The more I read the news, the more I think that the current government is doing nothing for 'anyone' on housing affordability (yes I know rates are part of the problem). I also believe that there is a mild form of 'cronyism' that has polluted our debate around housing affordability. I sometimes think that Scott Morrison is still working for the property council of Australia and has not realised that he is treasurer. I don't even think that the most loyal liberal supporter actually believes he is doing anything about the housing affordability debate besides talking in circles!!
(Rant) His latest attempt at putting more money into the housing market by freeing up super contributions of younger people is so transparently poor that economists and some in his own government are unable to support this. Now if housing was more affordable I think that it would be a good idea to free up money for young people, but at the current time this will just be a transfer of wealth to developers with little hope for growth in the short term.
I believe in abolishing negative gearing and reducing the CGT discount but let's have a debate around all the options. More importantly lets make it fair so that we don't crash the housing market. Let's reduce the incentives slowly to avoid a crash.
I am keen to know what other people think!!!
Do people believe that prices will continue going up? (I don't)
Do people believe that housing is a good investment now? (I don't)
Do people believe that Scott Morrison is the right person to right the imbalances and make the right choices for the country? (I don't)
Is there a way of changing policy without waiting to vote out the liberals (and I am sure that this will happen in the next election.)?
How can we force the governments' hand? A politician once said that to enable democratic process, people need to get organised? How does one do this?
It would be great if buyers would exit the market. Normally price is a natural deterrent but yet there are still large amounts of buyers out there who think they will miss the train. Unfortunately it is the first time buyers who will really pay the price for entering the market at the wrong time, less so people 'shifting' from one house to another.
I would appreciate any thoughts!
Anybody interested in who used negative gearing should read.
Here is an article about our politicians.