Bonus $25,000 Federal Grant - Can Be Stacked with State/Territory First Home Owners Grant

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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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Comments

  • +28

    But if you are renovating then you have to spend $150,000.00 or more. That's a massive pimp out of the joint to be entitled to the $25k.

    • nah!.. thts reno is another componant…

    • I can't find the information you are referring to Mr Chow

      • +14

        The Reno needs to cost between $150k and $750k to qualify.

        Clearly this "stimulus" will have a very limited market: mum & dad investors who are buying properties with a view to renovating and selling on later.

        • +19

          And there’s a wide variety of things that can’t be applied. Swimming pools, spas, tennis courts. AND the income has to be under $200k for a couple. And it cannot be for an investment property.

          • @voteoften: cannot be unattached from the house. I guess if you first build a sun room then so happens to decide to put a pool in the ground without putting it on the invoice will pass.

        • +21

          Wow, the LNP aiming a stimulus for the much, much richer people of Australia? Nuh uh, that couldn't be possibly true.

          • +2

            @ThithLord: No the stimulus is basically aimed at nobody (or at least a very very narrow group). you have to be poor enough to qualify yet be spending a large enough sum on renos to qualify. It certainly won't be the rich getting much of this, unless you mean rich construction companies.

            • +1

              @gromit: Nice little distraction from the looming recession we've been in for a yr or so

              • +1

                @ThithLord: that is all this package is really. A distraction to look like they are doing something, by making the requirements so narrow that very few qualify I have serious doubts they will get anywhere near enough takers to even reach the relatively small budget they have allocated to this.

            • @gromit: It's a small segment, but note "poor enough" just requires that a wealthy couple reduce their taxable income below $200k. Hard to do if you're well paid employees, easier to do if you're a business owner, and retirees have close to zero "taxable" income regardless of how much they actually have.

              The target demographic is wealthy tax dodgers, unfortunately a much larger group than it should be.

              • @ely: Harder to go back in time and do it for the prior financial year though.

                • @greennick: Nah, if they were tax dodging last year they're all good. And if they were capable of tax dodging last year, then why wouldn't they have been?

    • +20

      I was reading about this and think this pretty much makes the $25k renno thing mute, and doesn't help the trade industry as much as they would want to.

      Firstly which low-middle income earners would have $150k to drop on renovations in this climate? It would also probably be an extension to the house for it to cost that amount.

      Secondly with it being means tested makes it even more impossible for people in that bracket to have $150k ear marked for that kind of rennovation.

      • +1

        $150k (minus $25k) would be from lending (at historically low interest rates) not cash in most people's financial circumstances, especially with the means-testing on income.

        Agree, probably limited to major renovations like extensions or rebuilds. The forecast federal costings are only $688m, from ~27k applicant, which is a very small stimulus. No surprise given the number of limitations (or safeguards) applied here, like the means-testing on income, owner-occupiers only, property value <$1.5m

        I was considering going forward with a second-story extension on my principal residence, but the means-testing rules me out. Oh well, not for me. I'll put the cash into established homes.

        • The point Squaredonut was making is that, who's keen on taking a new loan in this climate. I saw a graph that shows that saving rates (not interest rates on savings) are increasing. This is a clear signal that people are uncertain of their financial future.
          The second point, what bank will borrow you another $150K + on top of your mortgage, given that the situation is likely to worsen in the near future.
          Third point, who warranties that renovating will have a significant impact on the short term value of your property if the downturn scenario is conirmed.
          I believe that this policy is just to say, "we are doing something"…

      • +14

        Firstly which low-middle income earners would have $150k to drop on renovations in this climate? It would also probably be an extension to the house for it to cost that amount.

        Obviously those who massage their numbers and make a lot of money cash in hand. Sounds like tradies doing home renovations for each other and getting a subsidy.

      • +3

        mute? do you mean moot?

    • I think its just another home owners grant disguised to seem like they're considerate of a wider range of people. I bet people claiming the home builder grant will be 95% people buying home (including first home owners who'll benefit from it most)

      • +3

        First home owners benefit very little, as proven by the fact that the FHG only jacked up prices by the $10,000 they provided. Helps no one except the person selling the house.

  • +23

    One for the forums…. Not a deal as such.

  • +22

    your annual income has to be lower than $125,000 but with more than $150,000 of your own money.

    • +24

      So, you have to be POOR, but RICH! Yet again, another subsidy ripe for abuse by those that actually need it least.

      • +2

        So, you have to be POOR, but RICH!

        So tradies and ozbargainers? 😂

        • +3

          tradies

          lol

          no for people hiding their income streams (low TAXABLE income)

      • +2

        Or Rich + negatively geared.

        • +1

          I seriously doubt someone that is negatively geared enough to bring their income into line would be considering splashing 150k+ on renos in an uncertain or declining market. I do know someone that actually fits that category and he is currently cancelling a lot of expenditure and pulling out of some long term investments in case he needs to find money fast, last thing he would consider at this point is renos.

      • I suppose if someone is the son/daughter of a politician or other heavily overpaid government employee, and doesn't need to work or works very little, they have an income below 125k.
        With mum/dad's backing, they can easily get a loan for whatever amount… in this scenario, ~27k applicants seems realistic to me…

    • +2

      You can take a loan. That's the scheme. It's another way that the liberal government is propping up the housing market and the banks.

    • Well yes and no. You don’t need 150k funds available. Usually obtained through a loan.

    • -1

      Isn't it more like "at least $125k of your own money"? The reno or build cost has to be $150k which could include the $25k handout.

  • +13

    Hmm, from "Party of the free market". Too much of a subsidy that will be less about jobs and more about keeping prices inflated.

    • I can't see a clear mechanism by which this small stimulus might have an upwards effect on residential property pricing. One thing I thought of was that any increase in new home construction would increase (or maintain) supply and would have a downwards effect on pricing

  • +31

    I wonder how this one will be rorted.
    Cousins of builders will surely scheme something.

    • Builder can't be family. I'm sure there's ways to get around it though.

      • +7

        It's a good thing no builder has any mates who are also builders.

  • +1

    hard to find a land + new house under $750k unless you are far out from the city

    • +18

      Or living anywhere except Sydney Melbourne and Brisbane

    • +3

      Yeah, for the growth-corridor suburbs this one. Perhaps another good incentive for first-time buyers entering the market, along with the grant and stamp duty exemption/reduction, they might be the biggest winners here. Not a bad subset of buyers to be assisting :)

    • Not necessary, I signed up 12 new build contracts in Melbourne last quarter and the average House & Land price was around $580k for 4 bedroom upgraded house.

      • What are your recommended suburbs for land size around 400 to 500sm. doesn't have to be metro.

        • My clients made good ROI especially in Truganina, Rockbank.
          If you could tell me your budget, then i can recommend you something.
          Just keep in mind to never buy land directly from the developer.

          • @Fmfame: Why is that?

            • @oO0Dam0Oo: Developer always sell lands at more than market value. Few of my clients are facing shortfall at the time of valuation from banks. Like one land i bought for my client for $180k in Woodlea and the same was listed in their price list for $225k.

      • In what suburbs?

        • in west suburbs. but if you can stretch a little then you can also get in North.

  • +5

    Meh. Was expecting $40,000. Not a deal!

  • it's not hard to build a house in Tassie under 705k though.

    • +1

      It's also easy to get a modern 3 bedroom house close to the city and all the other essentials under $400k ;) Ones that would sell for 1mil + in other places.

      • Not Hobart.

        • Still easy in Hobart if you lower your standards. Besides no one lives in the city.

    • -1

      No, the hard part is finding someone who wants to live there..

  • +54

    further sinking into real estate hole, our Aussie pollies need stop being lazy (or corrupted), time to invest into our real future with sustainable plans.

    • -13

      How much more real can it get than investing in something you (or someone else) is going to live in? Roof over your head is as real as it gets

    • +26

      Not sure why they inflating already inflated bubble , this money would go straight into rich builders pockets with inflated upgrades on those homes

      • -3

        Looks like the scheme provides funds to the home owner undertaking a construction project. Builders might be able to maintain or limit the losses on their forward contracts, but won't see any of the federal funding.

    • +12

      Dont forget politicians have their own houses and holiday houses that need to keep up their value - it would be devastating if their bubble they created burst

      • A forecast $688m stimulus is very small, and only applying to owner-occupiers, I don't see much of an assistance for slowing the prospective drop in residential property prices. Forward contracts for construction might be helped, which will help small businesses and employees in that industry.

        • Lots of headlines for $25k that is so hard to qualify it isn't funny.

        • The expectation is that new homes will factor in this $25,000 as happened with other grants. Wonder if these increased prices will linger after the scheme ends.

    • Considering the other key social/industrial groups addicted to foreign or unsustainable income streams it ain't just the pollies. Uni's and cashed up international students, seafood and beef farmers with inflated international prices. Like councils addicted to parking fines.
      What a joke.

  • +2

    I was expecting this figure would be at the same level as a Ford Ranger.

    Imagine all those tradies… spewing.

    • I was expecting this figure would be at the same level as a Ford Ranger.

      But it is. I can see tradies doing renovation jobs for each other and invoicing each other. The next week $25k down on a Ranger and rest through finance.

  • Because why wouldn't you incentive's people to keep buying houses as we go into a recession?!?!

    • +15

      because the main reason for this scheme is not just to keep jobs for tradies, but also enriching the rich’s assets.
      tradies might keep their jobs … for a while until real estate moguls (profanity) us all again with more assets for less costs because vast majority of us are paying taxes for these $25,000 subsidies which we and our next generations have to pay (plus interests on top)

      • A couple can only get the Reno welfare if their income is under $200k

        • +14

          I believe Jeff Bezo's income is under $200k.

          A lot of wealthy and cashed up people's is.

        • yeah but is that under 200k before or after deductions? big difference when every person earning 500k + seems to own a hobby farm in their partners name for "tax reasons"

      • With means-testing on income, and a limit to owner-occupiers of <750k for new builds and <1.5m for established, middle-to-higher income owners miss out here (no doubt, too, the moguls)

        • What about their millennial children?

  • +8

    pfft reno at 150k in this kind of climate with uncertainties. half arse policy if you ask me.

  • If I understand it correctly 750k cap is for construction only, land cost not included. Am I right???

    • +1

      What kind of house takes 750k to build?

      • Then why would renovation be capped at 750k?? What kind of renovations they are talking about?
        A two storey home would easily cost you 500k with big builders. With land so small and narrow people do need to build two storey homes.

      • Metricon + European appliances and marbles from Tehran/Morocco.

      • +5

        What kind of house takes 750k to build?

        If you watch Ozark you'd know.

    • -2

      yes it's for the construction or renovation, the land doesn't count.

      • Yeah, I think the article isn’t worded correctly, looks like they have got it mixed up with current QLD state govt incentive which is separate to this and is capped at 750k including land.

    • +3

      It says house worth which includes land

    • +2

      Including land. Quoted from another article…

      To qualify, people need to be intending to build a new home as a principal place of residence valued up to $750,000 including the land

      • It’s quite strange allowing people to renovate house upto $750k but constructing whole house capped at much lower amount considering most lands are over $350k. Doesn’t make sense to me.

        • I think they know there would be no way in hell someone would spend 750k on renovations on house worth less than 1.5m who would not earn less than 200k just for this grant

    • Building and Land

    • No, its for both House & Land.

  • +14

    This 'incentive' makes absolutely no sense, but not unexpected from this lot.

    • Dunno - was thinking about buying second hand now I might just go with a home and land package - especially with the builder offers that go with it.

      Can see the intention which is to get more houses built which creates jobs and doesn't over populate suburbs like apartments

    • because it is beneficial for them too with their exorbitant pays and subsidies (more investment properties for our Canberra rotten politicians)

    • Yeah, a $688m stimulus is too small to have much effect. It will buoy construction activity and jobs a little though

      • +3

        $688m

        Probably a made up number to appease our Chinese overlords. 8 is a good number in Chinese. I am surprise they didn't fudge it to 888

  • We have already signed a contract and house is in its last stage of finishing up. Finance has been approved. We are just applying for 15000 grant from the state. Can we apply for this too?