Homebuilder Grant Australia
The Australian Federal Government's recent home builder grant to help the residential construction industry during COVID-19 has been met with a bunch of flack due to the strict eligibility criteria. Eligible recipients must be building a home worth less than $750,000 to get a $25,000 grant out of the $688 million dollar pot.
Those that are renovating a home may also be eligible for the $25,000 grant as long as certain renovation criteria is met and the renovations are priced between $150,000 and $750,000 and is available to couples earning less than $200,000 combined and singles earning less than $125,000.
I perceive other problems arising from the incentive:
The average renovation in my field of expertise is $45k to $200k, so a loan of these amounts adds approx. $50 to $200 a week to an existing home loan, something the current market will not allow individuals to step into, I know I wouldn’t.
Also, tradies prices will increase exponentially over this period as they are all suffering, so they want whatever they can get.
Construction must commence within three months of the contract date! It won't take effect for most people due to the current delay in loan borrowing and the ability to prove repayments. As well as delays in council plans, weather, delays with suppliers and many more things that can hold up building commencement as I have outlined in various stories in What My Builder Didn't Tell Me.