The Forum > General Discussion > Solving the Housing Dilemma
Solving the Housing Dilemma
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Our State Govts have used housing as a cash cow,with their stamp duties, environmental charges,and restricted land releases to push up prices to shore up their bottom lines.
To understand the high cost of housing we need to look at the history that has made this commodity so scarce in a country that has so few people in such a vast continent.
Globalisation has made us a country in which service industries provide income for the massses.With Globalisation jobs have been concentrated in the cities,since the reduction in tarrifs our regional centres have been shrinking as people moved to the cities looking for work.
The car is no longer the expensive item it once was and this coupled with low interest rates has seen more available money over inflating the values of housing.Credit is also too freely available with banks loaning money to people who have a marginal capacity to repay the loans.
Our State Govts have also inflated prices.38% of a cost of house/land in NSW is made up of Govt charges and taxes.They now want first home buyers to pay for infrastructure.Add into the mix the home warranty debacle that has excluded many builders from the market and things like ridiculous OH&S regulation,has seen the cost of building escalate.
The solutions are to release a lot more land to first home buyers at reasonable prices.Put in rapid rail systems like they have in Europe to our close regional centres so people can work in our cities.Eventually these regional centres reach a critical mass which makes them.No stamp duty for first home buyers.Eliminate the waste and bureaucracy in our Govts so more money can be spent on infrastructure.In fact we should consider slowly eliminating our State Govts by amalgamating councils and slowly transferring State responsibilities to them and the Federal Govt.