Superior solutions to housing affordability are either more frequent medium - high - density housing in established suburban areas or a decrease in the capital gains tax rebate. While these answers will certainly not eliminate the housing crisis immediately, they will undoubtedly and eventually ease first - home buyers and renters future situations. The former option, building more medium - high density housing, would drastically increase accommodation options within a much more compact area, allowing students to live closer to their place of study, and workers to their jobs. It would also significantly decrease housing costs. According to Domain AU, medium - density housing is on average 12 - 30 percent cheaper than regular housing in 2019 depending on the state. Approximately 14 percent of housing is medium density, however, Australian home buyers believe the number should be much higher, claiming there is a severe undersupply. There are many factors affecting this, the main being an outrage from current Australian homeowners claiming the buildings will crowd their backyards. This protest is known as NIMBY ’ ism, (Not In My Backyard) and as there are no laws against building medium - density housing in the suburbs, NIMBY ’ ism is the reason for the scarcity. The state and local governments need to show some courage and implement building plans for these houses, ignoring the futile outcry, otherwise Australia ’ s housing crisis will continue to worsen.
The latter solution, lowering the capital gains tax rebate, will open housing options for first homeowners. Currently, Australian residents can receive a 50% discount if they own an investment property for over 12 months before selling. This heightens the incentive to purchase additional houses as a financial choice, which decreases the market options for first - home buyers.
welfare for the wealthy or the basic right to affordable shelter? This issue is increasingly relevant for students studying far from home, as on top of all other expenses, they must also pay rent. But a rental crisis, coupled with stagnating welfare payments, is leading more young people to opt out of moving out altogether. This results in students having to travel hours every day just to make it to their lectures from their parents ’ houses. According to the Australian Institute of Housing and Welfare, the proportion of young people aged between 20 and 24 living with their parents increased from 48% in 2008 to 58% in 2018. This number is only increasing in correlation with staggering housing prices. Unfortunately, this option isn ’ t available for everyone, from abusive, to just uncaring parents; sometimes students are forced to rent just to sleep at night. These concerns create long - term effects on the career prospects and earnings potential of working university and T.A.F.E students. If inflation continues to be so prominent, the future generation will be unable to create a sustainable income for themselves. Students working minimum wage will lead to long work hours, which will lead to late nights studying, which may well result in lacking grades. A possible outcome of this disadvantage is a lack of qualifications or working a dead - end job, drastically lowering the quality of life. The minimum wage must increase to compensate for the heightened prices, or the government must make some drastic changes to housing policies otherwise this will be the future for our generation, as many of us don ’ t have sufficient study time or rich parents.
NIMBY'ism (Not In My Backyard) - A protest against crowding suburban areas with large - scale buildings.
The housing market is saturated by investors, which inflates the pricing of these houses. If the capital gains discount was significantly reduced or scrapped altogether, many investors would reconsider their property choices, possibly forcing them to sell. This would reintroduce a plethora of housing options for new home buyers, and gradually decrease housing prices overall. This change would by no means be immediate, but the reforms must happen eventually. We must ask ourselves what is truly more important,
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