As Australia races towards the next election, there are potentially bold changes on the horizon that could increase new home builds and make it easier for first home buyers to snag their slice of the property pie. So how can you make sure your electrical business shares in the potential spoils?
First it's useful to know the background.
Both the Federal Government and the Opposition are in talks about shaking up negative gearing. Not familiar with the term? Basically, it’s the practice that allows individuals to offset losses on investment properties against their taxable incomes. The result?
A big old tax break. This tax break tends it lock cash strapped first home buyers out the market, as cashed up investors snap up less expensive homes and use negative gearing to their advantage. Unfortunately for investors the powers that be have cottoned on to this loop hole, and are in talks about how to close the gap.
So in a nutshell, what’s on the horizon?
- Turnbull and his cronies plan to do one of two things – either cap the number of properties that investors can ‘gear’ OR limit the claims value of annual tax deductions.
- Labour has a similar plan in the works, proposing to repair Australia’s “leaky bucket” tax system by limiting negative gearing to new build investments.
Regardless of whether it’s the Libs or the left leaners that take it home in the next election, it’s looking like first home buyers will emerge as winners. In the wake of this social and economic shift, analysts are predicting a surge in the number of new builds.
For sparkies, this means new opportunities to score home building contracts. Which poses the question - Is your electrical business ready to rumble? If you want to ride what’s set to be one of the biggest housing waves of the decade, there’s a few things you should be ticking off your list:
Streamline your operations
While it’s easy enough to manage a project or two single handedly, taking on more work calls for a smarter strategy. That’s where technology comes in. Packed full of time saving features to help grow electrician businesses from the ground up, Tradify Job Management Software is a must have tool for any sparkie wanting to stay on the ball.
Make that phone ring
Forget the Yellow Pages. If you want to make your phone ring, it’s all about getting online, being found, and soaring up the Google search engine rankings. Have you got a website? If not, hit up Weebly, Wix or any other free platform and get started. If you’re a bit behind on the tech bandwagon, start with a Facebook page. Read this post to get your page underway.
Stay on top of trends
Brickies are lucky in the sense that federation tuck-pointing and straight walls will never go out of fashion. But for electricians, the arena is ever changing. Think smart home technology, energy saving bulbs, device automation… The list goes on. Our advice? start spending some time on sites such as Houzz and Pinterest .
Browse these sites in your spare time (assuming you have some) and share articles or images on your Facebook page that you find interesting or appealing. This will help build trust, credibility and demonstrate an awareness of the latest trends and solutions. It will also help upskill you in what the cool kids are doing these days.
To help ensure your pipeline is overflowing and your margins are competitive now’s the time to start forming a tight bound with your local suppliers and builders. Getting in tight with a steady supplier can unlock access to all the latest products via one central transaction at a competitive rate. Being all buddy buddy with the best builders around will also give you access to a steady pipeline of work as the new home builds come on stream.
With negative gearing on its way out, the outlook is looking peachy for electricians with the scope to take on new home build contracts. Is your business ready?