Browse Forums General Discussion Re: Government $40-50k stimulus rebate on new builds 18Jun 03, 2020 7:55 am 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? Re: Government $40-50k stimulus rebate on new builds 19Jun 03, 2020 11:39 am I remember some of discussing on a different thread about how the slowdown would flush out the inept tradies, but with this stimulus I fear it would be the otherway round with some builders trying to make more playing on the consumer's grants. Either-way, any grant now is a future debt for the taxpayers. Re: Government $40-50k stimulus rebate on new builds 20Jun 03, 2020 12:20 pm 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.
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