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Budget ’08: Housing affordability and property investment

by Marquette Turner

in Money & Business, News & Views, Real Estate Radar

The budget has introduced a range of measures to address housing affordability.

  • The Government is committing to spend $623 million over four years on a rental affordability scheme that will stimulate the construction of new rental properties by providing investors with $8000 a year for 10 years for each property that they rent out for 80 per cent of the market rent.
  • A fund for affordable housing worth $500 million over four years will also help to increase the supply of new housing by assisting with surrounding infrastructure and cutting obstacles to development approvals.
  • A national housing supply council will oversee the adequacy of the nation’s housing stock for the next 20 years, and the Government is looking for surplus Commonwealth land that could be used for new housing.

Housing Industry Association Managing Director Dr Ron Silberberg said the $21.7 billion surplus would help mitigate interest rate pressures and investment in infrastructure and skills would help reduce inflationary constraints and increase productive capacity.

“Measures aimed at boosting the supply of new housing along with desperately needed urban infrastructure will assist in pegging the gap between underlying demand and current production,” Dr Siberberg said in a statement.

Housing commitments in the budget include $500 million over five years for a housing affordability fund, $623 million over four years for a national rental scheme, $1.17 billion over five years for first home saver accounts and $10 million to assist with financial counselling for Australians facing mortgage and rental stress.

The government had increased investment in skills to address immediate and longer-term needs for tradespeople for the housing industry, according to HIA.

HIA also said it applauded measures aimed at making cities more efficient and productive through new investment in transport, community facilities and services is.

Simon Turner

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