like to discuss your loan requirements and the HomeBuilder grant, please get in touch with us today: 1300 693 973.
Disclaimer: The information provided in this blog is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information in this blog you should consider the appropriateness of the information having regard to your objectives, financial situation and needs and it is important for you to consider these matters and to seek appropriate legal, tax, and financial advice.
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