Monday, August 30, 2004
Last night Kerry did his best to give Howard a bollocking on the 7:30 Report
. Bob McMullin came out with the only bit of sense on the issue yesterday. He said (paraphrasing) "interest rates go up and down under all governments". An as TSSH
rightly points out housing affordability has way outstripped any interest rate savings. The coalition have got to take part of the responsibility for that. Giving people $7-14K to buy a house is ridiculous. This does not merely increase house prices by $7-14K. The main problem people have in this "historically low" interest rate climate is the bloody deposit, as the banks will throw vast wads of buy now pay later cash at you. Therefore given that most house purchases involve saving a 20% deposit, this government bung meant that people could now afford a house costing $35-70K more than they originally thought. Or how about "only 5% deposit required!" then it's $140-280K in affordability. And guess what? This short term fix, which is still going strong, is one of the contributing factors that means shelter has sky-rocketed. Add to this the ridiculous policy of negative gearing and you can't even afford a pothole in a dunny lane. Get rid of negative gearing! Phase it out over 20 years making it less effective as time goes on! Think of all that beautiful revenue that could be gathered and redistributed. The general population would not give a cracker about the small percentage of people that would lose out because the potential income tax reductions would be ENORMOUS.