We regularly hear from the Pollies that they have a plan to create affordable housing to bring to reality the great Australian dream of home ownership.                                    
 
Of course not much happens and for a variety of reasons including non performance of election promises. 
 
How about this for an idea?     
 
The Governments talk to each other to change the Planning Laws to allow housing [flats,townhouses,units] onGovernment controlled land close to the City.This land often has such features as proximity to the City,transport and parks .What about a rezone to allow a developer to enter into a PPP[Private Public Partnership] to build affordable and other more expensive housing on the Jolimont railway yards, the Preston tram depot,the West Melbourne railway yards,The Camberwell tram depot…………. the list could go on for pages.                   
 
And more….what about the rezone of our major shopping centres e.g. Highpoint,Chadstone,etc., to allow for housing to be built over their carparks?                              
 
Sounds simple but will it ever happen???????????       

This term means two things:

1. The ability of buyers to afford, i.e. the percentage of salary they can afford to pay on a mortgage.

2. With all available resources where can they afford to buy?

No: 1

Is self-explanatory.

No: 2

Lots of buyers say they can’t “afford” a property because they are looking to live close to the CBD or in the area in which they grew up.

To get “into” the market buyers must compromise and broaden their horizons, put up with some inconvenience by living in another suburb they can afford.

For example, look further out.  If buyers are looking to buy in say Glen Waverley, it is very difficult to find a good house under $500,000, yet another 10 minutes along the Monash at say the Hampton Park area there are 72 houses for sale as of 9th July priced between $150,000 and $250,000.  All over the Melbourne metro area there are similar examples.

Buying in a non-preferred area will at least get your equity working and after a reasonably short time something in a preferred area may be “affordable” because your equity base is increasing.  This assumes capital gain which in the short term, one to two years, may not be great because of a quiet period of low activity but history tells us that capital gain in real estate is a given over time.