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Removing negative gearing would increase cost of housing economists

Removing negative gearing would increase cost of housing: economists

The Australian Greens push to remove negative gearing would make housing affordability worse, economists say.

Discouraging investment in property would reduce supply of new housing and increase rents.

“There’s no doubt if an existing benefit is taken away then landlords would logically recover that by putting up rents and that would be particularly so in markets where there are tight vacancy rates,” Domain Group senior economist Andrew Wilson says.

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Housing Supply Data Is Crucial says REIA

Housing Supply Data Is Crucial says REIA

REIA President Peter Bushby says the decision to abolish the National Housing Supply Council could signal the end to much needed data to formulate housing policy.

The National Housing Supply Council was established in 2008 to monitor housing demand, supply and affordability in Australia and to identify gaps between housing supply and demand.

“With housing affordability recognised as a policy priority, it is imperative that the information contained in the Council’s State of Supply Report continues to be available,” according to Mr Bushby. “

Housing Supply Data Is Crucial says REIA

The document provided valuable information, not only to Government policy makers but also to industry.

”Mr Bushby says the availability of affordable housing is a goal that is shared by governments and all sectors of the community.

Availability of affordable housing impacts on the functioning of the economy as well as the wellbeing of individuals and the cohesiveness of communities and society.

One of the factors that contributes to increases in house prices is the under supply of housing.

Supply has been unable to keep pace with demand due to constraints on land availability, lengthy planning delays and associated costs of approvals, zoning policies, skill shortages and lower yields stemming from the increased cost of entering the property investment market.

REIA has called for the Federal Government to develop a coordinated and strategic approach to the provision of housing and ensure that complementary policies, covering amongst other things first home buyers and taxation, are in in place to achieve this.

The availability of reliable data to formulate appropriate policies and then to monitor their effectiveness is crucial to this.

More Should Be Done For First Home Buyers

More Should Be Done For First Home Buyers

Real Estate Institute of Australia (REIA) President, Mr Peter Bushby says the November 2012 housing figures released by the Australian Bureau of Statistics (ABS) show that the modest response to the interest rate cuts of May, June and October has continued.

Housing finance figures for November 2012 show, in trend terms, that the number of finance commitments has increased by a very modest 0.4 per cent, following the 0.5 per cent increase in October.

If refinancing is excluded, the increase in trend terms for November is 0.4 per cent, compared to the October increase of 0.6 per cent and is the smallest increase for the last seven months.

“In trend terms, increases were recorded in Queensland, Western Australia, Victoria, the Northern Territory and the Australian Capital Territory. The largest increase was in the Northern Territory, up 2.1 per cent in trend terms whilst declines were recorded in South Australia (0.6 per cent) and Tasmania (0.5 per cent).

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