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HomeBuilder is a mahoosive success! (Read 930 times)
Captain Nemo
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HomeBuilder is a mahoosive success!
Nov 28th, 2020 at 10:24pm
 
This is good news  Cool


'Awesome, let’s jump on it': First home purchases on rise in Victoria


By Noel Towell, Elizabeth Redman and Chenturan Aran
November 28, 2020 — 3.16pm

The federal government’s HomeBuilder payment has pushed first home purchases in Victoria beyond pre-pandemic levels, as young buyers defy the recession and take advantage of the $25,000 incentive.

The stimulus measure, announced in August as part of the Commonwealth's effort to keep the economy moving through the COVID crisis, was criticised at first as a subsidy for wealthy home owners to renovate their properties.

But it is entry-level home purchasers, who can claim the payment for purchases worth up to $750,000, who have fuelled the large take-up of the scheme.

First Home Owner grant data from the State Revenue Office tells much of the story, with the payments going out the door in the past four months, even with Melbourne in its tough stage four lockdown, at a rate 13 per cent higher than the same time last year.

Figures from the federal government complete the picture, showing more than 6800 Victorians had applied for HomeBuilder with more than 5560 intending to use the money to build new homes.

When Gregory and Diandra Charalambous learnt they could combine HomeBuilder with state government grants and concessions to put nearly $50,000 into their $585,000 home and land package in Melbourne's south-east, the 20-something-couple did not need to be asked twice.

How building your first home stacks up

For example, if first home buyers pay

$700,000
for a new home, they will also pay

$24,713
in stamp duty, less 

-$25,000
for a HomeBuilder payment, less

-$10,000
for a First Home Buyers Grant, less

-$12,357
which is what 50% stamp duty discount is worth.

$47,357
is the total savings these three reductions make

Mr Charalambous said his first thought was: “Awesome, let’s jump on it.”

Within a few weeks of the announcement the couple had signed a contract to build on the Alira land development in Berwick.

“That $25,000 really pushed us over the line; we probably weren’t looking to buy until mid-year next year, even if COVID didn’t happen,” Mr Charalambous said.

Even better deals are now available after the state government announced in its budget this week that people buying homes worth up to $1 million would get stamp duty waivers of 25 per cent, with 50 per cent discounts on new builds.

Industry figures lay the credit for the surprising recent strength of the new home sector with HomeBuilder, which they say has acted as a "performance enhancing drug".

House builder Simon Spiteri, director of G.J. Gardner Melbourne North West, said he was getting a lot of interest in new homes in recent months and during lockdown, with purchasers keen to get contracts signed before HomeBuilder expires at the end of December.

“There’s more inquiry now, because of the low interest rates, first home buyer grant, than there was last year,” Mr Spiteri said.

“People that have been in lockdown, they haven’t got any room because everyone in the family is working from home now. So they see the space and they say to themselves, ‘We need to look at a bigger place and a bigger study.’"

Glenn Cooper, Victorian-based executive with building giant Metricon, said he too had seen many first home buyers trying to take advantage of both state and federal grants.

“The HomeBuilder grant has stimulated a lot of inquiry,” Mr Cooper said. “That $25,000 on top of the First Home Owner Grant has really stimulated some interest.

“There’s been some other benefits with interest rates being at an all-time low and people, if they’re fortunate enough to keep their jobs at this time, have saved … they haven’t been out and about and spending disposable income.”

Federal Housing Minister Michael Sukkar told The Age that the popularity of HomeBuilder among new home purchasers was not unexpected.

“HomeBuilder is achieving exactly what we wanted it to do. It is igniting the construction industry and helping to protect jobs right across the sector," he said.

The minister’s office said a push to continue offering the payment into 2021 was still being considered.

https://www.theage.com.au/national/victoria/awesome-let-s-jump-on-it-first-home-...
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Re: HomeBuilder is a mahoosive success!
Reply #1 - Nov 29th, 2020 at 8:25am
 
I wonder where that same couple will be in 40-odd years.

Having paid off their half million dollar loan, will they then need to reverse-mortgage their home to make ends meet in retirement (another policy position being considered by the LNP)?

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Re: HomeBuilder is a mahoosive success!
Reply #2 - Nov 29th, 2020 at 9:00am
 
That's setting the bar pretty low for a measure of success - offer people handouts, and congratulate yourself when they take them.
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Re: HomeBuilder is a mahoosive success!
Reply #3 - Nov 29th, 2020 at 9:43am
 

They're not handouts to first home buyers of course. They're just billed that way so Governments can pretend that they're not pulling the same old "socialism for the business sector and ravenous capitalism for everyone else" stunt. The grant should be available to buy established residences as well as new buildings (making it a benefit for 1st home buyers instead of what it really is; a benefit for builders, who will often jack up the price to ensure they can hog the grant for themselves.
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Re: HomeBuilder is a mahoosive success!
Reply #4 - Nov 29th, 2020 at 9:48am
 
Every time there are housing grants the price of housing seems to go up in about the same proportion.
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Re: HomeBuilder is a mahoosive success!
Reply #5 - Nov 29th, 2020 at 12:34pm
 
Ajax wrote on Nov 29th, 2020 at 9:48am:
Every time there are housing grants the price of housing seems to go up in about the same proportion.


I think that the practice of increasing the price each time the Government introduces a first home owners grant is something that mainly builders & building companies do. Owners of established residences are much less inclined to do because they're not routinely buying and selling houses to make profit. They just want to get what they see as value for their home. That's why I believe first home owners grants would make housing much more accessible to first home owners if they only made the grant available for the purchase of established homes (and I think Govts know this but they dont want to do it because they only want socialism for business and not for us).

Now the advantage of this strategy is twofold; (1) it makes the grant available in cases where the seller is much less inclined to jack up the price so that he can greedily suck up the grant for himself and (2) it forces the builders of new homes to prices their homes more competitively against established homes.
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Re: HomeBuilder is a mahoosive success!
Reply #6 - Nov 29th, 2020 at 12:37pm
 
Jest wrote on Nov 29th, 2020 at 12:34pm:
Ajax wrote on Nov 29th, 2020 at 9:48am:
Every time there are housing grants the price of housing seems to go up in about the same proportion.


I think that the practice of increasing the price each time the Government introduces a first home owners grant is something that mainly builders & building companies do. Owners of established residences are much less inclined to do because they're not routinely buying and selling houses to make profit. They just want to get what they see as value for their home. That's why I believe first home owners grants would make housing much more accessible to first home owners if they only made the grant available for the purchase of established homes (and I think Govts know this but they dont want to do it because they only want socialism for business and not for us).

Now the advantage of this strategy is twofold; (1) it makes the grant available in cases where the seller is much less inclined to jack up the price so that he can greedily suck up the grant for himself and (2) it forces the builders of new homes to prices their homes more competitively against established homes.


I agree, you make some good points there.
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1. There has never been a more serious assault on our standard of living than Anthropogenic Global Warming..Ajax
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Re: HomeBuilder is a mahoosive success!
Reply #7 - Nov 29th, 2020 at 5:07pm
 
I don't know whats happening in Melbourne, but ever since covid struck, any property on the market in my area is sold within a week or two, on several occasions the for sale sign went up one day and the sold sticker the next ... realtors just can't keep up with demand.

Apparently a lot of 'Mexicans' want to move back to gods country to escape their 'lock downs'.
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Re: HomeBuilder is a mahoosive success!
Reply #8 - Nov 29th, 2020 at 5:09pm
 
Jest wrote on Nov 29th, 2020 at 12:34pm:
That's why I believe first home owners grants would make housing much more accessible to first home owners if they only made the grant available for the purchase of established homes (and I think Govts know this but they dont want to do it because they only want socialism for business and not for us).



But the whole POINT of the first home buyers grant was to increase demand for NEW buildings. We simply didn't have enough existing stock to meet demand. First home buyers grant was supposed to fix that by encouraging new builds.
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Re: HomeBuilder is a mahoosive success!
Reply #9 - Nov 30th, 2020 at 8:10am
 
John Smith wrote on Nov 29th, 2020 at 5:09pm:
Jest wrote on Nov 29th, 2020 at 12:34pm:
That's why I believe first home owners grants would make housing much more accessible to first home owners if they only made the grant available for the purchase of established homes (and I think Govts know this but they dont want to do it because they only want socialism for business and not for us).



But the whole POINT of the first home buyers grant was to increase demand for NEW buildings. We simply didn't have enough existing stock to meet demand. First home buyers grant was supposed to fix that by encouraging new builds.


That may be your point but its not my point . If you read my first post you will see that this is precisely what Govts do. They bill these programs as a first home buyers grant but that's a lie. Its money that usually gets purloined by the builder/building company for the builder/building company. And the Govt knows & intends this to happen knowing that its safe for them to do so because the public is scammed by the words "first home owners grant" into thinking it will help young people get into a home.

Wherever you have a building industry you have builders screaming for more Govt money to be gifted directly to them to increase the housing stock. But where's that got us in the last 30 years? House prices climbing non stop, block sizes dwindled down to little more than the footprint needed to build the dwelling & kitchenettes instead of kitchens and a bath or shower but not both. So how did that happen? Because Builders and Bankers have always squeezed for an ever increasing share of the cost of the building project.

Houses enslave you to the system. That's why even though building materials are much much cheaper, building systems much more efficient & building times half what they used to be, buying a house in 2020 is still a life time enterprise for most people (its an integral part of wage slavery).

But Governments that put the interests of their people over the interests of the business lobby wouldn't give money directly to builders to build houses but would themselves finance and administer a house building program and if a builder wants to get some of that Govt building work, well he has to do it by tendering for it and competing with other builders to deliver the best price to the public. And lets not be fooled by neoliberals who only want socialism for themselves claiming that Govts cant do this kind of project work well. The Snowy Mountains Scheme was a Govt financed and administered program. It was built on time and under budget. Now compare the NBN, which was set up to invite rorting by private enterprise & in the end we got a substandard system.
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« Last Edit: Nov 30th, 2020 at 8:21am by Jest »  

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Re: HomeBuilder is a mahoosive success!
Reply #10 - Nov 30th, 2020 at 10:11am
 
Jest wrote on Nov 30th, 2020 at 8:10am:
John Smith wrote on Nov 29th, 2020 at 5:09pm:
Jest wrote on Nov 29th, 2020 at 12:34pm:
That's why I believe first home owners grants would make housing much more accessible to first home owners if they only made the grant available for the purchase of established homes (and I think Govts know this but they dont want to do it because they only want socialism for business and not for us).



But the whole POINT of the first home buyers grant was to increase demand for NEW buildings. We simply didn't have enough existing stock to meet demand. First home buyers grant was supposed to fix that by encouraging new builds.


That may be your point but its not my point . If you read my first post you will see that this is precisely what Govts do. They bill these programs as a first home buyers grant but that's a lie. Its money that usually gets purloined by the builder/building company for the builder/building company. And the Govt knows & intends this to happen knowing that its safe for them to do so because the public is scammed by the words "first home owners grant" into thinking it will help young people get into a home.

Wherever you have a building industry you have builders screaming for more Govt money to be gifted directly to them to increase the housing stock. But where's that got us in the last 30 years? House prices climbing non stop, block sizes dwindled down to little more than the footprint needed to build the dwelling & kitchenettes instead of kitchens and a bath or shower but not both. So how did that happen? Because Builders and Bankers have always squeezed for an ever increasing share of the cost of the building project.

Houses enslave you to the system. That's why even though building materials are much much cheaper, building systems much more efficient & building times half what they used to be, buying a house in 2020 is still a life time enterprise for most people (its an integral part of wage slavery).

But Governments that put the interests of their people over the interests of the business lobby wouldn't give money directly to builders to build houses but would themselves finance and administer a house building program and if a builder wants to get some of that Govt building work, well he has to do it by tendering for it and competing with other builders to deliver the best price to the public. And lets not be fooled by neoliberals who only want socialism for themselves claiming that Govts cant do this kind of project work well. The Snowy Mountains Scheme was a Govt financed and administered program. It was built on time and under budget. Now compare the NBN, which was set up to invite rorting by private enterprise & in the end we got a substandard system.



You forgot to mention that the quality of construction has steadily declined over time.

"waffle pod" slabs, poorly chucked-together brick-veneer houses etc.

It will get to the stage that people will need to refinance mid-way through their working lives to "rebuild" a dwelling that's falling down around their ears.

That will usher in an era of inter-generational debt...
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Re: HomeBuilder is a mahoosive success!
Reply #11 - Nov 30th, 2020 at 10:30am
 
Mix_Master wrote on Nov 30th, 2020 at 10:11am:
Jest wrote on Nov 30th, 2020 at 8:10am:
John Smith wrote on Nov 29th, 2020 at 5:09pm:
Jest wrote on Nov 29th, 2020 at 12:34pm:
That's why I believe first home owners grants would make housing much more accessible to first home owners if they only made the grant available for the purchase of established homes (and I think Govts know this but they dont want to do it because they only want socialism for business and not for us).



But the whole POINT of the first home buyers grant was to increase demand for NEW buildings. We simply didn't have enough existing stock to meet demand. First home buyers grant was supposed to fix that by encouraging new builds.


That may be your point but its not my point . If you read my first post you will see that this is precisely what Govts do. They bill these programs as a first home buyers grant but that's a lie. Its money that usually gets purloined by the builder/building company for the builder/building company. And the Govt knows & intends this to happen knowing that its safe for them to do so because the public is scammed by the words "first home owners grant" into thinking it will help young people get into a home.

Wherever you have a building industry you have builders screaming for more Govt money to be gifted directly to them to increase the housing stock. But where's that got us in the last 30 years? House prices climbing non stop, block sizes dwindled down to little more than the footprint needed to build the dwelling & kitchenettes instead of kitchens and a bath or shower but not both. So how did that happen? Because Builders and Bankers have always squeezed for an ever increasing share of the cost of the building project.

Houses enslave you to the system. That's why even though building materials are much much cheaper, building systems much more efficient & building times half what they used to be, buying a house in 2020 is still a life time enterprise for most people (its an integral part of wage slavery).

But Governments that put the interests of their people over the interests of the business lobby wouldn't give money directly to builders to build houses but would themselves finance and administer a house building program and if a builder wants to get some of that Govt building work, well he has to do it by tendering for it and competing with other builders to deliver the best price to the public. And lets not be fooled by neoliberals who only want socialism for themselves claiming that Govts cant do this kind of project work well. The Snowy Mountains Scheme was a Govt financed and administered program. It was built on time and under budget. Now compare the NBN, which was set up to invite rorting by private enterprise & in the end we got a substandard system.



You forgot to mention that the quality of construction has steadily declined over time.

"waffle pod" slabs, poorly chucked-together brick-veneer houses etc.

It will get to the stage that people will need to refinance mid-way through their working lives to "rebuild" a dwelling that's falling down around their ears.

That will usher in an era of inter-generational debt...

Yes I did forget to mention that. Thanks for mentioning it  Smiley
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Re: HomeBuilder is a mahoosive success!
Reply #12 - Nov 30th, 2020 at 10:54am
 
John Smith wrote on Nov 29th, 2020 at 5:09pm:
Jest wrote on Nov 29th, 2020 at 12:34pm:
That's why I believe first home owners grants would make housing much more accessible to first home owners if they only made the grant available for the purchase of established homes (and I think Govts know this but they dont want to do it because they only want socialism for business and not for us).



But the whole POINT of the first home buyers grant was to increase demand for NEW buildings. We simply didn't have enough existing stock to meet demand. First home buyers grant was supposed to fix that by encouraging new builds.


We still don't and never will - the word 'supposed' is the correct terminology.

Now if GuvCo stopped immigration for a while housing might get a chance to catch up - but while ever they are in rapture to the developers and such - the likes of Slim Mehajer etc - and are equally tied to the nonsense about bringing in everyone from around the world to fit into a nice comfy little community - the market will never catch up and get close to demand for a change.

What do you think are the likelihoods of any of those things occurring?
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Re: HomeBuilder is a mahoosive success!
Reply #13 - Nov 30th, 2020 at 12:58pm
 
With Australia having one of the highest 'Home/House' costs in the world. A $25,000 incentive for people to buy $500,000+ homes (because there is no money in building smaller homes) - many of whom, don't know what to do with the extra rooms in their big 'Block' Homes (with stuff all backyard, etc) in their little kit suburbs that don't have room wide enough to park a car either side to let one through, etc.

Everyone around the world knows Australia is where you go to 'Work', make your money and then leave if you want to 'live'.
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Re: HomeBuilder is a mahoosive success!
Reply #14 - Nov 30th, 2020 at 8:55pm
 
Jest wrote on Nov 30th, 2020 at 8:10am:
That may be your point but its not my point .



Nothing to do with my point or yours since I'm pretty sure neither of us are responsible for the scheme. The govt. of the day when it was introduced came up with it and the point of it was to encourage new builds. Pretending otherwise won't change the truth.
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