WITH PROPERTY OWNERS
The HomeBuilder grant, recently introduced as part of the federal government’s economic response to COVID-19, is an initiative aimed to stimulate our residential construction industry during this challenging time.
Whilst designed to support one of our biggest industries, the grant is certainly a positive for eligible individuals as well, as they may receive up to $25,000 to assist in building or renovating a property. Furthermore, this grant does not impact the recipient’s eligibility for other grants, such as first home buyers (hooray!).
So, naturally we have been inundated with questions surrounding the grant and the possibility of using it to get a foot in the door as an investor or using it to renovate an existing investment property. So, we have formulated a little snapshot of the situation below.
The grant is not intended for investment properties – true. However, if you meet all other eligibility requirements (head to treasury.gov.au/coronavirus/homebuilder to check your eligibility) and you have some flexibility in your living arrangement, then there are ways to make the most of this grant.
The grant is intended for one’s “principal place of residency”, basically meaning that if you were planning to move into the property for a period of at least six months at the conclusion of the build or renovation, then this grant may be available to you.
Down the track you could then potentially choose to lease the property out and enjoy the tax benefits of an investment property. Taking advantage of this grant may enable you to enter the property market earlier than you anticipated.
If you’d like to have a chat about your options in relation to this initiative, feel free to give us a call at Property Owners and we can help to guide you through the process. Phone 5223 1657 or head to propertyowners.com.au.