Affordable Housing Scheme by Lenna Leprena

 

Australia has an acute shortage of affordable housing and millions of hectares of unused land. A million people at least cannot afford to buy land or homes, so govts at every level need to join forces and change that asap. My concept involves federal, state and local government land being cut up and developed into 500sqr mtr (1/8th acre) blocks right across Australia. Private land in regional areas for around $30k per 500sqr mts (circa $60k for ½ acre, 1,000sq mtr blocks & halve them) can also be purchased for the scheme. Young couples, pensioners, unemployed, homeless etc select the land parcel they like and then choose a kit home style (valued at around $40k) they’d like and the govt gets contractors to prepare the block and erect the home.

 

Assuming the majority of prospective buyers will have their own furniture, I imagine $30k would be enough to service the block and fit the kit home out ready to move in. That would mean the total cost would be circa $100k-$120k. The buyers would be given loans of that value from either banks via govt guaranteed loan or loans from a portion of the super pool set aside for housing for the poor. The percentage rate for the loan would be 4% max (say) and set for the entire 30yr term of the loan. Thus the max payment per week would be around $200..or well below what people pay now for rentals. The govt guarantee also means no deposit would be needed. Councils and state govts can also assist greatly by giving buyers a five year holiday from rates and taxes.

 

The plan also involves construction of low rise apartment buildings on govt owned land that cater to singles and couples alike. The vast majority of apartments would be studio style, perfect for workers in mid-city employment. Also perfect for pensioner singles and couples. The same financial package would be available to them as well. There would be no age limit on the packages because if for any reason the person has to move out the unit would be passed on to the next interested buyer and the previous owner would be compensated for whatever payments they’ve already made. Each building would have a certain cohort to enable such things as; easy access to aged care services, play grounds for kids if they’re for single parents, easy access to transport if they’re for workers.

 

Initially a department has to be set up in Canberra to organise all the planning, personnel, purchases, inter-govt liaisons, public awareness etc. A poll should be done initially asking the public if they are prepared to offer public land to the needy, young couples, pensioners etc for $30k for the block and for public money to be used to buy and construct the kit homes and build the apartment blocks. I think the answer would be a resounding majority for yes, given the dire state of housing at the moment and there being no other way out of the hole.

The scheme would also be very popular as it should also see at least 200k people employed across Australia in the kit home factories, land development contractors, home erection contractors, surveyors, loan staff, office staff etc etc. It is a win win scheme for all involved and restores the great Aussie dream that has been stolen by greedy developers, bankers etc. It will provide a lot of people with an asset they never would have had otherwise. No more rent traps for the young, disabled and aged alike. That fact should drive rent and home prices down considerably, so I expect a big fight from the usual suspects.

 

A lot of work needs to be done on the concept, therefore I envision unis in each state form a group to help: design the perfect kit homes for their regions, design the workings of the scheme to enable quick and easy take up of the offers, ensure maximum use of renewables is used across the scheme such as solar panels and batteries for the kit homes. They could also evaluate the land owned by the various govts to work out how many homes could be built in each area of Oz. The kit home construction industry obviously has to be involved strongly as well. Govt assistance should be given to help them expand their businesses to handle the huge increase in work they will likely experience.

I envisage a process where a likely buyer, a 60yr old pensioner couple on DSP for instance, would declare their income, say $40k pension, their current rent, say $300pw, where they live and where they want to live, say Melbourne but would be happy to relocate to Warrnambool or Lakes Entrance or Albury etc, then show them the available blocks in those places, once they’ve selected one they can then choose the style of kit home they prefer and building begins as soon as block prep has been done.

For the apartments, build those intended for workers on govt land in places like St Kilda, close to the CBD. Whatever rent the buyers are paying now will be the criteria for the loan grant in most cases. Obviously if they’re paying $300pw rent now, they can afford $200pw mortgage no problem at all. For pensioners, build them in quieter zones where they have easy access to aged care, disability services, sports infra for that cohort etc.

 

 

Here are examples of a 1 bedroom kit home and a low rise apartment block perfect for young couples working in the CBD etc..they exemplify my vision for ending Australia’s housing crisis in a nutshell..