Im advocating for pushing the wealth from the top down. Make it financially non viable to own hundreds of houses, make it seriously sub optimal to own dozens over the long term.
A lot of new development is driven by investors, to build a new house you need to live somewhere while its built, and pay for the land and pay for the build in stages as it goes. That pretty much requires you to be able to cover two mortgages at once. Most investors I’ve met are buying off the plan when its a block of dirt or an unleveled paddock and consequently getting it CHEAP. They pay say $500k for a house that will sell for $800k when its finished because average working people cant cover the difference. But the house gets built and adds more supply to the system.
If you destroy property investing as a market, you will seriously hamstring new development and make the problem worse. You need to make owning thousands over the long term nonviable but make investing and adding to the supply be the money maker.
Im advocating for pushing the wealth from the top down. Make it financially non viable to own hundreds of houses, make it seriously sub optimal to own dozens over the long term.
A lot of new development is driven by investors, to build a new house you need to live somewhere while its built, and pay for the land and pay for the build in stages as it goes. That pretty much requires you to be able to cover two mortgages at once. Most investors I’ve met are buying off the plan when its a block of dirt or an unleveled paddock and consequently getting it CHEAP. They pay say $500k for a house that will sell for $800k when its finished because average working people cant cover the difference. But the house gets built and adds more supply to the system.
If you destroy property investing as a market, you will seriously hamstring new development and make the problem worse. You need to make owning thousands over the long term nonviable but make investing and adding to the supply be the money maker.