From Dad’s Army’s Gotti today:
…it is almost impossible for dwellings to go down significantly while the existing [policy] chain remains in place.
To negative gearing and capital gains concessions are added…Australia’s population is rising but in most centres, the supply of housing land and building approvals restricts the amount of new dwellings available…Secondly, the banking structure is set up so the most profitable form of business is home mortgages because banks need less capital to establish new housing loans…the Reserve Bank chips in by lowering interest rates to make housing investment more attractive….And finally we have a massive Asian investment thrust concentrated on the most desirable inner city properties.
