With all eyes on the US fed rate rise tomorrow and RBA Governor Phil Lowe admitting yesterday that he expects (officially admitted) inflation to raise above 7% by end of the year, interesting times are ahead for the $10 trillion Australian housing market.
Question is, what kitchen sinks are coming from dumb shit Jim Chalmers (thank god we have a career unionist and ALP apparatchik to handle the biggest economic crisis ahead, right after the printing spree of his intellectually-equal predecessor Josh Frydenbergsteinwitz) to try and keep the housing market somewhat afloat?
Some suggestions being thrown around:
- Tax deductions on PPOR mortgage interest
- Total super withdrawals for mortgage repayments and/or FHB deposits
- 50-year mortgages
- Immigration tap up to 11
I honestly don’t know and with the price of absolutely everything else going up I don’t know if they can do much, but it’s not going to be the bcnich eternal catastrophe in my view.
I also don’t know realistically if immigration is going to be any fix at all. Realistically you wouldn’t want to move here if rates are 3% by end of 2022, petrol is $2.50 a litre when the excise cut runs out on July 1 and food prices are through the roof, not to mention potential rent increases. Not saying they won’t try bigger incentives for the open the gates crowd, but whatever.
I personally believe the ALP will stay away from the super funds because that means union funding is in trouble. Not that they’ve mostly been any fucking use the last three years by supporting mandates, so fuck them either way.
I think the PPOR tax deductions are coming first around this time of year. Happy to be proven wrong, but I’m sure more knowledgeable types than I have a better idea of what’s ahead.
Ride that Kali Yuga either way.