Affordable housing can achieve higher yields than standard residential

David Dixon, joint Chief Executive Officer of publicly-listed affordable housing business Aspen Group, says affordable housing, if done right, can achieve yields of around 5% compared with the industry average of approximately 3%. Aspen focuses on providing housing to the 40% of Australian households who cannot afford to pay more than $400 per week in rent, as well as those who can’t afford to purchase their own home for more than $400,000. The key, David says, is to purchase unloved assets for below-market prices; this requires patience to find the right assets. David has more than 30 years’ experience in real estate and financial markets, starting with Banks Trust and including time with Deutsche Bank and Credit Suisse. Read the full story in this week’s issue of SATURDAY – subscribe here.