The internet-based Buyers Strike led by Prosper Australia has become a magnet for anonymous trolls trying to deflect the debate from the key issue of housing affordability with abuse and vilification.
“Their message to first home buyers is simplistic and insulting: Submit! Sacrifice! Conform! They have filled the comments at prosper.org.au and at GetUp with their bile,” Prosper Australia campaigner David Collyer said today.
“But when a couple with two solid incomes and a good deposit cannot get a bank loan for a starter home on the edge of town, the game is already over. The market must turn.
“First home buyers are the ‘Greater Fools’ of the real estate market. Our Buyers Strike campaign has made them aware land prices can go down as well as up.
“The looming fall in prices will cause great economic hardship. Consider the US experience, where a quarter of mortgaged homes are ‘underwater’, worth less than the loan they support and pinning homeowners in an impossible situation. They cannot afford to sell and the heavy loan repayments make no sense.
“The spivs and spruikers and trolls of the real estate industry continue to claim Australia is an exception – it cannot happen here. Ask any economist: there are no exceptions; prices always revert to the long term trend.
“Prosper has left their comments up in the interest of an open debate. The trolls don’t seem to realize how transparent and pathetic their rhetoric is.
“Australia is in this fix because governments have consistently failed to adopt the powerful automatic stabilizer of land prices – Land Value Tax – despite the repeated urgings of many senior economists including the Secretary of the Treasury Dr Ken Henry in Australia’s Future Tax System (The Henry Review).
“My fervent wish is that this chaos leads to new taxation arrangements that end the taxing of wages and business with government taking its revenues from economic rents instead. That means Land Value Tax and an honest Mining Tax,” Collyer said.
Collyer repeated that he is not today calling the bursting of the bubble but does say it is ‘imminent’. ENDS