Alan Kohler hits the nail on the head, yet again with flawless logic in a compeling argument for Govt funded social housing:
“… if affordability is to be improved, housing can't be a good investment.
To keep the current level of (un)affordability — that is, with house prices at nine to 10 times incomes, residential real estate has to be a poor investment, providing a return of no more than 3-4 per cent per annum, including rent, so incomes can keep pace.
To return to the affordability of 25 years ago — a house price to income ratio of four times, it would have to be an absolutely rubbish investment for 20 years with zero return.
That means private capital can't do it — only the government can.”
Govts have had this kind of advice thrown at them for decades yet… If that doesn’t convince you collusion between #LandDevelopers #LocalCouncils #RealEstateInvestors #Landlords and the govt is alive and thriving, then nothing will.
The only way to nreak curtail this rort for the rich is for govt to break away from business as usual. What are the odds?
Read more:
https://www.abc.net.au/news/2025-07-07/housing-supply-infill-construction-tax-reform-immigration/105499648?