The Federal Government has just announced HomeBuilder, a stimulus package for the building industry that has immediate benefits for homeowners planning major renovations to their homes.
Homeowners may be eligible to receive a grant of $25,000 when they spend more than $150,000 on a major renovation like a ground floor extension or first floor addition.
There are some criteria and ‘means testing’ that affect eligibility for the grant:
- Couples applying for the grant must earn less than $200,000 per year to be eligible;
- Individuals must earn less than $125,000 per year;
- Renovations must cost more than $150,000 but under $750,000;
- The grant will only be available on properties valued at less than $1.5 million prior to the renovation work;
- The scheme won’t apply to investment properties;
- The grant won’t be given to owners who renovate their home without employing builders;
- Renovations can’t include structures separate to the main home like swimming pools, tennis courts and sheds;
- You must enter into a building contract between 4 June 2020 and 31 December 2020;
- All eligible builders must be licensed or registered before the Government’s announcement.
For many families who are looking to add space for less, this grant will be a welcome incentive.
The Need to Add Space
Typically, families look to build home additions and extensions because they love their neighbourhood and don’t want to move, but their current home doesn’t have the space they need, usually because the family is growing in one way or another.
Whether it’s the arrival of a new baby, teenagers needing their privacy, or because the family has decided to cohabit with an elderly parent, this grant will help solve a range of issues that prompt a family to redevelop their home.
Homeowners also understand the ‘dead money’ of moving – major costs like stamp duty – versus the investment of building which increases the value of their home by adding extra bedrooms, bathrooms and living spaces.
COVID-19 and the Family Home
For many families, the recent lockdown has also exposed some of the limitations of their current home configuration when kids have been trying to study at the same time as adults are working from home.
Home renovations are a great opportunity to create home offices and bedrooms of a size that allow children the space to study in privacy away from kitchen tables and open areas that have proven distracting.
Advantages of ‘Concept-to-Completion’
Concept-to-completion means the constructor you employ designs, manages the development approvals, and builds your home improvements.
Having a builder who does all three services, Addbuild being an example, means they can anticipate potential issues and also have the experience to design renovations that are less likely to get stuck in council.
Given the duration of the HomeBuilder scheme – currently only 6 months – this should be a major factor when selecting a builder.
Faster Approvals: Complying Developments
Addbuild also has its ‘Classic Design‘ series, a set of standardised plans designed to take advantage of the NSW ‘Complying Development‘ option – if your home and land meets certain criteria you can obtain approval within a few weeks of submission, and Addbuild can potentially start building your new home within just a month or so of your decision to add space with us.
Still family run, Addbuild celebrates 40 years in business in 2020, and with over 1,500 projects built, we are Sydney’s leading home additions and extensions builder.
If you are interested in using HomeBuilder to make major renovations to your home and haven’t yet settled on a builder, please feel free to contact us on (02) 8765 1555 or send a message via our contact page.
PLEASE NOTE: More details on how to apply for the HomeBuilder grant can be found on the NSW Government ‘Revenue NSW’ website here. Given HomeBuilder’s limited timeframe, it is still wise to start talking to builders now, but please note that homeowners (not builders) will be responsible for applying for the grant.