The Pencil Guy: Hourann's illogical blog

Another rant about housing affordability

Tuesday 13 February 2007 at 9:53 pm

This blog is now working again (or so I hope? I broke a bunch of links yesterday), my e-mail is back in action, and after a somewhat annoying DSPAM setup I have a shiny new anti-spam solution (I might even have to document what I did sometime). So I shall now return you to your regularly scheduled programming: random rants on the state of the State, with a bit of geeky tomfoolery and international politics thrown in for good measure.

There’s been some buzz, for some time, about property prices in Perth and their perceived effects on people who can’t afford a house (naturally, the loudest claims are coming from these guys, and they’re still beating their “taxes must be cut!” drum). Although I wonder about the limited evidence that this is an actual, real, screwing-with-social-welfare problem, it’s definitely an issue with votes in it. So yesterday Mr. Carpenter announced that he’d pitch in up to 40% of the cost of a house less than $365k, for families earning less than $60k per annum.

It’s a clever solution, and in the long term, there could even be profit! It’s also not a new idea, with similar schemes active in Scotland and other parts of the UK, though I’ve found little about whether these have worked.

I see only one flaw: $300 million is an awful lot of money to spend to help just three thousand families, even if it will be returned eventually. There are a lot of things that can be done for less that’d be of benefit to many, many more people. That said, the existing Keystart home loan scheme has also been rather pricey over the years … so maybe that’s just the cost of this kind of welfare.

Finally, and unrelatedly, an international smattering: despite some (predictable) opposition, abortion law in Portugal looks likely to change. I’m intrigued by the way that whaling is in the news again. And while it’s great to hear that there’s a new deal to relieve tensions surrounding North Korea, I wonder how long it’ll be before one of the involved parties breaks their commitment? (As pessimistic as that sounds, it’s been the pattern for years now — and there’s plenty of blame to go around.)