Forum –
These are exceptional times and our recovery needs exceptional action by parliament to think outside the square and do things that we have never thought possible.
We must change the way the banks restrict finance for granny flats and tiny homes if we are to kick start the economy.
The government has already done extraordinary things like the down-sizing measures and now can extend this action to both homeowners and rental tenants to help them build this product for both family members and non-family tenants.
Banks will lend on no security to buy a depreciating motor vehicle for $80,000 at 3 or 4 per cent yet have trouble lending on granny flat that won’t depreciate.
It doesn’t make sense.
Banking regulations must be eased and banks must be permitted and encouraged to lend on this product secured solely on the product.
When a purchaser builds up an equity in their new purchase they can sell it and use their equity to place a deposit on their new forever home.
In the case of a tenancy purchaser the landlord’s permission would be sought for a nominal additional rental to install and to protect the lender permission would be given for removal in the case of default on payments.
Councils must be encouraged to permit this housing at low cost and, if they don’t, the power should be taken away from them.
The results will be that the homeless (even pensioners) will have a home whilst they save for their forever home; families can enjoy being close but not too close to other family members providing security to older citizens and relieving pressure on aged care; and mum and dad might even live in the new accommodation and young families could live in the original accommodation.
[Since] services already exist in the existing subdivided areas, [there would be no need for] new subdivisions, no new roads, water, sewer, schools, churches, playgrounds – they are all already there.
New low-cost housing will take pressure off the rental and housing market and prices might even drop making it easier still later to buy a first forever home.
Winners all round and at no cost to the government.
Email, Aug 24
K G Howes, East Gosford