Housing crisis in the spotlight as voters prepare to head to the polls

ABC NEWS (Australia)

Property prices keep rising to new highs and the housing crisis is still top of mind for many voters. Anticipated interest rate cuts are expected to keep heating the market leaving some wondering if there are any answers without rolling back tax breaks for property investors?

Transcript

00:00It's a solid looking house. Sweet.

00:04Jason Cox has become skilled at fixing up and selling properties for a profit.

00:09Our method is to have around about five properties and flip one out every year.

00:14Jason wants to continue claiming tax breaks for his properties,

00:18but accepts changes should apply to future investments.

00:22I'm fine with that because I've got a daughter

00:24and I am concerned about rising house prices, so we need to do something.

00:29Prices rose for a third straight month in April to a new record high,

00:33up 0.3% for the month and 3.2% for the year.

00:38More than $2,700 was added to the median home value.

00:43Darwin led the monthly gains, followed by Hobart, the regions,

00:47Perth, Brisbane, Canberra, Adelaide, Sydney and Melbourne.

00:51We're still looking at price rises over the course of the year,

00:55with lower interest rates being the main tailwind.

00:58The only mainstream party calling for a reduction in housing tax breaks this election is the Greens.

01:05It wants to scrap negative gearing and the capital gains tax discount on investment properties,

01:10with the exception of one property for existing owners.

01:14I don't think property taxes are very important for the housing affordability crisis.

01:20The estimates of the changes will change house prices by 1%, 2%, 4%.

01:26Despite standing to gain from the tax breaks, Laurent Heyman also thinks they should be wound back.

01:32I feel that the Australian public and their housing market would be much better served

01:36if the money they always use towards negative gearing would instead be used to build new homes.

01:41A policy few politicians are willing to play.

01:48And we're working on a team here.

01:49We'll be looking at the tour, what is the new Molyse Viewers?

01:52We have to value and offer the new Molyse Viewers?

01:57We have a coverage of the new Molyse Viewer?

01:58We have a coverage of the Molyse Viewers in order,

01:59and we have a coverage of the Molyse Viewers,

02:00which has a coverage of the Molyse Viewers,

02:01which has been a relationship which has been executed in the market.

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