MORISSON’S GOVERNMENT AIMS TO FOCUS ON HOUSING AFFORDABILITY
- Posted By Prince Lakshman
Housing affordability is now the focus of Morrison’s government, according to federal Housing Minister Michael Sukkar.
The government is taking initiatives to making the Australian dream of owning a house an easier one to reach. These combined initiatives consist of the first-home buyer super saver scheme, the first-home buyer 5 per cent deposit scheme and the National Housing Finance Corporation.
Mr Sukkar emphasised that all those initiatives are really placing housing affordability at the centre of the government’s thinking.
He also claimed Australia’s housing affordability was at its best in 20 years.
“Does that mean we’re happy with where things are? Of course not, but it is encouraging to see affordability is inching back from where it was in the heat of the housing boom,” Mr Sukkar said.
According to the Housing Industry Association in a press statement issued last week, the housing affordability in the country was “the best it’s been since 1999” by analysing the dwelling prices, mortgage interest rates and wage developments. However, the reliability of that calculation has been questioned.
A $40 million concessional loan to community housing provider Bridge Housing was announced by the Housing Minister in Glebe, in Sydney’s inner west this month.
The low-interest housing loan which spans to 10 years will give Bridge Housing the ability to refinance existing projects and fund new ones.
The loan will support 300 social and affordable homes with most of the loan refinancing existing development programs in the Sydney suburb of Glebe, Blacktown, Parramatta and Ashfield.
Bridge Housing chief executive John Nicolades said the federal government could directly invest in social housing and stimulate the economy at the same time.
“We know that from previous interventions that’s a pretty effective way of stimulating the economy and getting the building industry going,” Mr Nicolades said.
The new first-home buyer 5 per cent deposit scheme, which Prime Minister Scott Morrison pledged in the last stretch of his election campaign, was said to be on its way and would commence by the 1st of January.
It’s highlighted that under this scheme, only first homes below a certain value will be allowed under the scheme. Those are still to be determined and they will be determined on a geographic basis.