The government and financial regulators are urged to work with financiers to help Australians unlock the equity of their properties.
Gary Brinkworth, CEO of Herron Todd White, said allowing easier access to home equity will be able to help struggling individuals and businesses amid the COVID-19 outbreak.
"We believe the time to act is now, to provide additional liquidity to eligible property owners to help them navigate these uncertain times, creating opportunity to survive this downturn and establish a strong position that will help contribute to the economy," he said.
Many Australians, Brinkworth said, are "asset-rich, cash-poor." This move for easier equity access will help them bounce back quickly and create a financial safety net.
However, it is also essential to bring into discussion the impact of the COVID-19 on property values.
"The integrity and discipline of the current lending system can be preserved and leveraged to help property owners through this challenging period," he said.
Also read: Beginner’s Guide To Accessing Equity From Property
Brinkworth said property valuers have a role in preserving the integrity of the financial system while allowing Australians to unlock additional liquidity during these times.
Furthermore, Brinkworth believes that the real estate sector has been a viable source of wealth-building given the sustained value growth over the decades.
"The government's incentives and the cooperation of the different stakeholders should allow us to realise the potential of this initiative at a time when people need it the most," he said. "We are calling on the government and the regulatory bodies to make this possible."
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