Supplied by REIWA

Housing affordability critical for those in need 03 June 2015 The latest annual Economic & Social Impact Survey by The Salvation Army, which looks into the economic circumstances and social well-being of people who come to them for assistance, highlights housing affordability as a critical issue in Australia.  The survey found that across Australia, 76 per cent of people who approached them for assistance were renting their accommodation, while a further 13 per cent were homeless.  Of those in the rental system, 41 per cent were renting privately and 31 per cent were renting through government or community housing.  On average, disadvantaged Australians were paying $305 per week on private rental accommodation or up to 59 per cent of their disposable income. This is three times more than the average Australian and twice the common ‘30 per cent benchmark’ used to measure housing stress.  The report also found that 78 per cent of respondents who were living in private rental accommodation were experiencing ‘extreme housing stress’, when coupled with their other expenses and general cost of living.  The rentals have taken such a hit that the rent per week has dropped dramatically President of the Real Estate Institute of Western Australia, David Airey, said that a safe secure home was foundational to health and well-being and that a country as wealthy as Australia should do more to provide affordable housing to those in genuine need.  The trouble is with Australians there is some expectation that they have rights to what every working Australian has - our social system is one of the best and personally I think that needs to be severally overhauled as it's being abused by those that don't need it “The housing system is complex and there is no ‘silver bullet’ to bring about the perfect outcome, however, there are opportunities within both the State and Federal Governments to reform taxation arrangements to make both buying and renting more affordable to those on very low and fixed incomes,” Mr Airey said.  Strongly agree Mr Airey said that while most people living on benefits and pensions were renting in the private system, the State Government was discouraging investors to own and provide much needed rental stock with its increasing appetite for land tax.  There is no incentive for people to buy investment properties the taxes are so high with a “Putting up land taxes every year simply forces many landlords to pass that cost on to the tenants or leave the property market altogether. Around 80 per cent of all rental homes are provided by private investors who should be recognised as making a positive contribution to the whole housing system,” Mr Airey said.  Oh my goodness absolutely why the Government should not be putting any of those costs up Mr Airey also said that the stamp duty exemption for first home buyers was a very important key to affordability and that the State Government should not be tempted to remove it.  Suicide I would have thought “Stamp duty relief for homes under $430,000, means many first home buyers can save up to $14,000,” Mr Airey said.  This was up to $500,000 which was more realistic, however we have to deal with $430,000 now In recent years REIWA has partnered with The Salvation Army through its Community REInvest program which has so far donated more than $130,000 from REIWA agents.  Always a very worthwhile cause That's why it's critical for investors to keep buying homes as the Government cannot supply enough homes.

MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO !!