Labor announced it would allow first home buyers to purchase homes with a 5 per cent deposit. It also pledged $10 billion to go towards building 100,000 new homes over eight years — exclusively available to first-time buyers — by way of grants to states and territories, and zero-interest loans or equity investments.
The Coalition’s policy would see interest payments on mortgages taken out by first-time buyers on newly built homes be tax deductible for five years.
Economists have been quick to give scathing assessments of some of the latest policies, which they argue will drive up demand, and in turn, housing prices. Chris Richardson labelled the major parties’ platforms a “dumpster fire of dumb stuff”, while Saul Eslake called the Coalition’s planned tax deduction “candidate for dumbest policy decision of the 21st century”.
But housing experts say the policies are missing the crucial issue driving the housing shortage.
Of the 2, the LNPs tax deductible interest is the much better plan. It definitely could help, but it does nothing to make housing for affordable.
The ALP plan also does nothing to make houses affordable.
Both parties are trying to maintain the housing markets perpetually increasing prices because if the bubble were to burst it would be catastrophic. It’s getting to catastrophic levels if it doesn’t burst though, but wealthy politicians who own multiple homes and are set for life don’t care about this type of catastrophe, only the former one.
Interesting that in an article about issues with housing supply there is no mention of the unsustainable population increase via record levels of immigration.
All three of your comments are just trotting out the established conservative talking points.
The LNP’s deductible interest is a terrible plan. You haven’t suggested why you think it’s better than the ALP’s plan. Both plans will increase the cost of housing.
As regards LNP specifically, home ownership already attracts obscene tax concessions in that your home is exempt from CGT. In terms of someone’s stage of life financial cycle, the LNP’s plan dramatically heightens the imperative to buy a home in your 20s and 30s. If you don’t, you miss out on those tax concessions, which are effectively the ATO paying off a big chunk of your investment.
Ah yes, the classic talking points of….checks notes…. saying the conservative partys policies are bad. Interesting take. I’m going to go out on a limb and guess that you disagree that immigration is a factor in the housing crisis, right?
The deductible interest idea is actually a good idea, not just for first home buyers but for all mortgages. It massively helps ease cost of living pressure that is brought on by interest rates on housing. Many countries already do this btw.
Home ownership doesn’t attract obscene tax benefits.
You know what is an absurd tax? Land tax, which you’re advocating for making a standard and increasing.
Let me guess - you think communism works, it just hasn’t been done properly yet?
I didn’t say all conservative policies are bad, I rebutted your assertions.
You don’t really seem able to back up anything you’re saying. It’s all meme level vibe based reasoning.
Tax deductible interest on mortgages would just increase the cost of housing. Dramatically. Well done.
Land tax is well established as broad based with minimal compliance cost.