Australians living in upmarket suburbs can claim $25,000 subsidies from taxpayers to renovate their house.
Under the government’s new HomeBuilder scheme, home owners with a property worth up to $1.5million are entitled to a grant – provided they spend $150,000 to $750,000 doing up their house or apartment.
That means someone living at Forestville, on Sydney’s Northern Beaches, is most likely to be eligible, in a suburb where the median house price is $1.4million, going by CoreLogic data.
This area, overlooking Middle Harbour and the Roseville Bridge, is also home to former Liberal prime minister Tony Abbott.
Under the government’s new HomeBuilder scheme, home owners with a property worth up to $1.5million are entitled to a $25,000 grant – provided they spend $150,000 to $750,000 doing up their house or apartment. Pictured is a house at Forestville on Sydney’s Northern Beaches where the median price is $1.4million
The other part of the $680million HomeBuilder scheme is giving out $25,000 grants to those who build a new home, worth up to $750,000 as a house and land package.
Sydney’s median price stands at $1million, which means the newly-built house would have to be at least 25km west of the city to qualify, in a suburb like Toongabbie where the median house price is $730,000.
Daniel Walsh, the director of the Your Property Your Wealth buyers’ agent, said suburbs in the city’s outer south-west were more likely to see an ignition in building activity.
‘With the maximum price point for the HomeBuilder program set at $750,000, I believe it will be the more affordable areas that will benefit the most,’ he told Daily Mail Australia.
‘My picks in Sydney would be the west and south west.
‘In some cities, like Sydney and Melbourne, that won’t buy you much real estate anywhere close to the city, but in others, like Brisbane, it will.
‘However, in outer ring and regional areas, where property prices are more affordable, the numbers change and with it so do the opportunities.’
In Melbourne, where the median house price was $809,274 in May, HomeBuilder recipients could qualify building a new home closer to the city compared with Sydney.
The other part of the $680million HomeBuilder scheme is giving out $25,000 grants to those who build a new home, worth up to $750,000 as a house and land package. That means someone could build a new home at Scoresby (house pictured) 20km east of downtown Melbourne where the mid-point is $746,926
‘Melbourne’s western and south-eastern suburbs are set to strengthen from this new activity and demand,’ Mr Walsh said.
That means someone could build a new home in Laverton North, 15km west of the city where the median house price is $733,428 or Scoresby 20km east of downtown Melbourne where the mid-point is $746,926.
Those building a new home in Brisbane have more choice, in a city where the median house price was $559,975 in May.
Major regional centres are also expected to benefit, including Newcastle north of Sydney where the median price of a house at Hamilton near the city is $677,583.
The HomeBuilder scheme is the government’s fourth stimulus program to tackle the coronavirus-induced economic downturn.
The package was unveiled on Thursday, a day after official national accounts data showed a 0.3 per cent contraction in the March quarter, the first since early 2011.
Treasurer Josh Frydenberg confirmed Australia was most likely already in recession, for the first time since 1991, with the June quarter figures expected to show another shrinkage in gross domestic product.
What you need to known about HomeBuilder: Who is eligible and what can be built?
To access HomeBuilder, owner-occupiers must meet the following criteria:
You are an individual, not a company or trust;
You are aged 18 years or older;
You are an Australian citizen
You earn less than $125,000 or in a couple earning less than $200,000
What can be built?
A new home as a principal place of residence valued up to $750,000 (including land);
A renovation to an existing home as a principal place of residence, with renovations valued at between $150,000 and $750,000 with the dwelling not valued at more than $1.5 million before the renovation.
The renovation works must be to improve the accessibility, safety and liveability of the dwelling.
Swimming pools, tennis courts, outdoor spas and saunas, and detached sheds or garages do not count
The renovation can be a combination of works (ie kitchen and bathroom renovation) but must be under the supervision of a registered or licenced builder
Construction must be contracted to commence within three months of the contract date
Who can do the building?
Renovations or building work must be undertaken by a registered or licenced building service ‘contractor’. They must have held the building licence or endorsed contractor licence before 4 June.
The contract must be made by two parties freely and independently of each other, and without some special relationship, such as being a relative.
The terms of the contract should be commercially reasonable and the contract price should not be inflated compared to the fair market price.