Incentives for home buyers key amid crisis

Iunderstand why some people have little sympathy for building companies that have started to experience a downturn in inquiries and sales. I have read their comments on news stories and on social media.

For the longest time building and construction have ridden the crest of one big, successful wave.

A lot of money was pumped into the economy and back into the pockets of those in the industry, including sub-contractors, tradies and Bob down the road who ran the local pie shop.

The wheels started to fall off when Covid hit but no one knew then how much of a kicking some sectors were about to endure.

I believe no one gave much thought to the supply chain and consequently how vital that link was to importing goods like building materials and food.

Throw in a labour shortage and a couple of Covid red lockdowns and the alarm bells started to ring.

Tourism was brought to its knees but construction soldiered on despite a Gib crisis and price gouging.

It limped through the escalating costs associated with building a new home and the insistence from most banks on fixed-price contracts.

In my view, however, it was the next trio of events that would send the sector spiralling and something we should all be concerned about.

The mounting cost of living and a cooling property market combined with surging home loan interest rates have delivered the knockout punch.

Master Builders Association national vice-president Johnny Calley says inquiries for residential new builds have plummeted between 70 and 80 per cent.

These stark figures came from its members and the decline had happened over the past six months.

Calley warns that some residential construction companies could go bust if they weren’t equipped to respond to the sudden decrease.

These are sobering thoughts. The other sobering thought is the fact construction has become a major economic player and this is unfolding in the middle of our ongoing housing crisis.

As others have rightly asked, what is this going to do to housing affordability? People are living in la-la land if they think the price of a new-build home will magically drop because of all of this.

My question to the Government is: Why can’t more money be put into its First Home Partner programme or other incentives which help people buy a home with the Government taking a stake in it?

Surely this would be a step in the right direction and help people onto the property ladder?