It has been revealed last Sunday (29 November) that the HomeBuilder program will be extended until 31 March 2021 – with notable changes to its original form.
As compared to the original program which offers grants of $25,000 to owner-occupiers “substantially renovating” or building a new home, the modified program provides a $15,000 grant for building contracts (new builds and substantial renovations) signed between 1 January 2021 and 31 March 2021.
The original program is still available for contracts signed up to 31 December 2020, however after that period, the extended HomeBuilder program will apply.
The property price cap for new build contracts in New South Wales and Victoria has also been increased to $950,000 and $850,000 respectively (although this only applies to the second iteration).
For other states and territories, the existing new build property price cap of $750,000 will continue to apply.
As to the submission deadline for both iterations, it has been extended up until 14 April 2021, which applies to all eligible contracts signed on or after 4 June 2020.
The timeframe for construction commencing has also been expanded from three months to six months for all HomeBuilder applicants and will apply on a backdated basis.
There has also been changes in licensing requirements and registration for builders and developers which is revealed as follows:
- For eligible contracts signed on or after the 29 November 2020, a valid licence or registration must be provided before 29 November 2020.
- For eligible contracts signed before 29 November 2020, a valid licence or registration must be provided before 4 June 2020.
Overall, the ultimate goal of this program is to give buyers the confidence and support to enter the market at a time when the economy needs it most.
As always, if you have any questions, feel free to give us a call at 1800-3-PEASY.