1707msletters2

Coalition ignored housing crisis for a decade

So, the story is that after more than a collective decade of conservative governments at state and federal level, housing in Australia is in a complete mess and is either unaffordable or unavailable to many under the age of 40 (“Think you know landlords? Well, think again”, July 17). The fact that over-60s benefit from a “natural wealth accumulation over the life cycle” doesn’t explain how around 10 per cent of investment property owners have three or more properties. Presumably, these are the cashed-up landlords who trade houses like cards; who don’t need to borrow; and who use the capital gains tax discount to their advantage, and on auction day they compete with first home buyers. We have a census every five years, in addition to the vast reams of data collected online. There was never any doubt about how many homes were needed. What happened?
Dorin Suciu, Eleebana

Why, oh, why would anyone want to be a landlord? As an investment, purchasing real estate purely for rental is not a positive economic decision as many current landlords are finding out. Finding sufficient money for a deposit, solicitors’ fees, stamp duties, mortgage costs, as well as non-paying renters plus repairs, cruel any incentive to become a landlord. There are far better returns with less stress in other secure investments. With governments fixing rent increases, landlords will all too soon exit this market, putting the cost burden of providing affordable housing onto governments and through the tax system onto the community as a whole. Be very careful what you hear regarding landlords and the housing rental market.
Bruce Clydsdale, Bathurst

Your detailed analysis of property investors makes it very clear that hard-working mums and dads of modest income are the major support of the rental property industry. Many of them are using negative gearing as the only way a new home buyer can enter the market. Your graphs also show that what starts out negative soon moves into positive tax-paying credit and the economy is left with more self-supporting rental accommodation than could ever have been afforded, without the basic taxation principle of being able to write off losses on new projects.

William Lloyd, Denistone