Infrastructure Victoria has laid out proposals to the state government to provide more choice for first-home buyers and families in the cities.
Many areas in established parts of Melbourne and regional cities like Geelong and Ballarat are able to accommodate more homes to meet the needs of the growing population.
Infrastructure Victoria CEO Dr Jonathan Spear said in order to do this, it is a must to consider policies that would fast-track planning approvals and establish better standards.
“Building more high quality, medium density housing in established suburbs will mean more home choices close to jobs, services and existing infrastructure, at a price more people can afford,” he said.
“We know many people are doing it tough. To make buying a home possible and fairer for many more families and first home buyers, we must provide more affordable — high quality home choices in more locations.”
According to a recent study by Infrastructure Victoria, one in five households said they would trade a detached home in a new suburb for a townhouse or apartment for the same price closer to city centres.
“Households on moderate incomes, many of which are families and first home buyers, are being locked out of Melbourne’s middle suburbs, pushing them further away from jobs, schools and public transport, and locking them in to more travel time in the car,” Dr Spear said.
“Our package of reforms will encourage more diversity of housing across greater Melbourne and our regional centres, especially more three to four-bedroom townhouses, units and apartments.”
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| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
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6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 STAR CUSTOMER RATINGS |
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6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $350 | 60% |
10 policies Victoria can consider to provide more housing options
- Reform infrastructure contributions
In order to send the right price signals, there is a need to establish a clear, efficient, and transparent infrastructure contribution system that better reflects the true cost of infrastructure.
- Abolish stamp duties
Stamp duties can be replaced by a broad-based land tax to remove distortions created by stamp duty concessions.
- Remove home subsidies that encourage greenfield choices without improving affordability
Avoid subsidies that inflate house prices and remove the First Home Owner Grant
- Encourage buyers to go after established homes using shared equity
The government’s shared equity scheme must be further developed to cover more eligible locations and push buyers to consider homes in established suburbs.
- Measure and incentivise progress towards new local housing targets
There must be a set target for the number, type, and size of new homes in each local government area in Melbourne and offer incentives to meet the targets.
- Prioritise and streamline approvals for urban renewal precincts
There must be targets in each precinct for the number, type, and size of new homes, such as developing suitable housing demonstration projects including three-bedroom homes.
- Develop better standards for low-rise apartments then increase supply by expanding use of the Residential Growth Zone
Standards set in the Victoria Planning Provisions must be improved to introduce more low-rise apartments, support local governments to rezone more residential areas near public transport and services.
- Establish a dual occupancy and townhouse code
Owners must be provided with as-of-right permission to bypass red tape and supply more diverse homes when they comply with the new dual occupancy and townhouse code.
- Provide more parking options for homebuyers
Compulsory minimum parking requirements must be reduced or removed to improve choice and affordability of new established area homes that are close to good public transport.
- Encourage child-friendly design in new apartments
The Better Apartments Design Standards must be updated to specify better access, versatility, and safety features so apartments are more attractive for households with children.
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Photo by Magnascan from Pixabay.
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