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Labor's $120bn budget blowout


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The West Australian's interpretation of housing affordability is very incorrect. Average mortgage monthly repayments being less than an average monthly rental repayments does not indicate an improvement in housing affordability (as the West suggests). On the contrary it suggests that it is even more unaffordable to rent than previously in Perth. The data also suggests that the rental investors are sabotaging new housing stock by buying the new stock and converting it rental stock only, thus preventing the new stock from being absorbed by non-investors (i.e. people who actually want to own the new home one day by actually living in it and paying it off gradually). At the moment the State government's lack of fiscal imagination and foresight gives free run to the silent plague of rentals-only investors (facilitated by careless banks), forcing up rental prices by their dishonourable habit of renting out properties they never intend to live in themselves. This unsustainable dynamic is likely to continue to force rental prices up as the average person in unwilling to apply for a mortgage due to the average person's awareness that house prices are stagnant and are likely to fall - apart from just being too unaffordable either way . Housing affordability is still the worst economic problem West Australian's face, and it is a chronic problem that reached chronic status 5 years ago. A part of the solution is to restrict the number of rental residential properties a person of corporation can have, in so doing both the rental and house price can be prevented from spiralling out of control. What's the point of building new stock for prospective home owners (who are more likely to be interested in creating a sense of community) if it's just going to be bought up by rental investors and maintained by property managers?

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