Above is an interesting debate on Australian housing aired last night on ABC’s The Business between John Symond, founder of Aussie Home Loans, and Dr Steve Keen.
In the interview, John Symond takes several contradictory positions, on the one hand declaring a “healthy housing market” and basically applauding price growth, as well as noting how low interest rates have made mortgages affordable. However, he also notes that house prices are too high, but then argues that rising home values have been a “gift” to the nation.
Keen, on the other hand, deplores Australian housing values, arguing that they are well above fundamentals. He also repeats his warnings that debt levels are too high.
Both, however, believe that Australian house prices probably have further to run. They both also want to see negative gearing unwound, whereas Symond also slams Australia’s dysfunctional supply and tax system.
Keen also makes the salient point that all levels of government have become addicted to property taxes, creating a vested interest, and have also wrongly used house prices as a macroeconomic tool. He also calls on the RBA/APRA to implement macroprudential controls on high risk mortgage lending.
