The housing crisis fundamentally cannot be fixed. - Something I’ve been thinking about for a while and I’d like to understand how/if I’m wrong.
30% of Australia’s 10 million properties are rented. 85% of those are negatively geared as I understand it.
So they’re losing on average roughly $8500 a year and then speculating prices will increase Atleast 6% a year (which beats the 5% you get with money in the bank) and rents will go up too.
Now if we want to actually fix the housing crisis we need prices to come down so they’re more affordable to buy for first home buyers and rents to Atleast stay flat (or go down)
Now unless I’m missing something they’re 2 competing and opposite things and both can’t happen at the same time?Ausfinance
The housing crisis fundamentally cannot be fixed. - Something I’ve been thinking about for a while and I’d like to understand how/if I’m wrong.
30% of Australia’s 10 million properties are rented. 85% of those are negatively geared as I understand it.
So they’re losing on average roughly $8500 a year and then speculating prices will increase Atleast 6% a year (which beats the 5% you get with money in the bank) and rents will go up too.
Now if we want to actually fix the housing crisis we need prices to come down so they’re more affordable to buy for first home buyers and rents to Atleast stay flat (or go down)
Now unless I’m missing something they’re 2 competing and opposite things and both can’t happen at the same time?
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