Across the country, select homeowners are now eligible to access the federal government’s HomeBuilder scheme, where owner-occupiers are offered a $25,000 grant toward the renovation of their property.
In order to be eligible, the renovation contract value has to be between $150,000 and $750,000. The value of the property also cannot be more than $1.5 million before the renovation. There are also income limits which apply, consisting of $125,000 for singles and $200,000.
We have compiled 5 of the most efficient ways you can spend the HomeBuilder grant on your home renovation.
1. Build an additional bathroom
Building a second bathroom is especially useful for individuals who want to create an extension to the property by adding two new bedrooms, with an extra $25,000 allowing them to add another bathroom.
An en-suite is often a high priority addition to the value of any property and is often a big-ticket item that gets overlooked during renovations.
2. Create open-plan living
Renovation costs can quickly rise when renovation moves from cosmetic upgrades to upgrading structural aspects of a property. For individuals who have not considered wall removal in their budgets, part of the $25,000 government grant could be allocated toward open-plan living.
Homeowners should focus on creating a property with an open plan. This includes a kitchen free-flowing into the lounge or living space, or even the ability to view the living space from the kitchen. Open living plans with an extension to outside covered entertaining areas are very desirable by buyers.
3. Overhaul the kitchen
Installation of a new kitchen almost always brings large rewards for vendors desiring to renovate the property prior to a sale. Particularly in apartments, buyers are often more willing to spend additional expenditure on fixing small things like the carpet or paint but do not want to worry about the kitchen.
Therefore, the $25,000 government grant can be spent on a new kitchen. However, it is important to take a step back and be aware of the costs involved in rubbish disposal and the time taken to order and replace materials.
4. Upgrade your fixtures and finishes
Renovators who are already investing in big-ticket items might want to include finishing upgrades to the kitchen and bathroom.
The $25,000 government grant can make a big difference in the end quality and finished product, like benchtops, tiles, kitchen appliances tapware, soft-close drawers and a slide-out pantry. This all goes towards upgrading the liveability and aesthetic appeal of a property.
5. The joy of better joinery
Maximisation of storage is especially important in the kitchen and wardrobes, especially for those of us who require more storage space. A lot of downsizers will find these features especially valuable.
The inclusion of built-in cabinets into living spaces often exceeds the budget of the average renovator, but with the grant, custom joinery would be a good value-add to large renovation projects.
To find out more about the Government's HomeBuilder grant, speak to a mortgage broker at Preston Finance & Insurance.