According to the global housing affordability index the definition of ‘affordable housing’ is when the median house price is no more than three times the average yearly income of the buying population. However, the median house price raised to four times the average Melbournian’s income in 1988 and has increased yearly to be eight times the average income in 2009. While home owners enjoy the gains of these increases, an entire socio-economic group has been priced our of the market.
The question is, what has caused this housing affordability crisis? One factor is land supply, namely the Urban Growth Boundary which dictates where development can take place and has increased the price of land. In addition to increasing property taxes such as Stamp Duty which is highest in Victoria. Furthermore, break downs in Town Planning within councils has meant unnecessary delays and inconsistent decision making on councils part which costs home buyers in time and money. Victoria’s planning system is one of the least effective in the nation. A recent survey by Master Builders displayed that the average cost for planning delays due to council is $35,000. Despite all councils being required to process planning permits within 8.6 weeks the average length of time to secure a permit is 23 weeks. This time can be reduced by engaging a private Town Planner and Drafting team, like Fast Track Plans and Permits.
Lastly, increasingly complicated and costly government regulations linked to housing increases the cost of housing. The government have stipulated a range of housing regulations such as ensuring Five Star rating $7600, Six Star rating $10, 000, Water Tanks $2,000 to name a few which increases the cost of building.
How can our drafting and town planning company assist with the Housing Affordibility dilemma? We can cut the time delays with council for planning permits and can help you design a house using more efficient and cost effective materials.