The cat is finally out of the bag with Prime Minister Scott Morrison announcing the much-anticipated HomeBuilder program that will support hundreds of thousands of direct and indirect jobs in the residential construction sector.
From 4 June until 31 December 2020, HomeBuilder will provide all eligible owner-occupiers, including first home buyers with a grant of $25,000 to build a new home or substantially renovate an existing home.
Construction must be contracted to commence within three months of the contract date.
There is some devil in the detail with eligible applicants subject to income caps of $125,000 for singles and $200,000 for couples based on their latest assessable income.
A national dwelling price cap of $750,000 applies for new home builds, and the $25,000 is only available to those planning a renovation between $150,000 and $750,000 for an existing home with a current value of no more than $1.5 million.
Angus Raine, Executive Chairman of property group, Raine & Horne, said, “For homeowners with sufficient equity, a quality renovation adds value to a property.
“A new kitchen or bathroom will enhance the appeal of a home, especially for future buyers, while extra accommodation or a second story or level will improve the capital value of a property.
“With interest rates also at historic lows, the $25,000 grants will be a valuable contribution to a home renovation for eligible homeowners.”
The expectation is that HomeBuilder will cost $680 million and provide around 27,000 grants.
Robbie Fidler, National Broker Channel Manager, OnDeck Australia, noted, “The increase in residential construction will help to fill the gap in residential building activity expected in the second half of 2020 due to COVID-19.”
HomeBuilder will help to support the 140,000 direct jobs and another 1,000,000 related jobs in the residential construction sector including businesses and sole-trader builders, contractors, property developers, construction materials manufacturers, engineers, designers and architects.
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