New HomeBuilder Scheme to Boost Residential Construction Industry
The coronavirus pandemic has exacerbated the blow on the housing construction sector.
Prior to the health crisis, the slowdown on home builds has brought homeownership to 60-year lows. The Housing Industry Association (HIA) has expressed concern for a 50% drop in new home building and put at risk some 500,000 jobs.
Now that’s a bit alarming.
The Federal Government’s announcement of a new scheme to provide $25,000 incentive to qualified Australians for building new homes or making renovations couldn’t have come at a better time. Dubbed the HomeBuilder scheme, this aims to boost the construction sector by increasing home constructions and creating more jobs for Australians.
How does one qualify?
Eligibility depends on some criteria:
- Be an Australian citizen aged 18 years and above
- Earn less than $200,000 (couples) and $125,000 (singles)
- Be spending between $150,000 and $750,000 for a renovation that has been valued at less than $1.5 million
- Build a new home that is less than $750,000 (inclusive of the land value)
The tax-free grant is available to all owner-occupiers (and not just first home buyers). It can be used on all types of dwellings: houses, land and house packages, apartments, off the plan, etc.
The grant is also means-tested and only applies for those who fit an income bracket:
- Does not exceed $200,000 per year for couples
- Does not exceed $125,000 per year for singles
This program complements existing state and territory First Home Owner Grant programs, the Commonwealth’s First Home Loan Deposit Scheme, First Home Super Saver Scheme, stamp duty concessions and other grant schemes.
This $25k grant, combined with record low-interest rates, should make it way easier for you to get started on building the home you want.
What does it mean for the residential construction industry?
The HomeBuilder program aims to build 30,000 homes by year-end and ultimately prevent the impending housing shortage in Australia.
In addition to the 140,000 direct jobs the new scheme aims to support, another 1,000,000 construction-related jobs are estimated to be created— sole-trader builders, property developers, contractors, construction materials manufacturers, engineers, designers and architects as well as small businesses.
How can Preferred Homes help?
One of the eligibility requirements for HomeBuilder applicants is to enlist a licensed or registered residential builder.
We’re pioneers in new home developments of any dwelling type of your choice. We pride ourselves in providing exceptional customer service and we will be there for you throughout the entire process of building your home. Get in touch with us today on 0408 788 351 to get started.