Inflation will not start heading down until there is a major, major correction in the stonk market.
Companies are currently price gouging in order to keep making record after record profits to justify the lofty share prices. Unfortunately for a lot of home owners the feeling of a 5%-6% cash rate is going to hurt.
How does Australia fix housing market now and in the future? No government has the balls to do it but in order to fix the situation it will take at least a decade.
Short term: 1. Rent freeze; 2. Stop negative gearing for those with more than one investment property; 3. Ban short term rentals, ie Airbnb; 4. Ban foreign investment; 5. Reduce immigration numbers.
Long term: 1. Government to set up a extremely large infrastructure investment fund; 2. As new housing developments occur then the government can look to start lifting those restrictions implemented in the short term phase.
Its not going to be easy times ahead.
"Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times"
