Is Scott Morrisons ‘HomeBuilder Package’ the Boost You (and Australia) Needs?

It’s been dubbed the ‘tradie-saving plan’, and the federal government certainly feel that it’s got the legs to get the construction industry back on its feet. But is Scott Morrison’s HomeBuilder Package a golden egg for the economy? Some say it might be, others reckon he could be left with egg on his face.

Let’s take an objective look at it.

What Does the HomeBuilder Package Offer and What are the Criteria?

It’s a cash grant of $25,000 to be used for renovations or new builds. Quite an extraordinary amount of money, but there are a few terms to meet before the cash gets put straight into your bank account:

• Income: If you’re single your taxable income can’t be more than $125,000, or if you’re applying as a couple then it needs to be less than $200,000 combined.
• Newbuild homes: The home and land together must be worth less than $750,000. The property also needs to be your principal place of residence.
• Renovations: Your renovation works must cost between $150,000 and $750,000, and they must be on your principal place of residence. The home needs to have been valued at under $1.5-million.
• With renovations, the grant needs to improve the liveability of the home and can’t be used on non-connected additions such as tennis courts or saunas.
• Construction needs to start within three months of the contract date.
• The grant is available for a six-month period, starting on June 4 and ending on December 31.

Criticisms and Praise of the HomeBuilder Package

A lot of the critics are directing their displeasure at the very stringent requirements. Not only do the criteria narrow down the field considerably, but many view the three-month time limit from contract to construction as restrictive too.

Sure, there’s validity in that, but we also like the fact that this grant doesn’t just apply to first home owners, its open to any owner-occupier building a home. We also love that it can be used on renovations too, meaning many people who’ve been putting off that reno now have 25,000 reasons to get it cracking before December 31.

How Effective Will the HomeBuilder Package Be?

The government is budgeting for this program to cost $680 million, or around 27,000 seperate grants. Whichever way you look at it, that’s a whole lot of construction, expected to create work for 140,000 tradies and over 1-million workers in the supply chain.

It’s only available for a short time, which will increase the immediate ‘shot in the arm’ effect on the economy. So we feel that despite its critics, this is a pretty well thought out plan that should turn out positively for the economy.

How will it affect you? Well, if you fit the criteria and have been on the fence about building a new home or renovating your current abode, we reckon this is a pretty good grant to take advantage of (remember Ristic isn’t a financial advisor, please consult one before you make any massive life decisions with regards to your next property step).

If you have any questions about the HomeBuilder Package and what it means for real estate in Australia, or you’d simply like a chat about the current real estate market, please get in touch! We’re always here to help.