Posted by Luke in 
I was sent this article from local news site Brisbane times. In short it says the government is going to tax us more when we buy a car to make us pay less ‘mortgage duty’ when we buy a house. The article points out that people will save $500 initially on taxing on houses and later on $1000. Ok, so I am not rubbishing the journalist here but what the hell?
So tell me state government: what am supposed to do to save up the whopping 10% of $320,000? Last time I checked the only place I can buy a house for that price is in the middle of bloody nowhere, miles away from work, oh and did I mention that I am only eligible for a loan 1/3 of that? I suppose I could buy 32 houses? Give me a break.
So here we are in the middle of a housing crisis where people are living on the street and all we can do is give tax breaks to people who need it the least. I have to be totally honest here and say this is the least helpful idea in the crisis so far. I like Rudd’s sliding scale concept, but I can’t save with rising food and accommodation costs can I? Here’s a concept: work on making something different so more people can afford to buy a house. Wow! What a concept!
To be fair I think the idea has merit because of extending tax options for investors (thus making more rentals available…I hope) BUT this sounds like an attempt to bait investors to me NOT an answer to getting a house for the first home buyer. It does not sound (perhaps as it’s framed in the article) as an attempt to work towards a meaningful solution to the nations affordability problems. Now, I am all for making money and success but what happens when people keep getting rich on one end and the majority miss out? Poverty and rises in homelessness that’s what.
I have discussed these things previously and judging by a comment I received in that post this morning I am not alone here. This has made me seriously rethink the whole renting versus buying thing. As I have already said before, I am not sure it’s sound investment as many say it is. I would just like to add my voice to the growing discontent of how this situation is being handled. It’s like the people in charge of this thing are asleep at the wheel. So why am I whining about this? Well, it’s a classic case of looking at a problem from a purely economic point of view. Shallow, narrow minded and at best a poor solution to a problem that is growing rapidly out of control.
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