‘Mum and Dad’ investors the key to affordable housing

Date:

Share post:


Small-scale property investors could play a big role in addressing Australia’s affordable housing crisis, according to new research.

According to research from the University of South Australia and RMIT University, 90 per cent of all property investors in Australia are small-scale ‘Mum and Dad’ investors, presenting a significant opportunity for affordable housing initiatives.

The study revealed that landlords who focus on long-term property investment are particularly open to participating in affordable housing schemes.

Lead researcher, Associate Professor Akshay Vij from the University of South Australia, said the research identified two main types of investors.

“Generally short-term landlords focus on capital gains and negative gearing to create their housing wealth,” Associate Professor Vij said. 

“They prefer to buy newer, higher-value properties and, as a consequence, are not a significant source of affordable housing.”

The research found that headleasing programs, where social housing providers lease private rental accommodation at market rates, have proven particularly successful.

“Many landlords were not financially sophisticated and tended to invest from a place of ‘sentimentality and informality’ rather than an objective assessment of investment risk and return,” Associate Professor Vij said.

The study showed that 81 per cent of investors who had participated in affordable housing schemes found them satisfactory, with guaranteed rental payments and reduced administration demands being key benefits.

Between 40 and 60 per cent of surveyed landlords expressed a willingness to participate in schemes such as headleasing or the National Rental Affordability Scheme.

However, awareness remains a significant issue, with only 39 per cent of the 800 landlords surveyed currently engaged in affordable housing schemes.

“A coordinated national education program to increase awareness of affordable housing incentive schemes could improve participation,” Associate Professor Vij said.



Source link

Nicole Lambert
Nicole Lambert
Nicole Lamber is a news writer for LinkDaddy News. She writes about arts, entertainment, lifestyle, and home news. Nicole has been a journalist for years and loves to write about what's going on in the world.

Recent posts

Related articles

Ray White donates 11,000 Christmas gifts

As a group, Ray White supported over 223 local charities including Ronald Mcdonald House, The Salvation Army,...

Matthew Jabs to lead Place Newmarket

The Announcement: Place Estate Agents has announced that Matthew Jabs will lead the Place Newmarket sales team as...

Mario Sultana joins Aurora Property

The Announcement: Mario Sultana and his wife Karen Elliott have rebranded to Aurora Property, marking a significant milestone...

McGrath St George South West Group expands with Sutherland Shire acquisition

The Announcement: McGrath St George South West Group principals Matthew King and Kieran Bresnahan have announced a significant...

Belle Property expands with new Whitsundays office

The Announcement: Belle Property has expanded its Queensland presence with the launch of Belle Property Whitsundays, headed by...

Nick Moloney joins Place in Brisbane’s northside

The Announcement: Place Estate Agents has welcomed Nick Moloney as Lead Agent at Place Ascot and Place Nundah...

Top 50 Australian Residential Real Estate Industry Influencers 2024

We’re thrilled to unveil this year’s list of influential leaders—individuals and organisations who we feel have made...

How I sold it: marketing re-targeting finds the perfect buyer

And sometimes the buyer group an agent predicts will fawn over a home doesn’t. It was the latter...