JobKeeper Scheme is About to End - So What Now?
When the pandemic hit due to the coronavirus, the effects were indeed dire. Lockdowns had to be imposed to keep the virus from spreading even further. Unfortunately, this also meant that people had to stay home and businesses were either forced to shut down temporarily. Because there was no profit coming in, for some businesses, the temporary ended up permanently.
The JobKeeper Program was established early in 2020. The government acknowledged the fact that so many Australians are losing jobs left and right, so what this program will do is to support these workers financially, as well as businesses and non-profit organization. It was initiated to keep Australians working especially during these times when it’s critical to keep finances rolling. Because of the response among workers and business owners, the scheme was extended until March 28th so it is about to end very soon.
Now the question is, what now?
Fortunately, looks like things will continue to look good for Australians even after the deadline. Top economists maintained that the strength of the real estate industry will remain. The pandemic indeed challenged the industry with housing price drops, but this year, it proved how tough it is when prices soared in major cities and other regional towns, which was not what the forecasts actually predicted. However, as the JobKeeper program ends, so does the extension of reduction of payments, bank mortgage holidays, and rental eviction moratoriums. But economists are saying that it will have little to no implications since the housing market continues to gather its pace.
No dramatic impact is also expected to occur on house market and prices especially because of the amazing turnaround of unemployment in the country according to with a decrease of 5.8 percent from 6.3 percent in February 2020. The demand for skilled individuals and even migrants are increasing too.
While of course it is natural that there will be concerns about the the end of the subsidy because of the fact that this would put about 110,000 jobs at risk, the overall strength of the economy will become a reassuring thing.
Right now, experts are saying that the only thing that will slow down the housing market’s remarkable recovery has to do with interest rates. Hiking of the interest rates plus cracking down the lending could become the main reason for any delays, but experts clear that this would not happen anytime soon. The housing market’s current rate might not keep going, but any chance of it crashing is very slim as well, so it looks like it’s going to be a good year for investors and developers.