The government has asked the public to pitch in new funding strategies ideas to increase the inventory of affordable rental housing in Australia.
According to Domain, the Turnbull government says that affordable housing is a very big problem with it needs help from the public in terms of finding "financing models" to increase supply of low-cost rental homes for low-income households. It issued a publication that details the issues and four possible financing models that private investors might find interesting. These models are all aimed at the social housing sector and private rental market that will cater to low-income families.
The published paper reportedly includes the following suggestions:
1. Housing bonds-to encourage debt financing of low-cost housing
2. Housing trust-aimed at large scale investors
3. Housing co-operative-a housing model that aims to provide housing assistance for its members
4. Social impact bonds-designed for investors who are seeking social and financial returns.
According to Domain, the Bureau of Statistics in 2013-14, 26.8 percent of the 3.6 million low-income household in Australia face Rental or mortgage stress, which is a result of having to pay more than 30 percent of your income on housing. The same data shows that 657,000 low-income households are in rental stress, around 318,000 low-income households are in mortgage stress and 187,500 households across Australia are on the waiting list for public and community housing.
According to Realestate.com.au, under the Turnbull government, Scott Morrison is Treasurer. Housing Industry Association Chief Executive of Industry Policy and Media Graham Wolfe said that Morrison has a solid understanding of the property affordability issues. Overall, the publication suggests that Morrison want to address affordability by increasing supply. Now the Turnbull government want to put to work policies that can help increase supply and is seeking help from the public for ideas.
The public submission will continue until March 11, 2016. Discussions with industry and academic experts will held in during submission process. The working group then is expected to deliver the final report, which will include its recommended steps, to the Heads of Treasuries by June 30, 2016.
