Affordbility

Question 1

Define affordability

Answer 1

A function of household income,availability of finance and price of property
-affordable cost of housing should be no more than 30% of income
-it is a ratio of housing prices to income

Question 2

What is demand side affordability

Answer 2

• The extent to which a household is able to pay housing costs with compromising ou non housing consumption
  -is dependent on willingness and ability to pay

Question 3

Supply side affordability

Answer 3

Will only build for the market segment with access to finance or cash
Need access to short term developer finance

Question 4

What is income, purchase and repayment affordability?

Answer 4

They type - of housing a person can afford based income and this income is used to sustain housing preferences
2. Ability of housing to obtain finance and whether the house had qualify for mortgages
3. Ability to afford monthly installments

Question 5

Demand side affordability is influenced

Answer 5

1. Demographic: age, race, sex, income,migration rates and populationvotes
2. Economic: interest rates,availability of finance, tax concessions, alternative investment

Question 6

Supply side affordability is influenced _

Answer 6

Availability of land
Infrastructure cost and charges
Construction costs and taxes
Land development processes and polices