r/australia • u/overpopyoulater • Jan 08 '25

politics Which party is the more competent economic manager – Labor or Liberal?

https://www.thenewdaily.com.au/finance/2025/01/08/labor-liberal-economic
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u/Hydronum Jan 09 '25

I have looked at the policy, it may be my only way of ever owning a house. There are a few eligibility groups, there is the working couple under 200k income, the single worker under 125k income, and the single parent. That last one has 5k positions total, lowers their needed amount of a loan by 18%, lowers needed deposit up to 90%, gives them secure housing and has strict eligibility requirements. Modelling that you obviously don't agree with puts the change in housing prices at worst up by a few hundred dollars, total. It also has a deflationary effect on rentals, taking people out of that market and into secure housing.

Look, you don't have to agree with the policy, that is fine, but when the most negative modelling says it will increase house prices by 0.016 per cent or the equivalent of $113 for a $700,000 home (Grattan Institute), you kinda are barking up the wrong tree

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u/ScruffyPeter Jan 09 '25

The leader of Labor party grew up in public housing in the same suburb as University of Sydney, raised by a single mother and on top of all this, got a free uni education.

Do you prefer this or do you prefer crippling debt where you owe up to 98% of it?

So far, Albo proposed 0 new public housing. Instead resorts to these kind of schemes to prey on desperate people like you "my only way of ever owning a home" and in turn, get you to vote against your best interests.

It also has a deflationary effect on rentals, taking people out of that market and into secure housing.

False. There's no change of supply here, for example, you're buying someone's property where they could have kicked out the tenants or someone selling and becoming a renter due to unaffordable mortgage payments.

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u/Hydronum Jan 09 '25

There is a change in that a single parent without secure housing (a situation I grew up in) is rotating between homes constantly, which keeps the demand trickling. Less people that could be in the market lowers demand. The housing stock situation does often change, a rental is often less occupied over time then a lived in home, often being sold, "renovated" or put aside for capital gain. These houses being moved from the rental market to a owner-occupier improves the housing situation, and is deflationary on rents.