ABC News Daily Alan Kohler on making housing a bad investment
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Jun 4, 2025 Alan Kohler, ABC's finance expert and presenter, dives into the complexities of housing investment. He discusses the alarming trend of rising house prices despite falling interest rates and highlights the issues of housing affordability. Kohler draws parallels to the early 2000s, suggesting conditions are ripe for another surge. He emphasizes the psychological effects of tax reforms and immigration on property preferences, advocating for housing to be viewed as a less desirable investment. The conversation is a critical look at Australia's looming housing crisis.
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2001 Interest Cuts Spark Housing Changes
- Historical context shows interest rate cuts in 2001 led to economic and housing market shifts.
- Australian housing market reacted to international crises with domestic policy responses influencing demand.
Tax Incentives Boost Property Investment
- Capital gains tax discount and first home buyer grants changed property investment appeal.
- These incentives psychologically encouraged more people to invest in property than in shares.
Visa Policy Spurs Migration Surge
- Immigration surged due to changes in foreign student visa policies starting in 2001.
- Increased migration amplified housing demand significantly by the mid-2000s.