As the major parties and the independents continue their talks and Australia stays in political deadlock, there’s a glaring issue that no party has really directly addressed – and that’s housing affordability.
Because although there has been much talk about what they may do with respect to specific contributors to the economy, there hasn’t actually been any specific policy or initiative mooted by either party to address why some Australians simply can’t get into the property market.
And the issue largely comes down to the supply of property and the main issues concerned.
Although rental demand is still outstripping supply, there seems to be little incentive for new homes to be built because there is more needed to be done by governments on any level to make this an affordable option for homebuyers looking to enter the market.
Only last week it was reported that thirteen councils in NSW are currently refusing to approve new developments in protest over a recent NSW Government cap on developers levies. This new cap means the councils will now have to bear any cost above $20,000 for new drainage, roads, lighting and sewerage in new estates.
The councils argue that these costs will leave them billions in debt and will force them to have to pass them onto the ratepayer – increases that they know the ratepayer can ill afford.
And this is only one example in one region of Australia.
So as the political debate continues in Canberra – so too do the cries for politicians to come up with viable and long term solutions to the housing affordability issue that will allow more Australians a financial hand up to home ownership to support the great Australian dream.
Call me crazy, but I would have thought that was a vote buying opportunity for pollies that’s gone begging.
Tags: affordability, Federal Election, government, Home Loans; Budget; Affordability; First Home Buyers; Investment
I totally agree, I think both pollies left out quite a few important areas of concern in their campaign policies. I also think more needs to be done at the government level around break costs for refinancing your mortgage. They can be exorbitant and really, are they creating or allowing enough competition in the home loan industry. Come on.