Over 12,000 Australians have registered for the federal government’s HomeBuilder scheme in less than a week.
Sukkar said that the early high volume response is just the catalyst he wanted to see. The federal government has estimated the housing stimulus will cost around $680 million, however, figures may vary depending on how many people sign up.
Home-owners and first-time buyers that qualify can receive a $25,000 grant. The criteria require than one’s income is below $125,000 as a single and as a couple below $200,000. In addition, property value for new builds must not exceed $750,000, and renovations must be valued between $150,000 and $750,000. Existing properties must be under $1.5 million.
Contracts must be signed between June 4 and December 31, and construction work must start within three months of signing contracts.
Critics of the scheme have said that the six-month time-frame is too narrow.
This creates some tight time-scales on completing work, creating a sense of urgency that will be beneficial to workers says federal housing minister Michael Sukkar.
State Home Building Grants
Sukkar added that the federal HomeBuilder program complements existing housing schemes in New South Wales, where they offer $10,000 to first home buyers. NSW has the same property value cap as the same as the commonwealth.“The addition of the McGowan Government’s Building Bonus on top of the Federal Government’s HomeBuilder scheme is an absolute game-changer for Perth’s languishing residential property market,” said Sandra Brewer, Property Council WA Executive Director.
Queensland also offers a first home buyers grant scheme of $15,000 for new homes.