The Tax Policies Impact On Housing Affordability

Affordable housing is slowly becoming not that affordable for the poor in Australia over the last decade, and the price is keep raising. It became a significant concern among a lot of Australians.

This policy brief is prepared to give some insights of the housing affordability problem in Australia. In addition, the paper also suggests some approaches in which the Government should consider in tackling the issue in the Australian context. Housing affordability always

The increasing homeownership rate in the United States is a worthwhile policy goal. The housing economy creates jobs for American citizens as well as brings down the competitive qualities to purchasing a home allowing more middleclass citizens to spend money on houses. In doing so this drives the overall economy up in the United States.

Can we prevent any or all of these factors from having an impact on the property market?

Inclusionary zoning is a tool to help accomplish affordable housing. The main goal of it is to build a certain percentages of house but to where the houses can be afforded by middle/low income earners. Incentives are provided to act as cost offsets and include density bonuses, tax abatement, and reduced parking charges. Density bonuses motivate developers to have additional units which result in an increased profit margin. On subscription to the inclusionary zoning, benefits accrued eventually lower costs that would have otherwise been charged on the developers. This technique provides a sustainable method of dealing with housing shortage (Dietderich 13). The municipality, however, cannot force developers to set a particular minimum price and therefore the government can only provide incentives to developers to voluntarily provide the units for low-income earners.

South Florida's housing market is now one of the most stable in the country. I am currently living in the city of Boca Raton, considered as one of the wealthiest communities in South Florida. Using a scale of 100 for the United Stated as a whole, the cost of living in this area is 124; therefore, it could be more expensive to live in this area than many other places around the country. The highest aspect affecting the cost of living is housing, which is a 163 on the scale. As right now, this city is in a seller’s market in housing; the demand in houses is high, which means that are more people seeking to buy a property than there are available homes on the market. In consequence to keep up with this demand, developers are prompted to build

“The tears of the world are a constant quantity. For each one who begins to weep, somewhere else another stops. The same is true of the laugh.” Samuel Beckett’s existentialist play Waiting for Godot is the perfect analogy for American citizens living in public housing. Their tears remove the tears of so many other Americans. Their tears provide jobs, housing, and a sense of superiority for so many Americans. American tax policy does not have an infrastructure that promotes positive public policy initiatives for housing Americans. Tax policies for affordable housing should be founded on efficiency in spending and effectiveness in creating good public policy. Affordable housing tax policies should encourage housing privatization. In order to create good public policy, government must understand the underlying needs of the public and must be able to adapt quicker to economic fluctuations.

The recent policy regarding the Right to Buy propose to increase the discount under the Right to Buy scheme. This allows social tenants purchase their home at discounts of up to 50% of the value of their home, making home ownership more accessible (Brill, 2012). In addition, the Right to Buy sales make a major contribution to increase home ownership. There is an increase in the list number of people wanting accommodation. Therefore, it is worth to consider whether this has been one of the key drivers in recent changes in the UK housing system. The aim is making the housing system more affordable, for people on low income to be able to afford to buy their social housing and become home owners (Pattison, 2010). The increase demand of council housing of people with low income has brought about the recent changes in policy. It will also be the key driver of policy change in the

For all mankind, the most central basic need of all is housing. Like most items, housing comes with a price tag attached, high standards equate to high costs too. This leads down to two fundamental issues of quality and access. Usually quality includes some significant downfalls for others, that is the associated cost and this limit access as fewer will be able to gain access to good quality housing. Numerous households will lack adequate income to gain access to good quality housing (King, 2009). This is where the government has stepped in to provide subsidies to bridge that gap, guaranteeing that all citizens have equal opportunity to gain access to good quality housing. The 1919 Housing Act commonly known as the “Addison Act” kick started the government subsidies to help finance the construction of housing provisions soon after the First World War, with further similar Acts which followed (UK Parliament, 2015). On the other hand, not merely government subsidies help to build, maintain and improve, or cover the household costs. There are other different sources, such as private finance from financial institutes or mortgage lenders as well as earned income commonly utilized as well (King, 2009). However, this does not mean if something is as vital as housing it’s generally accessible. The shortage of

Housing affordability problems commonly emerge when housing cost increases faster than household incomes (Yates, 2008). For purchasers, the house price mainly depends on the house price and the interest rate. In the Australian housing market, increases in the house price and interest rate indicated the reasons why housing affordability problems occurred over the past few years.

The lack of affordable housing in the United States is a problem that doesn 't receive nearly the attention that it necessitates. This absence of affordable housing became especially prevalent following World War II when suburbanization spread across the country like wildfire. Although the sheer number of homes increased, Jim Crow segregation influenced housing policy, meaning that white institutions prevented blacks from obtaining the mortgages needed to afford such homes. Therefore, rather than accept subprime loans, which often result in foreclosure, many black people have been pigeonholed into paying exorbitant rates for dilapidated rental properties located in inner-cities, thereby creating the affordable housing problem. Although the situation seems bleak, with careful planning and execution, we can solve the affordable housing problem. Specifically, my proposal involves the following two components: the government must first revise and draft three forms of legislation that create strict yet concise standards that landlords must follow, and then allocate federal funding to health and wellness programs within poor communities. By examining the contributing societal factors to the lack of affordable housing in Milwaukee, Wisconsin, and then implementing the proposal mentioned above, one could potentially solve the affordable housing problem there and transpose the plan to other impoverished cities across the country.

So during thriving times, it further increases the demand of investors for housing. And when prices are stable or falling, the opposite is also true (Daley and Wood, 2016).

Government policies and subsides have a sizable impact on property price, and demand. The government can temporarily boost demand with tax credits, deduction and subsidies. From the customers point of view

This report examines the housing affordability crisis in Auckland, the current situation of the housing market, and extent of this problem. Auckland is in a deficit of houses due to the difference in demand and supply factors. The demographic and economic factors are the main reason for the increase in demand for houses. The supply side is not performing up to the mark to satisfy the demand in the market. The first home buyers are finding difficulties to make choice on their housing needs. The median households are struggling with the high rentals in Auckland market. Lower income households with faces a greater affordability pressures than those are living outside Auckland. There is a shortage in land and houses that are affordable for lower income households. The report suggests some new factors that can be considered to solve the affordability crisis.

Housing is categorized under basic commodities. Despite the necessity associated with proper housing, families and individuals all over the world continue to have trouble in affording proper housing facilities. Affordable housing refers to a kind of accommodation that is suitable for the needs of a range of very low to medium income families. Affordable housing should be priced so that these households can be in a position to cater for their other basic living costs such as food, medical care, clothing, education and transport. Housing is a combined product of land and buildings. Accommodation bargain-basement relays to an individuals ' capability to pay for their housing at a given point in time. It is a multifarious issue brought about by labor markets and local housing as well as larger macro-economic, environmental and social forces. As citizens in Australia continue to experience shortage of affordable housing, economics continue to debate on the necessity of government intervention in the issue.