This article in no way constitutes financial advice and you should use this information only as a starting point for your research.
So the Government has proposed a building stimulus package that is targeted at the building and trades industry, but can homeowners reap some rewards?
The scheme seems to offer $25,000 to eligible homeowners for renovations. But what makes an ‘eligible homeowner’?
Eligibility for the Government's program, with the catchy title of "Home Builder", will be limited to those spending up BIG. A minimum spend of $150,000 for substantial renovations and the construction of new homes, will be required before you become eligible for the $25,000 grant.
Grants will also be means-tested:
· Couples can’t earn more than $200,000 per year
· Individuals can’t earn more than $125,000 per year
There are also limitations on the value of the property being built/renovated:
· New Builds are capped at $750,000
· Renovations are allowed to be between $150,000 and $750,000, but will only be eligible for the grant if the home being renovated is valued at less than $1.5 million.
And for all you investors or home DIY’ers you should be aware that ‘Home Builder’ will not apply to investment properties or home owners building or renovating on their own without the help of outside tradies.
So what’s the bottom line?
If you fit into the category of the income test and your home will scrape under the valuation limits AND you have a spare $125,000 AND you want to do some reno’s or are planning a new build sitting in your savings account then ‘Home Builder’ is exactly what you have been waiting for. How many regular everyday Aussies will fit into this category though remains to be seen.