What do you make of this? The state owning 25% of the house you just bought with a 50k deposit? | PUNT ROAD END | Richmond Tigers Forum
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What do you make of this? The state owning 25% of the house you just bought with a 50k deposit?

DavidSSS

Tiger Legend
Dec 11, 2017
7,021
9,219
Melbourne
The State would be covering a quarter of the cost so I suppose they get a quarter of the asset. In any case, you can pay that quarter back later (I would presume with interest but no detail in the article) which might help some.

I think we would be better off trying to reduce the ridiculous price of housing here. FFS I could sell my house, buy an apartment in the middle of Paris, and get change. Unfortunately the policies taken to the last election about getting rid of negative gearing and the capital gains tax concessions failed because of a scare campaign, one no doubt supported by the Murdoch rags.

The biggest issue with this is that it might just lead to house prices going up more, but that would be hard to determine given house prices have already been rising at insane levels for the last few decades.

DS
 
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Dyer'ere

Licensed to kazoo
Sep 21, 2004
17,361
2,225
The State would be covering a quarter of the cost so I suppose they get a quarter of the asset. In any case, you can pay that quarter back later (I would presume with interest but no detail in the article) which might help some.

I think we would be better off trying to reduce the ridiculous price of housing here. FFS I could sell my house, buy an apartment in the middle of Paris, and get change. Unfortunately the policies taken to the last election about getting rid of negative gearing and the capital gains tax concessions failed because of a scare campaign, one no doubt supported by the Murdoch rags.

The biggest issue with this is that it might just lead to house prices going up more, but that would be hard to determine given house prices have already been rising at insane levels for the last few decades.

DS
I don't think you pay interest, David. (But I'll double check that.) I think you pay for the upkeep. You pay the rates too. That amounts to interest.

Anyway the biggest issues facing the electorate in the coming months may not be COVID related. I haven't seen any testing on this as yet but I get the feeling from my own straw polls that COVID criticism runs along existing party lines. And that swinging voters see COVID as unknowable and mistakes as understandable/inevitable. As, I said, not that I've seen any actual testing.

There will be other issues. At state level housing affordability could be a big deal. And non partisan.

BTW this kind of scheme was introduced by Bolte back in the 60s. In those days a Liberal government could do such a thing. In 2021 the highbrow Murdoch headlines the scheme as "Victoria's controversial bid to own part of your home".

FWIW I think the scheme is a winner.
 
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mrposhman

Tiger Legend
Oct 6, 2013
12,324
9,705
While I think on face value the scheme makes tons of sense, it's not solving the problem at all.

Its not designed to. The government don't want the housing market to cool just yet. Its in their interest to maintain the current scenario.
 
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tigerman

It's Tiger Time
Mar 17, 2003
17,574
9,171
I don't think you pay interest, David. (But I'll double check that.) I think you pay for the upkeep. You pay the rates too. That amounts to interest.

Anyway the biggest issues facing the electorate in the coming months may not be COVID related. I haven't seen any testing on this as yet but I get the feeling from my own straw polls that COVID criticism runs along existing party lines. And that swinging voters see COVID as unknowable and mistakes as understandable/inevitable. As, I said, not that I've seen any actual testing.

There will be other issues. At state level housing affordability could be a big deal. And non partisan.

BTW this kind of scheme was introduced by Bolte back in the 60s. In those days a Liberal government could do such a thing. In 2021 the highbrow Murdoch headlines the scheme as "Victoria's controversial bid to own part of your home".

FWIW I think the scheme is a winner.
I reckon it's a winner too Jack.

I'd much rather an Australian State having some ownership than an overseas country.

I wonder how many dodgy people have been allowed into Australia with their dirty money.


 

DavidSSS

Tiger Legend
Dec 11, 2017
7,021
9,219
Melbourne
Interesting


Interesting policy, would also reduce the amount people can borrow if they are minimising tax and declaring a lot less income than they actually earn, which would be ironic!

Why not do it, but at the same time why not a few more policies to reduce pressure on house prices.

The thing about house prices is that a fair bit of the pressure on price is a result of people buying properties for investment - mainly speculation on rising prices but also getting rental income. So the prices rise because people are of the view that prices will keep rising and therefore it is a "safe" investment.

So, what we can do to reduce this if the aim is to stop the prices going through the roof as they have been for decades, is to make speculation on house prices less attractive.

Some policies to do this would be: remove negative gearing, remove the capital gains tax discount on profits from selling a house, massively increase public housing to reduce rents.

The problem for government here would be that there is potential political fallout from those who own houses, especially those who bought recently, if the value of their houses fall. Those who bought in the last few years, and likely have massive mortgages, would be furious if the value of their house falls while they still have a massive mortgage to pay off. The trick would be to try and stabilise prices for an extended period rather than have them drop.

I simply see no reason why the house I live in, which cost 5 times my income when we bought it, is now valued at around 20 times my current income which is a fair bit higher in real terms than my income all those years ago. It is simply ridiculous. Yet another market failure, pricing people out of a safe secure roof over their heads is a failure.

Also, might be worth acting now before the inevitable rise in interest rates from their current historic lows. When that happens there will be blood on the streets, possibly even literally.

DS
 
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