Daily Bulletin


The Conversation

  • Written by The Conversation
imageRecord-low interest rates could further inflate the housing markets in Sydney and Melbourne.Paul Miller/AAP

The Reserve Bank cut interest rates to 2% on Tuesday hoping to stimulate business investment and household spending. The RBA’s decision was welcomed by Treasurer Joe Hockey, but there are concerns the record-low rate will further inflate the already heated housing markets in Sydney and Melbourne.

The Economist magazine recently evaluated Australia’s housing market to be overvalued by more than 25% (along with Britain and Canada). Even accounting for our higher incomes, Australia’s house prices are now among the highest in the world.

While there is sympathy for the difficulties faced by would-be first-time homebuyers, a strong housing market is often associated with jobs and revenue for States and Territories (the economies of both New South Wales and Victoria have strengthened significantly partly due to the housing sector). Rising house prices are also good news for many Australians – more than 60% are owner-occupiers - and successive governments have implemented and maintained policies that promote a buoyant housing sector.

Policies such as negative gearing, the first home owners grant, and capital gains tax concessions have helped many middle and high income earners buy property, but how are these policies impacting low income earners?

Dallas Rogers speaks with Keith Jacobs about the politics of housing in Australia, and how to address the inequalities within the current system.


Subscribe to The Conversation’s Speaking With podcasts on iTunes, or follow on Tunein Radio.

Music: Free Music Archive/Blue Dot Sessions: Stingray (CC BY-NC)

Additional audio: A Home of their Own, National Sound and Film Archive

Dallas Rogers does not work for, consult to, own shares in or receive funding from any company or organisation that would benefit from this article, and has no relevant affiliations.

Authors: The Conversation

Read more http://theconversation.com/speaking-with-keith-jacobs-on-the-politics-of-housing-41256

Writers Wanted

How Australian vice-chancellors' pay came to average $1 million and why it's a problem

arrow_forward

The Average Water Bill in Sydney

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Prime Minister Interview with Ben Fordham, 2GB

BEN FORDHAM: Scott Morrison, good morning to you.    PRIME MINISTER: Good morning, Ben. How are you?    FORDHAM: Good. How many days have you got to go?   PRIME MINISTER: I've got another we...

Scott Morrison - avatar Scott Morrison

Prime Minister Interview with Kieran Gilbert, Sky News

KIERAN GILBERT: Kieran Gilbert here with you and the Prime Minister joins me. Prime Minister, thanks so much for your time.  PRIME MINISTER: G'day Kieran.  GILBERT: An assumption a vaccine is ...

Daily Bulletin - avatar Daily Bulletin

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Business News

Nisbets’ Collab with The Lobby is Showing the Sexy Side of Hospitality Supply

Hospitality supply services might not immediately make you think ‘sexy’. But when a barkeep in a moodily lit bar holds up the perfectly formed juniper gin balloon or catches the light in the edg...

The Atticism - avatar The Atticism

Buy Instagram Followers And Likes Now

Do you like to buy followers on Instagram? Just give a simple Google search on the internet, and there will be an abounding of seeking outcomes full of businesses offering such services. But, th...

News Co - avatar News Co

Cybersecurity data means nothing to business leaders without context

Top business leaders are starting to realise the widespread impact a cyberattack can have on a business. Unfortunately, according to a study by Forrester Consulting commissioned by Tenable, some...

Scott McKinnel, ANZ Country Manager, Tenable - avatar Scott McKinnel, ANZ Country Manager, Tenable



News Co Media Group

Content & Technology Connecting Global Audiences

More Information - Less Opinion