22 Ways to make housing economic for the people, not the investors

The below was written by Howard Marosi of Friends of Public Housing in 2012. Bad Landlord Australia approves - we love ideas here!

OBSERVATION:

Our competitive system drives up home prices and allows the wealthy to deprive others of home ownership and then exploit them via rents. There is no shortage of housing stock. There are many new dwellings being constructed, but are sitting vacant because they are unaffordable or located too far away from the city- yet thousands more such homes are to be built.

Also, the 2011 census showed 934,471 Australian homes were empty, many kept off the market as property investments and tax write-offs. In other words, there are about nine times more empty houses as there are homeless people.

DEFEND AND EXTEND PUBLIC HOUSING:

1. Public housing can be for everyone that wants it. Just like public education and public health. Opening up public housing to all will stop the ghettos, and will raise more funds, as wealthier people will also rent.

2. Not for profit rents in Public Housing. (Public tenants pay a fixed rate of 25% of their income). As wealthier people enter public housing, rents can be lowered for the poorer tenants. An absolute maximum amount of rent for public housing can be introduced, to make it worthwhile for those on higher incomes- for example, $200 per week per wage earner.

3. Stop and reverse the gift of public housing from Government to the “Affordable Housing” Sector, known as “Housing Associations” or “Community Housing”- against the wishes of public tenants. In reality, these are private organizations, which do not have to obey the rental limits, or provide security of tenure.

4. It is not necessary to have “mixed developments”, like that in Carlton, where some public housing units were demolished, then replaced by mainly private homes and some public housing units.

5. Existing housing can be acquired for the Public Housing sector- see point 13 below.

6. Public land should be reserved for public housing needs, and only sold privately when those needs are met.

7. If new public housing needs to be constructed, it can be funded partly by the ways suggested over the page in “ Government Finance and Taxation of home ownership”. However, it should also be noted that Public Housing currently returns a profit, so that over the long-term, the Government can afford to construct more under current conditions.

GOVERNMENT REGULATION OF PRIVATE RENTAL PROPERTY:

8. Rent control- limit rent rises to rate of rises in wages/pension.

9. Security of tenure for private tenants. Landlords must have a legitimate reason to evict tenants. That does not include renovating a property to get a higher rent.

REGULATION OF HOME OWNERSHIP:

10. Home ownership for all who want it. To be achieved by Government regulation of financing and ownership.

11. Government to limit the number of homes one person can own. Exemptions if necessary for the purpose and period of construction of new homes.

12. The total number of rental properties to be limited to the number of people who would rather rent than own.

(People who own rental properties are depriving other people who want to own their own home. And bidding up the price).

13. Government to encourage lifetime ownership of housing over freehold ownership, with the ownership to revert back to Government upon death of owner. (for example, by cheaper loans for this than for outright ownership).

Government then to sell or rent the properties it regains, as per needs and preferences of the population.

GOVERNMENT FINANCE AND TAXATION OF HOME OWNERSHIP:

14. Abolish negative gearing for investors.

15. Establish a Government bank to finance home ownership, with deposits fully guaranteed.

16. Government Bank to attract funds from public by Government ceasing to guarantee deposits, or reducing the level of guarantee of deposits, in private banks.

17. Government to limit private banks` home mortgage interest rates to the rate of wage/pension rise.

18. Big taxes on inheritances of investment property. Some tax on inherited owner-occupied property, too.

19. Taxation of income from rental property to be at a higher rate than tax on wages.

20. Moratorium on mortgage repayment for those who become unable to pay through loss of job, illness etc.

21. Eliminate stamp duty for owner-occupiers.

22. The first-home owners’ grants would be unnecessary if these other measures are adopted, and can thus be removed, saving Government funds.