Want to know how to fix the housing market and win an election? Don't bother

Joe Hockey has atoned for his housing comments earlier in the week. Andrew Meares

If you thought Gen Yers' outrage to Joe Hockey's "get a good job" tip on buying a first home was a bit over the top, just wait until they find out a savings scheme in which the government actually gives you money toward your new home is about to get the chop. Like, in two weeks.

In the next fortnight, the parliament will vote on the abolition of the 7-year-old First Home Saver Account scheme, which rewards young people saving for a home by paying a small government contribution toward their deposit and a tax break on any interest earnings.

Yes, you read that right. The scheme will be abolished on 1 July this year because it, like so many other government interventions in the housing market, is a complete dud.

The timing is unfortunate given the righteous anger this week over the Treasurer's old-fashioned

advice that youngsters dreaming of owning their home should "get a good job that pays good money".

By Thursday, all the flim-flam over whether rich ol' Joe was a dill for making insensitive remarks (again) had coalesced into something closely resembling the ugliest of envy politics. Social media was hating on politicians' personal finances and populists calling for MPs receiving taxpayer-funded allowances to refund any of their property capital gains back to the Commonwealth.

Some of Hockey's detractors suggest this latest gaffe could cost him his job within a fortnight. His supporters scoffed, taking comfort in a nine-month high in business confidence and an improved unemployment rate. Besides, who would risk another damaging leadership spill just to replace the Treasurer?

Rich mans advice on being wealthy

Warren Buffet would be stunned: rich man gives advice on being wealthy, chaos ensues. So now we want our politicians to work for free, be hopeless with their financial wellbeing and live in a shipping container?

Source: www.afr.com

Category: Forex

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