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$25,000 stimulus package


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So this is a scheme to help low to middle income earners, being given $25'000 to be put towards big projects such as remodelling and home extensions. To qualify for the $25'000 you must earn under $175'000 per year, have $75'000 in cash that you are willing to contribute towards a minimum spend of $100'000 on renovations. I'm going to go out on a limb here and speculate the number of low to middle income earners, in Australia, that have $75k in cash that they are willing to spend on renovating their house is precisely 0. Am I missing something? It just sounds completely whack.

 

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13 minutes ago, zed said:

So this is a scheme to help low to middle income earners, being given $25'000 to be put towards big projects such as remodelling and home extensions. To qualify for the $25'000 you must earn under $175'000 per year, have $75'000 in cash that you are willing to contribute towards a minimum spend of $100'000 on renovations. I'm going to go out on a limb here and speculate the number of low to middle income earners, in Australia, that have $75k in cash that they are willing to spend on renovating their house is precisely 0. Am I missing something? It just sounds completely whack.

 

I would assume by "cash" they mean your own money. That would most likely include a loan from the bank. So if you have bought a "doer-upper-a" and about to start, you'll be given $25k by the government to go towards it.

eta: And I think the income limit is $200K for couples. 

Edited by Ex-Hasbeen
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27 minutes ago, zed said:

So this is a scheme to help low to middle income earners, being given $25'000 to be put towards big projects such as remodelling and home extensions. To qualify for the $25'000 you must earn under $175'000 per year, have $75'000 in cash that you are willing to contribute towards a minimum spend of $100'000 on renovations. I'm going to go out on a limb here and speculate the number of low to middle income earners, in Australia, that have $75k in cash that they are willing to spend on renovating their house is precisely 0. Am I missing something? It just sounds completely whack.

 

No I think you're right on the money (or lack thereof) but not for the reasons you're thinking of.

Given that savings interest rates are currently around 0.01% and mortgage rates are at their lowest rates ever, I'd suggest anybody who is on an combined income between $130K-$170K (and already own their own home)  probably has their excess money tried up in an investment property or long term investments (or both).

 

 

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33 minutes ago, zed said:

So this is a scheme to help low to middle income earners, being given $25'000 to be put towards big projects such as remodelling and home extensions. To qualify for the $25'000 you must earn under $175'000 per year, have $75'000 in cash that you are willing to contribute towards a minimum spend of $100'000 on renovations. I'm going to go out on a limb here and speculate the number of low to middle income earners, in Australia, that have $75k in cash that they are willing to spend on renovating their house is precisely 0. Am I missing something? It just sounds completely whack.

 

I meet this criteria. Do you have a reputable source or reference?

 

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Now that everyone is concerned about putting their parents into old-folks homes, could this $25K be used to help fund the building of a granny flat on your property?

Could even be tempted here.

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9 minutes ago, oldave said:

I meet this criteria. Do you have a reputable source or reference?

 

What renovations are you going to do?

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1 hour ago, zed said:

What renovations are you going to do?

New kitchen, 2.5 bathrooms, laundry, new flooring throughout, maybe repaint the roof. Been saving up all the money I used to spend on race entries.

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4 minutes ago, oldave said:

New kitchen, 2.5 bathrooms, laundry, new flooring throughout, maybe repaint the roof. Been saving up all the money I used to spend on race entries.

So from my understanding, the stimulus package is not for multiple renovation projects, but one large project e.g adding another floor to your house.

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I'm just kinda surprised that someone earning $130,000 - $175,000 per year is classified as a low-to-middle income earner... 😵

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Just now, Abby said:

I'm just kinda surprised that someone earning $130,000 - $175,000 per year is classified as a low-to-middle income earner... 😵

I guess it depends on where you live. $175k in Sydney would mean you're stone cold broke? Tassie, you're living like a King.

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25 minutes ago, zed said:

So from my understanding, the stimulus package is not for multiple renovation projects, but one large project e.g adding another floor to your house.

Where are you getting this from? Nothing official from treasury has been released has it and all the media articles I have read have not had any solid details at all..

In saying that, everything I have read seems to point to only having a $100k value so as to avoid it being used by shonky tradies to set up doing laundries or garage floors..The above example of kitchen bathroom and flooring etc should definitely be covered and is what I will be looking at doing (if the stated income limits are incorrect)

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2 hours ago, oldave said:

I meet this criteria. Do you have a reputable source or reference?

 

 

2 hours ago, zed said:

What renovations are you going to do?

I meet the criteria but don't need or want to do $100,000 worth of renos 

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29 minutes ago, Abby said:

I'm just kinda surprised that someone earning $130,000 - $175,000 per year is classified as a low-to-middle income earner... 😵

What I read this morning said up to $125k for singles and $200k for couples (combined income). There was no lower limit, so that would sit in the low to middle income earner range.

And in Oldave's example, if you organised them all separately it probably wouldn't fit, but if you arranged a builder to do the lot it would.

 

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1 hour ago, zed said:

So from my understanding, the stimulus package is not for multiple renovation projects, but one large project e.g adding another floor to your house.

Damn. Has the package been officially announced? Maybe I'll get lucky.

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35 minutes ago, Ex-Hasbeen said:

What I read this morning said up to $125k for singles and $200k for couples (combined income). There was no lower limit, so that would sit in the low to middle income earner range.

And in Oldave's example, if you organised them all separately it probably wouldn't fit, but if you arranged a builder to do the lot it would.

 

I can sure do that

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17 minutes ago, oldave said:

Damn. Has the package been officially announced? Maybe I'll get lucky.

Unlikely. You can only use it for home renovations😁

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2 hours ago, chris said:

looks like i wont be doing any renos 😉, discriminated against again.

Yep. The white Australian middle aged male with a job is currently the most discriminated person is society.  
 

 

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2 minutes ago, Peter said:

Yep. The white Australian middle aged male with a job is currently the most discriminated person is society.  
 

Shhhh....its a secret

apparently

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12 minutes ago, Peter said:

Yep. The white Australian middle aged male with a job is currently the most discriminated person is society.  
 

 

so true, I can list all  the things i have received from so called middle class welfare,  Nil ZERO NADA, even missed out on first home buyers grant back in the day.

Cant complain though, 

 

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17 hours ago, oldave said:

Damn. Has the package been officially announced? Maybe I'll get lucky.

Max salary $125k and minimum reno cost of $150k.

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  • roxii changed the title to $25,000 stimulus package

Have the Govt been watching too many series of The Block or something?

How many $150 k Reno projects can there be?

Actually, this is house flipper areas. 
But, renovate, sell. 
Get that housing bubble inflating again. 
 

*No actual research completed, complete brain dump post 

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31 minutes ago, zed said:

Max salary $125k and minimum reno cost of $150k.

Well there goes that idea

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1 minute ago, Tyno said:

Have the Govt been watching too many series of The Block or something?

How many $150 k Reno projects can there be?

Actually, this is house flipper areas. 
But, renovate, sell. 
Get that housing bubble inflating again. 
 

*No actual research completed, complete brain dump post 

My thoughts exactly. Yes it will get tradies working again, but it certainly isn't aimed at ordinary folk.

Edited by Ex-Hasbeen
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10 minutes ago, Ex-Hasbeen said:

My thoughts exactly. Yes it will get tradies working again, but it certainly isn't aimed at ordinary folk.

Especially given that salary band are possibly the worst affected by the current situation as well. 

With all the current uncertainty I'm not sure how many people will be willing to stump up $150k for a reno at the moment. 

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17 minutes ago, roxii said:

Especially given that salary band are possibly the worst affected by the current situation as well. 

With all the current uncertainty I'm not sure how many people will be willing to stump up $150k for a reno at the moment. 

I certainly wont. A $150k reno would be a serious over capitalisation on my property. Seriously this is just for the upper middle class who live in posh suburbs whose tax breaks reduce their taxable income. All because the Govt is shit scared of another Pink Batts fiasco. I'm so mad.

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I think the 150k is steep

 

 the 200k pa for a family would be in the top 5 or so percent of the country 

so it definitely catches almost everyone

saying that a 150k Reno with reducing property values could make it impossible for most as the banks won’t lend

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Actually we need to redo it ensuite for my wife, removing the spa bath with shower over and changing it to a walk in shower with some safety rails and a seated area.  

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I think it's aimed at regional first home builders/buyers. Property value can't exceed 1.5 million, couples income 200K, have to spend as detailed above. Rules most of Sydney out 

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The home builder bit makes sense. 
Assuming there are some who would benefit there, but modelling would be interesting. 
How many will have or be able to get funding between now and Xmas that wouldn’t have been before this announcement?

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41 minutes ago, Tyno said:

How many will have or be able to get funding between now and Xmas that wouldn’t have been before this announcement?

Hopefully ....none

Because we all know that it'll be the big bad banks fault if those people fall over financially because of their own stupidity

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2 hours ago, Parkside said:

I think it's aimed at regional first home builders/buyers. Property value can't exceed 1.5 million, couples income 200K, have to spend as detailed above. Rules most of Sydney out 

you do know Australia is not Just Sydney and Melbourne, 

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I don't really understand what it's meant to stimulate?  You have a narrow defined set of criteria, that frankly in these times would be pretty foolhardy to chuck $75k of of your liquid cash into your home, without a clear exit plan.

So who will benefit? (apart from some builders and merchants). The homeowner get's a nicer home but has far less equity than before and probably vastly reduced any safety net they had. I just can't see that there would be enough qualifiers to make a tangible difference to the economy. (the same economy that the pot of 'X' x $25k is coming out of).

Edited by FatPom
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1 hour ago, Tyno said:

The Economy :)
 

I'd like someone to explain how, with those narrow criteria? If someone has $75k sitting around and planning on $150k worth of renovations, getting given $25k with no explanation of how the $50k delta is suddenly going to appear, is hardly going to get them to pull the trigger.

Seems like a recipe for a lot of extended mortgages as well as extended houses. I think the concept is good but the entry criteria  seems too narrow for a take up in numbers to actually do anything meaningful to the economy.

It's like privatised pump priming.

Edited by FatPom
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The more I study this program the more disappointing it looks.

IMO it will need a lot of changes if it’s going to go anywhere near achieving it’s stated objectives.

Edited by Mike Del
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It will also seem to benefit the tradies on those large jobs. 

The small guys who lost a lot of business wont get a Guernsey. 

So a small select group of homeowners and a few larger tradies and companies. 

Theyre big jobs I feel? 

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6 minutes ago, The Customer said:

Is a combined household income of 200K deemed as low to middle in Aus these days? If that's the case I've been living well below the poverty line my whole life.

Apparently, average salary for full time workers is $86,268 (according to the ABS)

And having spent the last 3 months with my nose buried in all the IT jobs sites, whoever said an IT career is a well paying job is kidding themselves.  These days its about average (or below).  I've seen Senior System Engineers jobs being advertised for less than this.

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Quick google and I get average salary overall as £29,009 (about 60K AUD) in the UK. For full time workers it's £35,423 (70K AUD). That feels about right. Cost of living in UK would be a little higher than Aus (I think) although I moved away from Aus in 2013 so it may be much more these days. 

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34 minutes ago, The Customer said:

Is a combined household income of 200K deemed as low to middle in Aus these days? If that's the case I've been living well below the poverty line my whole life.

Plenty do.  Even when my wife was working our combined incomes didn't hit 100k.  And we still managed to do plenty with those incomes.

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11 hours ago, -H- said:

Image may contain: text

It is a bit like that. I'm not sure if the government is going to get the predicted 27'000 people applying for this grant.

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Plenty of young couples will see this as a bonanza and use it towards their 450k house and land package in the middle of woopwoop.. combined with the fhog it's a decent amount of money they don't have to find themselves..

Whether those young people will still be looking in the current environment I don't know and then there's the whole economics of who actually benefits from these sorts of building grants.. hint it isn't the home buyer..

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22 minutes ago, pieman said:

who actually benefits from these sorts of building grants.. hint it isn't the home buyer..

When we built our last home, the building company was running a special where you could get $20k worth of extras for your $10k first home-owners grant. We didn't qualify for the grant, so they gave us the $20k worth for nothing. I just assume they'll be finding ways to bump their price up by $25k to cover this increased grant.

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2 hours ago, Ex-Hasbeen said:

When we built our last home, the building company was running a special where you could get $20k worth of extras for your $10k first home-owners grant. We didn't qualify for the grant, so they gave us the $20k worth for nothing. I just assume they'll be finding ways to bump their price up by $25k to cover this increased grant.

My point exactly

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