Things that will help home affordability for all and prevent future property and debt bubbles .
BANKS - 1. Sensible lending practices by the banks - based on a higher minimum saved deposit requiremnent ... maybe upping the minimum requirement to 25% if needs be. Also 2.lending only to those with disposable income levels that can safely cope with say another 2% interest rate rise - and not just lend to everyone that applies. Making sure there is more than enough safety built in - even more than they are allowing for now.
GOVERNMENT 1. Doing away with the ridiculous First Home Owners Scheme - the payment effectively goes to the vendors at the end anyway. 2. Perhaps look at reducing the negative gearing tax benefits. 3. Monitor/regulate the bank lending practices - make them tight.
RESERVE BANK Have a bias towards higher interest rates - even if it means a slightly higher level of unemployment - it's justified if we can avoid a property bust that would wipe out everyone and cause more pain than a 0.5% unemployment rise.
HIGHER INTEREST RATES IF YOU ARE A RESIDENTIAL PROPERTY INVESTOR
Government and Reserve Bank and Banks- can work together to ensure that .. Property investors - especially residential property investors - pay 1- 2% more interest than home owners. If you want to be a residential property investor you pay more in interest - a premium rate.
INDIVIDUALS - hopefully all the above measures brings about a mind shift - a realisation that all the loop holes have been closed - there's no more free lunches. We've all had our fill, but the past is the past .. that we all now need to get off the couch, go out and work hard and take risks, start a business, do something not just sit on our backsides - as there's no more lazy/easy way to riches by borrowing and buying and driving just to drive up residential property prices - so you can keep going back to that well.
That well has been closed Australia needs to get back to the principle of hard work !! - it's the only we will advance as a country - we reward hard work.
