This in not meant to be an out there statement but you do wonder that with the distressed sellers that will come on the market whether it would not be a good idea for the govt to purchase these homes, rather than private speculators - not from a view of propping up prices but rather to allow them to retain their homes and at the same time for the govt to build up decent stock which they have been selling for many years now. There would need to be a subsidy , or equity share of sorts to allow them to overcome the current hiatus and some mechanism to overcome any negative equity over a period of time.
We have huge surpluses on the State and Federal level, negative gearing is costing the average Aussie a tidy sum. To construct new dwellings would both be costly and time consuming. Obviously would only apply to the first homebuyer. Govts are going to have to spend. Obviously will have some flaws but you then retain the dignity of these folk and they also retain the sense of belonging.
