The Building Stimulus Explained and How you Can Benefit

June 30, 2020

There’s been a buzz of excitement recently amongst the Building and Property Development industry and it has much to do about the new Government Stimulus package that was introduced in May this year. For anyone that isn’t aware of what this entails, it’s basically an incentive for eligible Australians to receive $25,000 worth of cash grants for home building and renovation. This incentive has a double-barrelled advantage supporting both Australians in either purchasing or renovating their homes as well as boosting the construction industry, ensuring that it remains strong on the back of the COVID-19. The HomeBuilder stimulus is expected to support 140,000 direct construction jobs – along with a further 1 million workers in the residential building industry. This is great news for this industry and now more than ever this market sector should be seizing the moment to make the most of this opportunity and to stay ahead of the game. In this article I will be explaining some of the ways that builders, property developers and industries affiliated with real estate can maximise this incentive by employing a targeted design and marketing strategy.

Before I outline the Why and How to, it’s important to explain the What. What exactly does this stimulus offer and what are the limitations around who can benefit? A basic 101 overview on this package would be as follows;

  1. Eligible Australians will receive $25,000 Homebuilder cash grants to cover home building or renovation and will be available from June 4 until September 31 and construction must start within three months of the contract date.
  2. The one-off payments will be available to individuals who earn less than $125,000 a year. For couples the combined income must be less than $200,000.
  3. The HomeBuilder is to be used for new builds valued up to $750,000 or renovations worth between $150,000 and $750,000.

This stimulus goes a long way in addressing one of the biggest challenges to Australian new home buyers, builders, renovators and investors – the constantly rising property prices.  This is particularly evident amongst Sydney siders where rising property and building prices squeeze the average Jo out of the market. Most Australians are no longer just dreaming of the house on the quarter block with a hills hoist in the backyard. There’s been a real shift with expectations focussed on lifestyle, comfort and a certain degree of luxury when it comes to housing. The is where the stimulus can help towards reaching this milestone achievement and support a lifelong Aussie goal.

If you are a builder or property developer you can really maximise your reach and growth by doubling your marketing efforts now. Some of the factors that you should be considering is the speed in which you are jumping on this opportunity. By being on the front foot with talking to your potential customer database to inform and educate them about the stimulus you will be the first to connect to potential customers, nurture the relationship, and you will inspire trust and loyalty. All of this adds up to ultimately giving you the advantage and the larger slice of the market share. If you can also  anticipate your customer desires and pains by creating information packs that gives value by answering questions and alleviating concern as part of your marketing material you will be able to provide more confidence to your customers which will ultimately result in decisions made more quickly. A faster decision process equates to a faster sales process and who doesn’t want to close the deal in the most efficient way possible?

That said it’s not enough to have well thought through, informative marketing material if you haven’t considered the best marketing channels to communicate through. Foremost you need to understand who your target market is, in this case the majority of first home buyers are millennial couples that earn less than 200k a year. When marketing to this group you need to think about channels that have the most effective cut through to this market sector.  Millennials have an expectation for customer centric engagement, they want to purchase from a supplier who they can make an emotional connection to inspires trust and loyalty, and they want an experience that connects to their core values. They are also the market sector most likely to use the digital realm to research options and gather information.  Based on this, digital should be a major part of your marketing strategy. A well branded, informative and engaging website is mandatory. Use your site as a platform to inform potential customers about the grant, make sure this information has cut through on your homepage and that is has a strong offer and call to action. Social Media is another important channel for this market sector and is one of the most effective ways to connect in a personal and authentic way to your customers. Social Media allows for consistent, dynamic engagement and it’s also a great platform for showcasing past client testimonials which builds trust and loyalty. Other channels like EDM’s are also an important part of your marketing strategy as they offer a way to personalise your campaign and raise your profile in the marketplace and drive customers to your website.

In a nutshell if you are in the building or property industry it’s important to understand that the real opportunity the stimulus provides for your business growth lies in your ability to authentically inform and educate your community and customer base, helping them make the best decisions to support their goals. It makes good sense to engage a professional creative agency that is skilled in providing strategic, relevant marketing material to communicate your message and can guide you in the best channels to best position your company out in the marketplace. And remember that with opportunities like these, time is of the essence so be proactive!