The ABC's financial expert Alan Kohler has blamed politicians who are afraid to insult Nimby owners for Australia's affordability crisis.
“The housing crisis of Australia is the result of decades of failure due to the political classes of the nation,” he said.
He told a 7.30 function on homes that houses would only become affordable if there was an oversupply of houses with a backyard.
“To resolve the affordability of homes, we must not only meet the demand, but also surpass it,” he said.
'In my opinion there must be an oversupply of houses in the inner cities, the suburbs and the middle.
“That oversupply must illuminate the rental pressure and perhaps even stop house prices.”
But Kohler said that politicians were reluctant to make Nimby owners upset, who constantly wanted to get strong capital growth and were against the development of new apartments in their neighborhoods.
“The question is, are those with a mortgage or owners such as I willing to see the value of their largest assets flatline or even see?” He asked.
The ABC's financial expert Alan Kohler has blamed politicians who are afraid to insult homeowners in the Australian affordability crisis
“Making homes more affordable will not be easy – our suburbs will be busier, and your house and my house will not be worth that much, so I will leave that to our political leaders to tackle.”
Jacinta Allan and Chris Minns, the Labor Premiers of Victoria and New South Wales, are confronted with political pressure on their plans to ignore the local councils and increase the limits of the apartment around train stations.
High -rise apartments in places such as the lower north coast of Sydney and the Baysside of Melbourne would destroy the proportion character of leafy postcodes.
But they would also increase the range of new houses, giving potential buyers more choice who want to live near the city.
When it comes to the rise in house prices, Kohler blamed the government of former Liberal Prime Minister John Howard for the introduction of a tax discount of 50 percent in 1999.
“It is my opinion that John Howard did more than anyone to make housing unaffordable,” said Kohler.
According to Howard's policy, if a real estate in the investment in value increased by $ 100,000, only $ 50,000 of that profit had to be reported as taxable income for that financial year.
Kohler said that these power gain -interest changes meant that house prices had risen on average in the last 25 years with double the pace of income.
He told a 7.30 function on homes that houses would only become affordable if there was an oversupply of houses with a back garden (shown his new houses in San Remo in Victoria)
Sydney's median house prices were less than six times an average salary in 1994, but by 2004 it jumped to 10 times.
Houses in the most populated city in Australia now cost more than 14 times an average, full -time salary.
“After the double income of the income has risen for 25 years, houses have become unaffordable for almost anything but well -being,” he said.
Mr Howard defended in 2003, has power gain tax changes.
“I haven't found anyone in seven and a half years, shake their fists to me and say:” Howard, I'm angry with you because you have increased the value of my house, “he told ABC Radio in time.
Houses became more unaffordable in the 2000s because the net overseas migration levels tripled in 2008 from little more than 100,000 to more than 300,000.
Brendan Coates, the housing economist of the Grattan Institute, said that reducing immigration would make houses cheaper, but would also see Australians pay higher taxes.
“Reducing immigration would make homes cheaper – we estimate that every 100,000 extra migrants to Australia will probably contribute to the rents and prices by about one percent,” he said.
Jacinta Allan and Chris Minns, the Labor Premiers of Victoria and New South Wales, are confronted with political pressure on their plans to ignore the local councils and to increase the limits of the apartments around train stations (depicted are apartments at Epping in Sydney's North )
“The challenge is that reducing migration probably also makes us poorer – most migrants in Australia are competent, so if we reduce migration, housing would be somewhat cheaper, but we should all pay higher taxes or enjoy worse services.”
Sydney's average $ 1,474 million house now costs more than 14 times the average, full -time salary of $ 102,742before a mortgage deposit of 20 percent is processed.
Someone should earn $ 227,000 to even get a loan – and still to be in mortgage stress, even though it is among the top 2.3 percent of the income earners.
Peter Tulip, the most important economist of the Conservative Center for Independent Studies Think Tank, who was previously a researcher from Reserve Bank of Australia, said house prices could not rise at exponential levels.
“Our national leaders must tell all these reserved voters that they cannot continue to expect house prices to rise – we have an affordability problem and that means no more price increases,” he said.
