EXACTLY! This just puts more money in the hands of some buyers and drives up prices at the lower end of the market (due to caps). All the same Sydney is know to have as many empty/underutilized houses as have been built during the biggest construction boom in history...so...
A thought on the housing plan announced by the Coalition and matched by Labor: after spending a long time arguing our current housing issues are a result of under-supply, both major parties have now agreed to... increase demand and keep housing expensive. Righto.
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seems pretty obvious supply side isn't the issue though, right? massive building programs not budging cost / accessibility of housing.
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reading
@RebeccaHuntley2's QE, seems like broad public support for practical measures around negative gearing, increased supply of social & affordable housing, & greater expectations on developers.
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I've been pondering the same...
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Its not a lack of supply. The prices are too damn high, and there are tax advantages for investors. If we want it to be an actual ‘market’ for houses, the prices must be allowed to crash. Instead, its propped up. Bad for everyone!
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I’m glad someone is pointing this out
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Except Labor also has a policy to encourage investment in new construction – ending negative gearing for purchasers of existing property.
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Experts are saying this is pretty clearly a policy that will have minimal impact. The virtue for the LNP is it allows them to continue talking down the negative gearing policy while looking slightly more positive.
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One of the overlooked/ badly sold parts of the negative gearing policy is that it changes the style of investment- currently its all based on capital gain so expensive houses win. If you move to non loss making affordable housing rules.
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I think Labor just matched it to make it a non-issue and by going after neg gearing and CGT that will prob do more for housing affordability
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