Improving Houses in Australia
One of the great pay-offs for the JobKeeper calculation error might be a proposed Federal Government grant of up to $40,000 for home renovators that could help provide work for an estimated 58,000 tradies who've seen work dry up since the Coronavirus came to town.
Building industry experts say around 70,000 tradies have been put into hibernation and this proposed $4 billion spend to get homeowners spending is seen as a good idea.
Gotty asks why to throw more money at the sector but it seems more likely that the promised $40,000, which we have no details about yet, will be targeted at a more substantial renovation compared to a DIY weekend effort after a trip to Bunnings.
An AFR story today cites tradies who say clients' jobs have been put on hold because of the uncertainty linked to what COVID-19 threatened for the economy and jobs.
For those out there who worry about our internationally high household debt, if 100,000 homeowners secure a $40,000 grant and increase the value of their homes, then they'll have more valuable assets, which reduces any potential problem of negative equity, where the value of the home is less than the loan behind it.
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