This budget delivered last night is all about addressing housing affordability over the long term by ramping up supply - say Treasurer Jim Chalmers
“We want more Australians to know the security of decent housing and more Australians realising the aspiration of homeownership,” he said in a joint statement with the housing minister, Julie Collins.
“It’s more important than ever that we work together to ensure there is an adequate supply of affordable housing where it is needed – close to jobs, transport and other services.”
The federal government Budget has set an "aspirational target" to "build one million new well-located homes over five years from 2024".
The states and territories will be expected to "expedite zoning, planning and land release for social and affordable housing".
Labor’s flagship election promise – a shared equity scheme – aims to help more people enter homeownership with a smaller deposit and smaller mortgage.
The federal government's main role will be to create conditions that lead to more private investment from #superannuation funds and other institutional #investors.
“We have the world’s third-largest pool of capital in our superannuation system, which is hungry for investments that will deliver stable returns over the long term for the benefit of members.”
Housing supply and affordability is an important piece of the solution.
Under the new National Housing Accord:
* 10,000 of the one million homes will be financed by the federal government costing the budget $350 million. This was on top of the $10bn Housing Australia Future Fund, promised by Labor before the May election to build 30,000 new social and affordable housing properties in five years.
* 20,000 will be financed by the states and territories
* most will come from the market - superfunds and investors - we need to support them and remove barriers
* In 2020, the Victorian government announced a $5.3bn “big housing build” to fund 12,000 new social and affordable homes in four years. tripling the size of its Victorian Homebuyer Fund to $1.1bn
* The Queensland government, meanwhile, recently announced $2bn to deliver 13,000 social and affordable homes by 2027.
The median cost of a home in Sydney is still a whopping $1,053,131. A 20 per cent fall would only bring that down to $908,255.
In Melbourne, the median home value is $774,531. A 20 per cent fall would bring that down to $638,625.
The median price of a home in Brisbane is currently $746,017, while in Adelaide it’s $649,983.
The median home price in Perth is $558,879 and in Hobart is $705,079.
According to the Australian Bureau of Statistics, about 985,000 new homes were built over the five years to March 2022, though the majority were completed before 2018-19.
Housing starts have been reducing due to COVID, weather , bureaucracy .
Treasury forecasts there will be about 180,000 housing completions on average across the next three financial years,
And yet there is a plan to bring in 190k immigrants a year
(Which is great)
- “Removing tax barriers to institutional investment in new residential development projects such as build-to-rent could play an important role in tackling the undersupply of rental accommodation.
- “Improving planning regulations and removing inefficiencies that reduce approval times are key to this. So too is rezoning, releasing, and decontaminating land to enable more residential development,”
- freeing up ‘well located’ land, for example in and around train stations and TAFE campuses.
Under the scheme, the government will co-purchase up to 40% of a new property (or 30% of an existing home) with an eligible buyer. Over time, the buyer could buy out the government, or pay out their share once the property is sold.
Help to Buy will be open to 10,000 Australians each year. Individuals earning less than $90,000 and couples earning under $120,000 could be eligible.
The government hopes to have the scheme up and running in the first half of next year.
For example, if a buyer purchased a $400,000 home with a 25% shared equity, they’d only make repayments on a $300,000 loan, minus any deposit paid up front. They will, however, need to cover the ongoing costs associated with owning a property.
This is already operating in several states, including Western Australia, South Australia, Tasmania and Victoria. And just weeks ago the NSW government proposed its own shared equity scheme.
From 1 October 2022, the Regional First Home Buyer Guarantee will help 10,000 buyers per year enter the housing market outside of the capital cities.
eligible applicants can purchase a home with a deposit of as little as 5%, with the government guaranteeing up to 15% of the purchase price.
Jim Chalmers
Anthony Keane shares in the Sunday Mail on Aug 28 2023 the 7 keys to getting rich - slowly!
Make sure that more money comes in than goes out on a monthly basis - and with that surplus
Buy low , Sell high with other peoples money - and do it regularly.
Don’t be afraid to take risks and fail until you succeed !
Chant West senior investment research manager, Mano Mohankumar, is acknowledging super balances will end the financial year in the red ….
But suggests that people should not panic and sell
Why?
“This is only the fifth decrease in 30 years comes on the back of the outstanding 18 per cent return in financial year 2020/21, the second best in the history of compulsory super.”
You risk missing out when markets rebound – as they will at some point.
Those who switched to cash during the Covid-19 market meltdown missed out on $110,000 in returns by panicking, Chant West’s research showed.
2030 predicted Growth - expectation that cash is not a place to hold your assets long term
A member who had $300,000 in super savings at the beginning of 2020, were projected to have $480,000 in super by the end of 2031 if they stuck with their growth fund.
But a switch to cash in March 2020, would mean they have just $369,000 by the end of 2031.
I have just read a great article by my good friend Rana Kordahi - who has presented at our forums a number of times and been a member of BBG .
In order to understand and develope a relationship with your customer, employee or shareholder , your child spouse or friend (your stakeholder ) - you need to know what they want - what presses their buttons - what influences them.
A10X principle comes to mind - Give a person what they want and you will get what you want
Make your stakeholder feel special!
Do you make your prospects and clients feel special?
Be sure to listen to them, ask questions and help them? Both face to face and online
Perhaps give them a piece of information no one else knows? What are some specials that you have for a limited time? (But you need to do this with integrity and be honest.)
Here are Cialdini’s 6 principles of influence will help you develop that relationship and close more deals
John Maxwell says about leadership…. Leadership is About being able to influence nothing more nothing less
Robert B Cialdini, a well-known social psychologist, who spent three years undercover working in places such as used car dealerships, fund-raising organizations, and telemarketing firms. In this time, he observed real-life situations of influence and persuasion.
If you’re a business coach, perhaps think about giving a free discovery session or webinar.
If you have a software or app, give free trials and spend some time helping those who sign up using it.
People feel more indebted to someone who has offered something for free, whether it’s a product, time, advice or service.
But in the end, give because you’re a nice person and the other person FEELS that you genuinely wants to help whether you get something back or not.
Make your stakeholder feel special!
Some ideas to build a spirit of generosity and reciprocity:
Do you offer value, give free information, time and resources away? Do you go above and beyond to help your clients?
Do you invite them to an event that they may be interested in
A super powerful gift that does not cost a hellava lot is to make a referral .
A problem is that you are giving of yourself - and can be very expensive…. What if the other person doesn’t do a great job? What if he/she does not follow up?
How can you track measure and reward that referral - or warm introduction?
(Referron is a free app that enables you to send your business card and simply refer people to others (and track those referrals ) . Would love your feedback. Click here to view my profile and connect with me https://members.referron.com/bsivc ) Here is a little instruction video https://youtu.be/s-jhxmABIm4 looking forward to catch up soon. Best Ivan )
Many times, we are influenced to purchase something when there are not many of it left. It is human nature when somebody tells us that we can’t have it, we want it more.
Other times, when a product or service is at an unbelievable low price for a limited time, we will be more inclined to purchase because of the fear of missing out. Now as a salesperson or a marketer, don’t ever drop your prices and say that they are limited unless they are limited.
Make your stakeholders feel special
Klt is l fundamental aspect of being able to sell. People prefer to say yes to those they know like and trust .
Research done on Tupperware parties shows that the guests are three times more likely to buy products because they liked the party’s host and not because of the products themselves.
So, it’s important to make a good impression not only face to face, but online through your social media. Videos, blogs or write Facebook statuses.
Come across as a positive, authentic inspiring trustworthy person who the people you want to be your customers want to be around.
Stay real , authentic and true to your values , be sure toml be what you do and the values of your organisation align with your
Don’t compromise your integrity or values to win a deal.
Trust, Credibility and Social proof - Advocates testimonials
the trend is your friend
We prefer to buy things that many other people have used and tested.
Why is a restaurant packed and the one next door is empty?
People follow the latest trends and use products and services that are working on others.
Testimonials from customers and influencers are key - maybe share photos/videos of your customers and influencers and advocates using your products and services.
Questions about your social proof:
Get testimonials and happy customer stories you can share with clients?
Does the company you work for have credibility, and presence when you search for them online?
Would your existing clients recommend you and your company?
Do you highlight your company’s social proof in client meetings or even through your email signature?
If you refer - do you track measure and reward your referrals or testimonials ?
This shows that you know what you are doing and are authentic. That is they buy your product or service that it will last
How do you get your customer to say yes and get them to agree and say yes if this is what they want.
Rana’s gold - ASK and Get agreement - get them to say yes 5 times - show them your final offer and gain some sort of commitment from them to take action.
Questions to consider for consistency commitment and consistency:
Can you show consistency?
Do you walk the walk - consistently ?
Do you ask clients to commit to their word in regard to showing up to meetings, renewals or even giving you referrals?
Do you ask good closing questions to get the customer to close themselves?
Be credible and know what you're talking about. Building your centre of influence - online or offline.
Share content that highlights your expertise. Give talks, write articles, feature on podcasts, host events or simply be good at what you do.
You cannot fake authority. And it does not come easy - it takes work, practice and time to be an expert and centre of influence in your field
Some questions about your centre of influence
Are you the go-to person in your field?
Are you a trusted adviser?
Are you a centre of influence
Do you professionally develop yourself rhgilatly and consistently
Do you show up with confidence, look and the part ?
The key
The 5 Cs - to build a connected collaborative community of people around you
Connect collaborate contribute competently and consistently
So, inflation has reached 5.1% and seems to be climbing …..
It’s an issue being felt around the world
In the 50’s like today there were skills shortages and rising inflation peaking at 23.9pc in 1951 as a result of Korean War and end WW2.
Property and construction sector generally booms in times of inflation !
HomeBuilder Grant and surplus savings from lack of spending during lockdowns - will create opportunities
Construction companies have been falling like flies - going into voluntary administration as a result of difficulty managing cashflow , meeting delivery timeframes and supply chain issues amid other challenges.
Prices are rising and the surrounding circumstances are extremely volatile and uncertain.
Business owners need to
Your accountng business will grow if you focus on adding amazing value to the clients you choose to focus on !!
RSM started in 40s and 50s and grew 250 pc
How are you going to 10X your business ?
