vics01 wrote:Kevin's response to a question about home affordability. I think he speaks with fork tongue. Interest rates a down because the economy is in dire straights, not because of the good work done by Kevin and Co.
6.29pm. RUDD'S RESPONSE TO A QUESTION ABOUT HOUSING AFFORDABILITY
To address housing supply the first thing we have done is to bring in the national rental affordability scheme that is designed to provide 50,000 units worth of affordable rental housing across the country. The second thing is to reduce the cost of land developments for new housing for co-investing with developers. The third is that we have added another 20,000 units of social housing across the country and repaired 80,000.
On top of that we now have interest rates at the lowest they have been in 60 years. That means on a $300,000 mortgage you are now paying $6000 a year less. Still I agree there is much more to be done.
I went so far as to read the info about the national rental affordability scheme as an investment option when it was introduced, and ruled it out fast.
Basically it offers you money up front that sounds good on the surface in return for much longer term reduced rental income and higher property damage risks.
I reckon you would be in front for only the first 2 or 3 years.
If that market is a good investment why has the SA Government bailed out of providing affordable housing via the SA Housing Trust?
So, I can't see them ever achieving the 50,000 units.
I expect land developers would come to the same conclusion about co-investing.
It is like the Medicare Locals scheme - they go on about the few that are doing well and ignore the ones that never got around to opening, and those whose medical staff walked out in frustration after the initial trial period - like down at Christies.
