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But the new $25,000 grants is on top of existing State and Territory First Home Owner Grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.
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The news article aren't very clear, I would try to speak to your broker or bank and ask about the process.
Would seem that it would be completed through them, just like the first home owners grant.
I"m not sure if I read this right but seems you have to build or renovate a new house for that grant?
If article is right then I don't think you are eligible
The cash splash will be offered for any contracts entered into between 4 June 2020 and 31 December 2020.
I presume you already signed contract if your house is at last stage
We just signed our build contract last week. So sad. If we had the three together, FHOB, FHLDS and this Homebuilder Scheme, ohhhhh that will be perfect..
Hardluck, but on the other note you don't know builders might have increased the prices:) you might have got a good deal as you bought in slow market
Can you cancel the contract and then sign again today? no doubt there would be legal costs associated but im sure they would be less than $25k.
Can this be done ?
Not cancelling by yourself but requesting the seller to cancel and give a new contract?
No idea whatsoever. We are in a similar situation and Ill be calling our solicitor when they open to find out.
@hodgeyhodgey: Solicitor said that contracts change all the time if someone dies or divorce etc. We would have to get agreement from both parties but the contract can be changed, she just had to look into how exactly to do it.
@chillybags: That makes sense. I just read on the treasury doc that construction has to commence within 3mths of contract date so you'd have to be sitting on already titled land
@hodgeyhodgey: What is titled land? We actually almost near completion of construction. Once the plan of subdivision is completed and the occupancy certificate is received (within the next 2 weeks) then we have 3 weeks till settlement. Also note, we are purchasing a house and land package.
Just ask them to re-write the contract. Its definitely do-able and they dont have anything to lose beside the fact that there's another cooling off period during which you might back away. Good luck!
Edit: I am currently in the same boat and my contractor has agreed to this.
Would this be the case even if the finance has been approved?
I am a first time buyer and still dont have enough knowledge about contracts and the possibilities that can be actioned.
thanks man
Yeah as long as you and the contractor reach an agreement, it doesnt matter. It'll however mean that you'll have to go through the finance process again and that obviously might take a couple more weeks.
What builder are you through - a small one or one of the big volume builders? How long ago was your original contract signed?
AHB. But its a house and land package, and the contract was signed 4 weeks ago.
@livealittle7: Thanks mate. I think it's all a little too sneaky for us to be comfortable with, especially because our contract was signed months ago.
@hodgeyhodgey: yeah but as long as the building process hasn't started, its definitely worth asking them about it. Good luck!
Its a small builder and the original contract was signed 4 weeks ago.
If the seller agrees will this work?
I emailed my solicitor and was advised its only for renovation which is odd.
May be they didnt like my question. But in my case construction already started and is almost gonna be finished with few weeks i think.
Just want to maximise the deposit amount if its possible.
Same boat here. Contract signed but land not titled. going to have them redo the contract when land is titled. no actual work has started so no reason it can't be re-done.
This is the position we're in. Contract signed, land still to title. Assuming you can just have the contract redone it just feel dodgey to me. Clearly you can just look at bank records and show 'oh you paid your building deposit months ago, why is the contract dated more recently'.
We won't be changing anything, it'd weigh on my conscience rorting a stimulus payment in that way.
@hodgeyhodgey: Good call- i ended up doing the same. The application form for tas has released today. note the following:
We would've breached this by cancelling and re-signing.
@Balmaino: Ah good to know. I figured they would add a qualifier like that, similar to trying to stop people fudging the super withdrawal to then turn around and deposit it again.
I got told by my solicitor that "it is illegal to cancel a valid contract and then re-exchange it for monetary gain". She checked it with another solicitor who has 40 years experience in the industry. Seems like I'm out of luck unfortunately.
Aren't you cancelling because you don't like the font though? Maybe you forgot to add a clause defining the foreign exchange rates for any parts of the labour performed offshore?
if the payments are not released by bank then you can try to change the building contract date.
one of my client is resigning the contract with me again with variations.
do you mean when the bank sends the big letter with lots of pages? I just got a thick package from bank yeterday..
no, when they actually release the payments. At what stage of build are you currently on? have you got developer approval done?
@Fmfame: I think I am not eligible for the 25000 according to all these comments.
Please clarify for me so that I wont regret later.
We are buying a newly constructed house which is still in construction. We didnt buy the land separately and then started construction from a developer. The house is definitely eligible for first home buyer grant though.
No sorry
Only if you signed the contract after 4th of June
Another cash injection to real estate market.
Welcome to the fk!ngTradieland
All the tradies in their turbo charged 4x4s and utes on the road.
This grant is actually for the tradies to upgrade their current Hiluxes and Rangers to F150s, Rams and Silverados.
AutoCraze is gearing up for a busy winter
The construction industry is one of the largest sectors in the country and brings in several different revenue streams for the government.
Very strange policy, does not make much economical sense.
Looks to create demand for a falling market, sometimes you need a downturn in order to have a better recovery.
I dont know why they are taking such drastic measures with out even assessing the impact properly. If everything opens up then we know actual impact
Feels like all Covid related incentives are just using jobkeeper as a template …. No matter how fault it is…
Job keeper is one of the biggest screwup , they have removed income test rule so people with thousands of dollars in their accounts got paid 1200$ a fortnight. It would have been good aimed at people who are struggling longer than shortterm with this broad criteria of eligibility
@BK12: $1500 is JobKepper. You are probably talking about JobSeeker. There is no assets test for Job Keeper.
Any small effect on construction for new homes will increase supply and have a downwards effect on residential property pricing
So Scotty isn’t paying for my pergola =\
He will only pay 25k but you need to pay the other 125k
That's one hell of a pergola. Maybe build one over the entire house.
or my pool :/
A good tax is a tax I don't have to pay.
A bad subsidy is one I don't get.
This is a bad subsidy.
Damn Scomo and his pandering to the UTE driving tradies. Like real estate isnt inflated enuf, they won't even allow for a proper correction.
I'd be happy for real estate to stay static and let wages catch up or people to breath a little before jumping in.
I will be surprised if many people are going to throw $125k into their property to do renovations and over capitalise their property.
The construction industry is one of the largest sectors in the country and brings in several different revenue streams for the government.
If property fails, then our banks fail. If our banks fail the ASX fails (banks are all in top 10). If ASX fails then our pension system (super) fails.
It's going to fail at some point. We have one of the highest private debt ratios in the world. There are a lot of bad debts out there at the moment. Once mortgage holidays and jobkeeper end there's going to be one heck of a shock. The government can't do there usual cover up at the moment propping up the property market by importing labour/capital/people due to Covid.
This is why we need a future thinking government so badly. Start to disassemble the bubbles with gradual policy. Diversify.
@abuch47: Absolutely agree. But at the moment we have a government that is interested in policies that can get power and maintain it, short-termism. They have no interest in deflating the bubbles, slowly or otherwise, they just don't want to be holding it when it bursts.
If I sign up for an off the plan apartment and get the builder to do renovation inside the apt, can I use this money?
Drop another 150k Reno into a off plan new apartment ? Makes sense to me…
Better keep the 150k after 7 years warranty if out tho. You will need it for the repairs.
So of these new building won't last 5yrs.
Can this grant applicable to my situation?
We have bought my first home on 1 april 2019 and settled in May 2019 in $ 535000. Me and my wife living in the home since. As per nswlrs land value for the property is $417,000 on 01/07/2019.
We are thinking of Knockdown and Rebuild.
If you knockdown and rebuild then i think you would be able to claim it
Isnt that just one hell of a renovation?
yes you are eligible if you do so.
The problem is your Knockdown and Rebuild will now probably be quoted as $25K higher than previously.
There is no way a knock down and rebuild would cost any less than $250k. In theory saving of 10%. Then with the inflation of prices probably only 5% saving.
I'd wait and see. If this policy falls flat there might be a bargain.
To be frank this is a stupid program and it is something i would expect a ALP government to do or Greens party to suggest
All that is going to happen is builders are going to Jack up prices and speed though jobs doing dodgy work
NSW has the right idea regarding getting rid of stamp duty because it doesnt put the money into anyone's hands
Our federal government has done good with COVID19 but Jobkeeper, Jobmaker, changes to tenancy agreements commercial/residential and Homebuilder are all junk polices
This money that is ultimately going to make rich bankers and builders more wealthy should be used to invest in research, development and innovation to create jobs in fields like - medicine, renewable energy, the arts, sport, tourism etc
Really stupid give away free money,short-term thinking, their goal posts are always winning next election. But they are causing irreparable damage to coming generations
i would expect a ALP government to do or Greens party to suggest
par for the LNP course
medicine, renewable energy, the arts, sport, tourism
something I would expect the ALP or Greens party
You kidding? This is exactly the sort of stimulus policy the current LNP rabble would promote. Poorly targeted, ineffective and with money going to people that need it the least. Both the ALP and Greens are critical of it. You want money to flow to those industries you mention in your last paragraph then I suggest you actually research Greens and Labor policy. They've got actual policies in all those sectors whereas the LNP are really only interested in propping up the FIRE sectors.
So curious to know which part of Australia where builders/ tradies are doing it tough. I would think that bushfire effected areas (Vic/ NSW / QLD regional) there would be work keeping them busy. In Sydney they wont even return phone calls.
Tradies aren't doing it tough. However you can't ask them, because they don't ring you back.
Tradies are doing it tough because they can't find a mattress big enough to stuff all the cash in. Neither can they find a big enough pick up truck to stuff cash in.
I don't understand how tradies seem to think they are entitled to financially rob you.
declare revenge. Too many utes and 4x4 already clogging up the traffic already.
@[Deactivated]: No need for revenge. How many builders in the 90s thought real estate was so good they are going to buy in and flip it themselves, a lot when bust then and a lot will also go bust now.
Same things with every real estate crash: real estate agents starting to believe in their own marketing and buy a few units for themselves to flip and end up getting caught out.
Whenever you see an expensive car drive past, only 5% of the time it is paid with real cash.
Surely the 150k requirement for a reno is a mistake in the article. I can't find any other source stating that requirement. If so, the scheme is stupid as all hell.
Who the hell will have 150k sitting around for a reno yet earn under 125/200k a year?
Those that have access to those sort of funds or can borrow those sort of funds shouldn't be getting a subsidy.
https://treasury.gov.au/sites/default/files/2020-06/Fact_she…
Yep the 150k threshold is legit.
Stupid, stupid scheme.
The rich helping their rich mates yet again.
Who the hell will have 150k sitting around for a reno yet earn under 125/200k a year?
Those rich enough to get good accountants to mess with their numbers.
This hardly helps the rich, any couple earning over 200k is excluded. Those likely to afford a reno of this size would also likely have a combined income over 200k.
Although I am not sure the construction industry actually needs any stimulus it has to be one of the most subsidised industries, with continual stimulus and subsidies to protect the trade jobs where t he prices being charged seem to increase above CPI continuously whilst every other industry stagnates. Perhaps if prices were readjusted then more people could afford to do renos, or build.
Im curious why tourism operators, airline staff, small businesses universities are all laying waste and the government has a brain fart about keeping tradies in work. Surely 10k discount on a course or degree would have been a better spend (being payed out in 3 years when student graduates).
2020 must be the year some asshat decided that tradies are the engine of the au economy.
That or the property lobby has someones nut sack locked in a vice.
I got a leaflet from our local member encouraging withdrawing my super so that my landlords and bank still get their money. What an effing joke.
I'm far from a fan of any of these handouts and subsidies but let me try and provide an alternate perspective to yours.
Surely 10k discount on a course or degree
This creates more skilled workers but doesn't create any more jobs. Increase in skilled workers alone does nothing for the economy.
2020 must be the year some asshat decided that tradies are the engine of the au economy.
Actually, Australia has always been a golden country for tradies. Tradies in Australia enjoy some of the greatest protection in the world.
That or the property lobby has someones nut sack locked in a vice.
This grant does very little for property price. This has everything to do with the trades, more specifically the builders. All the other trades cannot access the grant without going through a builder.
Builders have just been declared the gatekeeper of tax payer's funds.
This person wants that 25k but thinks tenants are scum, wait and see.
Thanks for the perspective.
This scheme doesn't create new jobs at all.
Its like a half assed job-keeper for 6 months for tradies who probably spend half their time on centrelink and the other half on workers compo.
Sure theres one or two good tradies floating around… actually you show me a good tradie and I'll introduce you to an honest cop.
Golden country for tradies?! Goes to show you can't keep polishing turds and passing it off as "skilled" labour.
2020 must be the year some asshat decided that tradies are the engine of the au economy.
The government has always realised tradies are cheap to buy off. People who have been through higher education of any sort (even if you did a mickey mouse degree you would have done some reading to figure out how contracts work) you need a bit of convincing because they think.
Tradies: you just need to dangle opportunity for a ute / pick up vehicle and some cash in hand so they can buy some hi vis and you're got a vote.
Why do you think construction is so unionised?
It is all about leverage. You don't see a rocket scientist union. Developers are $150k - $250k, SAP functional developers I have seen on $350k. They don't need a union.
Surely even if you wanted to protect trade type jobs you would bring infrastructure spending forward. Do something good for the entire community not for a select few individuals and then make the rest of us pay for it.
hello,
This 25k grant for renovations includes material costs?
Say I was to choose a kitchen from Ikea, do we pay for the cabinets etc?
Thanks guys
I just read it and it is means tested.
F U ScoMo.
what does 'means tested' mean?
You are eligible for the grant if you and your partner earn < $200k or < $125k if you are single.
"Say I was to choose a kitchen from Ikea, do we pay for the cabinets etc?"
Are they part of a $150k reno?
.
Only if you choose it and get the builder to buy it for you THEN pay an inflated service charge.
Now the $150k renos will cost $175k.
To qualify, it has to be jobs quoted after the announcement. Ie. Only jobs that have factored in the extra $25k need apply.
No, its if contracts are signed before the end of the year, quote date is irrelevant.
Hmmm I read something that the contract has to be dated after the announcement until end of year.
I could be wrong. The more I read, the stupider the incentive is anyway.
Has to be a licensed builder. I can't just get my own team of licensed tradies in, I have to pay someone to do that now, so perhaps it will cost even more than $25k.
No deal for me.
Hmmm I read something that the contract has to be dated after the announcement until end of year.
You would be right.
Only time when government makes legislation retrospective is if they want you to pay more tax. Like making it they can open your tax returns up to 7 years for investigation while they only allow you to amend up to 2 years of tax returns etc.
@[Deactivated]: Thats right, if the contract is signed after the announcement and before the end of the year then yorue eligible. If you got a quote before the announcement then I would be taking that builder up on their offer now and getting a contract signed :)
We need to add an extra bedroom on to our house and it comes in just shy of $150k. But we need our kitchen redone so once we add that on the $25k pretty much pays for the new kitchen.
@klonky: You cannot just engage a kitchen/cabinet maker, it has to be through a builder.
So that kitchen would be $50k. :(
@[Deactivated]: We have already had an allowance added to our quotes for the kitchen by the builder, so we should be fine.
Builders will be building sheds in the middle of no where for $150k and pocketing the $25k. Sheds for no where. I can see that coming.
I think so, as long as construction hasn’t began it should be fine.