Housing Crisis
Housing as homes, not investments!
The housing crisis worsens over time. Prices are rising much faster than incomes and Australians are unable to keep up. Paying hundreds of dollars per week for a small 3m x 3m room in a share house is becoming the norm, that is if a person can find and afford housing at all. Shelter is becoming less and less a reality for many Australians.
Today's youth can expect to save for 40 years before earning enough to be able to afford a down payment for a house. If trends continue, by that time prices will be far beyond reach again due to ever increasing pricing.
The Australian government has crafted the perfect storm by implementing policies that ensure prices continue to rise, resulting in the residential real estate sector one of the safest and most profitable places to invest your money.
Negative gearing and continual excessive immigration lead to a very high demand for housing and an ever-shrinking supply. As a result, housing is the single greatest expense for most Australians.
The excessive investment in buying properties also leads to a lack of investment in other business sectors and research. Australia has recently had the lowest productivity growth rate in more than 60 years. This will lead to a more stagnant economy and lower incomes, compounding the crisis for Australia.
Our core principle here is "houses are for living, not profit", as such we have been brainstorming some ideas such as:
- Reduce immigration level and tie it to infrastructure availability
- Non-citizen, non PR-holders can not own property with land
- PR holders may own 1 property with land, or 2 for up to 6 months while moving homes, after which the government may help them with the sale.
- Private businesses may not own residential property with land, excluding on campus student accommodation, hotels, and other similarly appropriate situations.
- Land purchased for residential development must be developed in a reasonable period of time otherwise it will be resold on the behalf of the owner by the government.
- Australian citizens may own unlimited residential properties with land, however with each additional property their rates will increase at an exponential rate.
- Children under the age of 18 may not own properties unless emancipated. (This is to prevent parents using children as a loophole)
- Lower interest rates for existing home loans for 1 home per person – MUST be resident - to ensure those who buy at high prices before prices begin to deflate are not excessively burdened by their choice to buy a home for their family.
- Negative gearing only applies to new residential properties for their first 10 years after construction. It does not apply to a newly built property on land which previously contained another residential building.
- Residential property advertisements must advertise in terms of being a home, not an investment property.
- Residential property advertisement must list a price and may not replace the price with a request to contact the agent.
- A person must have been physically resident in Australia for at least 10 cumulative years before being eligible to purchase residential property.
- Airbnb type schemes are only allowed in specifically zoned areas, such as resorts. Such services are not allowed for standard residential properties.
- Foreign investment into real estate no longer a qualifying investment towards Permanent Residency.
- Empty property tax (other than primary residence).
Houses as homes!