It’s no secret.  There are a lot of problems with housing at the moment.  Rental vacancies are at a record low.  Interest rate rises mean more expensive mortgage repayments.  And people still can’t afford cooled-market prices because the banks won’t lend them enough to cover the higher interest payments.

If you’re a politician, you might be scratching your head at how you can fix things.  And fix them fast!  Especially with a Federal election looming.

But there’s no mind-blowing solution that will solve all the problems in one fell swoop.


So, what policies are the parties proposing, exactly?


Well, they’re throwing around ideas like this:


  1. Build tens of thousands of affordable homes for rent by low-income earners and welfare recipients


  1. Help people buy homes with deposits much lower than the standard 20%


  1. See the government become a co-owner of some homes as a way to lower the up-front cost for buyers


  1. Cap mortgage rates at 3%


  1. Build 125,000 homes costing $300,000 each


But some renters, such as low-income-earning single mums, are not counting their chickens.  They see these stopgap measures as mere lip service.  And in reality, only those with sizable incomes can afford to buy.  Nothing new there.

Even though housing prices are gradually falling, they’re still much higher than they used to be.  And rent just keeps climbing.

Saving for a deposit has become harder than ever.

But even with the government’s 5% deposit scheme help, you risk being lumped with a whopping 95% mortgage.  And you’d be paying the bank more than the property is worth.  And now, with Labor’s 2% Help to Buy scheme, the demand on the property market will be under pressure all over again.  Plus, the government will stake a claim of up to 40% ownership of the house.

More housing is definitely an answer to balancing supply with demand.  But certain factors (looking at you, COVID, for starters) have reduced the availability of raw materials.  So, it’s now more expensive to build.  And this cost will invariably be passed on to the buyer.

And none of this even begins to address the poor renters!

Suffice to say, it’s all much harder than it looks.  And there is definitely no quick-fix solution.  This is a long, long, long game.

So, if you’re keen to hear about an investment strategy that might actually get you ahead, give us a call today.  We promise you’ll be glad you did.