As real estate big shots bombard us with arguments about protecting beneficiaries of negative gearing, lest we forget, it’s a legacy of Howard/Costello extravagance in 1999.
They reduced capital gains tax by 50 per cent which kick-started speculator interest to drive house price rises, described by a reserved organisation such as the Reserve Bank as “crazy”.
Going back to when ‘home value index’ was created, towards end of 1995, capital city house prices have since gone stratospheric, surging 436.6 per cent for houses. Is this how come they can claim 25 years’ continuous economic growth?
So in long and winding road of campaigning for popularity, why don’t the ‘Coal-ition’ bite the bullet, by confessing that gigantic bubble in house prices is one legacy and big mistake by Howard/Costello heroes, for which they have no plan at all, when “free market” correction takes its revenge?
There have been plenty proposals previously for partial or complete cancel, but surely somebody can come up with a real plan to deflate the bubble gently?
Bernie McComb, Cowes.
House prices soar but no parachute