Property

What proposed changes to negative gearing really mean

By Danika Wright, University of Sydney Negative gearing is set for its biggest change in decades. Once considered the sacred cow of federal government policies, both major parties are proposing changes ahead of this year’s federal election. The Labor party has already unveiled its policy, which involves only allowing negative gearing on new houses and…

Housing (and home loan) affordability … again

By Wealth Foundations The “experts” claim housing is as affordable as it was in the 1980’s … We have discussed housing affordability, either directly or indirectly, in a number of previous articles e.g. “Are Australian house prices too high?” of August 2012. Our view of almost three years ago was that housing prices then were…

Five reasons housing is more affordable overseas

Richard Reed, Deakin University Housing affordability continues to be an issue of importance to voters, with a recent Fairfax-Ipsos poll showing 69% of Australian capital city residents disagree that housing is affordable for prospective first home buyers. Different countries have adopted varying approaches to improve access to affordable housing – with governments playing a central…

Blowing bubbles: the tricky task of tackling Sydney’s property market

Amy Auster, Australian Centre for Financial Studies The debate over Sydney’s property price bubble (Yes there is! No there isn’t!) sits smack bang in the middle of one of the most fascinating economic questions of our time: how risky is sudden asset price inflation? And if the risk is judged to be high, what if…

INFOGRAPHIC: Australia’s housing affordability problem in 12 charts

Charis Palmer, The Conversation and Emil Jeyaratnam, The Conversation   >> BACK TO THE NEWSLETTER: Click here to read other articles from this week’s newsletter This article was originally published on The Conversation.

The facts on Australian housing affordability

Gavin Wood, RMIT University and Rachel Ong, Curtin University Housing affordability, high house prices and rents are attracting plenty of media attention right now. The latest figures on house prices, mortgages, number of first time buyers and so on are dissected by journalists and commentators as if this is an issue of recent origin. In…

‘Slippers’ and ‘stickers’: the hidden victims of rising house prices

By Emma Baker and Rebecca Bentley, University of Melbourne Australia needs to have a housing conversation that isn’t just about housing “bubbles”, profits and investment properties. Sadly, we punch well above our weight in international measures of poor housing affordability, and increasing numbers of Australians can’t afford their rents or mortgages. Even a modest increase…

Life in a windowless box: the vertical slums of Melbourne

Ralph Horne, RMIT University and Megan Nethercote, RMIT University Australia’s apartment boom is in full swing. Nationally, 40% of new dwellings are now apartments or units, and building approvals outnumber those for houses. Melbourne and Brisbane are the most extreme cases, but these trends are national; and they are fundamentally reshaping the future of urban…

Is there a “house price bubble” when over 50s are borrowing to buy investment property?

By Wealth Foundations Few residential property “experts” think there is a “house price bubble” There is significant risks associated with increasing numbers of baby boomers borrowing to invest in growth assets, particularly residential investment properties. But it is apparent that the major risks that concern us are not even on the radar of some of…

Home loan limits and buffers won’t stop a housing bubble

By Claire Matthews, Massey University Australia’s central bank has formally flagged the use of macroprudential tools to address what it called “unbalanced” lending in its most recent Financial Stability Review. Loan-to-valuation ratio (LVR) limits are the latest tool doing the rounds of central banks as they seek to cool overheated housing markets, with investors spurred…