Meanwhile across the Tasman...
It's worth noting that when the government (or the market) lowers the price of residential property and people do lose money on their properties, the ones who lose most are people who live in the house they own. To an investor the drop in price is a taxable event, so the government/taxpayer is covering a third to a half of the loss (this is another reason the government want to quarantine losses to the property that incurs them). But if you live in the house that's all your money.
And for people like me who earn less than the $100,000/year my house is dropping in price even the current "slow fall" is not good news. I could easily go bankrupt if there's an actual crash. Along with most of that half of Australia who have mortgages.
And for people like me who earn less than the $100,000/year my house is dropping in price even the current “slow fall” is not good news. I could easily go bankrupt if there’s an actual crash. Along with most of that half of Australia who have mortgages.
Is that when people are forced to sell houses because of job loss or such events, and the sale doesn't cover the mortgage?
the sale doesn't cover the mortgage?
that's the one. The term is "negative equity" and apparently about 20% of Sydney homeowners are in that position right now. I'm not. Yet.
Two years wasted and millions poured into the pockets of developers.
And it doesn’t look as though the government has learnt anything from this disaster.
No one forced them, as they are now claiming, to build houses no one wanted to buy. That was a choice.
It was also a choice not to listen to those saying this is not good policy.
Twyford is now finally saying he will early next year direct councils to stop their capricious decisions on height controls in CBDs. That should have been done the day he entered government.
Still no movement on reforming the Unit Titles Act which is desperately needed if apartment buyers are to have any hope in maintaining and governing apartment buildings. The whole intensification project will collapse if this is not dealt with quickly.
Also no curiosity about how the construction industry gets away with outrages prices for buildings that are often substandard - leaky buildings are still being built.
It’s all been overtaken by other events. Who would have thought that there was no te reo word for allegation that didn’t also imply rumour. Nudge nudge.
I don’t think it’s that surprising that a policy premised on demonising ethic groups winds up pouring money into property developers. If it was a National govt one might think that was all planned.