Debate rages on affordability

A-new-report-has-some-answers-to-the-affordability-question-_157_6012448_0_14090866_300There has been plenty of coverage on the impressive state of the property market across the country, particularly in the booming real estate heart of Sydney. Debate has flown back and forth about ways to ensure all Sydneysiders get their chance to buy a home. Many believe it’s up to federal and state policy makers to take the reins and develop meaningful measures that open the doors to all types of people – and this looks to have been confirmed by the Senate Economics References Committee’s Affordable Housing report.

The study has been commended as an important element in pushing for an affordable property market, to which all Australians have access. It highlights just how important it is that all levels of government across the country ensure that housing is accessible.

Supply has long been identified as a big hurdle to overcome, particularly with demand for property soaring ever-higher. Construction continues to play an important part in supporting the country’s economy, but commentators have criticised policies like stamp duty for preventing homes from being built. However, the senate report has some encouraging news for the future of building. It recommends that stamp duty be phased out, something that the Real Estate Institute of Australia (REIA) has applauded enthusiastically.

“REIA has long argued stamp duties are a highly inefficient tax that limits population mobility as highlighted in the Henry Tax Review,” CEO Amanda Lynch said in a May 8 release.

“It is very pleasing to see the Government consider the new dynamics facing younger Australians and we now call on the government to follow up this review with sensible and workable actions,”

Sydney solution

The City of Sydney has also thrown its weight behind the affordability discussion. A new housing issues paper released by the council outlines that state and federal policymakers need to work in partnership with developers, community housing providers and financiers to offer a broader range of affordable housing across the New South Wales capital. Lord Mayor Clover Moore pointed out that the City has already put nearly $20 million into the establishment of affordable rental accommodation, but admitted that more is needed.

“A diverse housing supply is fundamental to the cultural and social vitality, economic growth and liveability of Sydney,” Ms Moore said in a May 13 statement.

“Together we need to look at new models of large-scale affordable rental housing that [are] delivered through partnerships among private developers, institutional investors, the not-for-profit sector and governments.”

With conversation in all levels of government swinging firmly towards affordability, the outlook appears positive for those buying a home.

Leave a Reply

Your email address will not be published. Required fields are marked *