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Today, Cate and Mike tackle a broad array of government incentives, legislative changes and initiatives. Have they all worked? And what are some of the unintended consequences.

"Lack of consultation is probably a root cause of some of these negative outcomes." 

The rollout of the recent Victorian rental minimum standards is one key example. As Cate points out, some of the broad brushstroke recommendations weren't all practical. The investor-led sales have also distorted the market somewhat, (for both sales and rentals) particularly when older style houses in need of renovation are concerned. 

From the Pink Batts scheme to cottage industries, the Duo cover off some of the negative news stories from the past. 

Mike dares to touch on land tax. Queensland's repealed land tax legislation is a great case in point, and Mike's company's data supported the fact that the policy was conceived. Over a 98 day period, a 17.8% drop of investment activity in this short period resulted. Data is so valuable. 

Pivoting from sales activity to purchaser activity, Mike and Cate consider stamp duty concessions. Thresholds are important to note, as concessional caps sometimes don't seem to make a lot of sense. Which states have got it right, and which states are missing the mark?  How do concessions distort markets?

Cate cites the Victorian COVID recovery stamp duty stimulus and she discusses the impact that it had on median sale prices and market segmentation. 

Tackling underquoting is an enormous problem for regulators. Legislation on quoting regimes across the states and territories varies greatly, but some measures that have been intended to solve the issue have amplified the issue even further and convoluted the process. 

And how has rent-bidding legislation impacted the industry? Tune in to find out... 

Lastly... what is the lasting legacy of the HomeBuilder grant? Did our government get it right? From trade shortages to untenable deadlines, there were plenty of challenges for homeowners to manage. Market distortion was a key problem, according to Cate. Mike quotes a 33% material input price hike during the COVID period. 

..... and our gold nuggets! 

Mike Mortlock’s gold nugget: “If you move the needle somewhere, there is going to be a ripple somewhere else.”

Cate Bakos’s gold nugget: Foreign investor surcharges rattled Melbourne's market a decade ago. Specific areas were impacted and local owners felt the brunt of this.

Show notes: https://www.propertytrio.com.au/2024/12/09/government-intervention/