Saturday November 25th 2017

Social impact investment could address housing shortage for Australia’s most vulnerable, AHURI report finds

by Kate Burke - domain.com.au

Investors with “good will” are a key piece to the puzzle if Australia is to solve its housing shortage problem for vulnerable people, a new report has found.

 

With almost 200,000 people on social housing waiting lists across the country, housing experts have found social impact investment would provide a lifeline to the nation’s most vulnerable groups.

 

 

 

 

Impact investing – when investors seek to make a positive impact while at the same time making a financial gain – can stack up, according to the report by the Australian Housing and Urban Research Institute (AHURI) and the Centre for Social Impact.

 

“Public housing stock just can’t cater to the [size of the] vulnerable low-income population anymore,” said professor Paul Flatau, study author and Director of the Centre for Social Impact at The University of Western Australia.

 

“Evidence shows [social impact investing in property] can be a success,” he said. “We’ve done the financial modelling … to see if investors are still getting a reasonable return at the low end of the rental market, and the answer is yes.”

 

However, given affordable and social housing properties rent at below market rate, it requires socially conscious investors who are happy to accept a lower return on an asset that offers more than just financial gain.

 

Given it’s a “hard ask” to get investors to accept lower returns, Mr Flatau said government assistance would also be required through measures such as capital gains discounts or tax concessions.

 

In addition to the Commonwealth’s bond aggregator model which will help fund community housing and social impact bonds that help provide social services, the report recommended further consideration of multiple measures – including investment by mutual funds which would enable investors to create a portfol

Friday November 24th 2017

Professionalism

by John Cunningham REINSW President

Society has changed. Expectations have changed. Everything has changed, except the way we deal with the transaction. We need to look at the services we’re providing and the value those services afford to our clients – not just in the short term, but over a much longer period. We need to look beyond the immediate transaction.

As agents, we’re in a unique position to extend and deepen our involvement in all stages of the real estate transaction by building and nurturing relationships with clients that extend beyond the obvious moments of buying, selling and leasing.

We need to position ourselves as professionals at the centre of each and every real estate transaction. We need to offer a wide range of services to our clients, provide creative solutions to complex problems and give sound information and advice about the property and the market. And we need to have a reputation for providing a high level of service and behaving ethically and honestly. Everything we do must be about increasing the quality of our service, rather than attempting to resist the changing environment around us.

Our industry is at a crossroads – one that presents us with the most critical choice we’ve been posed in more than 100 years.

Which road will you take? Will you tread the track of least resistance and continue with the status quo? Or will you boldly set out on the pathway toward professionalism?

At REINSW, we believe the right decision is clear. That’s why we’ve been working closely with the Professional Standards Councils and its agency, the Professional Standards Authority, as well as and industry leaders over the last couple of years to map out our path to being formally recognised as a profession.

Our journey will require us all to change – our attitudes, our behaviours and the way we collectively present ourselves. But by working together we can be the change we want to see.

John Cunningham

REINSW President

Friday November 24th 2017
Renters benefit from increased investment:image housesupply_LN_23022017

Renters benefit from increased investment

by REINSW

The key to housing supply is unlocking property held by retirees and upgraders who are choosing to stay put due to the cost of stamp duty, according to the Real Estate Institute of New South Wales.

REINSW President John Cunningham said comments made by NSW Premier Gladys Berejiklian that she is open to tax changes to improve supply and housing affordability are a step in the right direction.

“Premier Berejiklian has stated that the key to housing affordability is supply. However, supply is not just about new homes. The key to housing supply is unlocking existing properties held by retirees. 

“Buyers are now forking out over four per cent of the value of a property on stamp duty and this is stopping the supply of established homes flowing into the market.

“This problem has been caused by successive governments who failed to address stamp duty bracket creep for over 30 years.

“By providing stamp duty incentives to older Australians to downsize we will see many more properties coming onto the market.

“There would be a chain reaction. One transaction can set off a chain reaction that leads to 10 sales. If we get the supply of existing properties flowing then 

Friday November 24th 2017

Helping retirees sell key to supply

by REINSW

The key to housing supply is unlocking property held by retirees and upgraders who are choosing to stay put due to the cost of stamp duty, according to the Real Estate Institute of New South Wales.

REINSW President John Cunningham said comments made by NSW Premier Gladys Berejiklian that she is open to tax changes to improve supply and housing affordability are a step in the right direction.

“Premier Berejiklian has stated that the key to housing affordability is supply. However, supply is not just about new homes. The key to housing supply is unlocking existing properties held by retirees. 

“Buyers are now forking out over four per cent of the value of a property on stamp duty and this is stopping the supply of established homes flowing into the market.

“This problem has been caused by successive governments who failed to address stamp duty bracket creep for over 30 years.

“By providing stamp duty incentives to older Australians to downsize we will see many more properties coming onto the market.

“There would be a chain reaction. One transaction can set off a chain reaction that leads to 10 sales. If we get the supply of existing properties flowing then the

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