By now, everyone who follows what we do knows that our biggest goal is to make housing affordable. I believe that this is one of Australia’s most pressing issues as it’s a source of other problems in our society.
From housing stress to white-collar homelessness, home prices are killing people’s chances of leading a comfortable life.
However deeply rooted this issue might be, there’s still so much that we can do to fight it. But there are three things that I believe would make the biggest impact.
First of all, the main reason why housing is so unaffordable in Australia is that we build unnecessarily big homes. The average home size is 246sqm, which on its own wouldn’t be an issue if that space was well-used.
But when you add the fact that we have an average of 2.5 people per household, you can see the glaring gap. People don’t need that much space, especially when there are those who would be happy to be able to rent one room.
So, the first thing we need to do is to shift our focus to building smaller. But there are two things that stand in the way.
The first one is the unfavourable policies. If I wanted to rent parts of a 4-bedroom home, I couldn’t do it because the people inside the home wouldn’t know each other. A change in this policy alone would make all the difference.
People would be able to rent out parts of their home, a nice source of income for them to do as they wish. With fewer homeless and distressed people, the government would benefit from this as well.
Lastly, we need a new approach to development and construction. While there’s no way to lower the base cost, we can build multiple smaller homes on the same block of land. The homes won’t be as expensive and more people will be able to afford them.
Do the above and we can save millions of Australians from housing stress. What’s more, investors stand to profit as well. You can learn all about it if you get a free copy of my National Report: High Yield Opportunities In Affordable Housing.