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Date Published : Friday, June 13, 2008
Plans by the federal government to introduce a Housing Affordability Fund could result in around $50,000 being knocked off the eventual cost of buying a property for consumers, it has been claimed.
Under government proposals set out in a consultation paper for the housebuilding industry and local and state authorities, a central pool of money would be used to distribute direct grants to help developers speed up the construction process.
The money would be used to keep holding costs under control for builders, while also taking of charges for infrastructure such as water, transport and sewerage, news.com.au stated.
Acting prime minister Julia Gillard said the aim of the fund is to see the savings passed on to those taking out mortgage deals to buy a property - making the "dream of home ownership" a reality for many more Australians.
Housing minister Tania Plibersek added that applications for the grants will be judged on their value-for-money and the savings they will pass on to househunters.
The fund will become operational in mid-July, the site said, with an initial pool of $50 million available.
Chris Lamont, the policy chief executive of the Housing Industry Association welcomed the move, saying: "Housing affordability is now at a record low. The situation won't get any better unless we have funds like this."
He added that the grants could ultimately knock up to $50,000 off the cost of a median-price new build house in Sydney.
In related news, Bloomberg reported earlier this week that figures from the Australian Bureau of Statistics show home loan approvals fell by three per cent in April from the previous month.
Mortgage loans in Australia currently total around $19.40 billion.
Compare loan deals.
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