Would you believe that the same stories told in Australian housing debates about a lack of supply were dominant in Toronto, Canada, right up until the bust?
Cameron, what if the RBA imposed an interest rate levy on all lending for existing homes while providing a subsidy on all new builds, making it much more attractive to build new than buy existing?
Biasing lending towards new builds is a good idea in general. Don't know how much of an effect it would have, but the direction of the effect would be towards more home construction.
Why can't the government buy the land and hold it, and simply sell a 'right to build' in the market, with the builder then selling the house? The govt would have a rising asset (the land) to offset the purchase cost.
The buyer would only need to pay the cost of the build, not for the land.
Buyers would be restricted to first home buyers, with perhaps an income limit?
As well the government buy land for social housing and keep the asset value on the books.
Fishermans Bend would be a great place to buy land for both social and low price housing?
It can do this. The ACT was created with this basic structure in mind - the government would own the land and only lease it at market prices when the private sector was ready to develop. They do make a lot of revenue there from what is essentially government landbanking.
There are other leasehold arrangements that governments do that are very good
Though, I understand that the leases have reflected rising land values. What I had in mind was the government would own the land. It would get no return for it. It would just hold it as an asset.
It could simply tender a build and then sell the homes but not the land, based on income of the buyer. Perhaps it may be necessary to have a lottery among low-income people until the number of homes being built matches demand?
I work as an engineer as a key stakeholder in the whole fire safety compliance and safety performance based design process which is a crucial pre-requisite to a construction contractor getting their Construction Certificate which allows them to begin moving dirt.
Dutton during our election this year, and now some people in the Treasury recommended freezing our National Construction Code for 10 years at its latest edition released in 2022. Which would mean for 10 years we would have a large amount of 2022 era housing mass produced.
This whole episode on housing price declines in Canada and non-permanent residents leaving is all the indicator one needs to challenge the narrative that immigration will be endless and housing prices will go up forever.
Again the nature of a pyramid scheme like Sydney's housing market is that it will one day fold.
Why can't the government buy the land and hold it, and simply sell a 'right to build' in the market, with the builder then selling the house? The govt would have a rising asset (the land) to offset the purchase cost.
The buyer would only need to pay the cost of the build, not for the land.
Buyers would be restricted to first home buyers, with perhaps an income limit?
As well the government buy land for social housing and keep the asset value on the books.
Fishermans Bend would be a great place to buy land for both social and low price housing?
Canada is run by a kakistocracy. The housing situation outlook is not "soft", it is horrid. There are dead corpses lying after a fatal overdoses on Vancouver streets, ignored by those passing by, as the police can't be bothered, because they are too incompetent or overwhelmed. The entire objective of this housing market is to force Canadians into bankruptcy, tell them that the house that they own is no longer even theirs (it is an indigenous owner, after all!) and force them into living in ideologically driven government built barracks, whilst they keeping migrants living on $88K tax free handout paycheques in luxury hotels.
Cameron, what if the RBA imposed an interest rate levy on all lending for existing homes while providing a subsidy on all new builds, making it much more attractive to build new than buy existing?
Biasing lending towards new builds is a good idea in general. Don't know how much of an effect it would have, but the direction of the effect would be towards more home construction.
Camerson, you may have missed this:
Why can't the government buy the land and hold it, and simply sell a 'right to build' in the market, with the builder then selling the house? The govt would have a rising asset (the land) to offset the purchase cost.
The buyer would only need to pay the cost of the build, not for the land.
Buyers would be restricted to first home buyers, with perhaps an income limit?
As well the government buy land for social housing and keep the asset value on the books.
Fishermans Bend would be a great place to buy land for both social and low price housing?
It can do this. The ACT was created with this basic structure in mind - the government would own the land and only lease it at market prices when the private sector was ready to develop. They do make a lot of revenue there from what is essentially government landbanking.
There are other leasehold arrangements that governments do that are very good
Though, I understand that the leases have reflected rising land values. What I had in mind was the government would own the land. It would get no return for it. It would just hold it as an asset.
It could simply tender a build and then sell the homes but not the land, based on income of the buyer. Perhaps it may be necessary to have a lottery among low-income people until the number of homes being built matches demand?
It should just keep increasing the levy/subsidy until it does have an effect!
Cameron, have you spoken to Steve Keen?
https://link.mail.beehiiv.com/ss/c/u001.Dfz5j-1yNrVgs0F3gF936gErAcemCXoQybxZGcNx6olD0kV4sYYiq6VdZ3qkibwYX9IJ2ZYJH0iSb-f3-WDmGyWPNSn7Pu-FRrEV37vQ6eTySYpTL3mAlD07UwopseGheiskWb8z7CKoktVXmySsfmSx8mW8nSk8KDrjb9HQPXakvGTV5oY0kfBMWYIF9Dosd4RuNFGaPSqGxVYSwSvGtt1JygOKj9VJVUq_M3ip0acuP5gzW1Q8Aoa9SFBXVu8CgH1h9dHWkuEz8SEMp56BfQ/4l3/ByIzVP-CRfOty7rWhObgwQ/h0/h001.5ANUZZOz1smbKeLqh1y7MzMTnkDCQUkfYZ254KYq9FQ
I plan to ask him on the podcast soon
I work as an engineer as a key stakeholder in the whole fire safety compliance and safety performance based design process which is a crucial pre-requisite to a construction contractor getting their Construction Certificate which allows them to begin moving dirt.
Dutton during our election this year, and now some people in the Treasury recommended freezing our National Construction Code for 10 years at its latest edition released in 2022. Which would mean for 10 years we would have a large amount of 2022 era housing mass produced.
This whole episode on housing price declines in Canada and non-permanent residents leaving is all the indicator one needs to challenge the narrative that immigration will be endless and housing prices will go up forever.
Again the nature of a pyramid scheme like Sydney's housing market is that it will one day fold.
Why can't the government buy the land and hold it, and simply sell a 'right to build' in the market, with the builder then selling the house? The govt would have a rising asset (the land) to offset the purchase cost.
The buyer would only need to pay the cost of the build, not for the land.
Buyers would be restricted to first home buyers, with perhaps an income limit?
As well the government buy land for social housing and keep the asset value on the books.
Fishermans Bend would be a great place to buy land for both social and low price housing?
Canada is run by a kakistocracy. The housing situation outlook is not "soft", it is horrid. There are dead corpses lying after a fatal overdoses on Vancouver streets, ignored by those passing by, as the police can't be bothered, because they are too incompetent or overwhelmed. The entire objective of this housing market is to force Canadians into bankruptcy, tell them that the house that they own is no longer even theirs (it is an indigenous owner, after all!) and force them into living in ideologically driven government built barracks, whilst they keeping migrants living on $88K tax free handout paycheques in luxury hotels.