“The Great Depression and two World Wars did not bring Australia to its knees, neither will COVID-19,” Treasurer Josh Frydenberg said.

In hopes of driving Australia out of the Coronavirus recession, the 2020 Federal budget is geared to support businesses and workers with tax cuts made available to 11 million Australians, wage subsidies and business incentives.

By doing so the government hopes to put money in the hands of the people, willing them to spend to boost the economy.

The housing market is expected to benefit as well with three major housing related measures aimed to stabilise and boost the industry.

 

First Home Loan Deposit Scheme Extension

The scheme, which started on the 1st January this year, aims to encourage purchases of newly built homes. An additional 10,000 places will add to the 20,000 places already made available since the beginning of the scheme. The large millennial population, aged around 26 to 37 years old, are expected to take advantage of the loan deposit.

 

National Housing Finance and Investment Corporation (NHFIC) Additional Low-Cost Financing

To support the construction of affordable housing, the government allotted an additional $1 billion of low cost finance through the National Housing Finance and Investment Corporation. New home sales have already been boosted across Western Australia, South Australia and Queensland since the introduction of the HomeBuilder scheme. This additional financing is expected to further boost new home sales.

 

Indigenous Home Ownership Program Additional Funding

Aside from $4.6 billion annual rental assistance and $3 billion community housing financial aid, the government is also investing $150 million to the Indigenous Home Ownership Program. This is to encourage construction of new homes in regional areas. By doing so they hope to create more jobs and help indigenous families buy their own homes.

 

The uncertainty created by COVID induced recession will no doubt add to the unpredictability and volatility in the market in the coming months. For many real estate agencies, it is a time to focus on how they can minimise expenses without losing market share to competitors.

If your real estate agency would like to reduce operating costs to negate any losses that may be coming due to market volatility, we can help you. Universal Property Systems can offshore your real estate administrative roles and save your agency between $100,000 and $400,000 (depending on the size of your agency) per year.

Our global team members are trained and monitored by Australian real estate industry veterans with years of experience. Transitioning to offshoring will help your business gain a competitive edge without compromising the quality of your customer service or your brand’s integrity.

If you are a decision-maker in a real estate agency and you would like to explore how you can reduce your costs give our Csutomer Relations Manager, Sarah Sandas, a call on 0456 003 440.

 

 

Source:

What does the federal budget mean for the Australian housing market?

Federal budget 2020: Tax cuts and other measures tipped to help housing