Is Howard correct in saying there is no housing affordability crisis?

Of course he's pulling on it again and that's complete bull and he knows it. The only people I know in their 20's-40's, bar a few who got in early, who own a home in Sydney now are those who were lucky to inherit. We're all renting because it's just not worth buying even if you're on a $70k+ salary. I know about a thousand people in this boat through my work.

Your answer: Negative gearing for first home buyers is just an election voter grab - nothing else - it is NOT a good tax policy idea and will not happen. Any government with balls would do what they know must be done and get rid of neg gearing like the economic and tax policy experts have been saying for years. We should not be encouraging people to invest in loss producing assets instead of profitable assets - it distorts market decisions and causes serious price increases.

Negative gearing for residential investment properties and the 50% capital gains tax discount have caused this problem of spiraling house prices in the first place. We should do away with both, letting deferred rent losses be offset against future sale proceeds perhaps and bring back capital gain indexation. This would temporarily raise rents and cause hardship for recent investors, so there'd need to be a transitionary period.

This government has made our tax legislation already increase from 3,000 pages to nearly 15,000 pages. They shouldn't be messing even more with the tax system for political vote-grabbing experiments. Using the tax system to try to solve one problem just creates more problems, creating more inequity on another hand and distorting investment decisions. Too short sighted.

And it will just make housing prices go up even more when sellers can say "you can afford this - you'll get it back on tax!". Oh, please! Someone give the Board of Taxation tranquiliser guns LOL!

Apparently Kirribilli House is up for sale at $15. I suppose that is almost affordable for people who have been forced onto workplace agreements or those who have to live on a Government pension. I am not sure if the neighbourhood would be good enough though - too much riff-raff.

Just more misinformed information that the PM has been given again. A bit like the children over board incident.

Poor Howard his on another planet again! Probably thinks his in the US.

There isn't . . . if your rich. Doesn't everyone have a trust fund?