Investors are unfairly targeted in the housing affordability debate – with negative gearing and capital gains tax concessions unduly blamed, according Performance Property Advisory associate director Heath Bedford.
He says government policies which restrict the supply of appropriate housing are the real culprit. Meanwhile, the market sector most responsible for driving up house prices is “next-time buyers” – owner-occupier buyers other than first-home buyers.
Bedford says singling out negatively-geared investors as ‘the root of all evil’ is wrong.
“The problem has more to do with strong population growth, a chronic shortage of appropriate housing, all-time low interest rates and an undue focus on developing our capital cities,” he says.
“Restrictive planning policies have locked up a lot of our inner to middle ring suburbs from medium-density development, skewing our construction pipeline to high-rise development in our CBDs and inner-city suburbs, and to house-and-land packages on the urban fringe.”