GlobalX has announced a national partnership with Homes for Homes, a not-for-profit organisation pledging to tackle the issue of Australia’s housing affordability crisis.
Homes for Homes is a social enterprise backed by The Big Issue that encourages property sellers to make a 0.1 per donation of their total property price at the time of settlement.
Initial forecasts suggest the donations secured through the initiative will create an ongoing new supply of funding for social and affordable houses.
GlobalX CEO Peter Maloney said Homes for Homes was a creative solution to an increasingly important issue.
“Current estimates suggest there is a shortage of 170,000 houses in Australia for those in tough financial or family situations, and this gap is only expected to grow in the next two decades,” Mr Maloney said.
“We need to address this problem now and Homes for Homes offers a sustainable, community-led approach.”
“Through this partnership, we will assist Homes for Homes in reaching more legal and property practitioners and spread the word about this great cause.”
Homes for Homes raises donations by inviting homeowners to add a permissive caveat to their property title.
The permissive caveat advises that the seller has agreed to make a voluntary donation to Homes for Homes at the time they sell their property.
Each new property owner is also invited to participate, again donating to Homes for Homes when they sell.
Homes for Homes CEO Steve Persson said that the partnership would allow Homes for Homes to impact a wider community and maximise the number of properties involved in the scheme.
“This initiative is based on the idea that many small donations can have a big impact. By our estimates, the housing shortage will be the biggest social issue in Australia over the next 20 years,” he said.
“Working with GlobalX will allow us to connect with more potential donors, allowing us to begin addressing this problem sooner.”
The Homes for Homes model has been specifically designed to address the key factor behind the housing affordability crisis: a lack of funding. The groups targeted for this initiative include low income earners, woman and children in crisis, and at-risk youth.
GlobalX is proud to be partnering with Homes for Homes and will be rolling out educational materials to its clients over the coming months.