HomeBuilder Scheme extended to keep tradies on the tools

A Federal Government program offering $25,000 cash grants to eligible people building a new home or renovating an existing home has been extended, but at a lower amount. Initially due to finish at the end of the year, HomeBuilder will now be extended until the 31st of March 2021 at a lower rate of $15,000.

The Prime Minister anticipates the extension of the program will to lead another 15,000 construction projects, bringing the total anticipated renovations or builds under the program to 42,000. According to Scott Morrison, their reasoning behind this change is to keep the momentum going for Australia’s economic recovery.

With the extension brings new price caps and a change to time limits. 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 (up from $750,000 which is what it is currently) and $850,000 in Victoria. The time in which approved applicants must start construction has also been extended, allowing them 6 months instead of 3 months after the contract is signed.

This extension is a result of builders who advocated flexibility with the deadlines, concerned there would be an influx of applications toward the end of this year and therefore people who would miss out.

It’s expected this change would cost a further $240million, bringing the total expected price for HomeBuilder to $921million.

Since it commenced in June, HomeBuilder has had around 24,000 applications, with around 19,180 being for new builds, and a remaining 4,697 for renovations.

If you are looking to take advantage of this scheme but you’re not quite sure where you should invest in your home so you don’t over capitalise? We offer a service where we view your home prior to the commencement of any work, review plans with you and provide a pre and post works estimate of the possible market price. This will best equip you in your decision making.