{"id":11051,"date":"2017-04-06T03:00:12","date_gmt":"2017-04-05T17:00:12","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=11051"},"modified":"2017-04-06T03:00:12","modified_gmt":"2017-04-05T17:00:12","slug":"the-hidden-key-to-housing-affordability-margaret-lomas","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-hidden-key-to-housing-affordability-margaret-lomas\/","title":{"rendered":"The hidden key to housing affordability &#8211; Margaret Lomas"},"content":{"rendered":"<p><strong>Margaret Lomas<\/strong> weighs into the debate about housing affordability on the back of what some state governments are doing to help.<br \/>\n<strong>Transcript:<\/strong><br \/>\n<b>Kevin:<\/b>\u00a0 We talk in the show a reasonable amount about housing affordability. In fact, last week in the show, I was talking to Nerida Conisbee about that in relation to what happened in Victoria. I want to get Margaret Lomas\u2019s view on that in terms of how do we make housing more affordable? Is it really a big issue?<br \/>\nMargaret, thank you very much for joining us. How are you?<br \/>\n<b>Margaret:<\/b>\u00a0 I\u2019m good. It\u2019s a very important subject to me. I obviously have children of my own, and you\u2019ll probably even hear in the background from time to time, a baby. I\u2019m on grandma duties today.<br \/>\nI\u2019m watching them all struggling to get into the market and wanting to help as much as I can, but I think it\u2019s very, very important that governments look at what they can do, and I, frankly, think they can do more.<br \/>\n<b>Kevin:<\/b>\u00a0 There are two things, I guess. It\u2019s getting people into housing but also making housing more affordable from a rental point of view, too. But let\u2019s deal with buying a property. Do you think that the moves the Victorian government have made are good? Are they going to achieve good results, Margaret?<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0Let\u2019s say they\u2019re a start. I guess the biggest problem at the moment, really, is that each state has a different amount of grant, different rules around their grants, and what I\u2019m seeing at the moment is that the states that need it the most have the worst grants available and the states that need it the least, because their housing isn\u2019t unaffordable, have the best grants available.<br \/>\nI wonder if there\u2019s a correlation there that having those grants available has also assisted to keep a lid on housing. I don\u2019t know. There\u2019s an argument for and against that. A lot of people think that first-home owner grants do nothing but boost prices, but I don\u2019t know that we necessarily have empirical evidence to prove that.<br \/>\n<b>Kevin:<\/b>\u00a0 In some states \u2013 let\u2019s have a look at Queensland as an example \u2013 they\u2019ve made the first-home owner grant applicable only for new homes, and I think sometimes that\u2019s actually forcing young buyers to buy properties in areas where there\u2019s no infrastructure or very little infrastructure anyway.<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0Agreed entirely. It\u2019s actually every state now. Every state has now shifted over to only providing grants for new homes, and I think that\u2019s very unfortunate because the moment someone buys a new home, it becomes a used home anyway, so the next first-home owner can\u2019t buy it off them. Those people are buying those homes in areas that are otherwise affordable, but suddenly they\u2019re not available for the next first-home owner because the grant excludes them, and I think that\u2019s unfortunate.<br \/>\n<b>Kevin:<\/b>\u00a0 I\u2019ve also heard people talk about making boosts available for regional properties only, to get people out of more of the regional areas, but I think whenever you manipulate some of these grants to get people to do things that you want them to do and live in areas that you want them to live in, it\u2019s the wrong way to go, Margaret.<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0I\u2019m not sure what the whole outcome would be there or why they would even want to do that. Regional areas are already affordable, and it\u2019s not the property prices that are stopping people moving there; it\u2019s the infrastructure, the lifestyle, and the access to services.<br \/>\nThe governments would be far better offering grants to government bodies and other people to actually build the right kind of infrastructure, even to private providers of things like childcare and sporting and other things like that, to make them go to those areas so that it\u2019s more attractive to people that live there.<br \/>\nIt\u2019s not the house prices that are preventing people from going to the regions.<br \/>\n<b>Kevin:<\/b>\u00a0 The Prime Minister has said that he believes the answer to housing affordability is more supply. We know it\u2019s all about a supply-and-demand argument, but is it that simple, Margaret?<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0I think more supply is one thing, but the problem is supply isn\u2019t going into the right places. We have a lot of areas that are oversupplied in housing and they\u2019re just areas that people aren\u2019t wanting to live in just yet. Eventually, people do feel like they can commute a lot further.<br \/>\nI always use Perth as a really, really good example. While people in Sydney are quite prepared to live on the Central Coast and travel what can be an hour and 45 minutes on the train to get to work, people who live in Perth, that\u2019s inconceivable to them that they would do that. To them, anything longer than a 20- to 30-minute commute is just out of the question.<br \/>\nNow in 20 years\u2019 time, that will all change, of course, but at the moment, the housing supply in Perth \u2013 the best supply and the oversupply \u2013 exists in those areas that are further than 30 minutes away, and therefore, people don\u2019t want to buy them. They\u2019re not boosting supply in the parts that they should do.<br \/>\nAnd places like Perth can easily do that because they have plenty of closer to the city areas where they still have houses sitting on 700-square-meter blocks and 1000-square-meter blocks, but the local councils refuse to change planning laws and allow people to subdivide into smaller blocks.<br \/>\nI think that\u2019s a good start. If councils can recognize that they may be in areas that are commutable distance to the city and have a lot of people on very large blocks of land, then why not allow those people to begin to actually subdivide into smaller blocks and increase the supply that way?<br \/>\n<b>Kevin:<\/b>\u00a0 Yes. You\u2019re very right. Even in some of the outlying areas in many of the capital cities, we see houses on big blocks of land that could quite easily be subdivided.<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0Absolutely, but the government and the local governments just don\u2019t want to do that.<br \/>\nOf course, the other problem there is that all of the levies and the charges that councils charge to subdivide prohibits a lot of people from going ahead with it. So let\u2019s make that process easier \u2013 the process of subdivision easier.<br \/>\nI can think of dozens of people who have their own homes on big blocks of land and would only be too happy to add another dwelling to the black of it if it was easier to do so. Let\u2019s make it easier. Let\u2019s stop restricting those second dwellings to 60 square meters that people don\u2019t want to have. Let\u2019s allow them to chop off their backyards easily and cheaply and build the houses there.<br \/>\nAnd then let\u2019s take it all one step further and think about things other than first-home owner grants to help those first-home owners \u2013 things like loan schemes that aren\u2019t prohibitive. I\u2019ve seen a lot of cheap loan schemes but they\u2019re no good. They end up with people paying more than they borrowed at the end of the whole thing and going backwards.<br \/>\nLet\u2019s think of different ways to deliver grants in a way that it won\u2019t impact on the price of housing and it\u2019ll really help people over the longer term rather than the short-term.<br \/>\n<b>Kevin:<\/b>\u00a0 Always great talking to you, Margaret. We can catch Margaret every week, of course, on Sky TV on\u00a0<i>Property Success with Margaret Lomas<\/i>. The channel I think is 602. Is that right?<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0602. That\u2019s it.<br \/>\n<b>Kevin:<\/b>\u00a0 Got it, okay. Margaret, lovely talking to you. Thank you for giving us your time. I\u2019ll let you get back to your grandchild now. Is it a boy or\u2026?<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0A little girl and she\u2019s gorgeous.<br \/>\n<b>Kevin:<\/b>\u00a0 They\u2019re all gorgeous. Well done.<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0I\u2019m just trying to teach her to say \u201cgranny\u201d today, but it\u2019s not working.<br \/>\n<b>Kevin:<\/b>\u00a0 Okay. Well good luck. Let me know if you succeed.<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0I will. Thank you.<br \/>\n<b>Kevin:<\/b>\u00a0 Thanks, Margaret. Bye.<br \/>\n<b>Margaret:\u00a0<\/b>\u00a0Bye-bye.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Margaret Lomas weighs into the debate about housing affordability on the back of what some state governments are doing to help. Transcript: Kevin:\u00a0 We talk in the show a reasonable amount about housing affordability. In fact, last week in the show, I was talking to&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":9184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,34,10,11,13,25],"tags":[101],"class_list":["post-11051","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-property-topic","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The hidden key to housing affordability - Margaret Lomas - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-hidden-key-to-housing-affordability-margaret-lomas\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The hidden key to housing affordability - Margaret Lomas - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Margaret Lomas weighs into the debate about housing affordability on the back of what some state governments are doing to help. 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