Australian Housing Shortage
As more people flock to Australia for retirement or to purchase second homes, the supply of new housing is short to meet the demand. Also increasing the need for new housing is the expected surge in Australia’s population. The main problem with the housing shortage is that house values will rise, as will interest rates. In 2008 and 2009, Australia saw its new dwellings decrease by 18 percent. If there are few setbacks, the Housing Industry Association forecasts a growth of new dwellings by 16 percent over the next few years.
Setbacks to Building New Australian Homes
Availability of existing buildable land is one problem developers are dealing with. While it’s a large land area, only a relatively small percentage of it allows for comfortable living. Many of the people wanting new Australian homes want to live in the coastal areas rather than the rugged terrain of the Australian desert.
Trying to find enough land to satisfy the residential desires of home buyers is a difficult task. The Australian dream is to own a nice-sized home with enough outdoor space to entertain. The lack of land not only decreases the number of homes but reduces the size.
Australia is also experiencing a lack of lending available to home builders. Developers have been able to get approval for new communities, but without the needed funding they have been unable to begin building. What home buyers are finding is that they qualify for home loans in the form of mortgages, but the housing they desire isn’t available.
How Can Australia Resolve Its Housing Crisis?
Developers are hoping that councils and state governments will decrease the amount of time it takes to get approved for land. The more land a builder can get approval for at one time, the more communities they can begin to plan and develop.
Lenders must also improve lending procedures to allow builders the money needed for development. Banks must start creating equal lending opportunities for both buyers and builders.
Conservative groups and politicians believe that the Australian housing shortage can also be conquered by reducing the tax incentives offered to families for each child they have. Hoping to reduce Australia’s population by reducing the average family size isn’t a proposal met with much excitement, but some see it as a viable option for helping to increase the number of dwellings available.
The reason new Australia homes are so important is that the availability of older homes is also scarce. Whenever a nation receives a vast increase in its population, the need for new homes rises. Many property owners, developers, and investors see all of this as a great opportunity for profit potential so are investing in Australia real estate wherever possible.
I hope you have enjoyed this information this week, it s good to know what is happening if you wish to move to Australia or perhaps you live here, investment in Australia housing has always been positive history has shown that investors have been very successful.
Let me know how you feel good luck and I look forward to next weeks column.