Image above by Woodleywonderworks.
Australian Government inquiries usually lead to reports that are ignored. Will this affordable housing inquiry be any different? Only time will tell.
Below is my submission to the Senate Standing Committee on Economics for the affordable housing inquiry, which became submission number 9 out of a total of 185.
The purpose of this submission is to argue that a Liberal Government should not dismiss the idea of affordable housing.
Q1: I have a $600,000 mortgage on my own home and I also own three investment properties with a total market value of $1,500,000. Why would I even consider the removal of negative gearing?
The responsible way to move toward affordable housing in Australia is to do the right thing by you, the mortgage payer and landlord, as well as do the right thing by the six and a half million renters who report to their landlords each month.
Q2: Why would any Government seriously pursue reform on housing affordability as opposed to throwing around a few handouts here and there, when a large proportion of voters either own a home or are trying to pay off their $1.36 trillion dollar mortgage to the Australian banks (1).
Firstly, Australian homeowners and residential property investors are not paying off their mortgage to the banks.
They are simply increasing their mortgage by billions of dollars each year and using that extra debt to bid up the price of their own homes.
During 2012 Australians increased their total mortgage loan size by $50.5 billion dollars (1).