With the property market rapidly picking up momentum after the temporary stasis caused by pandemic restrictions, if you’re considering a move, now’s the time to act! The last few months have resulted in some major changes in lifestyle, prompting many families to consider relocating to areas they may not have previously considered. What this means is that there are currently opportunities to snap up a property bargain in an up-and-coming area.
The Homebuilder grant could provide a welcome boost!
If you hadn’t previously considered purchasing a derelict property, the prospect of a 25K, non-repayable grant towards construction costs may just be enough to tip the balance. In an effort to kick-start the construction industry post-pandemic, the federal government is offering up to $25K to individuals (or couples) either commissioning the construction of a new home, or who have a home that needs significant restoration.
Could your property be eligible?
There are various eligibility criteria which need to be met in order to take advantage of the grant. Purchasers must have a gross income of $125,000 pa or less ($200,000 or less for couples). The property must cost no more than $750,000 (for a new-build). Renovations should cost between $150,000 and $750,000, with the total value of the property not exceeding $1.5M. Importantly, applicants need to put in at least $150,000 of their own money, in addition to any borrowing needed to fund the purchase and/or renovation.
Is there an investment opportunity?
Unfortunately, the Homebuilder grant isn’t available to investors, so if you’re a buy-to-let landlord or developer, you’ll need to access finance through traditional routes. That said, there’s nothing to stop eligible homeowners from taking advantage of the grant now, then borrowing against the equity in their home at a later date in order to fund a rental property.
Amazing properties available now
The unusual nature of the property market just now means there are some unique opportunities to acquire a property that’s likely to increase significantly in value over the next few years. Get in touch to find out more about the type of property we think may best suit your needs.