HomeBuilder grant set to boost struggling building industry
HomeBuilder program set to boost struggling building industry.
The building industry was quick to praise the Federal Government’s $688 million HomeBuilder package announced yesterday evening.
Many call this a “lifeline” for the building industry, which was set to “fall off a cliff” around August.
The HIA said it would stimulate building activity and provide critical support to jobs and businesses in the residential building sector.
It was common thought that We have been staring down the barrel of the toughest 12 months in history after the initial shock of the global pandemic saw home building pipeline contract by about 50 per cent as sales fell and existing jobs were put on hold.
HomeBuilder will provide a grant of $25,000 to owner-occupiers (not just first-home buyers) building a new home or carrying on substantial renovations on an existing residence.
It will run from June 4, 2020 to December 31, 2020 and will complement other grants, programs and concessions already in place such as the First Home Owner Grant and First Home Loan Deposit Scheme.
The eligibility criteria mean that the vast majority of Australians will be able to access the scheme; more than 80 per cent of households have income of $200,000 or less.
The scheme is structured to get building activity going immediately and to provide safeguards around quality and consumer protection.
These new stimulus measures will provide potential buyers with that extra incentive they might need to jump in and secure a new home, We encourage eligible buyers to take advantage of this opportunity with a range of house and land package options available across the metropolitan area.
In addition to HomeBuilder, the State Government is expected to announce its own housing stimulus package soon.
HomeBuilder: the basic facts
> Eligible owner-occupiers can receive a grant of $25,000 to build a new home to the value of $750,000 (including land) or substantially renovate an existing home with renovations valued between $150,000 and $750,000 and the dwelling not valued at more than $1.5 million before the renovation.
> Individual applicants must earn less than $125,000 per year, less than $200,000 per year for couples, as at the 2018/19 tax year or later.
> The home must be a principal place of residence, not an investment, and renovations will not include swimming pools, tennis courts, outdoor spas or saunas or detached buildings such as sheds or garages.
> The contract must be entered into between June 4, 2020 and December 31, 2020 and the work must be started within three months of the contract date.
> The work must be carried out by a registered or licensed building service contractor and named as a builder on the building licence or permit. Owner-builders are not eligible.
> The builder must show that the contract price is no more than a comparable product as at July 1, 2019.
It will be implemented through the State Revenue Office with funding to go to the home owner, not contractors/builders.
For more information visit the Treasury Coronavirus Economic Response website.
Monty Van Dyk
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About Monty Van Dyk
Monty Van Dyk is founder and CEO of Lead Funnels Australia and Easy Agent, headquartered on the Gold Coast, Queensland with teams in Brisbane, Sydney and Melbourne. Under Monty’s guidance and leadership, the team has sold thousands of homes in the past 18 years, performing exceptionally regardless of changing market conditions.
Before moving into real estate in 2002, Monty was a mechanical engineer for ten years. He credits the success of Easy Agent to the culture of learning and growth. His commitment to learning has placed him in the top agent mastermind and within the top 10 percent of real estate principals in Australia.
When he is not coaching or speaking, Monty is enjoying time with his family or training for his next IRONMAN; he has completed six so far in his sporting career. He is originally from Cairns, Queensland.