Welcomed news from people considering a new home build, the Federal Government's HomeBuilder grant has been extended for another three months.
The HomeBuilder grant was first introduced in June 2020, providing eligible people with a $25,000 cash grant for new home builds and renovations. The grant was set to expire on 31 December 2020, however it will be extended to 31 March 2021 albeit at a lower cash rate of $15,000. Additional flexibility to the home value has also been introduced, with the cap rising from $750,000 to $950,000 in NSW.
With the grant extended, now could be the perfect time to build the home you've always wanted. In this short blog, you'll learn about the new criteria and find out whether you're eligible for the new HomeBuilder grant.
Extra flexibility in the 2021 HomeBuilder grant
Additional flexibility has been introduced to the 2021 HomeBuilder grant with previous limitations to the 2020 grant restricting many people who had high hopes of taking advantage of the grant. Changes to the HomeBuilder grant include:
- $15,000 grant provided for new home building contracts signed between 1 January 2021 - 31 March 2021 (previously $25,000)
- An increase to the house value cap from $750,000 to $950,000
- Construction must start within six months of the contract date, previously three months
- Clients now have up to 14 April 2021 to apply for the grant through the Government.
With concerns from people who had previously missed out on the grant due to tight restrictions, the new 2021 criteria provides relief for many people who have their heart set on a building a new home.
Am I eligible for the $15,000 HomeBuilders grant?
Those looking to take advantage of the HomeBuilder grant in 2021 will be entitled to $15,000 however must meet the the below guidelines before applying for the grant.
- You must be earning no more than $125,000 based on your latest tax return. Alternatively, couples must have a combined income of no more than $200,000
- Your building contract must be signed between the 1 January 2021 and 31 March 2021
- The value of your new home (both house and land) must be $950,000 or less.
For example, if you purchase land for $500,000 in Sydney and add on a home build of $450,000, the house and land will total $950,000. As such, you would be eligible for the grant, so long as it's under $950,000 and you meet the criteria.
- A knockdown rebuild is counted as a substantial renovation and is therefore subject to the renovation price range of $150,000 to $950,000, provided the total value of the house and land combined does not exceed $1.5 million prior to the knockdown
- Investment properties are excluded from the grant
- Applicants must be over 18, an Australian citizen, and must be an individual - not a company or trust
- The HomeBuilder grant will be paid to you after your first progress payment
For more information about the HomeBuilder grant, head to the Australian Government's HomeBuilder page.
Now is the perfect time to build
long with the $15,000 home builders grant, we are also offering clients $50,000 worth of upgrades for just $5,000!
From 20mm stone benchtops, a luxurious free-standing bath, floor to ceiling tiling in the bathrooms, downlights, square set ceilings and more, you can take your new home to extraordinary levels for less.
Take advantage of the $15,000 Home Builder grant and build your dream home today
Now is the perfect time to start planning and designing your brand new home. With the Government's $15,000 home builders grant, our $50,000 worth of upgrades promotion, to low interest rates, there's no better time to build than now.
Get in touch with the Montgomery Homes team
to find out if you're eligible for the $25,000 HomeBuilder package and how we can have your contracts signed before the grant end date of 31 December.
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