This exciting news has been developed to stimulate the residential construction market to bounce back from the Coronavirus crisis. With the effects of the virus being more contained in Australia, in particular, Western Australia, this could very well be the door that opens up your home buying dreams.
The $688 million HomeBuilder stimulus package has been unveiled as the country dipped into a recessionary period for the first time in three decades. Aimed at those who fall into the middle-income bracket and limited to new builds including house and land packages or major renovations valued between $150,000 to $750,000.
The pre-renovation value of the property must not exceed $1.5 million and must also exclude structures that are not attached to the house itself (i.e. pools, sheds, and granny flats).
The scheme also outlined that the commencement of the build or renovation must be contracted to begin within three months to prevent house values rising.
For those looking to take up the opportunity, it is available for individuals who earnt up to $125,000 in the previous financial year, and couples who had a combined income of up to $200,000 in the previous financial year.
To learn more about the eligibility criteria please visit the Treasury website.
Realmark Director, John Percudani, was pleased to see this package offered to help bring eager homebuyers back to the market. He went on to say “this opportunity, is very welcomed by the property, construction and finance industries alike, given that the scheme will be working alongside schemes and grants that are already available to consumers. This offering is likely to predominantly help the new home buyer market, and we suggest that to foster a healthy property market, other sectors including investors and commercial needed to be given consideration”.
The property market commenced the year with positivity on all fronts and then experienced the reactive retreat by buyers and sellers due to the sentiment and uncertainty created by COVID-19. However, in recent weeks this sentiment has noticeably shifted and there have been solid results in the rental market and a reactivation of the sales market. Mr Percudani explained that “this reactivation in the property sector was encouraging, though one underlying fundamental that needed to be addressed in WA was property supply. The latest Federal incentives should help to partially address this by stimulating building activity in WA, and therefore is welcomed”.
We have seen many potential buyers recognise this market as one of opportunity however we suggest that the State Government needs to be more proactive in stimulating activity in the property sector by making it more affordable to transact. The adjustment around stamp duty is a significant opportunity the government could utilise right now to help West Australians re-set their lives and make constructive changes for their future security. Initiatives tailed to the times are all welcomed.
We have plenty of listings ready for you to renovate or detonate and replace with a new home. Speak with our team today for the keys to your next dream property. Ready to discover what is waiting for you? See our latest listings here.
To learn more about HomeBuilder visit the Treasury website and view the Prime Minister’s announcement here
The above information is general in nature; please seek specific advice tailed to your circumstances.
Source: https://www.domain.com.au/news/homebuilder-aims-to-jumpstart-economy-through-25000-grants-for-new-homes-major-renovations-960461/