Home Affordability and Ownership in Australia

Source: Berry, Michael 'Urbanisation and social change' in Australian Society

In 1945 the first Commonwealth-States Housing Agreement came into operation as a result of recommendations for the Commonwealth Housing Commission. Due to a housing shortage the scheme was heavily orientated to building new housing.

War Service Home Loans

The Defence Service Home Scheme assisted ex-servicepersons and service persons by providing loans of up to $12,000 for 45 years at 3 1/4 percent interest. In 1975 up to an additional $3000 could be borrowed at an interest rate of 2% below the Commonwealth Savings Bank lending rate. A means test was not applicable, nor was there any limit on the time when the loan could be taken up.

Since 1918, the nation had taken the responsibiliy of helping to provide housing for ex-servicemen. In the 1940s and '50s the concern was mostly directed towards those who had served in the Second World War and, subject to the statutary provisions of the act, to persons selected for service in Korea and Malaya. This was a scheme based on loans or advances and was directed towards the purchase or construction of houses.

Under the War Service Homes Act, ex-servicemen could, before 1950, borrow up to 85 per cent of the valuation, with a limit of £sterling1250 ($2500) and a maximum period of repayment of forty-five years. In 1950 the ceiling was raised to 95 per cent of valuation or £sterling1500 ($3000), whichever was less. By the mid-1950s, ex-servicemen could borrow up to 95 per cent of the valuation to a limit of £sterling2750 ($5500).

Reference: Australian Houses of the Forties & Fifties Peter Cuffley, Five Mile Press 1993

Provision is also made for assistance to the female dependants of Australian ex-servicemen and other classes of eligible persons as defined in the Act. Assistance may be granted to an eligible person and the wife or husband of that person, as the case may be, as joint tenants.

Reference: Official Year Book of the Commonwealth of Australia, No. 43, 1957

Housing booms in Australia have followed the country's involvement in major wars. Veterans are still (1996) entitled to low interest loans. The Department of Veterans Affairs subsidises home loans which are drawn through Westpac Bank. Applicants are not means tested and there is no time limit on when the loan may be taken out.

Source: House 1963 - 1981 ABS Catalogue 8702-8704

1946 Building Permits Monthly Review of Business Statistics, July 1947

Land 1972 - 1981 Valuer General's Property Sales Statistics

1963 Dr E A Boehm, Unpublished study of Urban Land Costs, Melbourne University

Housing Issues No 3: Housing Affordability

Cabbages and Kings Vol 18 'Changes in Australia's Rate of Home Ownership Since 1945' Ingrid Molnar