Housing Affordability and Housing Investment Opportunity in Australia

Acknowledgments<br/>List of Tables<br/>List of Figures<br/>List of Abbreviations<br/>PART I: INTRODUCTION<br/>1.1. Background<br/>1.2. Objectives<br/>1.3. Outline <br/>PART II: HOUSING: WHY IS IT IMPORTANT?<br/>2.1. Introduction<br/>2.2. Housing Trends<br/>2.3. Governments and Housing<br/>2.3.1. Housings Regulation by State/territory Governments<br/>2.3.2. Housing Taxation<br/>2.3.3. Provision of Public Housing and Development Land<br/>2.3.4. The Housing-Related Functions of Local Government<br/>2.3.5. Housing Assistance<br/>2.4. The Emergence of the Housing Affordability Problem<br/>2.4.1. National Affordability Housing Agreement<br/>2.4.2. National Rental Affordability Scheme<br/>2.4.3. Housing Affordability Fund<br/>2.4.4. First Home Owners Boost<br/>2.4.5. First Home Savers Accounts<br/>2.4.6. Are These New Programs Sufficient to Make a Change?<br/>2.5. Why is Housing Affordability Important?<br/>2.6. Conclusion<br/>PART III: MAJOR REASONS FOR AN INCREASEIN THE NUMBER OF INSTITUTIONS OFFERING HOME LOAN PRODUCTS AND IN THE NUMBER OF HOME LOAN PRODUCTS OFFERED IN THE AUSTRALIAN HOME LOAN MARKET<br/>3.1. Introduction<br/>3.2. The Size, Composition and Changes in both Total and Home Lending in Australia<br/>3.3. Consequences of the Two Most Recent Rounds of Financial System Deregulation<br/>3.4. High Level Trends in Interest Rate and Property Prices<br/>3.5. Recent Changes in the Typical Borrower '' ''s Behaviour<br/>3.6. Conclusion<br/>PART IV: INTRODUCTION TO CONTEMPORARY RESIDENTIAL MORTGAGE (HOME LOANS) LENDING PRODUCTS<br/>4.1. Introduction<br/>4.2. Home Loan Products by Type of Offering<br/>4.2.1. Financial Packages<br/>4.2.2. Stand – Alone Home Loans<br/>4.3. Home Loan Products by Major Functionality<br/>4.3.1. Standard Variable Rate Home Loan<br/>4.3.2. Basic Home Loan<br/>4.3.3. Introductory (Honeymoon) Home Loan<br/>4.3.4. Offset Home Loan<br/>4.3.5. Line Of Credit Home Loan<br/>4.3.6. Standard Fixed Rate Home Loan<br/>4.3.7. Reverse Home Loan<br/>4.3.8. Islamic Home Loan<br/>4.4. Home Loan Products by Major Purpose Type<br/>4.4.1. Owner-Occupied Home Loans<br/>4.4.2. Investment Home Loans<br/>4.4.3. Construction Home Loans<br/>4.4.4. Refinance Home Loans<br/>4.4.5. Up-grader Home Loans<br/>4.5. Home Loan Products by Distribution Segment<br/>4.5.1. The Direct Channel <br/>4.5.2. The Third Party Channel<br/>4.6. Home Loan Products by Interest Rate Repayment Structure<br/>4.6.1. Interest Only Home Loans<br/>4.6.2. Principal and Interest Home Loans<br/>4.7. Home Loan Products by Conformation Status<br/>4.7.1. Conforming (Prime) Home Loans<br/>4.7.2. Non-Conforming (Sub-Prime) Home Loans<br/>4.8. Conclusion<br/>PART V: CONTEMPORARY HOUSING AFFORDABILITY MEASURES<br/>5.1. Introduction<br/>5.2. Home Loan Affordability Measures<br/>5.2.1. The New South Wales Government '' ''s Centre for Affordable Housing, Affordability Index <br/>5.2.2. The Real Estate Institute of Australia,Home Loan Affordability Indicator<br/>5.2.3. The Commonwealth Bank of Australia - Housing Industry Association Housing, Affordability Index<br/>5.2.4. The BIS Shrapnel, Home Loan Affordability Index<br/>5.2.5. The National Affordable Housing Agreement, Housing Affordability Index<br/>5.2.6. The ABS measure of housing affordability<br/>5.3. Housing Price-Based Affordability Measures<br/>5.3.1. Sales by Price Segment Housing Affordability Indicator<br/>5.3.2. Affordability and Available Stock Housing Affordability Indicator<br/>5.3.3. House Price to Household Income Ratios<br/>5.3.4. House Price to Rent Ratios <br/>5.3.5. Accessibility/Deposit Gap Method <br/>5.3.6. Home Ownership Rates <br/>5.3.7. Summary Overview<br/>5.4. Rental Affordability Measures<br/>5.4.1. Traditional Consumption-based Measure <br/>5.4.2. The National Housing Strategy Measure<br/>5.4.3. Net Affordability Measure <br/>5.4.4. Net Equivalent Affordability Measure <br/>5.4.5. Private Rental Affordability for All Households<br/>5.4.6. Private Rental Affordability for Low-Income Households<br/>5.4.7. Rent-to-Mortgage Payment Ratio <br/>5.4.8. Residual Income Measure<br/>5.4.9. The Canadian Model of '' ''core housing need '' ''<br/>5.4.10. Summary Overview<br/>5.5. Conclusion<br/>PART VI: THE GEOGRAPHY OF HOUSING AFFORDABILITY AND HOUSING INVESTMENT OPPORTUNITY: A CASE STUDY OF MELBOURNE<br/>6.1. Introduction<br/>6.2. Brief Review of the Literature<br/>6.3. Data and Methodology<br/>6.4. Results and Discussion<br/>6.4.1. The Geography of Melbourne '' ''s Affordability Problem<br/>6.4.2. Which Market Segment Represents a Better Investment Opportunity<br/>6.5. Conclusion<br/>PART VII: CONCLUSION<br/>