Housing solution for priced-out Aussie buyers as CBA announces major lending change: ‘Viable’
Prefabricated homes have been hailed as an “immediate solution” to Australia’s housing crisis and it’s now become easier for Aussies to buy one. Commonwealth Bank (CBA) has announced it would begin offering loans for prefab home builds, an industry expected to triple in value over the next decade.
Prefab homes are constructed off-site, often in a factory, and then transported to the individual’s desired location, making them a cheaper option than traditional housing. They can be built in a matter of weeks and, for granny flats, prices can start at just $52,000.
Sydney woman Angela is looking to buy a prefab home to live in when she retires from her research institute job. The 57-year-old told Yahoo Finance it was a much more affordable housing option for her, given skyrocketing property prices and rising rents.
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“I live in Sydney so buying anywhere here is completely out of the question,” she said.
“I’m nearing 60, so I’m looking at it as an actual viable retirement plan for me. I currently work in Sydney so I rent in Sydney but that’s not viable for my future.
“Buying a block of land, probably in country New South Wales where my family live, and getting a prefab home is something that is affordable.”
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Angela got the idea to buy a prefab home from her dad, who is currently going through the process himself.
He paid $75,000 for a one-bedroom home, along with about $250,000 for a block of land in country New South Wales.
The home took six weeks to build and he is planning to move in once he completes the development approval process with the local council.
Other Aussies like Central Coast university student Eryn Norris have opted to set up prefab homes in their parents’ backyards.
The 24-year-old bought her 42 square metre home for $98,000, which comes with a bathroom, bedroom, and combined kitchen and living space.
It is set up at the back of her mum’s place and connected to the main house’s electricity and plumbing.
“Mum loves it. She enjoys that I’m close but I can still have my space and she has an extra bedroom back in her house,” Norris told Yahoo Finance.
CBA to offer loans for prefab homes in bank first
Commonwealth Bank announced last month that it would work with industry body prefabAUS to develop a standard form contract for purchases of new prefab homes. It plans to offer loans from the next quarter.