National housing crisis
We have a housing crisis of growing un-affordability and homelessness. As a consequence of covid-policies and massive inflationary pressures, more businesses have failed, more people have lost jobs, lost ability to pay rent or mortgage, leading to loss of their homes. Many people have been leaving the cities, but struggling to find jobs and housing in rural areas, where house costs and rents have risen sharply driven by demand. Whole families are living in temporary accommodation in parks, in tents, in cars, in bush land.
Even among those employed, many feel hopeless that they can save enough to afford to buy property, and feel powerless to control their rental costs.
What help is available?
Government policy: new Housing Accord
The Labor government offers tax incentives for large corporations, institutional investors and superannuation funds to finance the build of large apartment complexes through a build-to-rent model. These social housing projects will be owned by government or by multinational corporations and the super wealthy. Tax-payers will likely subsidise the rents to make these more affordable for tenants (affordable rent defined as rent no more than 30% of household income).
This does not solve the affordability issue in the longer term when corporations raise rents once the subsidies expire.
Institutional investors: shared equity mortgages
There are a growing number of shared equity mortgage schemes that reduce the upfront costs for home buyers by reducing deposit requirements, and so help selected buyers (subject to selection criteria) get into the housing market.
This does not make housing more affordable and is likely to be more costly for loss of own equity in property.
How does the Sun Villages Model help?
The Sun Villages Model offers an alternative, unique way to purchase the rights and responsibilities of home ownership or to invest in property through a form of fractional property ownership through trade-able shares.
It is the only property investment scheme that distributes the developer's profit back to the shareholders who help finance these housing developments.