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MEDIA RELEASE: Housing Affordability




 “Unaffordable Housing Is A Result Of Government Greed And Inefficiencies



27 November, 2018: The single biggest failure of successive NSW Governments is their inability to solve housing affordability, according to The Small Business Party, who today released its Housing Affordability Policy.

“It could be successfully argued that the cause of unaffordable housing is Government greed and inefficiencies,” says Angela Vithoulkas, leader of Australia’s first registered Small Business political party.

“One of the biggest sources of Government greed is a draconian and oppressive property taxation regime, led by stamp duty which punishes someone for wanting to own their own home – it’s tearing apart the Australian dream,” says Vithoulkas.

Research shows that over 40% of the cost of a brand-new home is Government taxes and excessive bureaucratic expenses. If this was converted into real dollar figures, a $1,000,000 home should cost $600,000.

“The two major parties will no doubt promise to solve the housing crisis as they do each time we approach an election. Following the election there will most likely be a task force, a working group, a discussion paper, reports from allegedly clever people and of course a Parliamentary Inquiry into the problem.

“Government will ‘appear’ to be addressing this crisis – which is all they care about,” says Vithoulkas.

“The social impact of Government’s failure to provide housing affordability affects all of us. I ask how our Nurses, Police, Paramedics, Teachers, and Firefighters will be able to afford housing on their salaries?

“I am about real solutions for real people: changing stamp duty in NSW to lower prices for home buyers, including the removal of duties for downsizing retirees and pensioners, and a staggered payment scheme to reduce the upfront burden”.

Various sources of research highlight that another key driver of housing affordability is an undersupply of houses in New South Wales – years of failure to keep up with demand.

“The first economic principle we are taught in business is ‘supply and demand’. In order to solve the housing affordability crisis, we need to address housing supply,” Ms Vithoulkas said.

The Real Estate Institute of NSW, who have been particularly vocal in their calls for better decisions to tackle housing affordability are in support of The Small Business Party’s policy, with CEO Tim McKibbin viewing the document earlier this week.

Mr McKibbin said “removing the politics from housing affordability and focusing on the genuine inhibitors of home ownership is welcomed”

“Recognising the different classes of parties to the transaction, for example first home buyers and providing genuine options rather than a one size fits all is long overdue.

“Similarly providing incentives to other classes to property consumers that will deliver ancillary benefits, as is the case with retirees relocating to a property that better responds to their needs and in doing so freeing up stock for families is an initiative that benefits the broader community.”

Vithoulkas says that “our policy is designed to remove barriers to home ownership and encourage more buyers and sellers into the market once again.

“We have a situation in NSW right now where people are struggling to afford a home where jobs are available and one of the biggest losers here is small business.

“Small businesses create local jobs, helping reduce the impact of congestion, and improving local economies for everyone – when small business thrives, local communities thrive.

“I am seeking a seat in the Legislative Council at the March 2019 State election and if elected, I will fight to bring the Australian dream of owning your own home back into the realms of achievability.”