Aus - soften up gullible new buyers, Senate recommendations

Two links, one hype, one factual

Housing costs see big Aussie dream shrink:

news.com.au/couriermail/stor … 72,00.html

Developers are softening up the next group of gullible home buyers through this newspaper article, or rather blatant advertising.

The ulterior motive is to double the cost of current properties by halving the size of future lots.

Senate delivered its report into Housing Affordability this month:

aph.gov.au/Senate/committee/ … rt/b02.htm

Good analysis and honest work by the Senate. If following recommendations adopted there is hope for next generation.

4.1 – Treasury to publish estimates of taxation & related measures related to housing market
4.2 - Tax System Review Panel consider implications for housing affordability and overall fairness of the tax system, eg
a) tax discount for capital gains on investor housing, b) exemption from land taxation of owner-occupied housing; and c) current negative gearing provisions.
9.1 - increase the FHO Grant for new dwellings and lower it for buyers of existing dwellings
10.5 - more sustainable social housing

The Austrlian property market seems to be going through that ‘false war’ stage where conflicting reports come out of the media that house prices will be rising in a years time after taking a breather on one hand and on the other reports of house proce drops, but people on the ground are noticing differently.
I think the aussie economy is just about slowing now - inflation is up this month and interest rates have been left as is: business.theage.com.au/fed-keeps … -2wz9.html
Hard to know where this one is going - certainly if Australia escapes the property bust going on elsehwere in the western world it’ll be the exception…