Home Real Estate The Government's Home Builder scheme offers $25k for home renovations

The Government's Home Builder scheme offers $25k for home renovations

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The Federal Government Australia has disclosed its Homebuilder package, offering $25,000 for people to renovate or build their house.

But you will only be eligible for the cash splash if you are spending approx. $150,000 or beyond on a renovation and you meet an income criteria. 

Mr Morrison, Prime Minister of Australia “said the $25,000 grants provide for those Australians citizen whose dream it was to build their own home or to do big renovation”. The scheme’s main goal is to provide work for the construction sector, however some people planning a big project are set to value.

“If you’ve been pushing off that renovation or new construct, the extra $25,000 we’re putting on the list along with low interest rates,’’ the Prime Minister said.

Applicants for Homebuilder must also meet up the following eligibility to qualify for this scheme.

  • Singles must be earning $125,000 a year or less based on their 2018/19 tax return or after.
  • Couple must have a shared income of less than $200,000 based on their previous tax returns.
  • Before the end of the year, you need to submit a contract to revamp or build your home, with construction to begin within not more than 3 months of the contract date.
  • For restorations, you need to spend between $150,000 and $750,000 of your own cash, and the house you’re repairing must be valued at less than $1.5 million earlier to renovations.
  • To be eligible for the homebuilder proposal, you must be aged 18 years or older, an Australian citizen and be a person, not a company or trust.
  • Renovations need to enhance the convenience, safety or liveability of the home and don’t include outside work like swimming pools, tennis area and garden shed.
  • For new constructs, the total cost of the finished home needs to be less than $750,000, including land area.
  • The cash splash will be offered for any contracts entered between 4th Jul 2020 and 31 December 2020.

Make sure that, with the scheme requiring you should not have any special relationship with your contractor, such as being connected.

All works need to be operated by a registered or licensed builder, varying on your state or territory.

Housing Minister Michael Sukkar said the scheme would add to the government’s First Home Loan Deposit Scheme which has facilitated 10,000 initial home buyers get into a home of their own current year.

“Homebuilder will develop upon this, establishing even more prospects for Australians to build a new residential home or renovate an existing residence, while helping our vital residential construction trade.”

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