Mckell’s new housing report

Another week, another housing report. This time it’s from a new Sydney based think tank, the McKell Institute. This one has many suggestions for freeing up supply including slaughtering some sacred cows like phasing out negative gearing and capital gains concessions. I haven’t looked at in depth but it’s yours to enjoy!

McKell_HomesForAll_A4

Houses and Holes

Comments

      • I would assert there actually is a strucutural undersupply in Sydney.

        The rest of the country, no way.

        • After seeing dozens of graphs on building numbers on this blog, I think you are probably right. The building numbers in Sydney have been low for nearly a decade now, and the supply response after the FHOG boost to prices a couple of years ago, has been pitiful – unlike Melbourne.

          About all that seems to be going up in any quantity, are those hugely expensive high-rise apartments that are mostly being sold to wealth Chinese investors if Harry Triguboff is to be at all believed.

      • An excellent detailed report full of evidence and reasoning that explains exactly what the shortage is, why there is a shortage and who is suffering from that shortage.
        All that remains is for a bunch of out-of-town know-it-alls to claim there is no shortage, prices will soon crash, and there will be excellent homes for all.
        The behaviour of the shortage-deniers is bizarre indeed.

        • Sydney prices were a median of $600K now low $500K. No shortage.

          Australia wide credit bubble.

          Ever lived in SA, WA, NT or Vic? I have.

          I’ve circumnavigated this country by car and boat. Been to Dublin, California, Vegas and other crash centres.

          You have no idea whats outside your immediate city limits. No credibility.

          Its a credit bubble. End of story.

          • Shortage-deniers remind me of Wildebeest – one following another without thought or understanding. In your abusive rant you show that you don’t even understand the concept of shortage. A $500k median lends support that there is a shortage. A drop of $100k (if real) does not indicate the shortage is solved.
            In your abusive rant you refuted none of the evidence of the report. Did you read it?

  1. Saw the spokesman on ABC news this morning. Made some good points. Focused alot on bringing back terraces. Seems sensible enough, but there’s always an angle with these things and I’d like to know it before I jump on the bandwagon.

    • Terraces would be a nice change from the 25 story high rises being put in on every former industrial site in Sydney (Rhodes, Wentworth Point as examples).

      The community housing scheme allows development outside council guidelines within 800 metres of railway or 400 metres of a bus stop, which is about half of Sydney.

      Older warehouse and factory areas are going to get hit by these high rise, intense density developments with low parking ratios wherever a decent size site can be amalgamated.

      Duplexing existing housing by adding a story which is then illegally configured to a separate residence is also becoming increasingly popular and it has no land content cost and helps the kids or cousins.

  2. The report is well worth a read, plenty of stuff that is familiar to MB regulars.

    No prizes for guessing that McKell indicates a link with the ALP but for me the critical issue is whether NSW ALP has the brains and substance to press for quality reform of this nature from opposition.

    The current NSW government would find it difficult to resist a determined reform push that targeted many of the failings and distortions of the residential property market in NSW.

    Is Robertson up to the challenge of arguing the politics of reform or is he a ‘small target’ kind of guy who will just wait 10 years until the next ‘ time for a change’ or hope the liberals make a mistake.

    If the ALP want respect as a progressive party of reform they need to start arguing for real reform and not just opportunistic stunts.

    This is an excellent starting point.

  3. endrortsonhousing

    Quite right Pfh007.
    Unfortunately the ALP is chock a block full of career politicians – they go straight from the Uni Labor club to working for the party to sticking knives in their competition to get pre-selected.
    Very few of them have ever expanded their frame of reference beyond advancing themselves so they simply do not get it. Instead they explain away their catastrophic election losses as ‘it’s just not our time’ or ‘we had been in for too long’ and my personal favourite in self-delusion – ‘it’s the cost of living pressures’.
    ‘Cost of living pressures’ is nothing more than a euphemism for a total housing market failure aided and abetted by Labor governments.
    If they had an ounce of sense they would realise that they have nothing to lose at this point and credibility with younger voters to gain by implementing some measures to correct the grotesque inequities embedded in the housing market by governments.

    • I think it’s the interaction with media that is driving the emergence of these career politicians.

      They media is forever trying to ‘catch them out’, mostly on trivial matters, so I think the emergance of these career poloiticians is an almost inevitable (and unfortunate) response, where their prime focus is on managing the day to day image, all to the detriment of longer term thinking.

      I can understand why the commercial media acts this way, but it’s really dissapointing that the national broadcaster has gone down much the same track. It’s why I read blogs like this one these day’s, the level of discussion is so much better.

  4. We could free up a lot of family houses in Sydney if the rules regarding land tax and non deductibility of house rental income against house rental expense were changed, and the rules for pension entitlements.

    Many younger retirees would be interested to move out of major cities to other areas, travel etc if they could rent their house and not pay land tax and get a deduction for rental expenses up to rental income of principal residence.

    They don’t want to make real estate agents rich, pay stamp duty, risk being locked out of the market, or lose their pensions because the principal residence is not in means test but the same amount as shares or super is counted resulting in loss of pension and medical benefits.

    Country towns (like Trundle) would benefit from construction work and incomes if they were given the opportunity to increase size by offering people on likely long term welfare the opportunity for low cost housing in those areas on a large scale with facilities guaranteed. Houses could be offered in order of likely receipt of housing commission assistance. The amount of social housing could be doubled for the same price once exorbitant capital city land price component was replaced by country town equivalent.

    • Yes, let’s give more concessions to the property lord Baby-Boomers at the expense of the younger generation (note sarcastic tone).

      Why can’t retirees simply sell their inner-city houses (no CGT payable) and move? Thereby enabling a younger generation to live the same lifestyle the Baby-Boomers enjoyed.

      In the TV show Futurama, old people are forced to leave Earth and go live on another planet when they retire – not a bad idea I say.