The HomeBuilder scheme is a $700-million government housing stimulus package aimed at revitalising property market activity. Rolled out in June of this year, the HomeBuilder scheme provides a $25,000 grant to eligible owner-occupiers substantially renovating or building a new home.
So far, a total of 11,367 applications have been received by the state and territory Revenue Offices, with the majority of these coming out of Victoria at a total of 4,176 applications, followed by Queensland with 2,536 applications.
The Minister for Housing and Assistant Treasurer, Michael Sukkar, commented that “the figures show HomeBuilder is off to a much stronger start than forecasted…Every HomeBuilder application represents a signed contract, which means more work in the pipeline, keeping our tradies on site, on the tools and in a job.”
The ANZ/Property Council Survey found that the national confidence score increased by six-index points to 82 for the upcoming December 2020 quarter. Although still below the historical average of 123, these results mark a 14-index improvement from when the confidence levels dropped to their lowest in the survey’s history in the June 2020 quarter. The online survey of 857 respondents found that three-quarters of residential building developers said they expected the HomeBuilder scheme to have a positive impact for their business over the next quarter.
While property sentiment has remained weakened amid the Coronavirus pandemic, and the associated restrictions imposed by the governments, stimulus packages like HomeBuilder are ensuring an economic incline.
“While sentiment in the housing sector remains negative, it is clearly improving,” ANZ senior economist, Felicity Emmett said.
“The scheme, along with other state government initiatives, is clearly giving the housing construction sector a boost…While sentiment is very weak, government support has clearly helped to prevent the worst. HomeBuilder, JobKeeper and the raft of other government stimulus measures are helping underpin sentiment.”
Chief executive of the Property Council of Australia, Ken Morrison, has also accredited the boost in sentiment for the residential construction industry to the combined efforts of stimulus measures and support from the state and territory governments for first home buyers.
“HomeBuilder is the pop star of government stimulus measures released so far. As the scheme has become available in all states and territories, we have seen a big lift in sentiment among those in residential development,” Morrison said.
Morrison’s praises for the HomeBuilder package also came with firm warning that there is still a long way to go before property industry sentiment returns to the level it was at prior to the pandemic, and that government stimulus measures will be vital for the property industry to drive economic recovery.
“As household supports such as JobSeeker and JobKeeper are wound back over the next few months, all levels of government will need to step in with initiatives that will deliver fast and effective stimulus to build momentum for recovery,” Morrison said.
HOW CAN WE HELP YOU?
The Home Builders Scheme will give you $25,000 towards the construction of a new property. This Federal assistance has generated considerable interest so far and applications have been high.
The Specialist at Brisbane Home Loans can review your financial position and assist you in getting an allocation.
If you are ready to go, we will assist you to prepare an application ready to be lodged once the applications for the Federal Grant are ready. Call Jordan or Dan on 3889 9250 to make an appointment.
