How are we going to support growth and get out of the recession we are in and generate recovery effort? The HomeBuilder Grant currently being offered by the Federal Government is one way with the goal to provide eligible Australians with $25,000 to either build or substantially renovate their homes. The plan is Homeowners by investing in their properties uplift demand in the construction industry, keeping builders and tradies employed . Meanwhile the construction industry faces a 30 per cent decline in construction, which is the equivalent of up to 43,000 homes being built. Closed international borders and immigration reduced to near zero will continue this massive drop for the foreseeable future.
Prime Minister Scott Morrison explains that the HomeBuilder Grant backs a “tradie-led recovery”, but what does that mean? Along with the $25,000 incentive, interest rates are currently sitting at a record low with the RBAs ability to lower them even more almost exhausted. Monetary policy is almost exhausted, so fiscal policy is required.
The HomeBuilder program has been forecasted to cost up to $688 million, with an estimate of 25,700 people taking up the offer which is a drop in the ocean when you consider the current forecast of Jobkeeper to be in excess of $60 Bullion - is this window dressing or will it help? The modelling forecasts that this will translate to supporting 140,000 direct construction jobs, as well as close to a million workers within the wider residential building sector.
Many Australians might be considering how they can access this grant, and may need someone to guide them on how to fund their build or home renovations.
Brokery can assist with finding you a broker you can trust to advise and direct you within this process, finding the best deal to suit you and your situation.
With the current market conditions, many banks have approval cycles that have blown out to up to 30 days for some financial institutions. Working with a mortgage broker could help speed that process up.READ MORE
Are you a first home buyer looking for that entry to the property market? Need to find the best broker near you to work with and help with your first major purchase?READ MORE