The headline says it all:
Rental houses pushing boom
INVESTORS are driving Victoria’s real estate market, taking out almost half of new lending in May to buy existing homes.
…thereby locking out potential homebuyers and forcing them to rent instead. Creating a future where fewer people own their own home, with the associated social problems.
Yup, it’s only getting worse.
But it doesn’t have to be this way! It could be solved tomorrow by taxing capital gains at a rate comparable with income tax (why should income earned by working hard be taxed more than income “earned” by sitting on property?) with a full exemption for a person’s primary residence. And by increasing renters’ rights.
Sure, the people who’ve been profiteering off the misery of young Australians since Howard slashed the CGT will kick up a stink – but haven’t we given them their way long enough?
UPDATE: Those who think the young are just being precious, we sucked it up in our day, if you didn’t spend so much on eating out etc etc: even according to News Ltd, Australian first-home buyers face 4.5 year savings wait to buy property. Is that how long any previous generation had to save – for a bloody ten percent deposit?