Facing up to realities

Housing affordability is never far from pollies’ thoughts but there remains a need to take into account several essential factors

FOLLOWING yet another recent announcement from one of our political parties offering more solutions to housing affordability one could be forgiven for thinking “here we go again”.

It seems something gets proposed to address housing affordability almost weekly from politicians and an array of experts. And there’s usually a predictable pattern that follows.

That is that once these announcements are made very little happens. I believe it is time to acknowledge a few important factors.

Owning a property will not always be possible for all and some may never want to commit or have the desire to be financially burdened.

What does affordable mean? A typical young couple on average salaries may not be able to afford a home in a popular inner-city area in our big capitals, but by moving further out and accepting, say, a one-bedroom unit as opposed to a threebedroom house may well be able to.

Buying a home means you have to save. You may have to forfeit expensive holidays, the jet ski, car upgrade and eating out five nights a week. Try making instant coffee at home before you leave for work or take some with you.

A free market should allow non-residents of Australia to buy Aussie homes but some restrictions should still be applied.

Many middle-income Aussies support our vast rental market as landlords. Without landlords such as this, who’s going to fund building new rental housing and where would tenants go?

Give genuine first home buyers a break nationally. No stamp duty on first home, old or new.

Governments at all levels need to acknowledge that no amount of initiatives can address housing shortages in prime city or coastal areas where virtually no land is free to develop.

Finally, do not presume announcing the building of 55,000 new homes will make homes cheaper. It may increase supply but developers will only build them if they can make a profit.