Land releases and affordable housing in Canberra?

djk said :

Most of that 20% will go through OwnPlace, which is basically for first home buyers.

Of the remaining X%, the majority will never be offered to the public as developers will snap them up quick smart from their developer mates to build cheap and nasty spec homes on.

So do I interpret this completely wrong then?

“In order to enable an exciting new range of affordable housing options, the ACT Government now requires 20 per cent of new housing in new estates to be priced under $328,000.”

That sounded like any developer wanting to build on new estates could only do so if they sell 20% as affordable housing? It doesn’t say “LDA estates” or “ACT Govt estates”. Just that the ACT govt requires…

I thought the main difference with Ownplace is that that land is owned and sold by the LDA directly. And it is indeed for first home buyers only.

The LDA could not answer my questions, so I’ll call LAPS tomorrow.

And the rant about the lazy generation wanting it all… The last thing I want is a McMansion. Couldn’t care less about what the house looks like, as long as it has some sort of outdoor area for the dog and the tramp.

But if there is the slightest possibility that I could avoid moving relatively far away from my daughter’s school and the only community she’s known, I will grab it.

Apart from that, do you really believe it should be so hard to buy a house, even a tiny one? Even on the outskirts? Prices more than tripled in 10 years time. Unfortunately our wages didn’t. It sounds a bit like “what we need is a good war” argument to me.

Holden Caulfield said :

Yes, it’s a well proven strategy in real estate: The longer you wait, the cheaper it gets.

[/sarcasm]

You are evidently not aware that that prices have been falling in every Australian capital city since late last year, and that all the relevant authorities (ABS, SQM Research, RP Data and all the major banks) expect at best flat-lining in the market and at worst moderate falls.

There are plenty of affordable houses in existing suburbs, but the generation of today want everything new and someone else to provide it for them (or lock into a 30 year loan).

…and if you don’t get your 3-4 bedroom with ensuite in Inner North government subsidised you’re probably the 1st to put your hand up and whinge about the price of houses in Canberra.

/rant over

I agree with Jethro, this is just generation bashing crap.

You reckon there’s heaps of affordable housing in the existing suburbs? Well consider this, if you’re lucky you might be able to buy a total shitbox in an older outer suburb for $350,000. The median household income in Canberra according to the ABS is $91,624 a year, straight off the bat tax takes that down to $76,436. Interest alone on that $350,000 shitbox is $25380 a year before you even think about trying to pay off some of the loan. Affordable housing is defined as requiring less than 30% of household income, so that shitbox house at 33% of household income is unaffordable.

Remember, that household income figure is for the MEDIAN household, which means that 50% of Canberra households have incomes lower than that.

Chop71 said :

There are plenty of affordable houses in existing suburbs, but the generation of today want everything new and someone else to provide it for them (or lock into a 30 year loan).

…and if you don’t get your 3-4 bedroom with ensuite in Inner North government subsidised you’re probably the 1st to put your hand up and whinge about the price of houses in Canberra.

/rant over

Bahahaha.
Yeah because $500k for an old crappy house in an existing suburb is completely reasonable.
Or
$400k for a small house on a postage stamp sized block in a new suburb.
7-10 times the average wage is easy to pay for.
This current generation just don’t want to work hard like the boomers did when houses were 2-3 times average.
Lazy buggers.

Most of that 20% will go through OwnPlace, which is basically for first home buyers.

Of the remaining X%, the majority will never be offered to the public as developers will snap them up quick smart from their developer mates to build cheap and nasty spec homes on.

Chop71 said :

There are plenty of affordable houses in existing suburbs, but the generation of today want everything new and someone else to provide it for them (or lock into a 30 year loan).

…and if you don’t get your 3-4 bedroom with ensuite in Inner North government subsidised you’re probably the 1st to put your hand up and whinge about the price of houses in Canberra.

/rant over

I get a little sick of this generation stereotyping crap. Plenty of young families (mine included) buy a small, dingy, older place on the city’s outskirts and sacrifice a hell of a lot to do so.

I suggest you go to
http://www.laps.act.gov.au/affordable_housing/looking_for_affordable_housing_in_the_act

Where you’ll find that the ACT Government requires 20 per cent of new housing in new LDA estates to be priced under $328,000.

There are plenty of affordable houses in existing suburbs, but the generation of today want everything new and someone else to provide it for them (or lock into a 30 year loan).

…and if you don’t get your 3-4 bedroom with ensuite in Inner North government subsidised you’re probably the 1st to put your hand up and whinge about the price of houses in Canberra.

/rant over

johnboy said :

the market can stay irrational longer than you can stay solvent

Thanks for the insight, Professor Keynes.

the market can stay irrational longer than you can stay solvent

I thought house prices were supposed to have crashed by now.

“Affordable housing in Canberra”: The oxymoron of the week.

OzChick said :

For further information see this link: http://www.actaffordablehousing.com.au/

This was also previously discussed here: http://the-riotact.com/land-to-be-rezoned-in-watson-for-affordable-housing/6001

The “latest news” on that affordable housing website dates from June 2010! And there’s no contact info.

There was a land release in 2007 but obviously I missed out on that one. Next one planned for 2012/13.

Holden Caulfield said :

You might find what is defined as “affordable” is probably relative to the immediate area, too. So “affordable” Watson is likely to cost more than “affordable” Gungahlin.

And location doesn’t have any bearing on the price limit of the 20% affordable housing in new developments.

For further information see this link: http://www.actaffordablehousing.com.au/

This was also previously discussed here: http://the-riotact.com/land-to-be-rezoned-in-watson-for-affordable-housing/6001

Holden Caulfield said :

Yes, it’s a well proven strategy in real estate: The longer you wait, the cheaper it gets.

[/sarcasm]

I’d say the vast majority of first home buyers purchase in an area that is not of their first choosing, it’s been that way for generations. It’s unlikely to change soon.

You might find what is defined as “affordable” is probably relative to the immediate area, too. So “affordable” Watson is likely to cost more than “affordable” Gungahlin.

All I want is to get some information so I can make an informed decision.

I didn’t say that I was waiting for prices to go down. I said I would find it worth waiting if there’s a chance we can buy in the suburb my child’s school is in.

Yes, it’s a well proven strategy in real estate: The longer you wait, the cheaper it gets.

[/sarcasm]

I’d say the vast majority of first home buyers purchase in an area that is not of their first choosing, it’s been that way for generations. It’s unlikely to change soon.

You might find what is defined as “affordable” is probably relative to the immediate area, too. So “affordable” Watson is likely to cost more than “affordable” Gungahlin.