Volatility isn’t a reason to panic about housing policy
Housing
markets have their ups and downs — that’s nothing new. But instead of reacting
emotionally, we need to look at the bigger picture and make informed, long-term
decisions.
Australia’s
housing issues aren't just about interest rates or inflation. They’re tied to
deeper problems like not building enough homes, complex planning rules, and
unpredictable policy shifts.
Negative
gearing often gets blamed, but scrapping it wouldn’t solve the problem — in
fact, it could make things worse. The Grattan Institute found removing it would
only save about $1.7 billion a year in tax, while costing the government $15
billion in the long run. And it wouldn’t magically make housing more
affordable.
Take
Labor’s 2019 policy to wind back negative gearing and halve the capital gains
discount. It backfired badly at the election. People were scared it would crash
the market, and Labor lost votes. That’s a lesson: radical housing policies can
spook voters and do more harm than good.
We also
need to look at land supply. Governments have been slow to release enough land
for new housing, especially near jobs and infrastructure. When supply is tight,
prices soar.
There are
also calls to tax superannuation more heavily, thinking it might reduce demand
for property. But that won’t stop people using their super or other savings to
invest. It just adds more costs to retirement and won’t fix housing
affordability.
Stamp duty
reform is another area to focus on. It’s an inefficient tax that discourages
people from moving, downsizing, or buying homes that better suit their needs.
Replacing it with a broad-based land tax would be more stable and fairer.
The bottom
line? Panic-driven decisions don’t fix housing problems. Instead, we need
smart, stable policies that increase supply, streamline planning rules, and
support long-term investment — not knee-jerk reactions to market swings.
Chris Waterman
Urgently Required – Cash Buyers Waiting
We have been
retained by the following clients to locate suitable real property to satisfy
their unique situation if you feel you can assist, please call me on 0477 000
798 or email me buyer@watermanpa.com.au Matt O’Donoghue
PROPERTIES WANTED
NOTE: All our purchases
are pre-approved ready to go.
Belair/Flagstaff Hill/Happy Valley and surrounding
suburbs
3-4 bedroom, 1 bathroom minimum 600m2 dwelling
Budget up to $850k
=======================================
Morphett Vale/Aldinga and surrounding suburbs
3 bedroom, 1-2 bathroom minimum 700m2 with
potential to add granny flat
Budget up to $750k
=======================================
Suburbs approximately 20klm from CBD
Investor looking for a dwelling with multiple bedrooms or
two adjacent dwellings.
Budget up to $1.2m
=======================================
North Adelaide
Client looking for owner occupier 3 bedroom townhouse or
unit in or around Gover St.
Budget up to $1.4m
=======================================
North Adelaide/Norwood/ Kensington/CBD
Client looking for 3 bedroom townhouse or dwelling .
Budget up to $1.6m
----------------------------------------------------------
If you have something that may be of interest,
call us today, our client is ready to purchase.
NOTE: All our purchases are pre-approved
ready to go.
Matt O’Donoghue
Buyer Agent
0477 000 798
Sales of new homes rebounded in April, according to a monthly survey of Australia’s builders.
The latest HIA New Home Sales report shows that sales rose 16.5 per cent in the month of April 2025, to the highest level in 12 months.
Read more
How often are investment properties re-sold, and what impact does that have on the market? New research investigates the patterns and drivers behind Australia’s landlords.
Read more
Switzerland is converting miles of train tracks into power generators, and its success is gaining traction around the world.
A pilot installation by Swiss start-up Sun-Ways has seen 48 solar panels inserted in the unused space between a 100-metre stretch of tracks, resulting in enough power for 6 households. Not a bad return.
Most young Australians are optimistic that they will own their home, a recent survey has revealed.
Read more
Full House star John Stamos found himself issuing a rebuttal on Instagram this week after viewers were less than impressed with a house he’d once owned. The Calabasas, CA home, which went on the market last month, is opulently decorated throughout in black and white marble that some thought was ‘over-the-top’.
“In my defence, I sold that house many years ago and it has been ‘redecorated,’” Stamos wrote. Image: Compass RE
Termites are an ever-present risk to homes across Australia, but wet weather can greatly exacerbate the problem as they love nothing more than damp, rotting wood. Here’s what to look out for, and how to reduce the likelihood of an invasion in your house.
Read more
