"putting out real solutions to the nation?s housing affordability crisis."
what are these real solutions i wonder:
- cheaper and more available credit - negative gearing - favourable CGT rules - FHOG
the usual folly espoused by the goons and morons who don't bother to look at the actual evidence and realise these measures are actually counterproductive to affordability.
How about:
- deregulated land supply - negative gearing on newly constructed properties only
....just to start
A FHOG can be a good thing under the right circumstances.....say when you have deregulated land use and supply is highly responsive to demand, it can actually give a FHB a boost without artificially propping up prices and actually making a home less affordable.
just some thoughts......
This is my issue with so called property investors....they all think they are geniuses, and yet none of them recognise why housing has been such a good invesmtent.
If someone had made a bundle on rpoerty and bragged to me about how they identified the effects of cheap overseas credit, histoorically low interest rates, high immigration, inelatic supply (one of the more imortant factors),FHOG and a change in NG as factors that would make housing go throught the roof, i would be mightily impressed, as they could clearly identify the underlying market conditions and take advantage......yet not a single person i know who has made truckloads on RP understands why they have....they just think they are geniuses. They never cite these factors as the reason they invested. Like i said....right place, right time.
