Latest news with #AHURI
ABC News
02-06-2025
- Business
- ABC News
Research shows social housing struggling to keep up with increasing demand
Waitlists for social housing grew in the four years to 2022, with the number of people being helped into homes falling, prompting a call for a reboot of the overburdened sector. The combination, outlined in a report from the Australian Housing and Urban Research Institute, is worsening wait times for people facing acute housing stress, according to its authors. 'It's a painful and frustrating and horrible experience to go through, being on the waiting list,' lead author Chris Martin, of the University of New South Wales, said. As well as interviewing existing tenants and people waiting for housing, the researchers reviewed national data compiled for a 2024 study in the same research series. Based on state-by-state data, it showed more than 34,000 households across the country joined a waitlist in the roughly four years to 2022. But lettings — or new social housing allocations — suffered a 6,400 drop over the same period. Dr Martin said the data pointed to a long queue for supply so scarce it could disincentivise people from moving out of the system. 'What we currently have is a process of people applying for this scarce form of assistance — a social housing tenancy — and then other forms of band-assistance that are offered, like help with rental bonds in the private market,' he said. 'It would be a good time to start thinking in a formal and structured way, a strategic way, about reviewing the way access to housing assistance is done.' One of the many people to have turned to social housing is Julie, who asked to use a pseudonym for professional reasons. Julie lives with complex health needs and was spending about two-thirds of a disability support pension on an unsuitable private market rental when she made a bid for priority social housing access in March last year. 'There was a leak. It was damp, there were signs of mould. There were some steps in the building,' she said of the private market home. She's still waiting for social housing to become available. Initially, she said, her government housing provider lost part of her application and asked her to resubmit it so she could be added to the priority list. When that happened, she said the application was incorrectly backdated, likely resulting in a longer wait. In the meantime, she's had to find a new private rental after learning her landlord would sell. 'The system's literally designed to make you give up,' she said. 'There've just been so many hoops that I've been made to jump through.' Sarah Toohey, of Community Housing Industry Association Victoria, said an underinvestment in social housing meant available homes were generally prioritised for people with complex needs. She said this cohort often stayed in social housing for longer, resulting in less turnover and a slowdown in homes becoming available. 'At the moment, people put their name down, they don't hear very much and they wait upwards of 18 months to get a roof over their heads,' she said. 'In that time, we know that things that have led to their housing crisis can get worse.' The study authors said the effects of decades of underinvestment in the social housing sector were gradually being reversed as state and federal governments looked to ease the housing crisis. Dr Martin said the renewed focus on the sector posed an opportunity to deliver housing support differently. 'It may not always be about the golden ticket of a social housing tenancy, even though that's what a lot of people will rightly want and need,' he said. His examples included additional assistance to very low-income households in the private market and a bigger focus on individual housing needs. Queensland recently reported an average wait time of about 21 months for high-needs households moving into government-owned social housing. In Victoria, priority households face a wait of about 18 months. The wait for a two-bedroom property in inner-city Sydney is 10 years or more.'We do need a more person-centred approach,' Ms Toohey said. 'We can integrate choice-based letting where people can search for their own social housing properties, or have a system whereby we check in on people on the list and see if there's any other housing assistance you can provide.' Housing groups routinely call for governments to bring more social housing stock online. One recent report found Victoria alone would need an additional 377,000 homes to meet demand over the next two-and-a-half decades. Nationwide, the Australian Housing and Urban Research Institute has previously predicted more than 1.1 million social dwellings will be needed by 2037.
Daily Telegraph
19-05-2025
- Business
- Daily Telegraph
Huge money mistake too many Aussies are making
Australians who invest in property are typically risk-averse people who perceive bricks and mortar as a safer and simpler investment than shares, bonds and other assets, according to a new study. The Australian Housing and Urban Research Institute (AHURI) has just published a research paper on the characteristics and behaviour of landlords based on two decades of data from 2001 to 2021. AHURI found the main motivations for investing are wealth generation through capital gains, rental income and the tax advantages of negative gearing and the 50 per cent capital gains tax discount. Most landlords see their investments as cornerstone assets to be held over the long term for retirement. MORE: 'Shouldn't get one': Fury over rate cut hopes In terms of timing, Australians are more motivated to buy an investment property when the economy is strong or interest rates are low. Landlords are typically sheltered from poor economic conditions because interest rates tend to fall, thereby reducing the biggest cost of holding a property. There was a mild upward trend in the number of Australians buying investment properties over the two decades. By 2021, there were 2.2 million landlords, which is about 8.7 per cent of the population. About 72 per cent of them owned just one investment property. AHURI sought to identify the typical Australian landlord through demographics data. It found that Australian investors are more likely aged in their late 40s or early 50s and are tertiary-educated, employed full-time and earning higher than average incomes. They are typically married and own their own homes with a lower than average home mortgage. Geographically, they are spread across the country but there are more in Sydney and Melbourne. MORE: Major money trap Aussies are falling for HUGE MISTAKE MANY LANDLORDS ARE MAKING AHURI also found there are two cohorts among landlords. The first cohort tends to buy and hold their investment properties for the long term, while the second cohort sells within one or two years. The two decades of data revealed approximately one in five investment properties are sold within the first year or ownership, while 28 per cent are held for more than 20 years. The median investment period is just two years, which is very concerning. This is because the key to building wealth through property is capital growth, which takes time. This means you have to hold on to your property for several years to truly reap the rewards of your investment. Additionally, property involves considerable transaction costs, such as stamp duty on the purchase which can be tens of thousands of dollars. Selling within one or two years means you are highly likely to make a net loss on your investment. MORE: No way! What 75pc of Aussies don't want in their home HOLD ON Time in the market is crucial. This is why it's extremely important to do everything you can to ensure you can hold on to your investment through difficult times, such as when high interest rates are higher. The AHURI research found those who sold their investments quickly were typically younger investors aged under 35 years on lower incomes, who had lost their jobs or were not working enough hours. Some investors sold their assets due to divorce, whilst others couldn't maintain the loan repayments on both their homes and investments – perhaps because of rising interest rates. Other typical sellers of property investments are older Australians aged 45 to 54 who are nearing retirement. The report suggests some of these investors sell to access their equity so they can help their adult children buy a home. Some transfer their investment properties directly to their children. MORE: Horror reason Aussies are giving up pets Other financial drivers for selling include increased costs of maintaining the investment, which we've seen in recent years due to surging inflation, and tax changes that disincentivise investment, such as the massive land tax increases in Victoria. Importantly, AHURI found that negative gearing helps landlords manage the costs of holding their investments over the long term. This not only benefits landlords but also tenants by ensuring a large and diverse pool of rental properties remains available for the growing number of Australians who rent their homes.
News.com.au
18-05-2025
- Business
- News.com.au
Huge money mistake too many Aussies are making
Australians who invest in property are typically risk-averse people who perceive bricks and mortar as a safer and simpler investment than shares, bonds and other assets, according to a new study. The Australian Housing and Urban Research Institute (AHURI) has just published a research paper on the characteristics and behaviour of landlords based on two decades of data from 2001 to 2021. AHURI found the main motivations for investing are wealth generation through capital gains, rental income and the tax advantages of negative gearing and the 50 per cent capital gains tax discount. Most landlords see their investments as cornerstone assets to be held over the long term for retirement. In terms of timing, Australians are more motivated to buy an investment property when the economy is strong or interest rates are low. Landlords are typically sheltered from poor economic conditions because interest rates tend to fall, thereby reducing the biggest cost of holding a property. There was a mild upward trend in the number of Australians buying investment properties over the two decades. By 2021, there were 2.2 million landlords, which is about 8.7 per cent of the population. About 72 per cent of them owned just one investment property. AHURI sought to identify the typical Australian landlord through demographics data. It found that Australian investors are more likely aged in their late 40s or early 50s and are tertiary-educated, employed full-time and earning higher than average incomes. They are typically married and own their own homes with a lower than average home mortgage. Geographically, they are spread across the country but there are more in Sydney and Melbourne. HUGE MISTAKE MANY LANDLORDS ARE MAKING AHURI also found there are two cohorts among landlords. The first cohort tends to buy and hold their investment properties for the long term, while the second cohort sells within one or two years. The two decades of data revealed approximately one in five investment properties are sold within the first year or ownership, while 28 per cent are held for more than 20 years. The median investment period is just two years, which is very concerning. This is because the key to building wealth through property is capital growth, which takes time. This means you have to hold on to your property for several years to truly reap the rewards of your investment. Additionally, property involves considerable transaction costs, such as stamp duty on the purchase which can be tens of thousands of dollars. Selling within one or two years means you are highly likely to make a net loss on your investment. HOLD ON Time in the market is crucial. This is why it's extremely important to do everything you can to ensure you can hold on to your investment through difficult times, such as when high interest rates are higher. The AHURI research found those who sold their investments quickly were typically younger investors aged under 35 years on lower incomes, who had lost their jobs or were not working enough hours. Some investors sold their assets due to divorce, whilst others couldn't maintain the loan repayments on both their homes and investments – perhaps because of rising interest rates. Other typical sellers of property investments are older Australians aged 45 to 54 who are nearing retirement. The report suggests some of these investors sell to access their equity so they can help their adult children buy a home. Some transfer their investment properties directly to their children. Other financial drivers for selling include increased costs of maintaining the investment, which we've seen in recent years due to surging inflation, and tax changes that disincentivise investment, such as the massive land tax increases in Victoria. Importantly, AHURI found that negative gearing helps landlords manage the costs of holding their investments over the long term. This not only benefits landlords but also tenants by ensuring a large and diverse pool of rental properties remains available for the growing number of Australians who rent their homes.
