Apple and pear trees on a NYC rooftop
And then we have developer contributions to local council, GAIC infrastructure charges in growth areas, and water, gas and electricity authority fees. Plus GST. Americans can throw all of their tax credits and grants into the mix and significantly offset their cost of delivery. We throw all of our contributions and fees into the mix and we get an expensive development process, obstructive to housing affordability, and no motivation for Victorian developers to build more than the basic delivery. Our government is now taking Round 5 National Rental Affordability Scheme (NRAS) Applications, a tax rebate available to for-profit and not-for-profit developers and investors. NRAS provides a tax rebate incentive for landlords to lease newly built properties to ‘key workers’ at 80 per cent of market rent. But NRAS does not reduce the end liability for the developer, making it more difficult to include the high level of amenities enjoyed in American affordable housing projects.
TIME FOR AN AMERICAN TAX CREDIT IN OZ
The median house price in Melbourne is now seven to eight times the median household income. This is an increase of 250 per cent from when our parents bought their first homes for three times the median household income. Australia’s population continues to increase by 1,000 people per day, and with Melbourne dominating the country’s growth, demand for new housing is unlikely to fall. To improve the standard of delivery of affordable housing across the board, why don’t we further explore American style government-backed, institutional investment? Projected mining tax revenue for the next four years to 2015-’16 is $3.3b. This is one of many industries which may be keen for a tax offset, suggesting the scheme might garner willing participants if introduced in Australia. $3.3b could go a long way in lightening the obstructions to development and assist in delivering affordable, bespoke and healthy homes. In the meantime, my best friend and I will continue lining up to inspect tiny shoeboxes.
AFFORDABLE BESPOKE IN OZ
Not all ‘affordable’ housing here is tiny and crappy. CEHL recently completed 59 apartments in Abbotsford. A mix of low-income and private sale apartments, it features a refurbished brick heritage façade, industrial style track lighting, high ceilings, timber decking and a landscaped residents’ barbecue area and courtyard. But to make this work, government funding was available and profits from the private sales subsidized the low-income apartments.
I travelled to the USA on the 2013 UDIA Young Professional Study Tour scholarship. During the day I am an assistant development manager at CEHL – an award winning affordable housing developer. And every minute, I’m an urban enthusiast.
For home buyers, a welcoming option is Lend Lease’s redevelopment of the old Channel 9 studio in Richmond – Studio 9. The stage two release includes some more ‘affordable’ options which will share the landscaped gardens and amenities of their million dollar neighbours. And the traditional broadacre estates are changing with Villawood’s Marriot Waters in Lyndhurst hitting the lifestyle mark with residents’ access to parklands and Club Marriott’s pool, gym, café and function spaces.
Proud nation
JULY13 | urbanAFFAIRS 23