Housing sops need to go. They take away investment from what is truly more productive – small and large businesses, local authorities and potentially even agriculture – in favour of real estate. We need to stop this practice immediately.
I’ve written about this. But I need to repeat it, for every budget. Let’s do the bullet points of the excessive sops for housing.
Another way to curb bubbles is to free land ownership and create a good real estate regulator. Real estate should be made a business like anything else and the above sops removed. We should increase housing taxes – they are pittance in most places – in order to provide better local facilities. Zoning should be enforced, though like the unfortunate residents of Campa Cola society, things will get ugly.
The industry needs no sops – it needs to be cut down to size.
If you wonder why real estate prices don’t come down, it’s because of these unnecessary tax and interest sops our government offers. It is time to rethink this concept, and make that money available for truly productive investment instead.