Best Time to Renovate your House
If you have been considered a home renovation or new build, it might be the best time to start with the $25,000 Home Builder grant support.
What is the Home Builder?
Home Builder grant provides eligible Australians $25,000 to build or renovate their house to boost the Australian economy.
Am I Eligible?
Person who meet the following criteria is able to access the Home Builder
- Natural Person (not a company or trust)
- ≥18 years old
- Australian Citizen
- Meet one of the following two income caps
- $125,000 per annum for an individual applicant based on your 2018-19 tax return or later; or
- $200,000 per annum for a couple based on both 2018-19 tax returns or later;
- Sign the contract between 4 June 2020 to 31 December 2020 to either
- build a new home as a principal place of residence, where the property value does not exceed $750,000; or
- substantially renovate your existing home as a principal place of residence, where the renovation contract is between $150,000 and $750,000, and where the value of your existing property does not exceed $1.5 million;
- Construction must commence within three months of the contract date.
Check out more detail on https://treasury.gov.au/coronavirus/homebuilder
What does this mean to us?
Now let’s do some calculation,
If you could spend $150,000 on your renovation, you would have $25,000 grant from the Home Builder
$25,000 / $150,000 = 16.67%
Which means you could naturally get a 16% off !
Now, how do we spend more effectively to maximize the ROI (Return on investment)?
- Upgrade/build a new bathroom
The $25,000 grant is a good budget for a new bathroom. An ensuite will create a sense of luxury and bring more privacy to your master room
- Upgrade your Kitchen
Kitchen upgrade is normally a big deal for most of people due to its high cost but now with this massive grant, you may have chance to upgrade you kitchen. A new kitchen will definitely breathe new life into your house. You could have more functionality, less energy costs (with newer appliances), more storage and more modern looking.
- Upgrade your flooring
Most homeowners upgrade their flooring to match the style of the house. Wooden look and finish flooring would add a touch of class and warmth to your entire home. For those who suffer from allergy, floorboard surface don’t trap dirt, dust, pet dander, pollen, bacterial or other allergens. Check out our new arrival>>
I already own land but haven’t signed a contract to build a new house, am I still eligible?
Yes, if you meet the following criteria:
- If you own a property (house and land), and knock the house down to rebuild – this will be counted as a substantial renovation, and therefore subject to the renovation price range of $150,000 to $750,000 provided the total value (house and land) of the property does not exceed $1.5 million prerenovation;
- If you own vacant land before 4 June 2020, and then build, the total value of the land and new build cannot exceed $750,000; or
- If you buy the land after announcement, and then build, the total value of the land and build cannot exceed $750,000.
What Types of Dwellings are eligible under Home Builder?
All dwelling types (house, apartment, house and land package, off-the-plan, etc.) are eligible under
Home Builder, in accordance with the requirement that the owner-occupier must contract to build a new dwelling or substantially renovate their existing dwelling. The applicant must also meet the eligibility
requirements outlined above.
Is Home Builder grant taxed?
No – a Home Builder grant will not be taxed. This is consistent with existing state and territory First Home Owner Grant programs.
I am not a first home buyer, can I still access Home Builder?
Yes. As long as you meet the eligibility criteria, you can apply for a Home Builder grant. However,
Home Builder is not available for investment properties or to owner-builders.
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