Housing Grant

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Australians will be offered $25,000 grants to build a new home or start a major renovation under a new $688 million federal government housing package.
The government announced the rort-free HomeBuilder program on Thursday after new figures revealed the country dipped into a recession for the first time in three decades.
An estimated $15 billion boost to economic activity will be delivered under the $688m Home Builder stimulus package with the plan restricted to people on middle incomes and to new homes and major renovations valued between $150,000 to $750,000.
The pre-renovation value of the house must not exceed $1.5 million and excludes sheds, pools, granny flats and any other structures not attached to the property.
The $1.5 million cap will exclude many inner Melbourne and Sydney homes as the median house price for each city sits at $918,350 and $1,168,806, respectively, according to Domain figures.
Prime Minister Scott Morrison said the scheme would drive a "tradie-led recovery" of the economy, and would support 140,000 direct construction jobs and a million workers in the wider residential building sector.
The temporary scheme that will last until the end of the year, aiming to build 30,000 homes by Christmas.
Construction of a new home or a substantial renovation must be contracted to begin within three months to prevent a rise in house prices.
Those eligible are singles who earned up to $125,000 the previous financial year and couples who earned up to $200,000.
The scheme will work along existing state and territory first-home owner grants programs, stamp duty concessions and other grant schemes, including the federal government’s first-home loan deposit scheme and first-home super saver scheme.
Treasurer Josh Frydenberg said the package aimed to spark jobs and stimulus for the economy.
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Means-tested $25,000 HomeBuilder Grant to boost economy an estimated $15 billion

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Western Australia's new Labor government has cut the $5000 boost payment to first home buyers in a bid to save $20 million. 
State treasurer and finance Minister Ben Wyatt said on Wednesday the government would end the boost payment on 30 June, six months ahead of the December deadline set by the previous Coalition government.
It was introduced as an extra payment last December.
In December, the grant was increased by $5000 up from $10,000 and took effect from January 1,2017.
It was to remain in place for 12 months.
My Wyatt said the previous government’s pre-election decision to boost the grant to $15,000 was just an “election cash splash”.
First-home buyers buying a new home worth up to $750,000 after 30 June will still be eligible for the first-home owner grant of $10,000. 
"The boost is not an effective mechanism for stimulating additional construction of homes and given the disastrous state of the finances which we have inherited, we need to remove any ineffective spending," Mr Wyatt said.
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WA cuts first home owner boost

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Market analysts believe First Home Owner Grant (FHOG) schemes should either be reviewed or abolished, according to a finder.com.au survey.
The <a href="https://www.finder.com.au" target="_blank">finder.com.au </a>survey is the largest of its kind in Australia. 
When asked about their views on first home owner grants and schemes across the country, 69 percent of experts said it’s time to review or abolish these schemes; 38 percent of respondents believe first home buyer grants and schemes should be abolished, while 31 percent say State and Federal Governments should review first home buyer schemes.
Finder.com.au insights manager,  Graham Cooke, said it’s important that first home buyers get a foot on the property ladder, but not at the cost of increasing property prices.
“If you live in a capital city such as Sydney or Melbourne, there is a very high barrier to entering the market in terms of the financial resources required to secure a property. While first home buyer grants may allow you to enter the property market sooner, they can also increase the funds going into the housing market, possibly driving up prices," he said.
“These grants also require buyers to live in the property for a specified time, and are therefore not available to first time investors who may choose to buy a property in a more affordable area, and rent elsewhere.”
Mr Cooke says there is a strong belief that First Home Owner Grant schemes need review.
“The general view is that these grants artificially inflate the price of new dwellings at the cost of the taxpayer," he said.
“The national homeownership rate has been declining and the First Home Owner Grant hasn’t solved Australia’s housing affordability problem. It could be time for the state and territory governments to review relevant schemes to provide greater accessibility for first buyers. Stamp duty discounts or land tax rebates may need to be revisited.
"First home buyers should be careful not to overextend themselves in the current low interest rate market. A buffer of 2-3 percent should be factored in on top of your current interest rate to allow you to service any future rate hikes comfortably."
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Housing Grant

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