Invest
Does the government’s tradie rescue package go far enough?
Industry experts have applauded the announcement of a “tradie rescue package” but do not believe that the government’s plan goes far enough.
Does the government’s tradie rescue package go far enough?
Industry experts have applauded the announcement of a “tradie rescue package” but do not believe that the government’s plan goes far enough.
Prime Minister Scott Morrison recently outlined more of his plan to get the economy moving again post-COVID-19, with the construction and entertainment sectors likely to get an economic boost.
Under the recovery plan, new household construction and major renovation projects could get a grant from the government.
The plan could also see households given cash to spruce up their own home, with grants for renovations likely to help kickstart the construction sector.
Master Builders Australia chief executive Denita Wawn welcomed Mr Morrison’s latest stimulus package.
“It’s fantastic. Any expenditure by governments on Sydney’s infrastructure is a welcome by the industry,” Ms Wawn said.
While welcoming the new stimulus package, Ms Wawn highlighted the dangers that the property sector is facing, with builders noting up to a 40 per cent decrease in work in the pipeline.
“In the 1990s recession, we were one of the last industries to be adversely affected, but it took us four times longer to recover. So our focus has always been on that six-month lag,” Ms Wawn noted.
Housing commentator and property developer Ian Ugarte does not believe the proposed plan goes far enough.
Under the suggested extensions to the $4 billion “Tradie Rescue Package”, Australian home owners could be given grants of up to $40,000 to build or renovate their properties, but strict criteria need to be met, like making houses more resilient to natural disasters.
“I understand the Prime Minister wants to place conditions on the funding to reduce rorting, and Ms Wawn has suggested it would be good to set the criteria to making houses more resistant to natural disasters and address property defects,” Mr Ugarte said.
However, Mr Morrison’s plan, which requires certain criteria to be met, is a “big mistake” and will limit applications, according to Mr Ugarte.
“Our entire economy, including the building industry, is being held hostage to a pandemic that has seen mum and dad property investors haemorrhaging financially due to job losses and little to no rent coming in from tenants who are equally as financially squeezed by the effects of COVID-19.”
“It’s vital that the funding is extended to include making existing homes and investment properties more resilient to serious economic downturns, like the one we’re experiencing right now. This will create cash flow for builders, higher yields for landlords and lower rents for tenants,” he continued.
Mr Ugarte said he had seen panicked mum and dad investors ditch their untenanted properties and suffer a significant loss because they felt they had no other choice.
Instead, the builder and property educator believes investment properties currently sitting vacant could present an opportunity that would make securing new tenants easier and double their rental yield almost immediately, and see this yield continue year-on-year.
About the author
About the author
Property
Major bank offers $1 insurance for first home buyers
A big four bank subsidiary is offering first home buyers a $1 lender’s mortgage insurance as it looks to support first home buyers. ...Read more
Property
HomeBuilder appears to be working: Here’s why
Preliminary data is suggesting that the HomeBuilder scheme is doing what it was intended to do – secure jobs and inject confidence back into the economy. ...Read more
Property
Unit sales fall as COVID-19 sets in
Investors in Australia’s two largest cities are starting to see the impact of COVID-19, with up to a third of owners selling for less, new research has revealed. ...Read more
Property
Hot Property: Biggest headlines from the week that was
Australia has reached a new crossroad when it comes to the COVID-19 crisis, both for health and economic reasons: Here are the biggest property stories from this week. ...Read more
Property
Has the HomeBuilder stimulus package worked?
Homebuilders are snapping up properties as the Morrison government’s controversial HomeBuilder scheme helps lift interest in the property market, latest stats have revealed. ...Read more
Property
5 ways to use COVID-19 to your property-buying advantage
With the recent revelation that Millennials believe the COVID-19 crisis has made their goals of property ownership more likely to be realised, there are a number of ways would-be buyers can take advan...Read more
Property
Why is Melbourne property falling more than everywhere else?
The fallout from COVID-19 has seen Melbourne property markets fall by 2.3 per cent, making it the worst-performing capital city, new research has shown. ...Read more
Property
More power to Millennials as property ownership proves possible
Nearly half of home-buying Millennials believe the COVID-19 situation has actually made home ownership a more achievable goal. ...Read more
Property
Major bank offers $1 insurance for first home buyers
A big four bank subsidiary is offering first home buyers a $1 lender’s mortgage insurance as it looks to support first home buyers. ...Read more
Property
HomeBuilder appears to be working: Here’s why
Preliminary data is suggesting that the HomeBuilder scheme is doing what it was intended to do – secure jobs and inject confidence back into the economy. ...Read more
Property
Unit sales fall as COVID-19 sets in
Investors in Australia’s two largest cities are starting to see the impact of COVID-19, with up to a third of owners selling for less, new research has revealed. ...Read more
Property
Hot Property: Biggest headlines from the week that was
Australia has reached a new crossroad when it comes to the COVID-19 crisis, both for health and economic reasons: Here are the biggest property stories from this week. ...Read more
Property
Has the HomeBuilder stimulus package worked?
Homebuilders are snapping up properties as the Morrison government’s controversial HomeBuilder scheme helps lift interest in the property market, latest stats have revealed. ...Read more
Property
5 ways to use COVID-19 to your property-buying advantage
With the recent revelation that Millennials believe the COVID-19 crisis has made their goals of property ownership more likely to be realised, there are a number of ways would-be buyers can take advan...Read more
Property
Why is Melbourne property falling more than everywhere else?
The fallout from COVID-19 has seen Melbourne property markets fall by 2.3 per cent, making it the worst-performing capital city, new research has shown. ...Read more
Property
More power to Millennials as property ownership proves possible
Nearly half of home-buying Millennials believe the COVID-19 situation has actually made home ownership a more achievable goal. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.