"‘Housing can’t be both a good investment and broadly affordable—yet we insist on both.’ This paradox encapsulates a core dilemma not just globally, but particularly in Australia, where the dream of homeownership clashes with the reality of ever-increasing property prices. Australia faces a significant challenge: balancing the housing market as an investment asset/retirement fund while ensuring it remains accessible to a broad spectrum of society. The surge in property values has been beneficial for investors and homeowners, seeing substantial returns on their investments. However, this success story for some is a barrier to entry for others, with many Australians finding themselves priced out of the market.As we navigate this complex issue, it's crucial for policymakers, industry leaders, and communities to engage in open dialogues about sustainable solutions. Initiatives being put in place include innovative financing models, investment in affordable housing projects, and reforms in land use policies. The goal? To democratise access to housing without undermining its value as an asset. This delicate balancing act demands a rethinking of the question posed to us all: How can we collectively contribute to a housing market that serves both as a stable investment and a basic human necessity? #Economic Development #AffordableHousing #RealEstateInvestment #PolicyChange"
Somehow, it seems like the ownership of a home should act like an annuity in the sense that the ongoing payment for the mortgage through one's working years should suffice to be certainly sufficient to pay for the cost of shelter in one's retirement years. In that sense, it would be a good investment, because that expense would not only pay for shelter during working years, but also during retirement. But it wouldn't require the value of the home to appreciate to the extent that it would be the primary source of wealth to sustain someone through retirement.
Kim Edwards
8mo
Very well said and some real wisdom there. It’s such a complex issue, but I think it’s always been unaffordable. Another contributing factor is how much we are willing to sacrifice to purchase a home. My father often reminds me that he sold his bicycle (his only means of transport) to put a deposit on his first home in the 1950’s. I worked overseas and sold my car to buy my first house. If you’re driving around looking at properties, you’re wasting fuel.
Charles Dunbar 👋
8mo
Modernizing housing policies is essential to strike a balance between investment returns and affordability. 🏡 #AffordableHousing #EconomicPolicy
Director for Economic Development
8moSome economists would suggest taxing companies and homeowners with 3 or more houses for all additional houses (capital gains and as both a home and a business since it is no longer a property to live in, but a source of revenue or a business as well). I say, whatever works. Cause lowering interest rates to buy an overpriced home would do very little to stop the bleeding. We need to start testing different models and see which ones work better. Many countries are going through the same trend.