Soaring demand lifts affordable housing

SOARING rental demand across Southeast Queensland is driving higher levels of private investment in affordable housing schemes — a boon for struggling families.

Demand for affordable housing has shot up in the past few years, according to Jason Cubit, chief executive of Horizon Housing Company, as more workers and working families face housing stress.

“In 2017, the Gold Coast ranked in the 20 most unaffordable areas in the world, with housing costs around nine times the median income and the median house value up 6.6 percent year-on-year,” Mr Cubit said.

Without the security of a double-income household, rental affordability was a real struggle in parts of Queensland such as Brisbane and the Gold Coast, he said.

The firm invests in affordable housing projects across the state using financial incentives in schemes such as the National Rental Affordability Scheme.

According to the Queensland Government, “The annual income-tax free incentive for 2018/2019 is currently $11,192.13 per dwelling and is indexed annually to the rental component of the CPI.” Of that, the Commonwealth Government contributes $8394.10 per year for 10 years as a refundable tax offset or payment, and the Queensland Government contributes $2798.03 per dwelling per year for 10 years as a cash payment for dwellings in Queensland.

Mr Cubit said, “living in Australia is becoming increasingly difficult, and unless we find ways to increase supply to meet demand, the result is going to be another increase in homelessness — which is unacceptable”.

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Coomera Property Prices Skyrocketing

PROPERTY prices in the northern corridor are set to boom following the opening of the long-awaited $470 million Westfield Coomera.

Real Estate experts are tipping the surrounding suburbs to benefit from the $1.5 billion Coomera Town Centre, which includes the new shopping centre and future plans for community space, commercial offices and entertainment facilities.

RiskWise Property Research CEO Doron Peleg said the entire region stretching from Oxenford in the south to Pimpama and Ormeau in the north would reap the benefits.

He said there were 3671 houses and 558 units in the pipeline for the next two years and while they carried a certain level of risk in the short term, over the medium and long term the area was likely to experience solid capital growth.

“The northern Gold Coast growth corridor is probably the fastest growing in the region,” he said.

“Anywhere we see population growth like this, we also see huge demand for dwellings, and this means the projection for strong capital growth is good.”

In 2011 there were 8,793 people living in Coomera but by the 2016 Census there were 13,305 – a growth rate of 51.3 percent.

The property market also experienced solid growth, with median house prices increasing 26.5 percent over five years to $449,000, according to CoreLogic.