Government $40-50k stimulus rebate on new builds

Buyers of newly constructed homes – whether home owners or first home buyers –
will be offered grants of at least $20,000 to help shield the building industry from
the coronavirus-induced economic slowdown.
The federal government is poised to announce the scheme this week, sources said.

Both existing home owners and first home buyers will be eligible for the program, which will focus on
boosting demand for new homes.

The objective will be to help "fill a gap" expected to open up in new housing
construction in the second half of this year after the existing pipeline of projects
slows down.

Lobby group Master Builders Australia has proposed a new home grant of $40,000
to ensure up to 130,000 homes are built in the 2021 financial year.
The dollar value of the government grant is understood to be at least $20,000, and
between that figure and the larger amount the industry is lobbying for.

Both existing home owners and first home buyers will be eligible for the program,
which will focus on boosting demand for new homes. The program, expected to be
uncapped, is likely to run from July.

Treasurer Josh Frydenberg and Housing Minister Michael Sukkar have been
working on the policy and are expected to announce the rescue package this week

We are hoping that will happen too, it will give us the extra to get what we want during the build, as some items are hard or impossible to add after handover!
https://www.afr.com/policy/economy/new-home-buyers-to-get-cash-grants-20200531-p54y3g

Should know later this week?

Exactly! It’s a direct tax payer (i.e. us) subsidy to the builder selected by the homebuyer. Do not expect the same house to be much cheaper unless the government audits builders' pricing behaviours. They will just 'pad up' the final price by the subsidy. Same as they do for their current '$50K bonus inclusions' etc promotions. Operating profit margins for builders are already very slim. Smoke and Mirrors!

Tax payers will benefit from this subsidy if building industry workers remain employed, flowing cash from their wages and invoice payments back into the broader economy to keep other businesses afloat. The construction sector is Australia's biggest employer, after healthcare and community services.

I presume no one will be signing a contract until after 1 July?

Are you seeing a lawyer for building construction contract with a builder?

https://www.news.com.au/national/politi ... 7e56fd1e2f

$25K

Ive only accepted my initial tender at the moment but i haven't signed any contracts as yet (i'll be doing that post 1st July as i still need to wait for my plan drawings etc and also so it falls into the 2021 financial year)

Lets see what more information they come out this this week.

We signed initial tinder and the plans are already drawn. Builder wants us to sign the contract ASAP so that we can move to the next phase “selections”. Should I delay signing or and that may delay Everything

Lets assume that from a $40k stimulus the builder simply pockets $20k by inflating the contract price. This leaves a genuine discount or 'grant' of the remaining $20k to the homebuyer. On this basis, do we think a $20k discount is enough to stimulate any over and above construction activity in the current environment? Builders are currently offering $50k 'upgrade' packages etc. now!

Has anyone considered the decision making and purchasing behaviours of new or upgrade home buyers or investors? What about banks providing mortgages? Would the $20k just go into to the few people who would have built anyway? Into better imported tiles, light fittings, carpets, appliances etc? Into the pockets of rich people, or those not concerned about losing their jobs like public servants? What happens to new, already built apartments?

I read the MBA / EY stimulus proposal and saw them on 'The Drum' last night. They provided no insights into their builder members' or home buyer behaviours as a basis for their assumption of an additional 14,000 builds. I suggest our government should consider this carefully before granting our money or future debt obligations to anyone. Our PM is an ex marketing manager and should understand this!

Here is the MBA's proposal:https://www.mbansw.asn.au/sites/default/files/rebuilding-australia-volume-4.pdf what do others think?

The residential volume builder industry is the most inefficient, corrupt, and sloppy industry in Australia, supporting many inept tradies who consider it normal to deliver poor quality as well as builders who treat home buyers with contempt. It’s been protected and allowed to atrophy by governments for many years due to the MBA and HIA’s lobbying power and government inaction. Any grants to support the industry should be considered very carefully for what side effects they will have, and against alternative uses of our money from other industry lobbyists to stimulate the economy. If builders are to receive any stimulus money, a condition should be for them to lift their game.