10 steps to fix housing affordability

I don't think you'd find too many people disagreeing Sydney is stupidly expensive (unless they come from HK, San Francisco etc.)

However I think there's some interesting ideas presented in this link (from a news.com.au article believe it or not!)

http://mobile.news.com.au/finance/r...ng-affordability/story-fncq3era-1227428260016

 

Find it amusing that in the comments section at the bottom of the article, that an 'intelligent' person commented to stop millions of people migrating to Australia.

 

Lol
Just remember its a news.com.au article and anybody from the general public can and will comment on sites like that

 

@Gockie

1. Won't happen
3. If not run well, it can be disaster
5. More money for lawyers and litigation related business
7.8.9 slow process bottlenecked by local government.

Govt and policymakers aren't interested in hard line decision... Why would they do it when state governments are biggest beneficiary of stamp duty $$$$$.?

 

Can you just imagine the gasp of horror from a State government if they were to mention loosing "stamp duty"......

Change will happen slowly......probably very slowly.....

That said the article did not mention anything about our lust for urbanisation over decentralisation.....
Everyone wants to be in the centre........but only a few can fit in.

And until the jobs are available in bulk elsewhere the cities will continue to be in demand....

 

@robboat

hahaha!

Stamp duty collected and spent by state government.
GST collected and distributed ny Federal government.

discussion alone at next COAG meeting will bring some fireworks, especially from WA premier!

 

WTF?

CGT favours investors - I pay cgt because I made money. Is it a crime?

Encourage super funds to invest in resi property - not on your Nelly. They have more nous than to chase capital gains rather than cash flow, stable tenants etc.

Simplify the planning process - lets see: nimbys

50 % coinvestments with institutions: how do thethey make a profit?

More infrastructure for regionals - spend more government $

 

I think the article stated coinvestment with NOT for profit organisations.

Kind of like religious groups .....







Har har. I said, Har har!

 

Or there is still the one step process which can completely resolve housing affordability problems forever:

1. Remove planning laws and allow the unrestricted release of land.

Lefty/Greenies aren't particularly a fan of this hands off option however.

 

Why are these types of articles and surveys always conducted by Uni types and academics?

We already know that a lot of the noise about affordability comes from this group..no properties, just a bunch of theories.

"1. Phase out tax incentives that favour investors, including negative gearing and capital gains tax

Prof Pawson said negative gearing and capital gains tax created an unjustifiable distortion of the market and an unlevel playing field."

How does paying CGT favour an investor?

He also says this: “Negative gearing alone amounts to about $5 billion a year that Treasury is not receiving,”

What about the Stamp Duty and GST attached to every single sale and/or purchase?

If we took away NG, it is arguable that many Mum and Dad investors would not enter the investing market - drops in both Stamp Duty and GST.

Unless the rents soared up to such a degree as to make the cashflows more attractive.

The rents would ultimately go up and attract investors back, but only while cashflows remained high.

The sales of property would obviously drop from both the investing sector, and the FHB sector. The rents would cause the FHB's to have to save for longer to buy.

 

If they have to save for longer they'll also be renting longer too.

Removal of planning controls also upsets the nimbys and benefits property owners.

 

Vicious circle.

 

To fix it, wouldn't there have to be a problem first?

 

4 is stupid. Investors would be licking their lips if stamp duty was removed. In my opinion removal of stamp duty would only serve to encourage speculation and investor participation - how convenient that this is completely ignored...

 

Not everyone should be able to afford their own property. It does not happen across the majority of the world and most certainly has never happened in the past.

Yes it is unfortunate but that is simply life.

 

When I hear people on minimum wage saying they will never be able to afford to buy.

I think to myself it is the minimum wage not you are going to have a nice life, improve yourself to earn more money or reduce your expenses and I am sure you can.

If my children were on minimum wage I would be actively encouraging them to learn better skills and stay at home with us until they were able to buy an affordable place (not the median).