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The Morrison government’s HomeBuilder scheme has garnered mixed reviews in the property industry as Australia moves closer to the end of the 2019–20 financial year: Here are the biggest stories impacting the real estate industry this week.
Welcome to REB’s weekly round-up of the headline stories and news that’s important not only for the real estate sector, but also for the state of property in Australia more broadly.
To compile this list, not only are we taking a look at the week’s most read stories and the news that matters to you, but we are also curating it to include stories from our sister platforms that could have an impact on the Australian property landscape.
1. Agency unveils 100% commission offering
A new earning scheme will see @realty agents given the ability to earn 100 per cent commission on their property sales.
The scheme will see agents who have paid $20,000 in service fees through their standard commission become eligible to retain 100 per cent of the commission earned on any further deals.
2. Elders makes new acquisition
Elders has confirmed it has made an acquisition in Dalby to coincide with its expansion plans across the Darling Downs and surrounding districts.
Elders has acquired Eastern Rural in Dalby, effective from 1 June.
3. REIA backs HomeBuilder package
The REIA said the HomeBuilder package will go a long way in supporting the residential building sector by providing assistance to owner-occupiers to build new homes and renovate existing ones.
“The REIA believes [it] will be a massive boost to the employment of home builders and tradesmen at a time when a major driver of economic activity was stalling,” president Adrian Kelly said.
4. How to get the most from the HomeBuilder scheme
There are plenty of options available for savvy owner-occupiers to receive terrific “bang for their HomeBuilder grant buck” and add value to their home, a buyer’s agent has flagged.
5. WA retains most affordable state title
Western Australia has been declared the most affordable state for buyers and tenants for the 11th consecutive quarter.
6. True lockdown impact won’t be understood for months
According to the REINZ’s new Residential Confidence Report — aimed to understand the impact COVID-19 has had on the housing market and track recovery — the COVID-19 pandemic is entirely unprecedented, with little to compare with; therefore, its impact can’t be immediately understood.
“Naturally, some of the indicators became quite marked during April, including a dramatic drop in sales volumes and the percentage of auctions held — although this isn’t entirely surprising given the lockdown. Additionally, median days to sell and listings increased and there was a slight falling in the sales price to valuation ratio,” Bindi Norwell, chief executive at the REINZ, said.
7. Government extends instant asset write-off deadline
The federal Treasurer has extended the $150,000 instant asset write-off scheme by six months to help businesses buy new and second-hand assets and help improve cash flow.
The federal government first increased the instant asset write-off threshold from $30,000 to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020, as part of the government’s first “targeted” $17.6 billion stimulus package in response to COVID-19.
8. Why you shouldn’t fear an economic downturn
Real estate agents are being advised not to fear the economic fallout from COVID-19, with agents still able to make deals in a boom or bust economy.
9. Broker market share hit by ‘blowout’ in turnaround times
A spike in processing times for mortgage applications has contributed to a decline in the share of broker-originated loans.
The latest data commissioned by the Mortgage & Finance Association of Australia (MFAA) has revealed brokers originated $49 billion in loans in the three months to 31 March 2020, up by 20 per cent from $40.8 billion in the previous corresponding period — a record high for the March quarter.
10. HomeBuilder could ‘intensify’ slide in property prices
The federal government’s new housing stimulus could have an adverse impact on residential property prices and produce a “negative wealth effect” despite the assistance it will provide the residential construction sector, according to AMP chief economist Shane Oliver.
11. Quantum to pay $700k for misleading property investors
Quantum Housing has been ordered to pay $700,000 in penalties after the Federal Court found that it made false or misleading representations relating to the National Rental Affordability Scheme (NRAS).
The group failed to tell investors that it had commercial links with the property managers it recommended and told some investors that their existing property manager “had not properly managed their property’s compliance with the NRAS, when this was not true”, according to a statement provided by the ACCC.
ABOUT THE AUTHOR
Grace Ormsby
Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.
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