Many Victorians are taking advantage of the quarantine to catch-up on some renovation work in the home. If you are one of them you must explore the Government’s latest COVID-19 stimulus package – the HomeBuilder Scheme.
The HomeBuilder Scheme is a $25,000 grant for homeowners and first-home buyers. You can use the grant to renovate your existing home or to build a new home. It could save you thousands of dollars in renovation and building bills if you qualify.
What is the HomeBuilder Scheme?
The HomeBuilder Scheme is a stimulus package to keep the construction industry running as our economy takes tentative steps to restart. The $25,000 grant is applicable for residential construction to build a new home or to substantially renovate an existing home.
Should you renovate?
Absolutely, if you qualify. Here are two good reasons why we think so:
First-home buyer advantage
Imagine the luxury of moving into your first home and it’s renovated to the way you want your perfect dream home to look like? You can make this happen by leveraging on the HomeBuilder Scheme.
The HomeBuilder Scheme is applicable for existing dwellings so long as the property is not more than $750,000. You will also need to spend $150,000 on renovating the home. If your budget for renovating is close to this figure (or over it) then definitely consider how you can take advantage of it.
Choose one of those vibrant up-and-coming suburbs in the south-east like Keysborough or Noble Park. You will be spoilt for choices finding a great home and land package in this price bracket. With the government paying more than 15% of your construction bills, you are saving quite a lot of money. Best of all, you’re getting your dream home! For more information on off the plan or house-and-land packages in the South East talk to our experts here.
The astute homeowner
Working from home forever? Now is the time to spend on some serious renovation in your home so you can have all the additional living spaces to accommodate every member of the family. There are caveats attached to the scheme so please read our Q&A section below.
If you intend to sell your property after the pandemic crisis and are already making plans to renovate your home so you can get a better sale price, this scheme is worth considering. Your home must be worth less than $1.5 million so if you live in areas where the median price is below this value, you may qualify. $150,000 of home renovation is serious upgrading of your existing home. Everything that ultimately adds value to your home. The best part about this deal is the government is going to pay some of that bill!
HomeBuilder Scheme Q&A
What can I use the HomeBuilder Scheme for?
- The HomeBuilder Scheme can be used to renovate an existing home or build a new home. Please read the caveats below.
Do I have to be an Australian to qualify for the HomeBuilder Scheme?
- You need to be an adult Australian with a taxable income of less than $125,000 per year. If you live with your partner, the combined taxable income must be less than $200,000.
Is there a timeframe to apply?
- The HomeBuilder Scheme is time-sensitive. If you are eligible you will have to apply for the grant between now and December 31 with works starting within three months of the contract date.
How much do I have to spend on the renovation to qualify for HomeBuilder?
- If you are renovating, you need to be spending more than $150,000 in renovations to qualify for the scheme.
Is there a price cap on the property?
- If you are renovating an existing home the property must be valued at less than the national price cap of $1.5 million.
- If you are building a new home, the property you intend to build must be worth less than the national price cap of $750,000.
- The renovations must improve the liveability, accessibility and safety of your home.
Can I use the grant to build a garage?
- The grant cannot be used for property additions that are not connected to the main residence. This means you cannot use it to install a swimming pool, an outdoor spa and sauna, a tennis court, a garage or shed.
Can I use HomeBuilder to renovate my investment property?
- Owner-builders and investment property owners are not eligible and cannot use the scheme to improve their investment properties.
What types of homes are eligible for HomeBuilder?
- The scheme is eligible for all types of dwelling including houses, apartments.
- Off-the-plan packages, house and land packages, provided the owner-occupier is building a new home or significantly renovating an existing home.
Do first-home buyers qualify?
- You must be a first homeowner-occupier (i.e. you are intending to live in the property). You must meet the Australian residency and income criteria to be eligible. Your renovations must cost more than $150,000. If you are buying an existing home and renovating it, the property’s value must be under $1.5million. If you are buying a new home, the property’s value must be under $750,000. Note: Existing state and federal first-home buyer grants and exemptions still apply.
Does off-the-plan qualify for HomeBuilder?
- You can buy off-the-plan provided you meet all the other criteria. Buyers who are intending to buy in areas where new home packages are high may not be able to meet the property price cap of the government and will not qualify.
- Buyers who are planning to buy off the plan apartments who can meet the price cap may qualify.
Does house and land packages qualify for HomeBuilder?
- You can buy home and land packages provided you meet all the other criteria. Buyers who are intending to buy in areas where new home packages are high may not be able to meet the property price cap of the government and will not qualify.
Can investors apply for HomeBuilder?
- Investors cannot apply for the HomeBuilder Scheme. It is meant for owner-occupiers only.
What builders can I use?
- Builders must be registered in the state or territory where the home will be built or renovated.
– Download the HomeBuilder Fact Sheet here.
– For a Free Real Estate plan please check out here.