Tuesday, December 3, 2024

Housing values soar and more and more people are being priced out of the market - but there may be an option - help to buy programme





Data released on Tuesday by the Australian Bureau of Statistics showed the total value of the nation’s dwellings increased to a record $11.1 trillion to the end of September and house values have jumped by $3.8 trillion, or 52 per cent, since mid-2020.


And yet homeownership rates have fallen - with 20pc of people saying they cannot see themselves ever buy a home !!


And rents are increasing because of lack of supply !!!


How can banks and lending policies change this paradigm?


  • reduce threshold
  • 1st 40k of super to buy a home
  • Help to buy scheme


The case for a housing fund and the government partnering with first home buyers to buy their first home 


Home ownership fosters stability, security and individual aspiration,”


So what business on property industry benefits from capital growth ?


  • Banks ? Nope. Makes no difference to the bank if you house doubles in value or goes up 5%. 
  • Developers ? Nope, they buy, build and flip. 
  • Real estate agents and portals ? Nope - transaction fees on prices not exposure to wealth thru growth.


A Housing Fund - yes - they make their returns from capital growth…… partnering with home owners - whether thru shared equity for owner occupiership or dignified, secure rental. 


This is one of the many reasons why the government help to buy programme is genius and that every person who has the ability to partner with the government to buy a property should!! 


#propertyinvestor #propertyinvesting #houseprices #housingaffordability #housingcrisis


Source :- Evan Thornley https://www.linkedin.com/posts/evanthornley_the-newest-culture-war-battleground-australian-activity-7269813477970501633-3rq8?utm_source=share&utm_medium=member_ios


Sydney morning herald https://www.smh.com.au/politics/federal/the-newest-culture-war-battleground-australian-house-prices-20241203-p5kvbg.html

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