Affordable housing becomes an affordable investment opportunity
Lakeba’s fragmented property ownership platform, BRICKLET, has partnered with Australia’s biggest affordable housing operator, Evolve Housing. The partnership aims to help close the affordable housing funding gap while offering a new property investment option for Australians looking to invest in assets that benefit society.
There is a clear demand for affordable housing in Australia. In New South Wales alone, UNSW City Futures Research Centres estimates the affordable housing gap to be 216,500 units in 2019. And, it expects this number to rise by a further 100,200 units by 2036.
The new partnership will launch in New South Wales. It allows everyday Australians to invest in the affordable housing sector. Lyall Gorman, CEO at Evolve Housing, believes the new partnership will go a long way to helping bridge the funding gap in affordable housing.
“There is a greater need than ever for affordable housing in Australia. The NSW Government has been at the forefront of developing initiatives that support the community housing providers in creating housing solutions for those that need it. said Lyall Gorman at Evolve Housing.
“BRICKLET offers a unique opportunity for the sector to receive a further boost. This initiative opens the door to new private capital to help bridge the funding gap for the development and deployment of affordable housing. It also allows everyday Australians to invest in an asset that our society so desperately needs more of.”
Initially, Evolve Housing and BRICKLET will make 18 affordable housing apartments in Rydalmere available to be purchased via the BRICKLET platform. Each apartment consists of 30 fragments – or ‘bricklets’ – priced at $21,400.
Darren Younger, CEO at BRICKLET, believes the demand from Australians to invest in an asset that supports the community will only drive the development of more affordable housing projects. Helping fund more shovel ready projects.
“There is a shortfall in investment when it comes to the development of affordable housing, with many shovel ready projects waiting for the funds to be developed. Our partnership with Evolve Housing is the first step in attracting new private capital into the sector,” said Younger.
“By fragmenting affordable housing supply into affordable bricklets, we can incentivise new investors into the sector. Giving everyday Australians the ability to fund the housing projects Australia so desperately needs.”
Following the Rydalmere project, BRICKLET is looking to expand the program nationally. Allowing affordable housing developers to fragment properties to be sold as affordable bricklets. Approved community housing providers, such as Evolve Housing, will manage the properties.
For more information, visit www.bricklet.com.au.
