PaulWay on Nostr: I keep seeing lots of news about the housing crisis. The solution is either to build ...
I keep seeing lots of news about the housing crisis. The solution is either to build more housing, or to give more money to renters.
What I don't see is any news about control of the rampant investment property system we have in Australia, where companies and rich people ("high net worth individuals", if you prefer) profit off rentals and keep just enough rental property available to keep rents high and to force renters to agree to whatever terms the landlords want.
What I don't see is any control over the number of vacant properties, owned but never actually on the rental market, claimed as tax deductions (because "it was technically available but we made no money on it"). Some estimates I've seen have over 100,000 homes and units vacant like this. That could solve the entire housing crisis right there.
If we give money to first home buyers or to renters, that just drives up the rent and the cost of homes. That's what's happened every single time we've done that in the past, it will not be any different now.
If we make new homes, but have no controls over who buys them, we are just building houses that landlords will buy to rent out and profit from.
I think the simplest system I've heard to combat this is that you cannot claim CGT exemption or negative gearing off any home past your sixth investment property. The next simplest system is to remove CGT exemption and negative gearing for any property not used more then 75% of the year.
What I don't see is any news about control of the rampant investment property system we have in Australia, where companies and rich people ("high net worth individuals", if you prefer) profit off rentals and keep just enough rental property available to keep rents high and to force renters to agree to whatever terms the landlords want.
What I don't see is any control over the number of vacant properties, owned but never actually on the rental market, claimed as tax deductions (because "it was technically available but we made no money on it"). Some estimates I've seen have over 100,000 homes and units vacant like this. That could solve the entire housing crisis right there.
If we give money to first home buyers or to renters, that just drives up the rent and the cost of homes. That's what's happened every single time we've done that in the past, it will not be any different now.
If we make new homes, but have no controls over who buys them, we are just building houses that landlords will buy to rent out and profit from.
I think the simplest system I've heard to combat this is that you cannot claim CGT exemption or negative gearing off any home past your sixth investment property. The next simplest system is to remove CGT exemption and negative gearing for any property not used more then 75% of the year.