Renovation grant

Discussion in 'Granny Flats' started by DrunkSailor, 2nd Jun, 2020.

Join Australia's most dynamic and respected property investment community
  1. DrunkSailor

    DrunkSailor Well-Known Member

    Joined:
    25th Jun, 2017
    Posts:
    736
    Location:
    Melbourne
    Does anyone know if the renovation grant will cover small apartments that only require a <20k renovation? I was planning on renovating but if the government is going to cover the cost I might as well wait until the grant is initiated.
     
  2. MondeoMan

    MondeoMan Active Member

    Joined:
    20th Dec, 2016
    Posts:
    36
    Location:
    Melbourne
    Not sure of the details from what I read no. Article on news.com.au said you would have to match it more than dollar for dollar meaning it would only apply to over 50000 jobs. My house just got hit by a tornado I am wondering if I will be able to cash settle then get the grant to fix it. Might be over 50000 of work
     
  3. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,107
    Location:
    Newcastle, NSW
    some details have come out now.

    $25k for a reno or build of $150k or more, so long as you earn less than $125k (single) or $200k (couple).

    Seems pointless to me. This is not going to change anyones mind about whether to reno or not - any one in this position would have to already have their ducks lined up, and this is just a bonus. Yet more pork barrelling of the "haves", and not really going to contribute to stimulating the economy.

    Cheers,
    Inertia.
     
  4. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    2,699
    Location:
    Sydney
    I have been holding off for years with getting a new Driveway, Bathroom & Ensuite reno
    Saw this and thought I'd progress it, we earn well under the singles limit (as a family), but the min spend of $150k means we won't be progressing anything......
    Fine for people who already have money and are doing new builds, knock down rebuilds or major extensions !
    I wonder if Opal or Mascot tower owners can apply :p
     
    Pingu1988, Toon, Rugrat and 2 others like this.
  5. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,107
    Location:
    Newcastle, NSW
    It is a joke. No one who has been holding off, or changed their mind due to economic circumstances is all of a sudden going to flip and go ahead with it. At best, it MAY, decelerate the slow down...

    limited to:
    - builds/renos between $150k - $750k
    - single income of $125k, dual income of $200k
    - property valued under $1.5m after the work
    - nothing outside the house (garage, pool, landscaping maybe?)
     
    gman65 likes this.
  6. Tattler

    Tattler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    908
    Location:
    Sydney
    I think it is meant for people who are already planning for large reno, who put it off due to COVID to go ahead with the reno. If it is smaller amount reno there will be so many renos going on tradies will never have time to do it all within the time allocated, and tradies will become very expensive.

    Shame though as I was hoping to do some reno but I am not qualified on both counts.
     
    Joynz, FatElephant and Curious2019 like this.
  7. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    4,468
    Location:
    Melbourne
    It’s not designed to support home owners it’s designed to help builders and their trades.

    The max value of a build is $750k so it is definitely pitched at lower and middle income earners.
     
  8. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    4,468
    Location:
    Melbourne
    Yes people will go ahead with builds because of this - just this morning my work colleague started to get their new build moving. They have the permit but didn’t want to risk signing the contract.
     
  9. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,107
    Location:
    Newcastle, NSW
    Not pitched at low income (or are you being sydney-centric?)

    Yet more middle-class welfare. My taxes dollars going to people that don't need it.
     
    duinnsleibhe and MTR like this.
  10. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,107
    Location:
    Newcastle, NSW
    What risk?

    Are you suggesting they weren't going to sign within the next 6 months or so anyway, but they could have? This is just a bonus then, they didn't need it.

    It is going to be interesting to see Sydney people getting fake valuations to stay under 1.5m after spending $150k+

    Cheers,
    Inertia.
     
  11. MTR

    MTR Material Girl Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    21,997
    Location:
    My World
  12. inertia

    inertia Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    1,107
    Location:
    Newcastle, NSW
    It is weird. They are putting a means test on which is not super high, particularly if you are including Sydney, but the minimum spend is $150k, which is not insignificant, even for a couple bringing in up to $200k.

    Seems to be targeted at new builds out side of Sydney... hang on a second, let's just check the marginal seats with land released... Hmmm, certainly the marginal electorates near me that are held by Labor have some new subdivisions that may need a bit of a prod... Pork barrelling anyone?

    Cheers,
    Inertia
     
    MTR likes this.
  13. Rugrat

    Rugrat Well-Known Member

    Joined:
    16th Jul, 2015
    Posts:
    314
    Location:
    Australia
    It also cann't be used for investment properties. Only owner-occupied properties.

    My ppor doesn't need any work at all. One of my IP's I just completed a 20k reno. Another IP needs a full bathroom reno at some stage, but I'm putting it off for as long as I can. I might have broght that reno forward (and added a deck and pergola and a few other value add things), except for the rediculous 150k minimum spend and the fact that IP's aren't eligible.

    Honestly, this grant is nothing more then an election farce. Scomo is trying to build his popularity base by throwing money around, but then limiting things so most people have no chance of actually benefiting anyway.

    If he actually wanted to do good for the community, he would have taken that money and funneled it towards more public housing being built. That way it benefits the building industry and helps with the low income housing and unafforability issues the government likes to bleat on about and blame private investors for.
     
    Pingu1988 and inertia like this.
  14. random

    random Well-Known Member

    Joined:
    1st May, 2016
    Posts:
    997
    Location:
    vic
    Yeah middle class alright . 150k renos l don't know any everyday people that spend near that much, and they'd have to be pretty comfortable already to spend that much anyway.
    What about all the diy 5 ,10 , 20-30k renos , imagine how much those also trickle into supplies and tradies and all kinds of things.
    Seems pretty useless to me .
    Not to mention couples on 150 - 200k a yr , like they'd even need it.
     
    duinnsleibhe and Stoffo like this.
  15. The Prestige

    The Prestige Well-Known Member

    Joined:
    18th Jul, 2018
    Posts:
    117
    Location:
    Newcastle
    Would be good if you could do a granny flat. They typically range from 150 to 200.
     
    New Town likes this.
  16. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    4,468
    Location:
    Melbourne
    It’s for the builders and workers and the people most likely to affect their business (people who had projects in the pipeline but delayed them...).
     
  17. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    4,468
    Location:
    Melbourne
    I think you may not have a good idea of how much a small reno costs!

    It’s not aimed at DIYers. That wouldn’t help builders and their subcontractors at all!
     
  18. Poppy

    Poppy Well-Known Member

    Joined:
    7th Jul, 2017
    Posts:
    124
    Location:
    Sydney
    I don’t know any tradies who need work or more work

    All tradies I know also don’t get out of bed for under $1000, none in my area quite on a job under $10k, all send kids private school and spend winter at whistler and go OS often and drive around in Porsche Cayennes

    Tired of male jobs being the ones that matter
     
    Pingu1988 and inertia like this.
  19. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    4,468
    Location:
    Melbourne
    I think you might not know a broad range of tradies then.
     
    bmc likes this.
  20. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    2,699
    Location:
    Sydney
    It could have been pro rated for projects $30-150k
    Though that would have meant many more applications and more paperwork/projects to oversee.
    They may as well of done nothing, by the time any of this is of any benefit things will be rolling along nicely already !