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The main driver in AU and NZ is property speculation, driven by terrible tax and pension policies in combination cheap money.
by elyobo 9y ago
The main driver in AU and NZ is property speculation, driven by terrible tax and pension policies in combination cheap money.
- duncan_bayne 9y agoThat is certainly a driver, but I'm not convinced that it's the main one in Australasia. Certainly, it's not the main one worldwide.
- elyobo 9y agoI can't comment on the worldwide situation, but it's pretty clearly the main AU + NZ driver and it's one that's very easy to address; removing the tax perks would be fairer even if it had no effect on prices at all anyway, so it's a win win scenario. The only difficulty (and it's a biggie) is that actually doing something meaningful on housing affordability requires knocking down prices and that's political suicide, so nobody is willing to do it.