Has the RBA already wiped out the home ownership gains from tax changes?
www.abc.net.au
Each standard interest rate increase could be locking close to 30,000 households out of home ownership, some of them for a decade or more.

In short:

A rate rise is estimated to cause an immediate 5 per cent reduction in home purchases.

Economic modelling suggests the home ownership rate would fall by 0.3 of a percentage point and take more than a decade to recover.

What’s next?

Markets and economists are almost certain the RBA will announce a rate rise on Tuesday.

  • Seagoon_@aussie.zone
    3·
    6 days ago

    You know what are the main causes of people not buying houses?

    Sky high house prices and low wages

  • slazer2au@lemmy.worldEnglish
    2·
    6 days ago

    Ah yes, its the rate rises and not the thousands of unoccupied homes preventing people from becoming homeowners.

    • Nath@aussie.zone
      61·
      6 days ago

      There are probably enough homes for everyone who wants to buy a home. The problem is that too many people own more than one home. My own landlord owns at least four investment properties - I don’t know how many.

      • Cherry@piefed.socialEnglish
        3·
        6 days ago

        Its quite a weird mindset there. Pretty much the only area of reddit I visit are the economy ones. I recently saw a article and thread clearly aimed at investors on where else (other countries) they could invest and the yields etc as a result of dropping yield on Aus property. The amount of people that contributed and seemed to think that property investment is some kind of right was astounding.Even the fact that they are looking to monoplise from other countries. It is a disease.

        They need to be taxed and social housing boosted.

  • Pup Biru@aussie.zoneEnglish
    1·
    6 days ago

    yeah… rate rises which curb inflation and thus cost of living increases… there are no good options when you want to stop people buying things they want

    • ryannathans@aussie.zone
      1·
      6 days ago

      Main problem is energy prices are the cause of inflation atm and increasing interest rates isn’t improving the situation, and the fed have no other real options

      • Pup Biru@aussie.zoneEnglish
        1·
        5 days ago

        the source of inflation isn’t all that relevant in terms of interest rates though… they aren’t going to solve the problem (rate changes never do) but they cool the rest of the economy in aggregate and cut off wage-price spirals

        it doesn’t really matter if you’re paying 20% of your wage in energy bills if the remaining 80% still allows you to buy whatever you want. inflation only comes down when discretionary spending slows

        rate hikes don’t target inelastoc spending like food and energy; they target things like home and car purchases which reduces the amount of cash sloshing around