The Federal Government’s stimulus Home Builder Grant, comprising of $688 million dollars is an initiative to rescue the building industry job market, including tradies, apprentices, and related housing-construction workers. The plan has been met with mixed reactions from building industry leaders; the main concern as to whether the amount will be sufficient to super-boost the industry.
Under the new HomeBuilder grant, anyone meeting the eligibility requirements can claim $25,000 when building a new home or undertaking substantial renovations.
*The video below by leading Brisbane mortgage broker Hunter Galloway offers an excellent explanation about the new govt homebuilder grant
**Also here is a link to his article HomeBuilder Grant: The Definitive Guide
What Does this Latest Govt Stimulus Package Mean for Regional Queensland?
The great news for regional Queensland is that the latest home buying assistance programs release, along with coronavirus-induced increases in the number of people now working from home will result in even more people choosing to leave the larger cities. That’s a win-win for regional cities like Hervey Bay as population growth usually invites a boost to the local economy.
Hervey Bay has experienced steady population growth for several years now for many different reasons. There is an even larger influx of people expected to relocate to the stunning coastal city once the virus lock down restrictions have been substantially eased, (including the border restrictions being lifted).
HomeBuilder Grant to be Paid After Property Settlement
Initially, it was believed that the $25,000 Federal HomeBuilder Grant would be allowed to be be used as part of the deposit in a new house and land package. Instead, the $25,000 grant will be sent to qualifying recipients (soon) after property settlement. Although it may not help those short on deposit, the extra cash will no doubt come in handy whether choosing to buy new furniture, do some landscaping, etc. The $25,000 can be spent on whetever the new home owner desires.
Good news is that the existing QLD 1st Home Buyers Grant of $15,000 is still available to assist first home buyers. If you are seriously thinking about taking that step forward and buying in beautiful Hervey Bay, one of our new turnkey house and land packages would be a perfect choice. With this latest govt stimulus package, you have from now through until December 31st 2020 to take advantage of the additional free money on offer.
It is also a good idea to check your eligibility and the requirements for the 1st Home Owners Grant Since these prestige move-in-ready homes sell very quickly; to avoid disappointment, contact us today to discuss your options of home ownership.
What About Home Builder Grants Substantial Renovations?
Middle-to-low income families will benefit the most from the new home renovation home / builder grants as they will be able to use the cash to help pay for home renovations. However, there are a few limitations that may prevent many home owners taking advantage of the free money. Firstly, a renovation project will need to cost at least $150,000 to be classed as a substantial renovation.
Due to the strict rules imposed on this latest govt stimulus package, while a completely new kitchen, bathroom and/or extension may fit the bill, a modest refit or paint job probably won’t qualify. External additions like swimming pools, outdoor spas and saunas, tennis courts, garages, or sheds, etc are not included. To qualify for the government money to remodel home, all work must be completed by a licensed builder meaning that DIY or owner-builders miss out.
How will the home builder grant most likely be used when renovating? The additional cash may allow home owners that needed extra savings before going ahead to move the project forward. Or encourage others to tackle a more substantial build with the extra money.
Terms & Conditions of the New Govt Stimulus HomeBuilder Scheme:
(Specific details are still to be released by the Federal Government)
Renovations to an existing property must cost between $150K and $750K – contract signed before 31st December 2020, work to commence within three months of the contract date .
Existing property worth before renovations must not exceed $1.5 million.
To be eligible; single applicants must earn less than $125K or $200K for couples
Parents, grand-parents or family wanting to know how they can assist their adult children into a brand new house and land package may like:
How Can Parents Help Their Child to Buy a House?
*It’s filled with great tips and information about the best ways to assist them if they still need just a little additional help.