Stimulus for new-build sector 'could create more affordable property'

Tuesday 05 April 2011

Article by Mozo

Home loans customers could find there is more affordable property on the market if the government provides a stimulus for the new house building sector.

Stimulating the new-build sector 'would create more affordable homes'

This is according to Queensland president of the Urban Development Institute of Australia (UIDA) Warren Harris, who noted that the region is already experiencing a 20 per cent decline in activity in the building sector, reports the Sydney Morning Herald.

He observed that the idea of a stimulus is "very divisive", but asserted that the goal would be to help new-build sector rather than the housing industry as a whole.

Mr Harris claimed that if the affordability and availability of property is not addressed now then the situation is only likely to deteriorate further.

"The idea is that if we stimulate the new-home building industry and make it easier for people to build new homes, housing supply increases and property becomes more affordable for people," he explained.

Individuals searching for finance for a property may want to head online to compare home loans as last month the National Australia Bank announced that its online mortgage rate had been dropped to 6.99 per cent.

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