Everything you need to know about the $25,000 HomeBuilder scheme

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In response to the economic issues caused by the Covid-19 pandemic, the government is rolling out a number of different initiatives to increase activity across various sectors. Intended to boost the construction and house-building industry, the HomeBuilder grant is a one-off, non-repayable grant of up to $25,000. Available to both new and existing homeowners, it can be put towards the costs of a new-build property, or towards the cost of an extensive refurbishment of an existing property. To help our customers, we’ve put together answers to all the questions commonly being asked about this grant.

When is the Homebuilder grant available?

The Homebuilder grant will be available on a state by state basis: as soon as a state has signed the National Partnership Agreement with the commonwealth government, the grant can begin to be rolled out.

Who can apply for the grant?

Applicants need to meet a variety of eligibility criteria. In addition to being limited to Australian residents (so no trusts or businesses) who are over the age of 18, applicants also need to meet income criteria. These are:

  • A single applicant needs to have earned a maximum of $125,000 in 2019/20.
  • Joint applicants need to have earned a maximum of $200,000 in 2019/20.

Are there conditions relating to the property?

Yes, the work on the property is subject to several conditions. These are:

  • You need to have entered into the contract for the work between 4th June 2020 and 31st December 2020. Contracts which were signed before this date (so earlier in the year, for example), will not be eligible.
  • As this grant is intended to boost the construction industry in the short term, work needs to start within three months of the contract being signed.

There are also some value limits for eligible properties:

  • If you are constructing a new-build, its value should not exceed $750,000.
  • If you are going to contract for a major refurbishment, the price of the renovation contract needs to be between $150,000 and $750,000. In addition, the value of your property should not exceed $1.5 million.

Can I claim other grants alongside the Homebuilder grant?

Yes! The exact grants depend on the state. As Melbourne conveyancers, we have a good understanding of the various grants available, depending on your specific circumstances. Depending on your individual circumstances, we help point you in the right direction of certain grants, and if it relates to your settlement, we can also apply for some grants.

What about rented properties?

The grant is intended for use on a primary residence: your main residence, not for rented properties.

Can I use the grant on my existing property?

Yes, provided the property is within the value bands already mentioned. Remember that there is a minimum level for refurbishment costs, so minor refurbishments are unlikely to be eligible.

What about purchasing a run-down property?

It’s possible to purchase a run-down property, then apply for a grant to cover part of the refurbishment costs.

How Wealthsource can help

We are award-winning conveyancers and can assist with all conveyancing and title transfer matters for you. If you have any questions, do not hesitate to email us at [email protected] or call us on +61 3 9590 618. Our expert team can answer any queries and we work hard to ensure your sales or purchasing experience is as stress-free and straightforward as possible.