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Queensland, AU – 5 June, 2020 – In an effort to revitalise the construction sector which has been hard hit by the coronavirus pandemic, the Federal Government has rolled out the HomeBuilder scheme to provide cash grants of $25,000 to build new homes or renovate existing ones.

The multi-million stimulus package aims to inject much-needed activity into the homebuilding market to stave off unpleasant effects of an economic downturn and kick start home constructions in the country which could open hundreds of thousands of jobs for Australians.

Expanded scope for eligibility

The HomeBuilder scheme extends eligibility to all owner-occupiers (not just first home buyers) and dwelling types: houses, apartments, house and land packages, and off the plan.

This will not apply to owner-builders or those building a new home or renovating an existing one to be used as an investment property. Homeowners who will not obtain the services of a builder are also not eligible for the cash grant.

In addition, the money cannot be used for additions to properties that are not connected to the home: swimming pools, garages, sheds, or tennis courts, for example.

Restrictions on the new scheme

While the grant is no longer exclusive to first home buyers, eligibility is restricted to new home construction and substantial renovations on existing homes only. Recipients must also spend at least $150,000 before they can qualify.

Furthermore, the scheme requires new home constructions to not exceed $750,000 while renovations can cost anywhere between $150,000 and $750,000 — but only for homes that are valued at less than $1.5 million.

The grants will be means tested to ensure that recipients fit into a certain category. Couples who make more than $200,000 and individuals who earn more than $125,000 per annum will not be eligible. Limits on the property value have also been put in place.

Saving thousands of jobs

An increase in demand for home construction would signal the opening for more jobs.

Prior to the global health crisis, the construction industry was already relatively weak, with homeownership at a 60-year low. The Housing Industry Association (HIA) foresees a drop of as much as 50% in new home building over the next year and that could also mean a loss of approximately 500,000 jobs.

The HomeBuilder scheme hopes to prevent a drop in residential  construction that could go as high as 50%. 

Now is the time to get started

Combined with already low interest rates, the $25,000 cash grant can give the home construction sector the boost it needs to slowly get back on track.

It is during this time when homeowners need all the help they can get. And the same goes for ensuring they know exactly what to expect because new updates like this can be a bit confusing for some. Professional builders or property professionals can use this opportunity to provide them much-needed guidance and support.

Disruption Media Pro specialises digital marketing for the real estate and property market. Employing an innovative approach where artificial intelligence meets old school lead qualification for guaranteed results.

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