The 2009 I Want to Live Here report reveals how speculative vacancies are overlooked in housing supply analyses.
“Inner city suburbs such as Richmond (7.40%), Princes Hill (8.76%) and Flemington (8.83%) had Genuine Vacancy Rates more than five times greater than the REIV’s vacancy rate of 1.4%” stated Earthsharing Australia spokesperson Karl Fitzgerald.
“By including speculative vacancies and under-utilised properties in our analysis, the genuine state of play in the property game is unveiled.”
“Speculative hot spots such as Carlton (11.05%), West Melbourne (16.56%) and Carlton South (28.96%) reflect how capital gains dominate the mindset of investors rather than rental returns.”
“When a speculator makes three times the capital gains over any rental income, writing off negative gearing is a petty consideration when hoarding saves on hassles and delivers bucket loads of cash.”
“With major infrastructure projects continually planned for these areas, speculators know they are onto a sure winner.”
“Student demand for apartments further solidifies the knowledge that these prime locations will always become more valuable.”
“Why sprawl the city when government policy should encourage us to build up, not out? Prime locations should be used for housing, not hoarding.”
“We call on governments at all levels to level the playing field between the productive and speculative sectors of the economy.”
“With the property industry benefiting from some of the world’s most generous tax breaks, our evidence shows they are squeezing the market. It is time for genuine tax reform.”
“Why tax houses? Abolish CIV and NAV rating so the family home is not subsidising the land banker.”
“Halve income taxes by flattening, widening and raising the Land Tax so there is less incentive for asset bubbles.”
“Lastly, give the RBA the power to implement Land Taxes so it removes this valuable policy lever from the lurches of lobbyists.” said Mr Fitzgerald.
The report sheds light on the poor utilisation of land by investigating the number of properties using little or no water.