With the COVID-19 pandemic pushing Australia over into recession, the government has been opening up its pocketbook to get the economy started again. Many of these stimulus packages are focused on creating or keeping jobs to reduce unemployment and keep businesses going strong. On this list is a $25k renovation grant called HomeBuilder.
The problem is, there has been a lot of confusion as to what you can do with the grant, what exactly it is, and how you can use it. So, we have created this guide so you can use the grant to get your next renovation project on the road.
What is the HomeBuilder scheme?
Under the federal government’s $700 million housing package, you can receive up to $25k to start a major renovation or build a new home. The plan will be restricted, with new homes and renovations having to cost within $150,000 and $750,000. You also cannot be earning over $200,000 as a couple. Homes valued over $15 million are also excluded.
The package is designed to spark jobs in the construction industry, which means the renovations covered can’t be DIY renovations. However, if you do have a project worth $150,000 in mind, which some do, then this $25k could be a big help.
What can I do with the renovations grant?
Simply put, you can either build a new home or perform a major renovation worth $150,000. While that is a steep number for many of us, some who were already prepared to perform a major renovation on their home will be happy. With an all up minimum budget of $175,000 there are many major projects you could embark on. These include:
Major landscaping.
Major exterior renovation, including roof restoration and other exterior changes.
House extensions, adding another room can be a great idea if you need more space.
Major kitchen and bathroom renovations
Fixer-uppers. If you have an old home and want it restored, now would be a great time to get started.
While the vast majority of DIY renovation ideas are out under this stimulus, if you did have major renovations planned, now is the perfect time to start. Unfortunately, structures separate to the main property are not included, meaning swimming pools, tennis courts and sheds are out.
How can I take advantage of the renovations grant?
To take advantage of the grant there are a few criteria you must reach. These include:
Building a new home or embarking on a significant renovation
The project cost must be between $150,000 and $750,000
The home value before the project must not exceed $1.5 million
The project must be contracted to begin in 3 months
Singles must not earn over $125,000 and couples must not earn over $200,000
The scheme will finish at the end of the year
The contractors must be licensed and registered 6 months before the scheme was announced.
The government is also encouraging those who want to take advantage of these programs but don’t have cash on hand to look at financing. You should always consult with an accountant and finance broker to judge your individual situation and borrowing capabilities before taking out the money. You can find a finance broker for your renovation or new build here.