Leave property investors alone

Posted on October 23, 2013 by | 2 Comments

The esteemed Grattan Institute yesterday released its much-awaited reporting on housing policy and the need for major reform. The central recommendations focused on a re-think of investor-focused incentives like negative gearing.

Shannon Molloy

BY SHANNON MOLLOY

Whenever property markets begin to recover after an extended lull or downturn, a number of pundits reemerge to express their concern about a so-called and looming affordability crisis.

House prices are getting too high, they claim. Young people have no chance of paying a mortgage, it’s often said. There’s a bubble forming that’ll pop and swallow the world, doomsayers cry.

You look at cities like Sydney or Melbourne that experience a several per cent increase in their median house prices in the space of a year and those alarmists’ dire warnings seem pretty compelling.

I mean, you only need to flick open a newspaper on a Monday and read about weekend auction clearance rates to probably agree that things are a bit crazy at the moment.

But let’s look at the facts, contained in the Grattan Institute’s Renovating housing policy report that was released yesterday.

Read the full article

 

Read the Grattan Institute report

 

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