By Jessica Anstice
A $25,000 home builder tax-free stimulus grant was announced by the Federal Government for owners, including first home buyers, planning on building a new home or on renovating their existing home.
The HomeBuilder grant is a time-limited grant program to help the residential construction market bounce back from the coronavirus crisis.
The government initiative will assist the residential construction market by encouraging the commencement of new home builds and renovations this year.
Eligible applicants will receive a grant of $25,000 where the contract was signed between 4 June and 31 December 2020, with construction having to start within three months of the contract date.
Kooweerup mortgage broker and first home coach, Cait Benton, bought her first home when she was 20-years-old.
Ms Benton says the HomeBuilder grant is a great idea as it gives first home buyers a renewed hope of getting into the property market by owning their own home and not falling into the rental trap.
“However I’ve also seen first home buyers jumping at the opportunity without realising the land they’re buying is not due to title until mid-next year, which actually means they’ll miss out on the $25k grant,” she explained.
“So I’ve been strongly recommending to people to make sure they do all their research prior to locking themselves into something or to not hesitate to run questions by me beforehand as they need to ensure all round they’re making the right decisions.
“In saying that, it’s been so wonderful seeing so many first home buyers excited about this opportunity, and I’ve noticed it even more so because like I said all those who originally thought they’d either not have a chance or be years off, have had their chances of buying fast tracked.”
In order to be eligible to access Homebuilder, owner-occupiers must be over 18-years-old and an Australian citizen.
The applicant must earn less than $125,000 per year as an individual or less than $200,000 as a couple.
Either a new home must be built where the property value does not exceed $750,000 or substantially renovate an existing home where the renovation contract is between $150,000 and $750,000 and where the value of the property doesn’t exceed $1.5 million.
