A potential $125,000 boost to your housing situation, and your bottom line, is being offered up by the federal government. Whether you can and will take it up might all depend simply on where you live and how savvy you are.
Prime Minister Scott Morrison’s HomeBuilder scheme announced last week, gives Aussies the chance of a $25,000 no-strings attached contribution to the building or renovation of their home. But with a possible contribution to the home’s value of five times that.
The two main caveats that come with this new grant are that the home must be owner-occupied and not worth more than $1.5 million.
The right renovation could add considerable value to your home.
CoreLogic data reports, there are 10 prized regions into which these homeowners will most likely be found. However even if you don’t live in one of these regions there is still a good chance for you to take home the cash.
According to the data there are around 4.4 million Aussie homes that are owner-occupied valued at not more than $1.5 million.
These have been broken down into the top 10 regions across the country with the greatest number of said properties. They are:
1. South-east Melbourne
2. North-west Perth
3. West Melbourne
4. Gold Coast
5. Outer-east Melbourne
6. South-east Perth
7. North Adelaide
8. North-east Melbourne
9. Australian Capital Territory
10. South-west Perth.
All of these areas boast between 100,000 and 150,000 properties in that range. More than 90 per cent of those homes have a household income less than $200,000, which is also a requirement for the HomeBuilder grant.
If you’re living in the north west of Perth, this could be an ideal opportunity for you.
The grant has been designed to boost spending in the construction period in the wake of the coronavirus pandemic. However it can also provide households with a nice little earner.
The costs of moving from a home valued up to $1.5 million, can add up to around $100,000, if not more.
So, if you opt to stay put and renovate rather than move, you could put that $100,000 into a home renovation. This means you would only have to come up with $50,000 as a household to meet the minimum renovation spend of $150,000 to qualify for the $25,000 grant.
Renovations to the rescue? Picture: Britta Campion / The Australian
A well thought out renovation can make your life more comfortable and add significant value to your home, now and in the future. So how can you make sure you do this, within that budget, or if you now have more to spend?
“If your plans are already done you might want to upspec a little,” said Mel Olsen, owner and founder of ML Olsen Construction.
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Don’t skimp on design says Mel Olsen of ML Olsen Construction. Picture: Supplied
“You could do a $25,000 bathroom and add that to the plans you had before.
“However if you’re in the planning stage, it is better to get the design right – you don’t want to compromise there. Get all your sizing right, particularly clear passageways through the house, light and views. Then if you have money left over you can spend it on extra quality tiling, carpets and blinds, even decking or a concrete patio.
“It’s better to spend that extra money on design rather than titivating features in the bathroom or kitchen.”
Adding another bedroom or bathroom to your home can increase it’s liveability and improve its value. Even a Fonzie flat. But you have to find an equilibrium.
“In terms of adding value in the eyes of buyers an important point to remember is that it comes down to balance between living and dining space and bedrooms,” said sales agent Richard Lane from Urbane Property.
Gold Coasters could take advantage too. Picture: Glenn Hunt/The Australian
“You don’t want to put in a new bedroom that greatly diminishes the living space. Buyers are very mindful of floor plans and many of them will look at those before they even look at photos of the home.
“It’s also worth looking to increase access to the home such as through a rear lane that has not been utilised. Or putting in a studio above the garage.
“It’s important to work out your budget first and once you have that in mind work out where you will spend the money. Rather than the other way around.”
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It’s also crucial to find a reputable tradesman you can trust to action your building work.
“While the internet has made finding tradies easier than ever, it has also allowed for more trust to be distilled within the industry,” said hipages chief customer officer Stuart Tucker.
“And we can all use a bit of trust when it comes to leaving our home into somebody’s hands.”
Mr Tucker’s advice to finding the right tradie for you, boils down to four key steps:
1. Read recommendations
2. Check tradie licenses
3. Get multiple quotes
4. Pay the right deposit.
