The growth of un-affordability in housing is a huge social problem. Once upon a time only the poor were totally restricted to the confines of the greedy landlord and his rental properties. Post WWII saw a boom in home ownership in Australia, and it was something that many ordinary Australians aspired to, and achieved in their lifetime. This is no longer the case as home ownership has gone beyond the reach of many.

Home ownership is good social policy, it is a benefit to society. Owning ones home brings a stability and satisfaction that renters can only dream of. Three things have fuelled rampant inflation of the property market, particularly in Sydney and Melbourne, foreign access to the market, tax concessions to landlords, and limited supply in a growing market. Government must act to curtail these factors that are crippling the market for the most under resourced group, the first home buyer. If action is not taken then home ownership with continue to be nothing but a dream for more and more ordinary Australians.

Home ownership is good social policy, it is a benefit to society. Owning ones home brings a stability and satisfactio
Paul1405,
I couldn't agree more ! Where the problem starts is that many don't own homes for that reason, they're buying up to manipulate the housing market for nothing but profit. Homes should not be allowed to be an investment other than a roof over your head.

Paul,

As far as the price of housing is concerned there are many factors, and in the political debate, what is often forgotten is that house prices would come down if one could build houses cheaper.

One of the major cost in building is the direct and indirect taxes on housing tacked on by local government and councils. For houses in Sydney the cost is between $400k and $500k on average. This combined with a slow release of land pushes the cost of building sky high.

The negative gearing tax would have dropped house prices which would (and did) dramatically reduce the construction of new houses. This pushes up rents and the least wealthy suffer.

All three posts interesting and while not posting a link the SMH has yet another story about housing
Seems Sydney lost around 18 percent Melbourne not much less
The storey, backed by experts, predicts this year the house prices will stabilise
Too that lower interest rates will let more into the market
Not however seeing any return to steep price rises
Still international events could, maywel, have impacts we don't yet see.

Indy, that would be an extremely radical move, excluding landlords from the equation. Both politically and practically impossible. The problem for my younger family members, they all aspire to home ownership. The problem is saving the deposit while paying rent, then purchasing something with a manageable mortgage.

Paul with the politics of envy as usual. Always the down trodden by the evil landlord or equivalent. No young folk can afford a home. God you must live a miserable life.

I have an acreage development between my place & the main road, here are a couple of case studies of folks there.

One couple, he's a corporal in the army, she's a check out chick. Not exactly rich people, but they bought out here because it was cheaper than the city. Built a nice home, & are doing well. Those 1.25 acre $75,000 blocks are now worth $195000, so by having a go, rather than whinging they are set for life. Yes they struggled for a couple of years, & don't have much spare cash now, but are getting there.

Another couple, bought a block of land out Penrith way, with $4000 deposit years back. They couldn't afford to build, but sold it a couple of years later for a large profit. They turned their $4000 & 2 years repayments into $32000. Came up here Bought a house & land package in an outer suburb. 3 years later Brisbane had engulfed them & they sold it. Thry now had $90,000. Did the same again & in another 5 years had enough for a nice home on 2.5 acres out here, & love it.

Yes out here doesn't suit everyone. Quite a few have hated the extra commuting tine, & not lasted very long, but it proves it can be done by ordinary folk, at least if they get out of Sydney/Melbourne rat race.

Some of the new developments are not that nice, with postage stamp size blocks, but hell, but surely better than a flat in Annandale or a tenement in Glebe. You just have to stop winging into your beer & have a go.