50k for new Builds

Valuers will see right through it.
If this practice goes on expect to see a lot of Val’s coming in short.

 

I Was excited about the prospect of a dollar match renovation stimulus. Even if it was 75/25 matching it would have been 100 times better than this pointless stimulus.

A lot more people could have benefited from this and in turn a lot more trades, especially those smaller local trades not tied to volume builders (who are the only ones benefiting from this). You know those tradies who have probably felt the most burn from Covid........

 

Essentially, you need registered land, or about to be registered land, very fast council approvals and locations where packages are under 750K. That certainly isn't going to be SYD or most of MEL. It has the potential to work well in regions, and maybe some capital cities.... but it is limiting enough that it wont be the bonanza everyone had hoped for

 

Very well put.
Can you see anyone being in a position to take up the renovation stimulus in 6 months? I reckon it’s going to be rarer than a 4 leaf clover.

As you put it I think this is only designed for people all setup and ready to go. Their is minimal scope for anyone to act on it which to me seems absolutely pointless...these people are committed anyway.

 

Developers and volume builders in outer burbs of Syd and Mel will benefit the most from this scheme. With very low level of immigration, poor infrastructure in those outer areas, all this scheme will do is help spreading urban sprawl, ghost/ugly new estates. The goverment should use the money to improve infrastructure, not the big one but multiple small ones which can be planned and completed within a short period of time to benefit the overall society instead of subsidising a small group.

The renovation part is ridiculous.

 

I think it will make the difference between someone building and not building - which is surely the point in this economic climate.

Unfortunately infrastructure projects (large or small) don’t usually use domestic builders.

Also, it’s pretty easy for a reno to be at least $150k.

Sounds like some people are feeling a bit miffed that they won’t qualify?

 

If you exclude participation through either income caps or pricing caps ( or in this case, both) , and then place time restrictions on it that are difficult to meet , you limit the potential effectiveness . I think that's where people's concerns are. Of itself the idea is fine.... but as I said, probably wont see much take up in larger cities due to price caps . I would have capped it at $1 Million - I think it would have captured a larger potential pool of buyers. Try buying a decent sized lot and a decent single level 4 bed home in any of Sydney's new subdivisions for 750K. Can be done, but it wont be much of a home and it will be 50KM + from Sydney . I just think they have made it a little too limiting . Great for regionals though. My buyers are all going to see values go up . Happy days for my guys !!!

 

We are about to sign a building contract this week that could have met the $ thresholds except that it is an investment property and we are using a company to hold it so we won’t be eligible.

Would have been nice to get an extra $25k off the build price but it’s not as much of a stimulus as previously speculated by the media of $40-$50k.

We are going ahead regardless, guess we weren’t the target in mind for the stimulus anyways! Can’t win them all! We will do our part to stimulate the construction industry in 2020!

 

I just spoke to a builder mate (small domestic builder In Melbourne) who said that he thinks it will get at least one of his current potential clients over the line.

He’s not a volume builder.

That’s what it’s about - helping businesses survive.

 

If correct and it's only valid for 6 months, that kind of seals the deal on it's stupidity. Between design and CDC approval in the quickest circumstances it could take 2 months. Through council it can take longer and that is assuming you already have the concept to pull the trigger on and finance approved. If not, add more time.

 

Upgrading/extending schools/libraries/community halls/playgrounds/parks don't use domestic builders but new build in new estate do? Are you sure about that?

 

That shows the stupidity of this renovation grant. With a project worth at least $150k, it is highly likely that you are doing something substantial and need council approval.

 

The term used should have been residential builders, they all use domestic builders. Some projects are residential builders and some are commercial builders.

 

Well that is disappointing, its only really good for people with land that have approvals ready to go. By the time a block is found, purchased, exchanged, DA approved and contract signed it will be well into new year.
I guess they just want to push people to buy in the hopes they can meet the unrealistic deadline of end of year, if not tough luck for them plus they have committed to the project regardless.
They seem to just be delaying the drop in prices now hoping to improve employment so prices dont crash after the stimulus payments end.
As someone stated before, the only trades to benefit from this are volume home builders and anyone building in the regional areas.
Makes you wonder if they axe stamp duty after this scheme is done what other benefits would they bring out for first home buyers?

 

As a domestic trade who works for multiple domestic builders, I can say there have been a lot of projects put on hold by owners. Both renovations and new builds. I can only assume this incentive is only really designed to give those people the nudge to start the projects.

Is the $750k the total value or only build cost?

I’ve got a build in the pipeline so should qualify for this and it’s definitely given me the nudge to get it moving!

Will be interesting to see if it does get things moving a little bit because things are definitely starting to slow down.

 

$750k is the total value (land + build).

 

Perth if "fortunate" that the $750k total value will go further here but it still will mean a majority of it will be cookie cutter crap
If people think outside the box they can pick up an infill block for around $300k 5km from the city then put a house on that - those will be the clever ones - but those blocks are very limited supply and will now be snapped up with potential for bidding wars on them

 

https://twitter.com/TheKouk/status/1268291404888932354?s=19

"The home renovation package is puny, pathetic.
$688 million is 0.0% of GDP"

"There are more than 6 million owner-occupied dwellings in Australia so just 0.5% of properties will benefit."

 

Another positive result:

Just talked to a jubilant work colleague who had put their new build on hold because of COVID-19.

Now they will go ahead. It’s a knock down rebuild in a middle ring suburb with a small builder.

 

Hah - remember the flak Julia Gillard got for the school halls program!