Herron Todd White stated that easier access to the existing equity in homes and investment properties would help ease financial pressures for Aussies who are down on their luck due to the COVID-19 crisis.
Herron Todd White’s CEO, Gary Brinkworth, said both the government and regulators must work with financiers to unlock source of wealth for struggling businesses and individuals during unprecedented times.
“If ever there was a time to help Aussies get access to their stored-away property wealth, it’s during the coronavirus emergency,” Mr Brinkworth said.
“The integrity and discipline of the current lending system can be preserved and levered to help property owners through this challenging period.”
He continued: “We believe the time to act is now to provide additional liquidity to eligible property owners to help them navigate uncertain times, creating an opportunity to survive this downturn and establish a strong position which will help contribute to the economy.”
Mr Brinkworth said the COVID-19 crisis shows many Australians are “asset rich, cash poor”, meaning unlocking some of their property is a clear way to survive the next few months.
“As property professionals, we realise the level of equity drawdown and the impact on property values due to COVID-19 will need to be part of the discussion, but it’s ludicrous to not have this conversation in the current climate,” he said.
Mr Brinkworth added the nation’s strong real estate sector had been a leading source of wealth building through decades of sustained value growth. He said under normal circumstances, equity was a wealth buffer for owners to reinvest or live on in retirement, but it should now be drawn upon as a financial safety net.
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