Obviously not. It will drive them ever higher.
But, if you reckon that’s happening anyway then I guess there is a fairness argument to make.
I have dealt with Evan Thornley and he is one of the good guys but this makes me feel sick:
Entrepreneur Evan Thornley is set to raise up to $30 million for a new shared equity fund for residential property, which will seek to help owner-occupiers enter the market by providing them with funds towards their purchase in return for a share of any capital gains.
At the heart of the plan is Thornley’s belief that house prices are only going to continue to rise, and would-be buyers – and struggling renters – need help to break into a housing market that is now beyond the means of most young Australians.
“Australia has the second-highest population growth rate in the developed world, that hasn’t changed in 80 years, and it’s not about to,” Thornley says. “So house prices will keep rising on rising land values.
“It’s going to get a lot worse. Ownership will be an inherited privilege.”
Those are some powerful assumptions. Mass immigration was just killed by a pandemic. I can see all sorts of other risks to it as well:
- Internal resistance. How long can the LNP ignore a policy of lower immigration that will single-handedly get it elected?
- Rising Asian conflicts. What happens as Chinese tensions intensify or even war breaks out?
- How long can wages be squashed and inequity rise?
- how long can the environment be debased amid rising concern over climate change?
The kind of immigration consensus we see in Canberra today can last a long time. But when it breaks, it does so spectacularly.
That said, we still need to ask if that would end the great housing ponzi scheme? Probably not.
Only a shift in the structure of the credit creation system can do that.
So, it’s destroy the village in order to save it time.
