housing affordability

Will Rents rise under Labor?

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The proper function of the property industry is to keep the productive economy housed as cheaply as possible, so that investment in future production is not crowded out by the cost of occupying space — that is, by the cost of mere existence. To serve this purpose, the property industry must itself be productive — by […]

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Media Release: The Economy Made Easy

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Real estate cycle expert Bryan Kavanagh says turnover and price declines in Sydney and Melbourne during 2018 indicate an economic recession in the 2019-20 financial year. The 2018 “Kavanagh-Putland Index”, released today, shows the total value of Australian real estate sales to GDP. Mr Kavanagh said the $50 billion pumped into markets by the Rudd-Swan […]

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HomesVic: An equity share of a broken housing market

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Like most 30 somethings with a substantial HECS debt and an addiction to avocado on toast, I am an aspiring first home buyer. I’d love to buy the home I currently rent: a daggy 1960’s ‘six-pack’ flat on a main road in Footscray. It’s currently valued around $360,000. To put down a 20% deposit, I’d […]

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Does taxing investors drive up the rent?

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The Productivity Commission’s recent five year review, “Shifting the Dial”, brings the welcome recommendation of a shift from stamp duties to a broad-based land tax. Stamp duty is a dud tax from the economist’s point of view; it doesn’t achieve an obvious redistribution goal and is a disincentive to downsizers. Land value taxes by contrast, […]

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Greens discover the housing, tax and wealth reality

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The Greens have a new housing policy out. They begin with the high principle that all should have access to land then veer off with emotion at the tax rorts available to the wealthy. Everyone Needs A Home calls for an end to negative gearing, the Capital Gains Tax discount and proposes exchanging state-based Stamp […]

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Leadership is more than presiding, Gladys

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Economist Peter Abelson has dropped a bomb on Sydney’s madly expensive land market, asserting the usual demand and supply equations have little influence on prices while major positive benefits are available from ending Stamp Duty and using land tax. His views only came to light after journalist Adam Creighton used FOI to prise his report […]

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Our lives are like a Hieronymus Bosch or Pieter Bruegel painting

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by Dr Gavin Putland WORKERS (i) pay rent, (ii) help their employers to pay rent, and (iii) raise some of the next generation of rent-payers. LAND SPECULATORS (i) receive economic rent for the gifts of nature, (ii) take the credit for providing them, and (iii) lobby governments for an ever-increasing supply of rent-payers. BANKS (i) […]

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The Metricon Judgement

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In March last year, the NSW Supreme Court set aside the NSW Office of State Revenue’s assessment for land tax in 2009-13 on certain lands at Terranora in the Tweed Valley held by Metricon. The developer bought the $60m aggregation to subdivide for residential use. It side-stepped a land tax liability of around $1.2m per […]

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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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Victoria to tax vacant properties into use

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Premier Daniel Andrews announced a range of housing affordability measures Sunday, some of which will help. The eye-opener is the introduction of a Vacant Residential Property Tax at one per cent of the capital improved value on properties held vacant for six months or more. This mimics Vancouver’s Vacancy Tax introduced last November – also […]

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