19 April 2021 – Article updated
HomeBuilder received a huge number of applications, some 121,000, before it concluded on 31st March 2021. Treasurer Josh Frydenberg commented that the HomeBuilder stimulus would cost the government $2.5 billion but helped tip $30 billion into Australia’s construction sector.
The Australian Bureau of Statistics said that since the start of HomeBuilder in June 2020 private house approvals have risen 70 percent.
However, the Housing Industry Association says its members are reporting shortages overseas products, labour constraints and delays in planning and finance approvals. All of which are making commencement difficult, and stressful within the required time frame.
Thankfully, the Federal Government has decided to extend the construction commencement requirement for all applicants from six months to 18 months from when the eligible contract was signed.
2 December 2020 – Article updated.
The Federal Government has just extended the Home Builder package for another three months, but at a lower rate, and has adjusted the price cap on new homes in NSW and Victoria.
The extension of Home builder will allow even more Australians to be able to buy a home and renovate their home, than otherwise would have been possible. This will support the building industry and the Australian economy into 2021 and beyond. The industry had predicted a significant drop in housing demand when the HomeBuilder projects finished.
So far total applications to HomeBuilder as at 20 November were 19,180 New builds and 4,697 substantial renovations, totaling 23,877 building projects. The state that has made the most of the grant has been Victoria with 7,636 total applications, compared to Queensland at 5,954 and NSW at 4,350.
Key changes to the home builder package are:
The key changes between contracts that have been signed before the 31 December and after, into the first three months of 2021 are below
20th June 2020 – Article first published.
In an effort to stimulate the construction sector as well as the economy at large, the Australian Government recently unveiled the HomeBuilder scheme. The package will provide eligible singles and couples with a one-time grant of $25,000 towards building a new home or doing a substantial renovation, such as an extension, to their current property. In other words, the government is offering to contribute 10 square meters to the size of your home, given that the average cost per square meter for a renovation is around $2500 per square meter. But how can you take advantage of this scheme and what are the best renovation ideas to add ‘livability’ to your home and ensure you’re making the most of the grant? Let’s explore!
The HomeBuilder package is designed to restart the residential construction sector while saving jobs for tradies and propping up small businesses. It follows fears that the recent recession and worsening economic effects of COVID-19 will severely impact the volume of builds that builders have in the pipeline. Speaking to the press, the Prime Minister stated that without intervention, he predicted some 30,000 homes won’t get built beyond September. As a result, the Morrison Government announced $688 million will be placed into the HomeBuilder scheme. It’s hoped that this scheme will help eligible Australians put their $25,000 towards new builds or substantial renovations — with the potential to restore up to 27,520 projects across the country in the second half of 2020.
Just like the Government’s recent JobKeeper and JobSeeker schemes, there are a number of requirements that homeowners will need to meet in order to receive the $25,000 injection. This means you must be:
This is positive news for most Australians, as the income grade means around 90% of Australians currently earn below the cut-off amount, opening the package up to far more people.
There are certain requirements that the HomeBuilder contract must meet in order for the grant to accessible. These contractual requirements are important for both the client and the builder to understand:
That depends on a number of factors. It’s important to remember that if you’re looking to renovate your home, the value of those renovations must not exceed $750,000. Moreover, your residence must not be valued at or above $1.5 million before the renovations begin. That might be a challenge for those living in the inner suburbs and affluent areas of major cities like Sydney and Melbourne, but outside of that, it’s not overly restrictive. That means you won’t need to travel out to country areas to find value in the HomeBuilder scheme. Rather, if you are looking to build a new home, you’ll need to make sure the new-home build and the land is no more than $750,000 combined. While this may be difficult if you want to live very close to the CBD, it’s certainly not impossible.
You might not be able to indulge in that eight-seater outdoor spa or splurge on a massive ‘smart’ garage, but you can put your HomeBuilder grant towards high-quality and durable building solutions. Great renovation investments with maximum return focus on expanding upon what you already have. Whether it’s creating a upper-floor extension with a Hamptons-style exterior or adding a new upper floor and utilising Matrix for ground floor extension to achieve a modern look, the options are endless. The easiest way to discover what’s available to you and your specific situation is to use our Find a Builder tool to connect with a professional in your area.
We created the Find a Builder tool specifically to help homeowners like you to choose reputable and experienced builders in order to fulfil your design dreams. Simply type your location and you’ll have access to a range of James Hardie builders within your area. James Hardie products are available through over 1000+ distribution outlets around the nation.
And don’t forget to share your Reno project with us at @jameshardieau