There Has Never Been A Better Time To Build or Renovate.
Anyone else feel like they’ve had to put dreams on hold because of COVID-19? With so much uncertainty in the air, many of us have had to postpone our plans and put off big projects. If you had been hoping to build a home or renovate there’s good news - you might not have to postpone your dreams any longer!
The government’s new HomeBuilder scheme aims to give thousands of Australians the chance to realise their dream home. From the mouth of Scott Morrison himself, the HomeBuilder grant exists to “support those Australians whose dream it was to build their home or to do that big renovation”.
If you meet the criteria, you can now access $25,000 towards a major renovation or building project. Depending on where you live, you could also get your hands on a range of other bonuses and grants as well. So if you’ve been putting things on hold, now is the time to start dreaming again.
Government Help for Home Builders & Renovators
On June 4th Scott Morrision announced the $25,000 HomeBuilder grant. Not long after, Western Australian’s got extra lucky as McGowan followed it up with the WA Government’s $20,000 Building Bonus. These announcements come on top of existing First Home Owner Grants will still apply to those who are eligible.
In short, this means there are more ways than ever to get access to cash to bring your home-dreams to life. Shall we check out the fine print? Chances are you might be eligible for one or more of the grants.
1. Federal Government ‘HomeBuilder’ Scheme
As well as giving home builders and renovators a helping hand, the Scott Morrison government hopes the HomeBuilder scheme will boost demand in the construction sector and keep builders and tradies employed.
What will you get?
Eligible Australians will get $25,000 to build or do major renovations on their homes.
Are you eligible?
To be eligible for the HomeBuilder grant, you must:
- Be over 18, an Australian citizen and an individual (not a company or trust)
- Earn less than $200,000 for couples or less than $125,000 for individuals
- Spend more than $150,000 on your building or renovation project
- Enter into a contract between June 4th and Dec 31st 2020
In addition, new builds must be worth less than $750,000 and renovations must be done on properties previously valued at less than $1.5 million. The grant doesn’t apply to property investors or those renovating a home as an investment property.
The government hopes the grant will increase jobs for builders and tradies, so to get the $25,000 you’ll have to employ registered or licensed building service contractors to do your build or renovation.
Renovations are required to improve the accessibility, safety and livability of the home and must be done on the main house. Separate structures such as pools, tennis courts and sheds are not entitled - unfortunately!
2. First Home Owner Grant
The First Home Owner Grant (FHOG) was introduced in 2000 to help Australians buy or build their first home. If you’re currently thinking about buying or building your first home, now’s a great time because you could be eligible for the FHOG on top of the government’s $25,000 HomeBuilder grant.
The FHOG is funded and run by the state governments, so what you’re eligible for will depend on where you live.
ACT - $7,000 for properties that are valued at $750,000 or less.
NSW - $10,000 if you are buying our building a home valued at $750,000 or less. Plus full or partial exemption on transfer duty of homes under $800,000.
NT - $10,000 to buy or build a new home. Plus, discounts on stamp duty, a renovation grant and a grant to buy household goods.
QLD - $15,000 for homes valued less than $750,000.
SA - $15,000 for new homes.
TAS - $20,000 if you are building a new home. Plus 50% First Home Owner duty concession if you are buying an established home with a dutiable value of $400,000 or less.
VIC - $10,000 (or $20,000 for regional VIC) for homes valued less than $750,000 if it is the first sale of the property.
WA - $10,000 if you are buying or building a new home. Plus concessional first home owner rate of duty.
3. McGowan WA Government Building Bonus
If you buy or build in WA, you could access up to $20,000 on top of the HomeBuilder and First Home Buyer Grant thanks to McGowan’s Building Bonus. This means some WA first home buyers could be getting access to $55,000
Unlike HomeBuilder, the WA building bonus is not dependent on your income and there’s no cap on the value of the property. You may be eligible for the $20,000 if you’re building a new house or purchasing a new property in a single-tier development prior to construction finishing.
Thinking about buying or renovating? Now is a good time
If you have been saving for your dream home or putting plans in place for some major renovations, now is a great time to get the ball rolling. With the HomeBuilder and other government grants available, now is the time to realise your dreams and build the house you’ve always wanted.
If you are saving for your own home but are just short of a deposit, small cash loans online could help get you into your next home sooner. Similarly, if you’re planning a renovation project and need a little extra cash flow to get it going, small cash loans are a flexible and smart way to help you get what you need when the timing is right.
At Ferratum, we reckon dreams should come true. We offer short term cash loans, without all the hurdles and strings attached, to Australians who need that extra helping hand to achieve their goals.