Listen in as Inspire Realty Founder & CEO Colin Lee breaks down the recently announced Home Builder scheme announced by the Federal Government & discover how you might be able to benefit.
Please see below for the full transcript of this video
Good morning. It’s Colin Lee from Inspire Realty. For the benefit of those that have not watched the news this morning, woke up with great anticipation with the announcement this morning by our Prime Minister Scott Morrison about the $668 million homebuilders scheme, and that’s $25,000 eligible for homeowners, you can actually get more of your first time owners, which I will go into detail, but I’m just very pleased. I’m certainly very grateful for this announcement because, you know, it’s it’s been an industry that’s been hit quite, quite badly. So it’s going to really stimulate a lot of jobs within our industry. So you know, if you’ve been thinking about building your own home or you’ve been wanting to do some Home Improvements or renovations, or maybe you’ve just been putting it off, you’ve had all these plans and thoughts together. Now could be a good time to seize the day, or seize the opportunity to get some work done and really stimulate the economy, which I think will address some very short term challenges, but also the long term challenges within our industry. As I said, it’s been hit pretty hard. The property industry is you know, connected to a lot of different roles and jobs. It comprises is not just of, you know, property strategists and agents like myself, but it you know, there’s a lot of people that work within the industry, there are builders, tradies, sparkies, architects, even manufacturers of building materials, a lot of white goods, stores, furnishings, furniture, furniture manufacturers, everyone’s affected in this and I just think this will make a big difference in the home industry itself. I mean, if you think about it, our industry makes up about 5% of the Australian GDP. So, you know, the government making this big bold step forward is a big win for us. Otherwise, it’s about 450,000 jobs that will be lost in the first six months, according to Josh Frydenberg. So this stimulus is great. So what is it? it’s really the government handing out $25,000 to eligible homeowners. So what that means is, in some states, people moving into their first home can also be getting more incentives and you know, some with some states, you can get as much as $55,000, which is more than double your home builder loan. So I’ll go through it in great detail, but you’ve got to read the fine print. So to qualify for the homebuilder you got to be spending more than $150,000 on renovation. If you’re building a new home, it has to be worth less than 750 thousand dollars. So if you want to have a quick chat with me about some opportunities in that I can certainly show you some of those opportunities are few and far between but there’s definitely some good opportunities around in Sydney. But if you’re renovating an existing property it needs to have been previously unconnected to the residents, you know and needs to be valued rather less than 1.5 million. If you read the fine print, you can also improve the accessibility, safety and livability of the dwelling. So the grants unfortunately, can’t be used to make some additions to the property that are unconnected so your outdoor spa, your saunas, your sheds, garages, landscaping tennis courts, unfortunately, the government will not pay for that. And the applicants for homebuilder must meet some income criteria to qualify If you’re a single, you’re going to be earning 150 or $125,000 or less based on 18/19 tax returns. And if you’re a couple and a family, you have to have a combined income of less than $200,000. Also be mindful that this scheme will only last to the end of the year. So by New Year’s Eve, unfortunately, this scheme will not be around. So I suggest that you take this opportunity to start to look at some plans. In the next I think about six months for you to be able to do this. I thought I would share my screen as well just to show you some of the incentives that you are currently getting. So I think this will be a great addition. Let me just share my screen. I’m only really going to talk about the three eastern seaboard states. If you want more information about South Australia and Western Australia. Feel free to research it yourself or certainly talk to me about it. So let me just share my screen.
Queensland. If you have a look at Queensland, you’ve got the state first homeowners, homeowners grant, the state government’s putting in $15,000. If you’re first homeowner, obviously that has to be the first home under your name and title for you to qualify for that. And then the government’s also giving the first home loan deposit scheme that’s up to $10,000. So with the home builder, you add 25,000 of the home builder to the $25,000. First of all, I’m going to grant in the first home loan deposit scheme, you could be accessing up to $50,000. So if you’re in Queensland, I think this is a great opportunity to seize that and to access as much of the stimulus as much as you can. In Victoria and the state first homeowners grant is dependent. It goes from anywhere from $10,000 to $20,000. Feel free to message me for more details about that. The Commonwealth first home deposit scheme 10,000. In fact, that’s across all states. So with the homebuilder, you can access up to 45,000 $50,000. There’s one other thing as well. first home buyers are exempt from paying stamp duty on properties up to $600,000. So if you’ve bought any of your building or buying any properties under $600,000, it’s a little bit hard to find but there’s certainly some opportunities out there a little bit further away from from Melbourne CBD itself. But there are certainly some opportunities. And then there’s concessions as well available for properties valued between 600,001 to 750,000. So it’s a concession for that stamp duty. So it’s not fully exempted. In our New South Wales. The first home owners grant is $10,000 offered by the state government and then the Commonwealth first home deposit scheme. You can get up to $10,000 for it. So with the homebuilder, you can access up to $45,000. In terms of a grant. In New South Wales, the properties are a little bit of a higher price. So you are exempt from paying all or some of the stamp duty on properties valued up to 600 us up to $800,000. If you want more details, feel free to message me as well. So look, you know, I think it’s great news this morning. And I just think that if you are ever looking to buy your first home or you’re looking to renovate, please take this opportunity to consider the stimulus pack package which only lasts till the end of the year. So seize the day, seize the opportunity to to kick start the economy and to bring Australia back to the positive again, I think there’s some great things that our government is doing. I certainly am very grateful to be living in Australia, which I have been believe is a very lucky country, certainly for migrant myself to be living in Australia at the moment. I’m counting my blessings. I wouldn’t want to be anywhere else in the world right now. So thank you so much for your time. This is just a quick update this morning about the government $688 billion stimulus package. Thank you so much for your time, please visit us on www.inspirerealty.com To find out more information about how we can assist you. Thank you and have a great morning. Bye for now.