One minute read
The housing affordability debate is starting to leap all over the joint – from quips about breakfast options to now, a blame game.
So, I want to outline, in plain speak, why dwelling prices are so high.
Let’s keep this simple.
Here are the big five reasons why:
1. Urban planning policies
Glacial release of land for housing development, urban growth boundaries, packing the population into major cities and especially the inner city, versus decentralisation or multiple CBDs.
2. Tax incentives and taxes
Capital gains discount on housing, negative gearing, government first home buyer grants, stamp duty, superannuation access/use.
3. High immigration and baby bonus
Nothing wrong with population growth, but it works against you when half of it is taking place in Sydney and Melbourne.
4. Cheap and accessible credit
Low interest rates, lax bank lending (yes, it is still lax!) and offshore wholesale borrowing by banks and developers.
5. Foreign investment
Mostly out of China and most of this capital goes into property; much of it illegal under current FIRB guidelines.
Everything else is BS.
If you really want to make housing more affordable, the answer is easy, drop the price!
We have secured 100 copies of the latest edition of Michael Matusik’s Capital Cities Market Outlook Report” for just $99 plus GST.
This is a 33% saving for readers of Property Update!
Please hurry, as we have been allocated limited numbers of these reports at this price. Please click here now to secure your report and use the code: YARDNEY2017
Subscribe & don’t miss a single episode of michael yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to michael yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.