Common misconceptions about HomeBuilder
Whether you’re renovating or relocating this year, this $25,000 sum is helping lots of buyers and owners grow their property assets during this pandemic.
I’m finding that - in the absence of overseas travel - my clients are focusing on property this year, and the HomeBuilder scheme (plus record low rates) has acted as quite the incentive.
In its first month alone the HomeBuilder program had contributed to an 80 per cent jump in sales of new houses. Based on the most recent statistics I’ve come across, nearly 30,000 Australians have accessed the grants so far.
What you need to know.
Relocators, consider these steps...
- If you’re looking at building, find a block of land and submit your development application ASAP… council approvals are not famed for their speed.
- Talk to site contractors and builders to confirm their availability to do the work. These guys and girls are getting booked up quickly thanks to this stimulus.
- Construction loans are not standard home loans and many first timers fall into the trap of getting a loan that doesn’t support their build plans. Talk to me first.
- The first grant payment is made once there is proof that the work has begun.
Renovators, your improvements:
- Have to be significant, totalling $150,000. A lick of paint in the living room is not going to cut it.
- Applicant (s) must be below one of the following income caps:
- $125,000 per annum for an individual based on either your 2018-19 or 2019-20 taxable income, as shown on your notice of assessment issued by the Australian Taxation Office, or
- $200,000 per annum for a couple based on either your combined 2018-19 or 2019-20 taxable income, as shown on your notices of assessment issued by the Australian Taxation Office.
- Can’t only be appliances, so there goes the new chef-level kitchen rangehood.
- Can’t include outdoor add-ons like pools or tool sheds.
- The renos have to be your place of residence, you can’t pimp your property portfolio.
HomeBuilder pandemic stimulus pairs nicely with:
- The national loan deposit scheme which allows first time buyers to save as little as 5% of a property’s value as their deposit.
- A state first home owner grant. Almost every state is offering grants of $10,000+ for first time buyers to help them own their first home.
- Concessions on stamp duty. Ask me about the concessions and exemptions available to you.
- A saver scheme for first home buyers using their superannuation through voluntary contributions that can be withdrawn to buy a first home.
Want my advice? I’m only a Zoom call away.
*Disclaimer: This document has been created by Loan Market Pty Ltd (ABN 89 105 230 019, Australian Credit Licence no. 390222). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter. You should before acting in reliance upon this information seek independent professional lending or taxation advice as appropriate specific to your objectives, financial circumstances or needs. Information included has been sourced from third parties and has not been independently verified. Accordingly, Loan Market Pty Ltd is not in any way responsible for nor provides any warranty express or implied as to its accuracy or relevance.