50k for new Builds

So many new estates do not have proper schools. So many not too old suburbs/estates have over-crowded schools. Should they be built/upgraded/extended?

 

any particular reason why Permanent residents get left out of this scheme. Feel sad. The citizenship process is being suspended due to Covid 19 so I have next to zero chance to get citizenship by December.

 

Box Hill NSW has three proposed new school approved and about to commence construct in the month. All accelerated by Govt planning in the lockdown. The catholic School is a office tower incorporated into the new shopping centre / transport integration etc. All "State Significant Infrastructure"" so they bypass councils for speed.

The state school (primary + secondary) is also planned. No demountables. Schools set to play a role in building new community - realestate.com.au
And not just one. Suburb after suburb.

The problem with Rudd era stimulus (libraries) is they were all rolled out by major construction companies who padded pricing and screwed over subbies and it took them three years. 6 months sat in councils and delays for recostings etc. The ScoMo plans are about muddy boots asap. State Govts too. They are looking at any that can kick start NOW. And deferring things now quite ready (like stadium upgrade at Homebush).

 

The explanatory info to the laws may explain why. I would think its about excluding temporary residents than those intending to be citizens eg students, short stay visitors etc all at taxpayer cost. Citizenship is a long and slow process without CV19. The largest non-citizen base who will complain are kiwis and they get no carve out from almost every scheme. Some have lived here much of their life. They now realise they get no handouts, no help and can be deported for basic crimes.

 

How much titled land is out there, ready to build on?

 

Tasmanian stategovernment adding in an extra 20k to the 25k federal for the scheme. Should definitely see some continued growth in my Hobart properties.

 

The income and asset testing is stupid.

As mentioned the $125k/$200k income test and $150k in renovations. Who can afford $150k in renos on a low income?

Working with a client who should fit this. Doing $200k in renos, pitting the property and income smash the tests, so not eligible. Weird.

Also missed a trick excluding investment properties

If the threshold was $50k spend and investment properties, watch that heat up.

Think about the vacant investment properties, great time to refresh the property. Government gets their clip on GST and future increased rental income.

6 month deadline I am ok with, probably there to get people into action (with the idea of extending)

 

I was almost eligible!

We have a major reno planned, second level addition and hope to commence this year. Plan to complete it as an Owner Builder though

I guess this is completely aimed at those ready to go......ours took 9 months to get DA through council alone....and there was no major issues or any objections.

 

Yes - they don't have to have started work during the period - so could sign a contract in December and start work in February 2021

Further information here HomeBuilder | Treasury.gov.au

 

WA is talking about their own state level one as well
https://www.perthnow.com.au/busines...-records-no-new-covid-19-cases-ng-b881567928z

 

$125k for a single person is well above median income income. And compared to prices in NSW $150k is chicken feed.

A quick search on the ABS site shows that in 2016/17 median income in Australian was $48,000. So half earn over that.

Haven’t checked to see if there are later results - but expect it to be similar.

 

From ABS (Nov 2019):

Full-time adult average weekly ordinary time earnings
1 658.70
(~85k /yr)

Full-time adult average weekly total earnings
1 720.90
(~89k /yr)

All employees average weekly total earnings
1 256.20
(~65k /yr)

 

Rather than handing out money, slashing these times in non-contentious cases would get a lot of people working.

 

Average is not median. Median is a better gauge as to what the range of annual income is.

 

We may be in the same boat.. despite being eligible for the $25k, I’d prefer to do an ‘owner build’.

I’m really not a fan of builders.. this $25k reno boost will just get added to the builders margin and very little will trickle down to the tradies (where it’s supposed to go).

 

For a lot of those who will use this opportunity, they will already have had quotes from a builder - so less likely to have prices inflated.

Owner builders often don’t realise that they can end up paying more as they don’t have access to trade discounts.

 

That's great, hopefully all the states follow suit

 

The 1 thing they didn't clear up is they stated it is for Australian citizens but will be interesting to see if they allow the grant for couples with 1 Australian citizen and a non citizen partner.

 

[QUOTE="essendonfan, post: 838074, member: 19147] 6 month deadline I am ok with, probably there to get people into action (with the idea of extending)[/QUOTE]

Im not OK with it. What it may also do is force people into taking action when they shouldn’t.

Let’s not forget we are still smack bang in the middle of this pandemic, let’s not forget the real pain has probably not yet even started. The government is still handing out money, banks aren’t yet asking for repayments. I don’t care who you are, I don’t think anyone should be running out right now spending loads of cash.

Especially I don’t think anyone should be running out committing to the biggest debt possible in a falling market...and especially not “forced” to in the fear of missing out on 25k (which let’s not forget will be gone in equity by completion. That’s not a guess, that’s a given).

I’m not saying I have the answer but this short time frame is going to make people commit to something they shouldn’t. Sure construction industry gets a boost whilst others suffer.

 

I would bet Scomo has not had to find a tradie to do some work on his home for some time. This is an idiotic scheme, if building work is hard to find maybe the tradies would be available for the thousands of small jobs they turn their noses up as being 'too small' ...