So basically pull the rip cord to a economic crash by having a massive sell of before it happens. I just feel like what’s gonna happen is a evergrand and we work situation.
I mean that article basically is saying to remove the 3.5x cap on mortgages which will result in house prices sky rocketing and maybe eventually balancing out. However more likely is just a repeat of the last housing market crash which these restrictions where specifically put in place to prevent. The article also just pointed out flaws without any answers, so I kind of hate that attitude. Maybe putting in water tax could reduce prices but I’d presume by the smallest amount. Realistically removing the 13.5% vat and letting developers take that money would help.
I feel the author has no clue how to solve it and it’s just much easier to complain and point out flaws then offer solutions as their solutions could be wrong.
Also I want to point out that MMT and the CBI’s lending caps really should play fine together, the cost of producing a house should increase with inflation just as our salaries SHOULD increase with inflation. The fact CBI pegged loaning on 3.5* our salary means firstly what we can afford should increase yearly with pay rises and secondly prevent “economically challenged” individuals from letting emotions get the better of them and taking out an unmanageable 6x salary mortgage or even worse 9x which was possible.
The government is trying things, they aren’t working great but they are working on it and this author isn’t. Vacant property tax may force some to shift property now. The introduction of the ‘developer fund’ is literally targeting exactly what the author is saying is the issue. Giving developers a 120k/apartment incentive to build here and this fund is causing all sorts of contraversey because the money is going to the developers instead of someone else.
These large market issues aren’t solved in a couple years, they take time, unfortunately time which doesn’t align with our plans. The truth is house prices have only gotten to a truly unaffordable place in the last few years and hopefully in a few more years from now we will be in a much better position with the government’s plans in place.
2 comments
So basically pull the rip cord to a economic crash by having a massive sell of before it happens. I just feel like what’s gonna happen is a evergrand and we work situation.
I mean that article basically is saying to remove the 3.5x cap on mortgages which will result in house prices sky rocketing and maybe eventually balancing out. However more likely is just a repeat of the last housing market crash which these restrictions where specifically put in place to prevent. The article also just pointed out flaws without any answers, so I kind of hate that attitude. Maybe putting in water tax could reduce prices but I’d presume by the smallest amount. Realistically removing the 13.5% vat and letting developers take that money would help.
I feel the author has no clue how to solve it and it’s just much easier to complain and point out flaws then offer solutions as their solutions could be wrong.
Also I want to point out that MMT and the CBI’s lending caps really should play fine together, the cost of producing a house should increase with inflation just as our salaries SHOULD increase with inflation. The fact CBI pegged loaning on 3.5* our salary means firstly what we can afford should increase yearly with pay rises and secondly prevent “economically challenged” individuals from letting emotions get the better of them and taking out an unmanageable 6x salary mortgage or even worse 9x which was possible.
The government is trying things, they aren’t working great but they are working on it and this author isn’t. Vacant property tax may force some to shift property now. The introduction of the ‘developer fund’ is literally targeting exactly what the author is saying is the issue. Giving developers a 120k/apartment incentive to build here and this fund is causing all sorts of contraversey because the money is going to the developers instead of someone else.
These large market issues aren’t solved in a couple years, they take time, unfortunately time which doesn’t align with our plans. The truth is house prices have only gotten to a truly unaffordable place in the last few years and hopefully in a few more years from now we will be in a much better position with the government’s plans in place.