But… But Rents only go up! Don’t they?

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Lindsay David and Philip Soos at LF Economics demonstrate real rents are falling across the country, except in Hobart. This is only possible with falling wages, weak demand and excess housing supply. Little landlords have no compunction about evicting bolshie tenants – but they will now be doing everything possible to keep good-paying renters. Very […]

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Missing the point on corruption

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by Dr Cameron Murray reposted from macrobusiness On Friday 28th April I am appearing and Queensland’s Crime and Corruption Commission’s Operation Belcarra as an expert witness on relationships between councillors and property developers, and how that leads to favouritism. A narrow focus What is interesting from my perspective is how narrow the focus of the […]

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Should children play with interest-only fireworks?

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Investor interest-only loans are a key risk factor threatening to destabilize Australia’s mountain of private debt, according to investment firm Standard Life Investments, a keen observer of interest rates. IO loans are often associated with thin equity buffers, risky investment strategies and the aggressive pursuit of capital gain over income. Standard Life says: “Much of […]

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Turnbull Government prepares to squib on PRRT

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The Petroleum Resource Rent Tax has been a successful revenue-sharing device since 1987, delivering well over $33 billion to Consolidated Revenue, derived entirely from the economic rents of resource extraction with no harm to producers. It has never deterred exploration or hindered output. Treasurer Scott Morrison commissioned a Treasury review by Michael Callaghan into why […]

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“No Longer Politically Palatable”

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by Bryan Kavanagh reposted from thedepression.org.au Mason Gaffney gives amazing chapter and verse in ‘The Corruption of Economics‘ about the people who successfully sought to conflate land and capital within the study of economics, in order to circumvent Henry George‘s popular late 19th century campaign to capture land rents to the public purse as an […]

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Why do we tolerate land rationing by vested interests?

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The ninth UDIA State of the Land report on residential land development shows 57,381 new house lots were produced and 53,107 sold in 2016, up 8 per cent on 2015. Meanwhile, national land prices rose 13 per cent. The stock of land available to builders and homebuyers in Sydney, Melbourne and SE Queensland is sorely […]

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Fishing for a free ride in Macquarie Harbour

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In April last year, the High Court of Australia affirmed the right of a West Tasmanian council to levy rates on the seabed within its municipal boundaries. This precedent means, in a legal sense, land is land, even underwater. It has implications for industrial activity on submerged lands like offshore wind farms, tidal turbines and […]

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The economics of empty homes

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by Dr Cameron Murray reposted from macrobusiness Prosper Australia has for years been conducting research into how many of Australia’s 9.8 million homes are left vacant. Their major finding is that of the 1.7 million homes in greater Melbourne alone, around 82,000 are vacant, or 4.8%. Their research has been cited by a recent United […]

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https://prosper.org.au/2017/04/