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Morrison’s housing stimulus gets tick of approval

investor-stories
1 minute read

Morrison’s housing stimulus gets tick of approval

by Cameron Micallef 03 June 2020 1 minute read

The Morrison government is set to announce a $25,000 home renovation scheme for eligible Australians who earn less than $125,000.

Scott Morrison
June 03, 2020

The scheme, which is predicted to give victims of the bushfires first preference, has been noted to only last for months to try and avoid creating upward pressures on house prices.

While Mr Morrison has not officially stated how the stimulus package will work, he has told media that it is targeted at tradies to help small businesses restart after COVID-19.

Propertyology’s head of research Simon Pressley has supported the government’s fourth stimulus package.

“Rumours about a federal government stimulus package for the construction sector containing something for renovations could prove to be a master stroke,” Mr Pressley said.

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Mr Pressley believes the quickest way to effectively boost the economy is through construction and confidence in the housing market.

“The biggest common denominator for 25 million Aussies is the roof over everyone’s head,” he said.

“Stimulating the renovation sector also means that the little guys and girls (local tradies) will get a lick of the ice cream, not just the big developers.”

He also praised the stimulus being targeted at existing dwellings over new ones due to the size and scalability.

“Normally, property sector stimulus is targeted at new dwellings – something Propertyology has never agreed with. A government policy [that] incorporates incentives for existing dwellings means that funding is reaching a much bigger critical mass. Australia has 10.3 million existing dwellings compared to building 0.2 million new dwellings each year,” Mr Pressley concluded.

Morrison’s housing stimulus gets tick of approval
Scott Morrison
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About the author

Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your... Read more

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