Affordable Housing

As Melbourne’s population continues to grow, housing prices are increasing at a higher rate than current wage growth, causing a barrier for a number of low-to-moderate income earners to enter the housing market. These low-to-moderate income earners have to turn to privately renting or public housing solutions. This is shown in the ABS’ Housing Occupancy and Costs where the proportion of renters has increased to from 26% to 31% between 1994-95 to 2013-14. Moreover, in 2013-14, the ABS found that 50.1% of low-income renter households were experiencing housing stress where they are spending more than 30% of their income on household costs. This evidently causes a constraint on economic growth and the city to function properly as these households are prevented from actively participating in the economy since the majority of their income is spent on basic living costs. Therefore, it is important to assist the purchase and rental of affordable housing.

According to the State Government’s Homes for Victorians, Affordable Housing is “housing that is appropriate for the needs of a range of very low to moderate income households, and priced (whether [through] mortgage repayments or rent) so these households are able to meet their other essential basic living costs”. The provision of affordable housing at 11-41 Buckhurst St, South Melbourne is being implemented at Alpha14. We are proud to announce that we are offering shared equity and rent to buy schemes to a number of apartments so that we can reduce the barriers to the housing market and assist in home ownership.

Shared Equity Schemes

Shared equity is where the homebuyer shares the capital cost of purchasing a home with an equity partner. This allows lower income home buyers to buy sooner since they have a lower initial deposit and ongoing costs. Shared equity does not mean that the other party is a joint owner of the home, but rather shares the appreciation gains or depreciation value when the property is eventually sold. Alpha14 is prepared to be the equity partner if an alternative partner can’t be found.

Rent to Buy Schemes

Rent to buy is where a tenant pays rent and associated costs to a private vendor with an option to buy the property in the future (at a price given by the vendor). The tenant is required to source finance to buy out the property at a secured date in the future. Alpha14 is prepared to implement this model for Buckhurst St, taking into consideration the property’s inflation growth, whether the rent is at or below market, and whether the option to buy is fair and reasonable.

Buckhurst St, South Melbourne

Buckhurst St, South Melbourne is a mixed-use development consisting of 145 dwellings, located 2.1km from Melbourne’s CBD. At Alpha14, we understand the rapid growth in house prices and the growing barriers to home ownership for low-to-moderate income owners. We are committed to the provision of affordable housing and are assisting in home ownership through our shared equity and rent to buy schemes on a number of these dwellings

For more information on Buckhurst St, projects, experience, or joint venture and partnerships, contact projects@alpha14.com.au