Australian Property News

Support for low-cost loans idea grows

Posted on Wednesday, February 20 2013 at 3:59 PM

A proposal for a program that’d provide $100 million in low-cost loans and grants for local councils in high growth areas is gaining support in the planning and development sectors.

Councils in Victoria joined forces to call for the idea to be considered as part of the Commonwealth’s Budget this year.

The Urban Development Institute of Australia backed the calls, saying lower interest rates present a good opportunity to lock in funding to facilitate growth.

The group’s Victorian executive director Tony De Domenico says such a policy would also tie in to the Federal Government’s job creation strategy.

“While the development industry contributes to infrastructure, the extra loan funds for councils would provide added flexibility for councils to bring facilities forward, helping to stimulate the housing market and create more employment and investment,” he says.

The implementation of a low-cost loan program for identified growth area councils would be a “unique opportunity” to create instant economic activity.

With the Federal Election just four months after the next budget, more housing and construction sector lobby groups are expected to begin rolling out their policy wish lists.

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