Goodwill investors are seen to be the key to addressing Australia’s housing shortage problem for the vulnerable population.
According to a new Australian Housing and Urban Research Institute (AHURI) study, social impact investment would be able to provide assistance for vulnerable groups demanding for dwellings. Earlier this year, an Australian Institute of Health and Welfare report revealed that there are around 195,000 people still on social housing waiting lists.
Paul Flatau, one of the report’s authors, told Domain News that public housing stock could not cater to the size of the vulnerable low-income population anymore.
“We’ve done the financial modelling … to see if investors are still getting a reasonable return at the low end of the rental market, and the answer is yes,” he said.
The study considered several social impact investment options consisting of the bond aggregator model, social impact bonds, private capital impact investment firms, impact investment mutual funds, and social impact loans.
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