As Australia officially sinks into recession for the first time in 29 years, the impacts of the Coronavirus Pandemic has well and truly affected every single one of us. The government’s attempt at stimulating the economy is somewhat working, however the government can only do so much and preventing a recession is not always possible.
The latest stimulus to be passed down from the Morrison Government is the HomeBuilder Grant for assisting any residential construction or renovation projects between the value of $150,000 – $750,000. Provided that you are an Australian citizen aged 18 or over and your income is less than $125,000 (or $200,000 as a couple) and it is your principle place of residence (PPoR), you should be eligible for a $25,000 grant. One does not need to be a first-home buyer as the scheme also extends to renovations of existing residential dwellings provided that the renovation complies with conditions such as as works carried out needing to be part of or connected to the main residence.
Literally speaking, there is no better time to revive and reconsider the bigger renovation projects that have been put on the back-burner. Even though the minimum threshold of $150,000 spend to qualify for HomeBuider is no small amount, the $25,000 contribution from the government will present a healthy 16% discount to all your renovation endeavours, and that is before any negotiated discounts from the builder(s) / contractor(s).
Even though it is easy to spend money to improve things around the home, one should still plan a renovation project with serious intent and end goal of increasing the value of the property. A renovation is seen as a long term investment, to improve liveability, the potential future yield and capital gain of your home. Some items to think about when renovating are:
- Floor Extensions
- 2nd Storey Extensions
- Kitchen Upgrades and Extensions
- Bathroom Upgrades and Extensions
- Wall Paint and Flooring Upgrades
- Lighting and Technology Upgrades
Make the economic downturn to your advantage by using the HomeBuilder Grant to supercharge your renovation endeavours. As the HomeBuilder Grant is only available for contracts dated between 4th June 2020 – 31st December 2020, it is wise to plan ahead and take up this attractive incentive sooner than later. Remember, the construction must commence within 3 months of the contract date.