Rural housing grants rorted

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From the SMH:

City renters will be offered $7000 to buy property in rural areas as part of an overhaul of the NSW government’s underperforming regional relocation grant scheme.

The Deputy Premier and leader of the Nationals, Andrew Stoner, will announce new rules for the scheme on Wednesday, including a minimum relocation distance of 100 kilometres to end rorting of the grant.

Under the original scheme, which only applied to city home owners buying new property in regional areas, five of the $7000 grants were paid to applicants who moved less than two kilometres.

They never learn. All this will do is fire speculative demand where there is an excess of demand already and nothing for anywhere that there isn’t.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.