Do I need a professional valuation to support my HomeBuilder application?

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Australia’s answer to the Covid induced recession is to build our way out of it! And part of that is the HomeBuilder Grant.

To be eligible you must either build a new home as your principal place of residence where the total value of the home and land does not exceed $750,000, OR substantially renovate your principal place of residence where the value of the existing residence does not exceed $1.5 Million before the renovation (your renovation spend must be between $150,000 and $750,000).

(UPDATE: In New South Wales the maximum property value allowed to qualify for the grant has been increased to $950,000 and to $850,000 in Victoria for contracts signed between the 1st of January and the 31st of March 2021)

To qualify for the $25,000 grant ($15,000 from the 1st of January 2021 – 31st of March 2021) there are a number of eligibility criteria to be met. There are income caps, timelines, and caps on the total value of your property. One of the key requirements to qualify for the HomeBuilder Grant is that you must have supporting documents as to the value of your property, so the answer is yes, you do need a professional valuation.

Some states are also offering their own grants that can be used in conjunction with the federal HomeBuilder grant. Please check what other grants may be available in your state.

UPDATE! On the 29th of November 2020 the Australian Government extended the HomeBuilder grant. Home builders now have until the 31st of March 2021 to sign a building contact and until the 14th of April 2021 to submit their application for the grant. There has also been an extension from three to six months to the deadline for when the work must commence after the contact is signed.

For more information on the extension click here: https://treasury.gov.au/coronavirus/homebuilder

Some states are offering other extensions on their grants so please check the specific requirements in your particular state.

More general information is available from The Australian Federal Government here: https://treasury.gov.au/sites/default/files/2020-10/Fact_sheet_HomeBuilder_0.pdf

Home renovation grant

So as we have established, you do need a property valuation as part of your supporting documentation to apply for the grant.

You must provide evidence of:

  • The value of your home before the renovations from an official property valuer.

OR

  • The value of the vacant land. You can use your sale contract if you purchased the land within the last 12 months, otherwise you must get a licensed valuation.

OR

  • The value of your existing property (house and land) if you are looking to demolish and rebuild.

The team at National Property Valuers can help you with all three types of valuations for your HomeBuilder Grant application. Give us a call on 1800 828 222 and we can get the process started for you.

Renovation grant

Each state and territory have a different application process and require slightly different supporting documents that need to be submitted with your application.

We have put together a little research to help you find the right information for your state:

Australian Capital Territory: https://www.revenue.act.gov.au/covid-19-assistance/homebuilder-grant 

Applying for the HomeBuilder Grant is a two stage process. First you need to register (before the 31st of December 2020), then complete part B.

New South Wales: https://www.revenue.nsw.gov.au/grants-schemes/homebuilder

Northern Territory: https://treasury.nt.gov.au/dtf/territory-revenue-office/homebuilder-grant

Queensland: https://www.qld.gov.au/housing/buying-owning-home/financial-help-concessions/homebuilder

Tasmania: https://www.sro.tas.gov.au/about-us/covid-19

Victoria: https://www.sro.vic.gov.au/homebuilder-grant-guidelines

In Victoria, due to the extended Covid-19 lock-down, there has been a three-month extension to when building must have commenced to qualify for the grant. In other states building must commence within three months of the contract to being signed, but residents in Victoria have six months from the date of contract for construction to begin.

Western Australia: https://www.wa.gov.au/government/publications/building-bonus-grant-and-homebuilder-grant-application-form

The team at National Property Valuers have local valuers located in all states of Australia so we have you covered for your HomeBuilder Grant application. Give us a call on 1800 828 222 for a quote. 

The information is this article is correct at time of printing, (24th November 2020, Updated 5th of January 2021) the grants may be changed, and criteria may be altered at any point. Please check the guidelines for your state before making any financial decisions.

 

Max
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