IT'S AFFORDABLE HOUSING BUT BANKS AREN'T INTERESTED
Written on the 6 May 2016 by Laura Daquino
THIS might be the solution to the housing affordability crisis, but Australian banks aren't having a bar of it.
"With us, you can literally develop land in eight to 12 weeks and simultaneously have your home ready in eight to 12 weeks and then ship it out. It saves at least six months and the product is a lot more affordable.
"It's also a lot easier to stage developments, so if you have a buyer and the community isn't taking off, people can move and take their homes wherever they want to go."
"It's sort of the perfect storm for us. It's a function of inflated land values in Australia and the red tape associated with building, on top of the building costs, so by taking out just one of those factors it will help a lot.
"All four banks shut us down though and just said they aren't financing modular homes at the moment. They will finance a $300,000 brick home but won't drop to $180,000 for a high-end home built off-site.
"Before the Navy I also worked for around five years with high production homes in the States leading up to the sub-prime mortgage crisis," says Christie.
"I've seen the highs and lows, I'm a bit of an industry vet, and I know this industry is the right one to be in right now - especially with our price point."
Fannie Mae and Freddie Mac are still fresh wounds, and so the subprime mortgage crisis of the mid 2000s makes US banks more inclined to get behind an affordable housing scheme like MOD-N.
"You could easily Airbnb that - the market is huge," says Thompson.
"Australians just get stuck in their ways, fixated on how the Australian dream should look, and are scared to progress. The country is also rough with red tape.