The SMH argues that harsh measures to improve affordability could trigger a crisis of confidence and price falls, however some measures are still worthwhile if introduced slowly.
Turnbull government may be reconsidering some options to make property more affordable for first-home buyers in Sydney and Melbourne.
The SMH expresses concerns that all effort to make housing more affordable might be for nought, at least if increasing worries about a property market crash come true.
The paper points out that the federal and all the state governments should have done more on housing affordability earlier in the price cycle.
Harsh measures to improve affordability now might spark a crisis of confidence and exacerbate price falls. Still, some measures are worthwhile if introduced slowly.
It is important to increase housing supply.
To that end, the SMH suggests that streamlining approvals and offering incentives for land subdivision are worthwhile and we can increase the supply of family homes by encouraging older home owners to downsize.
The Herald supports limits on negative gearing and welcomes the federal government's reconsideration of a cap on negative gearing deductions.
Canberra is reportedly looking to create a new Affordable Housing Finance Corporation. The SMH sees it may even be that federal schemes to allow banks or even a government authority to co-own affordable housing would work.
