The Weird Reality About Homes in Australia

They are now priced out of reach of the majority of home owners who are trying to get a foot into the market. While thousands remain empty there are also a huge number of investors are holding onto many of these houses and rather than rent them out they are only interested in capital gains.

Successive governments are to blame although they repeatedly ‘pass the buck’ to their former colleagues rather than face up to the crisis that is now in their court. It is my guess that many politicians are also multi-home owners themselves which is why the crisis continues.’

In 1999 the then Liberal government under John Howard brought in a scheme called ‘negative gearing’ to minimise the tax paid on properties by investors. While this had a huge impact on locals buying up the Real Estate and paying off mortgages through the rents charged it has drained the country of sustainable economic benefits.

While it was once the great Australian dream to own one’s own home the unfortunate fact is that it is now a nightmare. Overseas and multi-home investors have shrunk the number of available properties to the point where prices have soared out of reach. Houses are rising so far in value that even tiny bits of land between then are selling for astronomical sums.

Now the government is in a bind. Again it is the Liberal Part, under Malcolm Turnbull, that has the weight of this nightmare to deal with. While he is a multi-millionaire who lives in a prime harbour side mansion it is a thorn in the side of those who live on the streets or struggle to pay rents to greedy landlords.

So the question remains: how many politicians are multi-home owners and is this the reason they are refusing to allow negative gearing to overturned? Their argument against that action centres around suggestions that the property market would collapse and greatly affect the economy. The reality is that this is what most people want to happen.

John Howard was one of only two Prime Ministers who lost his seat while in office. His approach to the economy and certainly his introduction of negative gearing has now cost this country dearly. With the next budget only 5 weeks away the current treasurer is scratching his head to figure out a way around the anger that is brewing about home ownership.

Young people and old folk are unhappy and looking for alternatives in the political arena as the polices of both Labor and Liberal have let them down. The opposition Labor Party is now campaigning hard to get negative gearing overturned but many are asking why they never did it when they were in office over an 8 year period that ended just 3 years ago. This is not a new problem.

It is, however, another case of humans living through hell under the auspices of a World Order that is ruled by the laws implemented by Constantine some 1700 years ago. While man has endeavoured to create his own heaven on earth he has achieved the opposite especially when it comes to wealth creation and looking after those who struggle to acquire a home of their own.