Its Been a Big Month In Real Estate

’Never before has WA families’ dream of home ownership been under such threat as it is now.

High Interest rates, coupled with high labour, material and land costs and a more restrictive credit market, have led us to our lowest ever level of housing affordability.

Housing has become a political ’hot potato’ like never before.

Do we simply give up on home ownership and resign ourselves to renting? It would be a brave State Government to accept this fate.

Brave in that it would be extinguishing the flame of a great Australian birthright. And it would be stupid in that renting does not tackle housing affordability and the Government would be resigned to committing enormous resources to an ongoing construction program to address the never-ending rental waiting list that would result.

The question for both Government and Opposition is this: Is home ownership in WA sustainable?

The answer must be ’yes’ and we must commit to doing everything possible to ensure home ownership remains an achievable dream.

Put simply, home ownership is reliant on readily available land, housing and finance, and an ability to afford the sum of these.

No fewer than 11 government agencies have a direct involvement in the supply of land, housing and finance. It is critical that a whole of government approach is taken to address all matters that have a negative cost impact on housing provision. At the same time, everything needs to be done to provide greater efficiency and speed in processing approvals.

The Government must place performance outcomes on all departments and agencies, including local government, to ensure a supply of affordable land for development.

The lack of alignment and accountability of local government is one of the key issues. Many local authorities simply do not have the capability to deal with the volume and complexity of the issues.

From a planning perspective, greater leadership is required to ensure that applications are dealt with efficiently and professionally. With a growing population it is unacceptable simply to do nothing.

We must address the demands that growth brings with it. This must be done at a State level and then administered at a local level.

Environmental and sustainability issues are essential concerns and we are now building the most energy efficient and water sensitive homes ever, yet little has been done to improve existing homes.

The increase in standards and regulations with respect to safety, continues to add cost and reduce efficiency because we are forced to comply, due to ’National Compliance’. The increase in these regulations is not justified by any empirical evidence, requiring extra expense and bureaucracy.

Government needs to commit to providing a powerful centralized agency to address all issues to impact on the provision of affordable land, housing and finance.

The Government should be commended for the Keystart — First Start Shared Equity Scheme in which a first-home buyer can buy 60 per cent of it with the State Government being a 40 per cent shareholder.

The scheme has allowed many people who would otherwise be renting to buy a new home. Both the Government and Opposition must commit to extending it.

In a State where we all praise the resources boom, we should also understand the impact it has in creating a massive labour shortage.

The Building Industry Construction Fund was established to assist in the training of construction trades people. Under the Act, all construction projects pay 0.2 per cent of contract value into the fund.

That is, all civil and construction projects except resource projects.

Mindless isn’t it? The very industries that create the labour crisis are exempt from paying a fee into a fund to train people the industry it serves.

The Government and Opposition must commit to the immediate withdrawl of this exemption. Home ownership must remain an achievable dream for all West Australians.

Dale Alcock is managing director of Dale Alcock Homes