Building more homes could help ease Australia’s housing pressures – and both national and WA policymakers are looking at ways to make housing quicker and easier to deliver.
The Productivity Commission’s interim report on housing supply, released in July, found that poorly designed regulation can make new housing slower and more expensive to build, while limiting the types of homes available.
It identified areas for potential reform including relaxing some land-use controls, reducing minimum lot sizes, simplifying approval processes and better coordinating housing with infrastructure.
WA is already moving in a similar direction
In July, the WA Government announced proposed changes to the Residential Design Codes that could enable around 50,000 existing properties across metropolitan Perth to be subdivided.
Further planning reforms have also been announced to streamline approvals and reduce delays in bringing new housing and residential land to market.
These changes won’t increase housing supply overnight, but making it easier to develop and build could provide buyers with more choice over time.
Building loans work differently
Construction finance differs from a standard home loan, with funds generally released as building work progresses. Before signing a building contract, it’s worth understanding your borrowing capacity, expected repayments and financial buffer.
If you’re planning a new build, get in touch to understand how much you could borrow and how construction finance may work for your project.
Planning to invest?
If you’re considering a new-build investment property, we can help you understand your borrowing options and structure the finance around your plans. Prospera Property Group works alongside The Loan Company to help our clients explore new-build investment opportunities in WA.
