HomeBuilder Extension Details

HomeBuilder Extension Details

The federal government program – HomeBuilder which offers cash grants for housing construction projects has been extended to 31 March 2021, but at a lower amount.

The HomeBuilder scheme currently provides $25,000 grants to eligible people building a new home or renovating an existing one.

It had been due to expire at the end of the year but will be extended to 31 March, 2021, at the lower rate of $15,000.

Prime Minister Scott Morrison said the extension was expected to lead to another 15,000 construction projects, bringing the total anticipated renovations or builds under the program to 42,000.

“Extending HomeBuilder will mean a steady pipeline of construction activity to keep tradies on the tools.”

Price Caps and Time Limits Changed

Property price caps for new builds in two states will be lifted for contracts signed between January and March next year, rising to $950,000 in New South Wales and $850,000 in Victoria. The existing new build property price cap of $750,000 will continue to apply in all other states and territories.

The amount of time all approved applicants who signed contracts on or after June 4, 2020, are given to start construction will also be extended, from three months to six months.

The decision follows calls from the construction industry for more flexible deadlines, with concerns people could miss out due to a bottleneck of applications.

Builder Licensing Requirements

The government has also noted that there has been a change in licensing requirements and registration for builders and developers. For example, where an eligible contract is signed on or after the 29 November 2020, the builder or developer must have a valid licence or registration before 29 November 2020. Where an eligible contract is signed before 29 November 2020, the builder or developer must have a valid licence or registration before 4 June 2020.

The announcement also builds upon the extension of the First Home Loan Deposit Scheme announced in the Budget, which delivered 10,000 guaranteed loans to allow first home buyers to obtain a loan to build a new home, or purchase a newly built home, with a deposit of as little as five per cent.

If you’re still trying to sort out your finances to make the deadline dates for the above, be sure to reach out. Our role as your finance broker is to know the turnaround times of all the banks on our panel and how things like the Christmas/New Year period can affect these. Book in an obligation free chat with one of our finance consultants today.

*source: abc.net.au & theadviser.com.au

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