Bill Shorten to address housing affordability at ALP national conference

It seems like most of the posters on this thread can’t use ‘affordable’ and ‘rental’ in the same post - they keep making it about the cost to buy - therefore, completely missing the point of the Labour policy!

However, I don’t think the policy being referred to is for the poorest of the poor - no votes in that. It is for low to middle income essential workers, I think...

 

Youse should know huh?

 

I assume their will be some kind of house hold salary cap to live in one of Team Billies "affordable rental houses"
Looking at government web site a number of $55k for a single person to get into a previous housing scheme. So about $860 a week take home. Maybe happy with $320 max a week rent. So full price of rent $400/wk. Will this not determine the value of the home that can be built to be profitable? Would it be around $400k to get a suitable return? $400k doesn't really buy much worthwhile (new) in Perth. Will you see a lot of "apartments" and houses on fringes being built for this scheme? (well for $400k what I understand in Perth any way or not the best suburbs to live or invest in). What does a $400k new build property in Sydney or Melbourne look like?

So long term 15 years down the track the property will need to be attractive to a home buyer as a PPOR because under the policy no investor will want it without negative gearing. Possibly not what $400k new build property buys today.

Also will the people actually search for a cheaper place to rent or keep paying the same and live in a new house?

So much for Labor being for the worker. These "affordable rental houses" will be built by wealthy people/developers? So much for a blue collar worker buying a house and using negative gearing to help make it worth while.

One the plus side Team Billy is promising to increase Centerlink pay and rent allowance by $20 a week and let in more new Australians to rent houses too.

Vote for Clive so we can have our version of a Trump.

 

are you sure you want that?

 

Shows how bad land valuation/inflation has become even in perth. It really only costs around ~ 200k- 250k to build a nice single storey 4bedder. If u tag on a land cost 100k for 400-450sqm thats about 300k for a new home which is pretty affordable loan for single middle income, only dad at work families.

The addition of mom at work has seen total loan per family go up to 600k nowadays which is why u see prices inflated to 600k+ for fhbs/young families.

Without negative gearing, investors will just switch to another asset class like stocks or bonds or they will just adapt to investing in a
Non negative geared environment. Developers can still.make money, provided gov releases more land[which we have plenty of] and doesnt jack up prices with taxes.

Negative gearing was a bonus for investors from the past decades of budget surplus and mining booms, imho not a sensible policy if the aim is to encourage more new and cheap housing.

 

• Not all governments have run a surplus
• New properties have higher depreciation than older houses generally
• Low building costs result in lower depreciation
• Lack of transferable depreciation is a disincentive to invest
• Limits the buyer pool and will affect the longer term rental pool of properties