A new seniors grant has been introduced - SA

[eKwatee]

If your over 60 years of age and looking to buy a 'NEW' home to live in, within South Australia, I'd hold off buying until 1-July 2014 as the new seniors grant SHG has just been introduced.

from Revenue SA

The Seniors Housing Grant (SHG) is a once off grant of up to $8500, available to natural persons, aged 60 years or more, who are purchasing or building a new home valued up to $400 000 and will phase out for eligilble homes valued up to $450 000. for first home owners, the SHG is not available in addition to the First Home Owner Grant (FHOG).

The SHG applies to:

a contract to purchase a new home entered into between 1 July 2014 and 30 June 2016 (inclusive);

a comprehensive home building contract for a new home entered into between 1 July 2014 and 30 June 2016 (inclusive) where the contract states that the building work will be completed within 18 months of commencement or the building work is actually completed within 18 months of commencement;

a contract for the purchase of a new home off-the-plan entered into between 1 July 2014 and 30 June 2016 (inclusive) where the contract states that the building work will be commenced on or before 31 December 2017 or the actual building work is actually completed on or before 31 December 2017; and

an owner builder where construction of the new home commences on or after 1 July 2014 and before 30 June 2016.

The SHG is available to natural persons aged 60 years and over who purchase or build a new home as their principal place of residence.

Only one SHG is payable in relation to a particular new home and at least one of the applicants must:

satisfy the Commissioner that they are aged 60 years or over; and

occupy the home as their principal place of residence for a continuous period of at least six months, commencing within 12 months after the completion of the eligible transaction.

 

[Corey Batt]

What are they smoking in SA Labor HQ, seriously?

 

[eKwatee]

What are they smoking in SA Labor HQ, seriously?

I heard it equates to approximately .5% of the new home build market under $450,000 in South Australia.

However I do think the outer metro/regional markets will benefit slightly from this grant, areas like Murray Bridge, Mannum, Encouter Bay, wallaroo etc. Where senior buyers will sell up from metro Adelaide and retire to these regions.

 

[turk]

I heard it equates to approximately .5% of the new home build market under $450,000 in South Australia.

However I do think the outer metro/regional markets will benefit slightly from this grant, areas like Murray Bridge, Mannum, Encouter Bay, wallaroo etc. Where senior buyers will sell up from metro Adelaide and retire to these regions.

But don't they have to be "first home owners"

The Seniors Housing Grant (SHG) is a once off grant of up to $8500, available to natural persons, aged 60 years or more, who are purchasing or building a new home valued up to $400 000 and will phase out for eligilble homes valued up to $450 000. for first home owners, the SHG is not available in addition to the First Home Owner Grant (FHOG).

 

[eKwatee]

But don't they have to be "first home owners"

The Seniors Housing Grant (SHG) is a once off grant of up to $8500, available to natural persons, aged 60 years or more, who are purchasing or building a new home valued up to $400 000 and will phase out for eligilble homes valued up to $450 000. for first home owners, the SHG is not available in addition to the First Home Owner Grant (FHOG).

No they dont. They are not entitled to both, should they also be first home buyers and over 60. Currently if they were first home buyers, they would be entitled to $15,000.

 

[turk]

Yep, I read the last sentence in a different context, perhaps it should read after the $450,000.

For first home owners the SHG is not available in addition to the First Home Owner Grant (FHOG).

 

[Corey Batt]

I heard it equates to approximately .5% of the new home build market under $450,000 in South Australia.

However I do think the outer metro/regional markets will benefit slightly from this grant, areas like Murray Bridge, Mannum, Encouter Bay, wallaroo etc. Where senior buyers will sell up from metro Adelaide and retire to these regions.

Pity the govt couldn't have it's ex-taxi driver spending more time working out fiscal responsibility, than dolling out grants for seniors to spend up to 450k on a home.

What's the net economic value in that?

 

[eKwatee]

Pity the govt couldn't have it's ex-taxi driver spending more time working out fiscal responsibility, than dolling out grants for seniors to spend up to 450k on a home.

What's the net economic value in that?

Looking at it from a different perspective. I do often come across situations where you'll have a senior or senior couple living in a big old house, on a large allotment, with little to no savings.

Now as an example, If their property was worth $350,000 and a newly built courtyard home in the same suburb would cost around $350,000. But because of stamp duty and selling costs, they cant afford to move. This grant will help out quite a few in this situation.

Gets them out of an old home that needs lots of maintenance, into a low maintenance new home. This may also free up a few more sub-dividable allotments, especially in the areas that I sell.

 

[D.T.]

Govt did a bunch of development recently. Offer an incentive to help move the stock. Perhaps they're more savvy than all of us

 

[Corey Batt]

Looking at it from a different perspective. I do often come across situations where you'll have a senior or senior couple living in a big old house, on a large allotment, with little to no savings.

Now as an example, If their property was worth $350,000 and a newly built courtyard home in the same suburb would cost around $350,000. But because of stamp duty and selling costs, they cant afford to move. This grant will help out quite a few in this situation.

Gets them out of an old home that needs lots of maintenance, into a low maintenance new home. This may also free up a few more sub-dividable allotments, especially in the areas that I sell.

Which means they'll need to sell, rent in the meantime and then build again - particularly if they have no meaningful income to gain loans (not that we should be encouraging seniors to get into debt). 8.5k won't really cover their change over costs, so they'd definitely have to sell down and retire in cheaper accommodation than their existing...

Then take on building (which everyone finds stressful) and be liable for any variations ballooning costs.

Meanwhile the FHOG for established homes ceases as this grant begins, is this just an attempt to make things fair, try help out the young people get into homes, then oldies?

I see that the spin is to say this is grant is to be used for seniors to enter more 'age appropriate' accommodation, however I can't seem to find any purchase criteria relating to specific stock. A senior can sell down their 450k Kensington Park homette and build a 5 bedroom home on 800sqm with this grant!

I just can't see this being a productive use of State funds, especially when the economy is in such a sore state and debts + taxes rising.

They should stick to trying to figure out how to dig their way out of the current mess, than fiddling with the edges!

 

[eKwatee]

Which means they'll need to sell, rent in the meantime and then build again - particularly if they have no meaningful income to gain loans (not that we should be encouraging seniors to get into debt). 8.5k won't really cover their change over costs, so they'd definitely have to sell down and retire in cheaper accommodation than their existing...

Then take on building (which everyone finds stressful) and be liable for any variations ballooning costs.

Meanwhile the FHOG for established homes ceases as this grant begins, is this just an attempt to make things fair, try help out the young people get into homes, then oldies?

I see that the spin is to say this is grant is to be used for seniors to enter more 'age appropriate' accommodation, however I can't seem to find any purchase criteria relating to specific stock. A senior can sell down their 450k Kensington Park homette and build a 5 bedroom home on 800sqm with this grant!

I just can't see this being a productive use of State funds, especially when the economy is in such a sore state and debts + taxes rising.

They should stick to trying to figure out how to dig their way out of the current mess, than fiddling with the edges!

I do think the grant allows them to buy newly built homes, which allow them to buy off the plan house and land packages being offered to settle on completion or obviously developers who build and sell on completion. This would prevent them from having the stress of building or having to rent.

I do agree that $8500 wont go close to reimbursing the complete changeover costs, but it will help.

I also agree it not being a productive use of state funds. I see it more of a 'What can we do as a token of gesture, knowing that the grant wont be taken up by more than 1% of the market' portrays a perception of we are a government who is looking after people, with our buyer grants etc...

 

[Corey Batt]

I do think the grant allows them to buy newly built homes, which allow them to buy off the plan house and land packages being offered to settle on completion or obviously developers who build and sell on completion. This would prevent them from having the stress of building or having to rent.

I do agree that $8500 wont go close to reimbursing the complete changeover costs, but it will help.

I also agree it not being a productive use of state funds. I see it more of a 'What can we do as a token of gesture, knowing that the grant wont be taken up by more than 1% of the market' portrays a perception of we are a government who is looking after people, with our buyer grants etc...

Perhaps a more practical solution would have been to provide a stamp duty exemption for seniors moving to age appropriate housing.

Vote Cjay 2018.