25,000 REASONS TO BUILD OR RENOVATE

The Federal Government’s HomeBuilder stimulus package aims to spur new construction but it has also stirred some controversy

THROUGHOUT the worst of the COVID-19 restrictions, most builders seem to have fared well with work still ongoing within the realms of the health restrictions.

While this current work has been substantial, there’s valid concerns that a gap in the construction market could emerge, which would leave thousands out of work and bring the industry to a grinding halt.

In an effort to fill that gap, the Federal Government has implemented the HomeBuilder stimulus package to keep construction workers employed while also giving Australians 25,000 reasons to build a new home.

This package is one of the most generous offerings in Australian history, with a $25,000 cash grant not just for first home buyers, but for anyone looking to build a new home or renovate an existing dwelling.

There are of course some conditions.

The $25,000 is to go to a principal place of residence (rather than a handout for investors), for homes with a property value up to $750,000 and for buyers earning up to $125,000 as a single or $200,000 as a couple.

That’s a pretty reasonable standard, and should make an incredible difference for spurring new construction and for helping prospective buyers get past the biggest remaining hurdle in a low interest rate environment – the deposit.

Putting those limits on it also means it should be contributing to the segment of the market that needs it the most, and should limit those that might have otherwise not had the same need.

Where this policy stirs some controversy (for me at least) is under the category of renovations, as homeowners that perform a renovation of at least $150,000 can qualify for the grant.

Personally, I don’t see too many people that fit under the income threshold in a position to spend that amount on a home, outside of what would essentially be a full rebuild.

It’s also unlikely that this grant would be the difference between that renovation work occurring or otherwise. Still, it’s a welcome bonus for those who are eligible for and can benefit from it. First home buyers will be the big winners from this package, with a total of $40,000 now up for grabs when building a new home.

In our local Cairns market however, this will test our new land supply as buyers rush in to make the most of this generous offering.

For more information on the Federal Government’s HomeBuilder scheme, visit https://treasury.gov.au/ coronavirus/homebuilder or speak to an REIQ Accredited agent. 11.30am - On Site

Ross Moller, LJ Hooker Cairns Edge Hill 5.30pm - Whitfield Chapel, 47 Heavey Cres

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