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

Fitzgibbon is quitting politics but this doesn't mean Albanese can party

arrow_forward

When COVID patients are intubated in ICU, the trauma can stay with them long after this breathing emergency

arrow_forward

Back to the Rafters review: series reboot is full of heart and reflects changing times

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Business News

Why PPC Matters For Small Businesses in 2021

When it comes to PPC advertising, being creative isn't enough to acquire favourable top positions and results. Instead, PPC necessitates extensive study and experimentation and an understanding of...

NewsServices.com - avatar NewsServices.com

3 Keys to Help You Find the Perfect Business Phone Number

Every business needs a phone number that a potential customer can contact. This can change the game for your business and put you ahead of competitors. The 1300 number availability in Australia is g...

NewsServices.com - avatar NewsServices.com

Benefits of Using a Client Portal in Your Business

A client portal is a gateway for your clients to collaborate with team members in your business. Users are given access to various digital files, information, and communication through the use of ...

Daily Bulletin - avatar Daily Bulletin