The political games are in full swing now, ahead of the RBA’s rate call on Tuesday and if they do cut, many are calling the starting gun for the election which must be run by May 17, will go off very soon.
So, no surprise at all then to see that housing was in the spotlight again over the weekend, as Housing Minister Clare O’Neil announced that Labor would ban foreign investors from buying established homes for at least two years, replicating the promise made by Opposition Leader Peter Dutton in his budget reply speech last May. The housing minister, said the government had to orient all its efforts into securing home ownership for more young Australians. Nice dog-whistle, right there!
Australia’s housing is some of the most unaffordable in the world and soaring property prices will be a key election issue amid a broader cost-of-living crisis, especially among young voters who fear they will never be able to buy a home.
The government recently passed housing reforms, including a shared equity scheme and tax incentives for developers, to ease cost pressures and achieve a target of building 1.2 million new homes by 2030.
The truth is, throttling back migration to better match the number of new homes being built, and reducing the tax breaks for property investors, and build to rent schemes would have a far greater impact. But then to remind you again, O’Neil all but said she does not want to see prices fall, which they would need to do if more normal affordability ratios were reestablished.
All up this is more about annoucables, than real strategic policy change.
Today’s post is brought to you by Ribbon Property Consultants.
