[Max Carnage]

Quote

Foretold: Leaders ignore housing affordability
Charles Purcell
September 2, 2010 - 6:41AM
Comments 2

Will millions of us just have to settle on being renters in our own country?
Like some carnival mystic, before the last election I wrote some predictions in an envelope and sealed it, with instructions only to open it after the election was over. Lo and behold, when I opened the envelope afterwards my prediction proved right: ''That neither party will do anything about making housing more affordable.''

They say that neither of the major parties can agree about anything, but they have certainly continued their conspiracy of silence about the ruinous price of housing in this country. Large parts of New South Wales and the rest of the country are desperately crying out for action on both reducing the price of housing and freeing up more land for residential development, but the reply during the election has been a deafening silence.
We've been distracted by a wide variety of carnival tricks, with politicians from both sides busy dancing around marginal electorates in NSW, Victoria, Queensland and elsewhere, but yet no action on one of the most pressing issues of our times.

Quote

There are many models we could follow around the world — the German model for long-term renters signing a contract with their landlords, reducing housing speculation; or the Denmark model where tax benefits are given mainly to purchasers of residential property who intend to live in their home – but we refuse to do so, because they aren't enough votes in it, and because it's the sweetest racket for the rich apart from mining.

Perhaps millions of us will just have to settle on being renters in our own country. That is, until a leader or a political party comes along with the guts to do something about it.

Full Article: http://www.smh.com.a...0901-14mzi.html

[Solomon]

Thank-you Max.
I found that a very uplifting article, on a down day for me.
I know it won't make an ounce of difference, but its pleasing to know that someone shares my sentiments.
Perhaps we should send Charles Purcell a "thank-you" card, signed by (all) simplesustainers.

[booboo]

Enojoyed this article, and my mouth actually dropped open when I read it. The headline to me read like they needed to interfere and give subsidies, but it quickly stated that the price was the problem. Very really do you see the prices stated directly as the problem for housing affordability (even though it's plainly obvious) in articles in the MSM.

[Easy Tiger]

We can't expect Abbot to do a thing to help housing be more affordable. 1) he recently took out a mortgage so it's not like he'd support anything that lowered prices 2) his financial backers don't strike me as the types of people that'd support wage inflation 3) Prices are so obscene and interest rates so low that other than 0.1% (to the mortgage holder) would make much of a positive difference, and even then any difference in affordability would quickly be reflected in higher asking prices so why bother?

[Bernard L. Madoff]

Solomon, on 02 September 2010 - 12:21 AM, said:

I found that a very uplifting article, on a down day for me.

Hope it improves Sol.

[staringclown]

I found a link to the Henry Review report from the Australian bubble wiki page (Thanks TP)

This quote pretty much confirms why neither side of government will not implement any policy that will reduce prices. (if we needed any confirmation)

Australia's future tax system vol 2

Page 422 Housing Affordability

Quote

Reforms that could promote the more responsive supply of housing will present serious choices for both the Australian people and their governments. Most starkly, ‘improving’
housing affordability for purchasers involves policies that cause house prices to be lower or grow more slowly than the community would otherwise expect. While this will benefit those who gain access to housing, it will affect the wealth of the majority of home owning Australians.

[tor]

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...While this will benefit those who gain access to housing, it will affect the wealth of the majority of home owning Australians.

Yeah and allowing a crash will affect their wealth even more drastically as well as everyone else if the US is any guide.

I guess at least if you didn't do anything you don't have to be the scapegoat.

[Easy Tiger]

tor, on 02 September 2010 - 05:23 AM, said:

I guess at least if you didn't do anything you don't have to be the scapegoat.

This is a problem in my workplace. No-one will make decisions because if they make a decision they will be taken to task over it, if however they don't get into trouble for not making a decision

[Solomon]

Bernard L. Madoff, on 02 September 2010 - 04:36 AM, said:

Hope it improves Sol.

Thanks TP.
Yeah I'm sure it will. Dealing with people gets you down occasionally. Petty conflicts that escalate.
Thankfully a better afternoon, and a few more positives.
Did they sort out the Cairns airport problems for you guys?

[Bernard L. Madoff]

Solomon, on 02 September 2010 - 05:48 AM, said:

Thanks TP.
Yeah I'm sure it will. Dealing with people gets you down occasionally. Petty conflicts that escalate.
Thankfully a better afternoon, and a few more positives.
Did they sort out the Cairns airport problems for you guys?

The weather is fine so all OK. That ILS won't be ready for a few weeks. Glad your day is improving. A non distracted Sol is a philosophical one and posts more often so we all benefit.

On the topic, if they do nothing and sh*t turns to trumps they can blame the GFC MkII, American Double Dip, China etc etc

[Bernard L. Madoff]

Why is always referred to as 'affordability'?

The media should call it what it is.

Leaders ignore inflated house prices affordability

Leaders ignore over priced housing affordability

[staringclown]

tor, on 02 September 2010 - 05:23 AM, said:

I guess at least if you didn't do anything you don't have to be the scapegoat.

My thoughts exactly.

[Bernard L. Madoff]

staringclown, on 02 September 2010 - 06:48 AM, said:

My thoughts exactly.

Look at the Americans, Poms and Paddies. No one is really 'wearing' the blame. Greenspan cops a bit of invective occasionally but its pretty lightweight.

[tor]

Bernard L. Madoff, on 02 September 2010 - 06:51 AM, said:

Look at the Americans, Poms and Paddies. No one is really 'wearing' the blame. Greenspan cops a bit of invective occasionally but its pretty lightweight.

The banks and stockmarket boys are.

[Bernard L. Madoff]

True but no ONE person or government. It just seems they are puuting it down to the madness of crowds and bulk wildebeeste/lemming mentality ala dotcom.

[tux]

Quote

Reforms that could promote the more responsive supply of housing will present serious choices for both the Australian people and their governments. Most starkly, ‘improving’
housing affordability for purchasers involves policies that cause house prices to be lower or grow more slowly than the community would otherwise expect. While this will benefit those who gain access to housing, it will affect the wealth of the majority of home owning Australians.

While also easing pressure on overall inflation, which in turn eases pressure on wage growth which in turn feeds back into easing inflation.

At the end of the day, it doesn't really matter what your shelter is worth at any given point in time in history as it is all relative to the market as a whole. It's locked in wealth unless you want to pretend it's an ATM but they're going to have to pay it back sometime, so they'd be best just having lower house prices and not lock in so much wealth.

It's really about the specufestors, they're the only ones who would lose out, and they're probably also the ones with few employability skills (which is why they're so dependant upon specufesting).