Scott Morrison announced the details of the anticipated boost to the building industry. A $25,000 grant available to new home builders and renovators.

The scheme put in place to save the floundering building industry is expected to release an additional $688 million.

Whilst seen as a positive for many first home buyers there will be disappointment that it does not include provision for social housing. Another impact is for those who are permanent residents or New Zealand citizens living permanently in Australia as this along with the first home loan deposit scheme are only available to citizens.

With immediate effect new home builders will be able to apply for the government stimulus as long as they fit the following requirements:

• Over 18 years if age
• An Australian citizen
• Build must be for principal place of residence
• Must be less than $750,000
• Income (previous financial year) capped at:
  • $125,000 single applicant
  • $200,000 couples

The great news for first home buyers is that the grant will be in addition to the state first home owners grant and the first home loan deposit scheme.

For renovators, they will also be able to access the $25,000 grant subject to the same income restrictions and the following:

• Minimum renovation $150,000
• Maximum renovation cost $750,000
• Pre-renovation value less than $1.5 million
• Excludes:
  • Sheds
  • Pools
  • Granny flats
  • Other structures not attached to the property

The scheme will run until the end of the year, once approved the construction or renovations must commence within three months.

We are still waiting on how lenders will perceive the grant and what impact it will have on deposit requirements.

Get in touch with us if you’d like more information 08 9304 9682.