Our Guide to the Inclusions, Exclusions And Details of the HomeBuilder Grant
The Australian government unveiled the HomeBuilder grant in June this year, which was to allow homeowners to construct homes or make significant improvements to their property. Given its recent introduction, several Australians have had questions and clarifications about who qualifies for it and who isn’t eligible. The Grant’s requirements appeared to be more complicated, which bombarded banks with questions that even they were not able to answer. Fortunately, we’ve prepared this article to shed light on the HomeBuilder exclusions and how to make it work for your situation. Here’s what you need to know:
The Grant comes with several exclusions and is only for building contracts. The exclusions are the following:
- If you are a New Zealand citizen, a permanent resident, or a visa holder
- If a building or an investment property is up for renovation
- If you are building a new home with total land and home value over $750,000
- If you are building a granny flat
- If you are an owner-builder or are constructing or renovating through a registered builder
- If you are constructing something that is separated from your home (e.g. a swimming pool, a granny flat, a garage, shed, sauna)
However, if you own land but have yet to sign a building contract, you may still be eligible for the HomeBuilder Grant.
While the Grant has a few exclusions, it also comes with eligibility requirements. For instance, if you own a property and you bulldoze it to rebuild, this counts as a substantial renovation. This work is going to be subjected to the renovation price range of $150,000 to $750,000. However, the total value of the property, including the combined value of the house and land, must not surpass $1.5 million before the renovation.
You are also eligible if you’ve been the owner of vacant land before 4 June 2020 and plan to build. The total value of the land and the new build cannot exceed $750,000.
Meanwhile, if you purchase land after the Grant announcement and then build on it, you are eligible if the land and the structure’s combined value is $750,000 or lower.
If you plan to renovate your property, you must ensure that a registered or licensed builder completes the work. This clause prevents you from hiring a friend or individually hiring tradespeople to complete your renovations.
The HomeBuilder exclusions state that the grant will cover construction and renovation that improves the property’s livability, safety, and accessibility, which immediately eliminates popular renovations. These include tennis courts, sheds, outdoor spas, and swimming pools.
Determining Property Valuation
The Australian government confirmed that calculating values of properties are subject to particular processes. However, the government has tasked States and Territories to determine property valuation evidence. Documents that may qualify as evidence include a recent contract of sale of the property, a bank or independent valuation, or a rates notice that establishes the Capital Improved Value.
Have More HomeBuilder Questions?
The HomeBuilder Grant is an excellent way to finance your home construction or renovation projects. However, given its newness, there are plenty of details that the government must clarify. This guide will offer you insight on the qualifications you need to access the HomeBuilder Grant and get one step closer to building the home of your dreams.
If you are looking for a custom builder to make your ideal home come true, let us know at Balfour Homes! We provide a multifaceted home purchasing experience and help our customers with everything in the process. From finding the right mortgage to designing your fantasy home, we have the network to make this possible. Get in touch with us today to see how we can help!