As part of efforts to mitigate the potential downturn in the construction industry due to the COVID-19 epidemic, the federal government has unveiled a new program that will provide assistance to homeowners who wish to rebuild or renovate their existing homes.
Under the HomeBuilder program, homeowners can apply for a $ 25,000 grant to build a new house or renovate an existing property. The program aims to provide 27,000 grants by December of this year.
A press release from the Prime Minister's Office said that the program would be able to support 140,000 direct jobs and 1,000,000 other related jobs in the residential construction sector. This includes businesses and independent contractors, contractors, real estate developers, manufacturers of building materials, engineers, designers and architects.
"This increase in residential construction will help make up for the deficit in construction activity expected in the second half of 2020 due to the coronavirus pandemic," said the press release.
Simon Basheer, National President of the Urban Development Institute of Australia (UDIA), said that the impetus the program aims to provide to the construction industry will ultimately help the construction industry. ;economy.
"The economic recovery will be faster and stronger to have a robust housing and construction industry. The package will help advance activity that meets the challenges of the" economic cliff and Jobs "which the industry faces in the second half of 2020," he said.
According to the Prime Minister's statement, the HomeBuilder program supplements existing subsidy programs for first-time state and territory owners, stamp duty concessions and other subsidy programs, as well as the deposit program First Home Loan and First Home Super Savings Program
Adrian Kelly, president of the Real Estate Institute of Australia, said that, in addition to the "massive boost" in employment, the program fills in the gaps in previously proposed plans.
"It is the owner-occupier who decides how the additional funds are to be spent, whether it is a new construction or a major renovation of their existing home. First-time homebuyers can benefit by purchasing property at the lower end of the market in a location they prefer and immediately upgrade, "he said. .
In an earlier report, Kelly called the proposed policies that are intended to assist first-time home buyers who target new homes.
"Limiting assistance to first-time homebuyers only to new homes could lead to sub-optimal results in the use of existing properties and infrastructure," he said.
Kelly said that less than 20% of first-time home buyers prefer to buy newly built homes. He believes that the introduction of a subsidy that limits their choice would only hamper any potential activity in the housing market.
To learn more about the program, see this story from Your Mortgage.
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