Cost to Build
2022- 2023 Federal Budget Changes
With the handing down of the 2022 2023 budget, the federal government has once again allotted stimulus to supporting homeownership. This budget arrives in the wake of the pandemic, expanding prior homeownership programs and ultimately marking the end of some.
Home Guarantee Scheme
First introduced in the 2017-18 federal budget, Home Guarantee Scheme is intended to support the affordability of first home ownership. In its essence, this scheme dissolved the standard 20% home deposit required by mortgage lenders for those who qualified. Instead, the federal government guaranteed up to 15% of the loan’s value, allowing homeowners to purchase with just a 5% deposit.
Previously, this scheme was only available to 10,000 applicants; however, this budget has increased that number to 50,000 a year. 10,000 spots for those are exclusive to those looking to make their first home purchase in regional areas. In addition, 5000 spots are offered to only single parents, allowing some to enter with a 2% deposit.
How to take advantage of the Home Guarantee Scheme?
If you’re hoping to benefit from the Home Guarantee Scheme in this upcoming financial year, the NHFIC can help you determine if it’s relevant for you. This scheme has historically been run on a first-in, first-served basis, so being well-informed early is always recommended. If you’re hoping to purchase and build your first home, G.J. Gardner Homes is your point of contact for beginning the design and construction process.
The post-Covid economy requires permanent structural shifts to support Australian regional areas. As more people have moved away from cities to regional communities in the last few years, regional homeownership conditions were a focal point of this budget.
With the announcement of the Regional Home Guarantee, regional Australians who have not owned a home in five years can buy or build a new home with a deposit as low as 5 per cent, and the government has promised 15 per cent of the property purchase price. Whilst still waiting to be passed through parliament, this scheme should be up and running in the 2022-2023 financial year.
G.J. Gardner Homes can help you take advantage of this new legislation for regional communities with our home building services. GJ Gardner Homes offices are across Australia, offering our premium services to regional communities.
The End of HomeBuilder
As many of our clients are aware, the HomeBuilder initiative encouraged homeowners to proceed with renovations throughout the COVID-19 pandemic. Whilst applications closed in April 2021, the government provided a six to eighteen-month extension for the construction commencement. October 2022 would be the last opportunity for construction commencement for those who benefitted from the initiative. If you were approved for HomeBuilder, GJ Gardner Homes may be able to facilitate your rebuilding.
Get in touch
To learn more about this year’s budget, review the federal government’s overview. If you intend to take advantage of these schemes, contact your local G.J. Gardner office to understand how they can make your dream home a reality.