50k for new Builds

This is the exact sort of situation I was talking about!
I think these are the type of projects they are trying to get happening

 

Does this include investor IP?
I don't own anything under my name - all in company trustee.

 

I’m not miffed at all from my own perspective of missing out. I’m just gobsmacked at the stupidity of it. I mean why on earth put a 6 month deadline on it. It makes it nearly pointless for anyone not already in the position.

And yes no doubt it will bring a few people over the line but honestly how many of those are we talking? To be in that position you need to A) Be raring to go already, B) Have had no impact from Covid (let’s not forget banks aren’t randomly handing out money) C) After 1&2 still want to go and leverage yourself to the hilt in a free falling market for a measly 25k......by the time the builds done your house is going to be less than that and then some.

The point is to stimulate the construction industry right? This will not even give it a slight nudge.
Almost no one will qualify for the renovation.
No one with a clue will go racing out to jump into a fix build contract to build for 25k. And if they do they have never built before.

 

The best feature is that it adds to supply. This is the first and foremost requirement for preventing high price inflation. The newspaper comment yahoos raving against capitalists and negative gearing again just don't get it. They begrudge the idea of a developer or builder making some money - to their own detriment.

 

It says no investor so I would say it will be personal name only - some personal name investors might be able to squeak through if they play their cards right.

 

If you know any small (or volume) builders you will know that in the months since covid lots of people have decided not to proceed with their builds - even though a lot of work had already been put into the planning process (like my work colleague).

Huge numbers of works in the pipeline are on hold.

It is exactly these people who the program is targeted to. These builds are projects ready to go, they do have building permits!

Builders need immediate help for the next 6 months. This will help.

 

There will always be some inefficencies.

Its just an incentive - in the right direction.

 

Yes i think it is meant to keep the tradie in business, and not overwhelmed with new projects that they are bringing unqualified tradies to do jobs.

Scomo mentioned that Pink Batt disaster is what they are trying to avoid.

 

Ha! The block I was watching that was 12km from city and in my DS's budget went under offer yesterday
https://www.realestate.com.au/property-residential land-wa-embleton-202669978
He has a max $450k budget so would have gotten him FHOR no stamp duty on block, $10k FHOG from WA govt plus $25k from federal government and really stretched his dollar further to build a decent house on it.

 

Only a "owner occupier" can be eligible if all other elements are met. eg Individual/s as owners, new build, contract date, first progress payment before 31/12/2020 etc. Its not stated but I imagine they will apply the typical 6 month rule to being occupied or the grant has to be repaid but havent seen the law yet. . It is intended to encourage construction of home builds. Not sure how a duplex may work and fine points of the law may or may not permit it. And the threshold likely means it cant apply to a GF but it could to a high sec on e maybe - need to see the law.

i would like to see when the $25K is paid. For all we know it could be paid 6 months after hand over.

It will be paid and administered by each STATE Govt through SRO like duties and FHOG concessions. Application will be approved after the first progress payment. Need to submit the contract etc too. And get council approvals started and completed.....remains to be seen how councils play their part in making life hell for people missing the deadline

 

Who earns less than $125k but has a $150k+ renovation lined up?

If they are truly trying to generate work for the builders, why limit it to just PPOR buyers? Surely if it was open to investors some might be interested in building a home and land package?

 

I wonder if it will be the same amount for each state (the proposed $25k) or if it would vary per state just like the FHOG.

Also yes I thought I could potentially take advantage to do some renovations but not a $150k renovation just to get ... $25k.

Hope people won't start buying 'just because they get this grant'. I mean even though I'm pretty sure we'll see some of that.

 

Well that still gives a lot of room as that’s a higher than median salary for a single person ($200k salary allowed for a couple).

It’s pretty easy to spend 150k on a reno.

 

One of the more problematic aspects IMO is this :

• If you own vacant land before 4 June 2020, and then build, the total value ## of the land and new build cannot exceed $750,000; or
• If you buy the land after announcement, and then build, the total value ## of the land and build cannot exceed $750,000.

Its not the wealthy buying at $750K. A basic home in NW sydney will cost that. The inclusion of the land into the test seems crappy. Yet if you buy a dump and knock down the test is $1.5M PLUS the build ie $2.25m Thats three times what a first home buyer can get. WTF. ScoMo and Josh have lost the plot.

• If you own a property (house and land), and knock the house down to rebuild – this will be counted as a substantial renovation, and therefore subject to the renovation price range of $150,000 to $750,000 provided the total value (house and land) of the property does not exceed $1.5 million prerenovation;

## Note its doesnt say COST !!! Who will value the completed works ?

Albo is going to rip into this loophole for the wealthy !! Wait till the media read it

 

I can see where your coming from but where does your “huge numbers” figures come from?

And what I’m saying is then this becomes very niche. Basically only applicable to anybody raring to go who still has the capacity post Covid and who wants to leverage themselves in a falling market.

According to the governments estimate that’s approximately 27,500 people in a 6 month period...maybe I’m wrong and it could be.

 

Nothing wrong with targeted or niche support in my book if it supports the builders and trades.

'The kick we needed': Builder starts hiring on the potential of HomeBuilder stimulus

There were lots of reports about building slow down e.g. An industry which employs 120,000 people in WA is at an historic low after it was hit hard and fast

 

I Agree, the new build and renovation values don't align. But how many people can find a dump, purchase it and then sign a knock down rebuild contract before the end of the year?

I would have been happier with something like build costs up to $400k and land not included in total value

 

I’m not convinced this is too helpful. My husband’s in CommercialConstruction Industry. Shopping centre projects and mixed use Apartment/Commercial projects have been put on hold. Work drying up within the next few months. I just can’t see how that sector is being helped at all. So disappointed!

 

Will they have enough time to find a block of land, create a build plan, get the permit, sign the build contract, get the loan and start the work within the allowed time window?

 

Only owner occupied properties.