"How do we maintain or increase Australian prices?" is simple. Just repeat how we got here:
1. Encourage speculation via the tax system
2. Allow negative gearing for purchase of existing dwellings
3. Allow interest only loans for the 'business' of renting residential property
4. Treat homes as a shelter for tax dodgers and not shelter for families
5. Increase population but fail to release a corresponding amount of land
6. Allow banks to run very high Loan to Valuation Ratios (LVR 97 per cent still available)
7. Banks to use e-valuations in-house to arrive at the most unrealistic RE valuation
8. While one is at it, publish childrens fairy tales in the MSM such as RE values doube every 7 years
9. Banks to ignore the poverty line limit when signing up naïve FHBs
10. Allow 100 per centdeductions on investment costs but give 50 per centdiscount on Capital Gains Tax
11. Allow visitors to this country (temporary residents) to join in the speculation
12. Employ staff at RBA who are incapable of noticing lending by the Big4 brats is out of control
13. Increase the FHB Bribe from $7,000 up to $21,000
14. Allow SMSF to invest in residential mortgages
15. Foster an atmosphere where the general public treats their home as an ATM
16. Media to drum into the heads of sleep-walking public that RE prices only ever go up
17. Repeat until it is mantric that Australia is different to every other market in the world
18. Televise home renovations as a kind of entertainment, eg. 'The Block', 'Location, Location', 'Bigger Fool' etc."
Joe Khantong
