Have you taken any notice of the recent stimulus packages in relation to residential housing?
Have you made any sense of them and can you use them to get into the market, whether for your own home or an investment? Does this actually help the economy?
There is always a good and potentially detrimental side to all of these decisions, and I don’t play the political game, however, in my opinion, under the COVID situation the governments, federal and state, have had to work at pace and have unrolled the best they can with the knowledge and information they have at the time, so well done to them. Based on that, let’s look at the benefits.
As each state is different, I will not go into the set dollar figure, however the grants themselves are being spread between construction grants, reduced duty’s and renovation grants, just to mention a few. So does this assist home buyers? Of course it does, however time is ticking, some of these grants are only available on contracts signed prior to 31.12.2020.
Oh, you weren’t planning on building until next year or the year after, that’s too bad. The grants are there to create jobs, and support the residential housing industry across Australia, so it may be worthwhile reassessing your plans, because there is definitely benefits that will make your life easier and your new home a reality earlier than you thought. Be careful to use the financial benefits to make your home a sustainable reality, not to overspend on the purchase and make it a nightmare you wish you could wake from.
So does any of this assist investment? Yes it does and this definitely varies over the states. From a renovation perspective, this is something that you can utilise along with other strategies to keep your projects moving. There are businesses in the industry that are assisting with the grants to ensure you can access what is available in the relevant state and that it suits the purpose you intend to use it for. This financial package rollout is no different to any other and will be up for quantifying and audit, so ensure you do it right as returning the funds could result in financial distress.
Support like this is intended to benefit many in different ways, so do your bit to support industry and increase your assets. Do your research and understand that the benefits you have access to will impact hundreds of thousands of people by way of the ripple effect. There will be jobs kept in the industry and new ones created, this means materials are ordered and many other businesses will be able to support their workers and their families. When there are workers back on the roads, fuel and food retailers, tyre and car service businesses will be positively affected, even the more obscure businesses like office supplies for plans and pubs for the Friday tradies lunch. I could go on forever, how about the florist as that extra money earnt and happiness felt due to being employed means mum or wife gets a bunch of flowers just because!
These packages are not intended to make anyone feel lesser, or like they need to accept charity, they are created to provide economic movement and that in its own right, will have a positive outcome on people’s lives and mental health. It is all about the ripple effect and this ripple can be more like a gentle tidal wave if it is used to the benefit that it is intended. Maybe it’s time to consider the impact you can and do make!
Until next time ride the wave of change
Melissa