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What you need to know about why house prices aren't coming down (www.abc.net.au)
submitted 1 year ago by to c/australia@aussie.zone
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[–] 7 points 1 year ago (4 children)

Let’s say that housing prices come down back in line with historic (pre-2000s) trends, as honestly - they damn well should; how do we not fuck over the millions of otherwise innocent owner-occupiers who suddenly find themselves severely underwater on their mortgages, due to no fault of their own?

This is the needle we need to thread as a nation, and it’s a bloody hard one.

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  • [–] 5 points 1 year ago (1 child)

    We take those Stage 3 tax cuts that the wealthy gobbled up (leave the ones for the lower earners) and use them to pay off the banks.

    Then write legislation to prevent this shit happening again.

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  • [–] 4 points 1 year ago

    It’s a good idea to start with, but flooding banks with that much money will likely have a massive down-side (think post-COVID19 levels of inflation), and it would be difficult to determine the right amount for each house, given that prices would still be in flux/freefall.

    My initial thoughts were about providing income tax deductions for losses on primary residence (eg. If your $900K townhouse in the ‘burbs devalues to $400K, you can claim the $500K over however many years it’s take you), as long as you continue to service your mortgage, after the initial refinance to determine eligibility.

    But I’m sure a tonne of people would be able to immediately spot loopholes or other reasons why my idea wouldn’t work either.

    It’s not actually all that easy, unfortunately - otherwise you’d think we’d already have had a politician put forward a proposal by now.

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