ACTU calls for investment in “shared equity” housing affordability solution
In a speech given to a private seminar for super funds, sovereign wealth funds, and their advisors in Melbourne today, ACTU President, Sharan Burrow, made strong calls for Australian super funds to support and invest in the emerging private sector “shared equity” market.

“Australia today faces a serious housing affordability problem. It is not going to go away any time soon and super funds have a key role to play in these solutions.

‘Key workers’ in major metropolitan markets are increasingly priced out of home ownership, and their aspirations disappointed. These same workers are a key constituency of our super funds.” said ACTU President Sharan Burrow.

“Ingenious initiatives and creative responses to the housing affordability problem are on the radar right now with Australia at the forefront of research and new product development in this arena.

“The ACTU has been supportive of shared equity schemes for several years now.

“We welcome the first mass market, private sector shared equity products that came out in March 2007.

“In the public sector, the SA and WA governments have introduced fully-fledged shared equity programs over the last 12 – 18 months.

 “The appeal of shared equity products is real and immediate:

  • A shared equity loan delivers borrowers with an instantaneous benefit.  With the currently available Bendigo/Adelaide Bank loans for example, borrowers can reduce their current mortgage repayments by 30% or more, which is a tangible thing in the current and prospective interest rate environment
  • Many people can move out of the rental market and purchase their first home sooner
  • The housing market is stabilized if demand among home buyers is maintained.

    “I urge the super funds to play a role in developing and promoting shared equity options for home-buyers.”