Once upon a time housing was distinct from the share market. In fact those old enough will remember the old investment cycle of, out of the market into real estate. Although real estate had growth it wasn't as speculative as it is today. There are houses in Perth sitting vacant because it easier just to sit on them for the 12 months and make a quick buck. Speculation is drive demand and the share market equiv of a blow off is bound to occur. I bet if they took off the 12 month 50% CGT and made it the old 100% for non-principal residence, there would be a flood of houses onto the market. Will HCVI (house cost verses income) at around 10 to 12 (when it use to be 3 to 4), the Govt has to do something to make housing more affordable and the gradual removal of the 50%CGT benefit would be a massive kick start to reducing house prices. Unfortunately in the short term those whom paid the high price will suffer either way. But it reinforces the fact that Govt ministers (in the main having no qualifications nor experience in their portfolio's) make policy without (or overriding public servants) really knowing the consequences of their actions (had to get in a bitch about pollies…wan.kers)
