Redirecting anger on housing #2 – it’s got nothing to do with all the investment properties the older generation’s been buying up

The rightwingers’ efforts to redirect anger on housing unaffordability away from the real cause – their precious investment properties – and onto immigrants instead are getting more vigorous, with the realisation that it’s a handy angle on which to attack Kevin Rudd.


Here’s another group whose support automatically means something’s a bad idea: the real estate industry. (I can’t believe I left them out of my earlier list.) If the land rats oppose a policy, that’s a powerful point in its favour.

If they can convince increasingly desperate younger Australians to forget that the jump in housing unaffordability immediately followed the GST, the “first-home buyers'” (really, the first-home sellers'”) grant and – most critically – Howard’s massive cut in CGT on investment properties, and instead to blame it on filthy foreigners, then suddenly the ALP’s having relaxed foreign ownership rules can be portrayed as having caused the whole thing! (Provided everybody’s got really short memories.)

The rich Australians whose interests the rightwingers represent get a handy scapegoat for the way their generation is fleecing the next – and the anger of the young is usefully redirected against the opponents of the political party whose policies were the biggest causes of the current mess.

And the divide grows deeper.

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9 responses to “Redirecting anger on housing #2 – it’s got nothing to do with all the investment properties the older generation’s been buying up

  1. usesomesanity

    The govenment must step now to stop the totally irresponsible lending practices of the financial instutions. The govenment must act and put aside their own self interest of higher stamp duty collects. This bubble must be burst now for the greater good.

  2. Actually, that’s the first sensible argument I’ve seen against the stamp duty rates – that governments presently have an incentive to encourage prices to rise because it improves their revenues.

    On the other hand, that would apply to ANY level of stamp duty other than a fixed amount per sale (which would be utterly unjust). And cutting stamp duty would simply give even more money to sellers – since the winning buyers would just bid that much more – at the expense of public services. I don’t think sellers require any more money to be transferred to them, particularly out of the public pocket.

  3. usesomesanity

    Mine is not an arguement against stamp duty rates. They should stay the same, the govenment must act for the greater good and burst the house price bubble even though is means that their stamp duty collects will be lower than if they continue to fuel it, as present. They must put in regulations against the current irresponsible lending practices or reap what they sow.

  4. eh, the media is just doing its job… deflect wrath from the real culprits

    but i dont see them pulling the pin on the housing market yet…
    probably the next election cycle, if Labor gets voted back in, would be a good time to crash it.

  5. usesomesanity

    The govenment should crash the housing market now, as the longer they leave it the bigger the devasation and the more culpable and irresponsible their behaviour becomes.

  6. “Crash”? Nothing so drastic – that would destroy the poor sods who just managed to claw their way onto the ladder.

    But it definitely needs to reign it in and stop encouraging the investors to dominate the market.

  7. usesomesanity

    A crash is described a 20% or more drop in value. This should be the govenment aim, call it what you will. The long term finanical instability of not taking the edges off the housing market will reach far wider than over leaveraged forced sellers losing capital. It will distroy the entire economy.
    The choice is simple, crash the market, but govenment and financial lenders continue to act irresponsibility for short term unsustainable gain.

  8. usesomesanity

    AS house prices continue to rise people borrow more money against the increased equity increasing prices future and so on… the music stops when people cant service their loan due to increase in interest rate (as they were lent too much money), loss of job due to illness ect. The bank cant get their money back as price drop below loan value so future increase rates pushing more out of their homes as the flood kills a bubble created by lenders aided by govenment.

    Too much lending against ‘equity mate’ that will evoporate.

    You’ve been equity mated.

  9. usesomesanity

    The Greens are the political party with the long term financial stability foresite that have the economic gumption to put policies in place against irresponsible lending to take the edge off the house price bubble. Compromised banking exec’s care only for their sales bonuses.
    Compromised ALP or LIB govenments care only for short term stamp duty collects. Perfect storm.

    Therefore the greens are only chance for long term financial stability.

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