the median house price rose by 14000, page-24

Trying to prop up a highly leveraged and fundamentally severly overvalued market is a highly dangerous business. I would have thought that was pretty obvious from the globes recent experiences. Short term policies once again.

Surely if you were a rational investor you would be putting your money into the stock market at these values rather than the property market - value spread is ridiculous. You can get fully franked yields of 7-8% at the moment. You'd be lucky to get half of that in the property market without mentioning all of the additional hassle.

I personally think the government should scrap negative gearing on existing properties purchased in the future, that is the only true way to encourage further construction, and will cost the tax payer a lot less. The measures they have opted for will only throw further fuel on an already out of control fire and put further Australians significantly into debt against an over valued asset.

We cannot continue taking on further and further debt into perpetuity so we can support asset values. This cycle will, and has to break for the good of the countries future