Government caving in?

[yieldmatters]

All,

I think governments (state and local) perform terribly regarding their responsiblities on housing. They restrict supply on the fringes while at the same time putting endless hurdles up for inner city development. They build little or only user-pay infrustructure, they levy high taxes and other charges, and the ultimate in unfairness - they pass on what used to be government responsibilities onto developers who then pass them on to the struggling first home buyer. It's a disgrace as it chokes supply and makes fat cat pre-2000 property owners rich at the expense of new entrants by raising the clearing price for property as a whole.

I read this article on the abc website regarding Melbourne.
http://www.abc.net.au/news/stories/2008/03/04/2179564.htm

Could it be that the government has finally cracked and is caving in to pressure to do something about housing? I personally am happy to hear it. Any views?

 

[steveadl]

It's interesting to see the govt. is making moves towards trying to increase supply on a larger scale. In theory that's the best way to help level out the growth in property prices.

The two issues that spring to mind after reading the article are:

- As was mentioned, there's no point in developing miles and miles of suburbs without some sort of master plan in regards to further infrastructure ie. train lines, decent highways, public amenities ie. hospitals etc. They would also need to look into commercial and industrial potential in the areas eg. try to build a secondary CBD's and work around that, as opposed to just continually expanding suburbia indefinitely.

- It still won't solve, and will never solve the aspirational crisis. We have cheap housing on the fringes of our CBD's already. Yet we still see day to day examples of people wanting to be only a hop skip and a jump away from the CBD/beach. This problem will not (and can not) be solved by pushing out the fringe. That's not to say this is a problem - people just have to deal with it.

Lastly YM, I don't think this one was called for:

and makes fat cat pre-2000 property owners rich

 

[yieldmatters]

Lastly YM, I don't think this one was called for:

Fair enough ... "it makes those very lucky individuals who bought pre-2000 very rich"

The point is it is an equity issue when governments load up property prices with taxes, levies, and poor infrustructure planning. Those that are already in get a windfall gain. Those that are trying to enter are the source of that gain. As I keep harping on about - the money always comes from somewhere.

 

[Dazz]

It's a disgrace as it makes fat cat pre-2000 property owners rich at the expense of new entrants. Any views?

Yep,

I'm proudly one of those that you refer to. Long may it continue.


You ask if I have any views ??

Yep....don't change a single thing.....I'm continuing to make a motza whilst you sit there and bleat.

Very happy with the current situation and simply delighted to be labelled with whatever frivolous tag you wish to place on me. Kaching kaching.

 

[steveadl]

Fair enough ... "it makes those very lucky individuals who bought pre-2000 very rich"

Again not really. I bought post 2001 and am doing fine. My friends chose to wait longer than me so paid more - that's their problem. But they're still in the market now. Funny that...

 

[BayView]

All of our IP's, and our current PPoR (No.4) were bought after 2000. PPoR was bought in 2000.

It's such a shame that those before 2000 made so much money at "the expense of new entrants" like me.

We're laughing like fat spiders thanks, YM.

There will be people in 2015 sitting around whining about all those lucky "fat cats" who bought before 2009 as well.

YM, there's no start or finish line to this caper; just stops along the way, and you get on at your stop.

 

[sash]

Fair enough ... "it makes those very lucky individuals who bought pre-2000 very rich"

The point is it is an equity issue when governments load up property prices with taxes, levies, and poor infrustructure planning. Those that are already in get a windfall gain. Those that are trying to enter are the source of that gain. As I keep harping on about - the money always comes from somewhere.

Governments address the equity issue??? I see no equity issue....it is a question of choices.

Yieldmatters....may I ask how old you are? Do you own any property at the moment?