So, after what I view to be underwhelming policies from both the major parties regarding housing affordability, I was wondering what ideas are out there to actually tackle housing affordability, from my point of view there is a fundamental supply and demand issue underpinning it, and policies that attempt to increase first home buyers purchasing power only tend to increase this. Reducing demand and increasing supply seem to me to be the best way forward.
My idea to do this would be to place some limitations around negative gearing, I'd propose that going forward that only new properties are eligible to be negatively geared, and that the percentage of the interest costs that are claimable as a deduction reduces over 10 years to zero (10% reduction every year). I'd also propose that all current properties are treated the same, so as to not overly imposition those who have recently purchased existing investment properties.
It's no silver bullet, but I don't think there is one, and the reality is that we need house prices to at least stagnate for a long time for them to be considered affordable. Interested to hear comments, or what other ideas people might have. Especially way's in which housing is viewed first and foremost as a form of habitation and a speculative investment as at least a very distant second.
Anyone that dares to touch NG will get rekt.