I just wanted to advise everyone of the Federal Governments Green Loan Program. It started on July 1 and following a free home sustainability assessment you can access an interest free loan of up to $10K over 4 years to implement the recommendations from the assessment.
There is the opportunity to value add to an investment property and utilise the current rebates and the green loan to make it a relatively minimal cost per week. There are eligibility requirements and for further information go to http://www.greencountry.com.au/.
Cheers
TammyI should point out that this applies to landlords as well (so long as the house is 12 months or older and has been lived in by someone for the past 12 months). Maybe this could help retrofit a current reno and then pay the loan out when you sell. Could help the cash flow. I am utilising is on one of my rentals to add a solar hot water system, add some awnings on the western side and add a tank. I have talked to my tenants and the rent will increase a bit by agreement. After the rebates, the loan amount is covered by the rent increase so it can work well. Just another tool to be added to the belt.
Again, hope that helps someone.
Cheers
This is good. Also note you will be able to claim tax deductions -likely to be depreciation on these systems.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
yes, you are correct Terry. Thank you for that. I had overlooked that component.
Cheers
Tammy
http://www.greencountry.com.au/Just like to say I have applied for 3 of these. I am putting Solar hot water systems in 3 rental properties. All works very well. A bit of a delay in geting the report but I wasnt organised earlier anyway so no harm done. I did increase the rent in consultation with the tenant and after all is said and done, it costs me less than $2 per week!!! Thank you Uncle Kevie!!!
I've been waiting now for 4 weeks for the report in order to get the green loan. How long does it normally take?
Which banks lend on these green loans and how strict are they on eligibility requirements?
Hi hleung,
Originally the reports were subject to a lengthy delay (up to 8 weeks, some longer) due to a variety of reasons. I believe that the backlog is all but cleared and a report should take in the order of 3 weeks or so now. I would suggest that if there are any reports outstanding then you need to call and chase it as the assumption is that the reports have arrived safetly unless told otherwise.
Green Loan lenders are here: http://www.environment.gov.au/greenloans/households/loans.html
Whilst waiting for the report, you can use the booking number (BK………) to start the loan application process.
Cheers
Tammy
http://www.greencountry.com.auThanks for the information in the post.
I can wait now wait for some time for green loan.
Thanks.Just prior to Christmas the booking numbers were getting close to 150000. Given that there are only 360000 assessments total, if you are considering having a sustainability assessment then I would organises it before too much longer. And dont forget, whilst there are 360000 assessments, there are only 70000 green loans.
This is going to be one of those opportunities that when it is gone people will say "I didnt know, how come I missed out" and the good old "I should have….."
Cheers
Tammy
http://www.greencountry.com.auTammy, not too sure what you mean that there are only 70,000 green loans. Does that mean only 70,000 of those who applied for an assessment will actually get a loan? If there are 360,000 assessments, surely more than 70,000 will be eligible based on the criteria I was shown.
Hi Hleung,
Yes, only 70K out of the 360K assessed will get a loan. Not everyone will apply for a loan. From the commencement of the program the numbers have been 360000 assessments and 70000 loans. At this stage based on the information we have, once the quota is met that is it. It is on a first come first serve basis and unless further funding is allocated.
So yes, a lot of people may miss out, even though they may be eligible. As with all rebates and subsidies, the fine print is until the end of the program OR until the funding runs out, which ever comes first.
Just to point out, the purpose of the sustainability assessment is not soley to gain access to the green loan. My focus when I assess a home is how can I help this household reduce their energy requirement thereby reducing their power bill. I have had electric hot water systems on the incorrect tariff, unnecesarry and inefficient fridges and freezers, numerous appliances on standby needlessly, no insulation, lack of window coverings amongst others. Even without appliying for a loan, these HH will save money by just addressing what they already have. I guess this is the rational why the number of loans available is far less than the numer of assessments.
Cheers
Tammy
http://www.greencountry.com.auTammy, do you know how of the 70,000 loans have been approved?
No, I am sorry I dont have current information on that. I would expect that DEWHA will update on that in the New Year.
Cheers
Tammy
http://www.greencountry.com.auCan anyone tell me what the interest rates are on these green loans? Are they subsidised based on a mortgage interest rate or a personal loan interest rate?
Thanks
As mentioned in the initiating post, the loan is interest-free, capped at $10k and the maximum period of loan is 4 years.
I thought the loan guidlines specifically said that the loan should be for "the principal place of residence". Can anyone confirm that you can get the loan for your investment property, or better still for multiple investment properties?
Cheers,
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