50k for new Builds

Looks like something is coming soon, no firm details as yet though.
The government will this week unveil new homebuyer grants – not just for first-timers

 

If it is for new builds, I will scream! I wouldn't call myself a serious environmentalist, but seriously, the crappy houses and units that are being built/knocked down/rebuilt - subsidised by govt in cash handouts and tax deductions - all in the name of supporting the construction industry - is not sustainable.

What a waste of resources!

 

wow is this for real?

The government will this week unveil new homebuyer grants – not just for first-timers

devils in the details?

 

In the rush to build, it'll further erode building standards.

This is an opportunity to get rid of the dangerous tradies who are incompetent and inept, not keep them on the gravy train.

 

Let’s hope so, I will have 2 vacant lots to sell in a few weeks...

 

Whereabouts?

 

Time to get into the pre-PSP stuff.

 

Surely they can come up with better ideas to stimulate the construction industry than churn out sub standard builds?

@Redom you have commented in the past that they do this because it’s super easy and quick to implement. Interested to hear if you had thoughts on other ideas though? As in construction that actually benefits most Australians (roads, hospitals, schools, infrastructure.etc?). Surely their are other options?

 

It is about jobs - tools and hands on deck ASAP.
Have to maintain the status of recession proof country - AKA LUCKY COUNTRY!

 

Well if they only spend money on infrastructure only the tradies are getting the cash flow. If the government spend it on housing a lot of parties get involved, namely banks, various material suppliers, consumers, government (stamp duty from title exchange and GST from materials exchanged)

 

They want the cash flow velocity to increase. More hands it goes through, the better TAX generated back to their coffer.

 

Well I hope they backdate it as I started building a new house in February.

 

Sorry I think you are out of luck there. I have never seen a policy backdate before it was announced later for a start date.

 

I'm not hopeful at all.

 

Its impossible to be a 50k grand.!! Huh! Govt isn’t mad! At best of the possibilities it could be a 5-10k grand or incentive or tax rebate something like that!!

50k grand per new constructions! Even sounds impossible!!

 

@albanga - they’ll do plenty of things, infrastructure is slower, but they'll be throwing money at whatever they can get moving in this space too.

If its just a direct buyers grant, it'll likely be 20-40k to be meaningful I think. 10k isn't enough to get traction IMO. The idea is to get people building, will need an incentive strong enough to make headway.

Using existing systems is smart - this is easy to do, quick, fast and an effective way of saving jobs. ScoMo often talks about this as lessons from GFC crisis management too. I.e. coming up with big new programs, fast, often leads to implementation issues (NRAS, pinkbatts, etc --- these are GFC response programs that this govt views as big failures).

And no, they won't backdate it - chance of this is near 0.

 

So the logical next question becomes if we assume a buyers cash injection of let’s say 50k for new builds. Then what does this do to the property market and most importantly existing homes?

Obviously estate areas get a great boost and developers might be more prone to pay more for a development site knowing they can likely add some fat to the purchase price as the government are paying for it anyway.

 

Just read it’s likely to also include renovations!
That could make things very interesting.

https://7news.com.au/politics/scott...hIJPzWIHz2CB9L7q657DVrHcxPDqSxI49MPqu_LHs1YYg

 

I'm going to renovate my mate's place and he is going to renovate mine, just need to know the minimum requirements and then sign off on each other's non-existant work. Surely no one will inspect each property to confirm the output matches the proposal.... /s

This is why the rules need to be really specific. The popup "insulation companies", "solar installers" and "renovators" always appear when easy government money is on the table.

 

What about Granny Flats, think they will get a go?