While it may be difficult to think about renovating or building a home during these times, the recent announcement of the HomeBuilder grant may help you take baby steps towards your dream home!
If you’re curious about applying and acquiring this tax-free grant, which is only available for a limited time, here’s an overview of the primary eligibility rules. Continue reading to understand whether you’re one step closer to living in the home you’ve always dreamed of.
Your eligibility depends on the type of construction you want to do
If you are planning to build a new home for you and your family, then you must ensure that your property value, inclusive of the house and land, does not exceed $750,000. It must also be your principal place of residence and must not be used as an investment property.
If you plan on making renovations to an existing home, on the other hand, then the grant is restricted to substantial renovations. The specifications for these renovations include:
- Your home must be your principal place of residence and not an investment property
- The value of the existing property (house and land) should not exceed $1.5 million
- The renovation contract must be between $150,000 and $750,000
- Renovations must improve the accessibility, liveability, and safety of the property
These renovations cannot be for additions (unconnected) to the property such as swimming pools, tennis courts, outdoor spas and saunas, and sheds or garages
Also, the contract you draw with your chosen builder, either to build a new home or for renovations, must be entered into between 4th June and 31st December 2020 with construction set to commence within three months of the contract date.
Your annual income matters too
According to government criteria, if you are applying for the grant individually, you must not earn more than $125,000 per annum. If you are applying for the grant as a couple, your accumulated annual income must not exceed $200,000. This income must be recorded as such under the 2018-2019 tax return.
It’s also important to note that recipients are required to spend at least $150,000 on their renovation and build projects before being eligible.
The builder you choose must be a licenced builder
In order to benefit from this grant, you need to choose a house builder or construction company that has a licence or was registered before the announcement of the grant.
So, if you’re interested in benefitting from a generous $25,000 grant to improve or build your home, you may need to do a little research into the licence of your chosen builder, their legal authenticity, and their certifications from local organisations.
First home buyers are also eligible for the grant
In addition to the annual income requirements stated above, you must be a person and not a company or trust, must be 18 years and older, and an Australian citizen to be eligible for the grant as a buyer.
The government is hopeful that many Australians will apply for this grant and take this as an opportunity to start their journey to a new home!
Choose the right property builder and make the most of a $25,000 grant!
If you plan on leveraging the HomeBuilder grant to build your home, choosing the right builder can make all the difference when it comes to your converting your dreams into reality.
At Davies Design and Construction, we are dedicated to designing and building your home to suit your unique lifestyle and wellness needs. We ensure that your investment transforms your space into a mindful environment that keeps you grounded and creative. Let’s envision this paradise for you and your family, together.
Schedule a consultation to find out more about how we can help you.