Friday, February 24, 2006

What's a fair price for property?

What's a fair price for property? - Opinion -

There are thousands of owners of five-acre lots in the two growth areas. I talked to some in Leppington two weeks ago. Many are migrants who bought their land for relatively modest prices in the 1970s, and hope a big increase in value will fund their retirement. The political implications if this doesn't happen could be considerable.

How much would they lose? In 2004 property developer Peter Lowry told the Productivity Commission, in a public hearing on first home-ownership affordability, by his estimate land owners in the new growth areas stood to make $10 billion from the rezoning of their land. If they ended up losing up to $6 billion of this due to the levy pushing down the price of their land, would that be unfair? How much of a windfall do they deserve from a stroke of a rezoner's pen?

Interesting article. Also interesting is how people sitting on 5 acre blocks expect the sale to fund their retirement — still the same old 'easy money for property', 'why should I work for a living?' mindset that fuelled the property boom in the first place. And all endorsed by your government as the very best way to make housing affordable and provide for a socially just outcome for all...

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