DUM, DUM de DUMB ...
Sydney's median price across both houses and apartments rose by $10,000 last month.
(OK, it was $9,900.)
If it maintains that pace, then median housing prices will rise by $120,000 in the coming year.
How many young people do you know who will be able to save more than $120,000 - after tax - in the coming year?
So if you were to nominate the policy that you'd LEAST want to see coming into operation today, it'd be the one that lets new homebuyers buy on a 5% deposit ...
To repeat the obvious, Australia doesn't have a lack of money chasing housing. We have a lack of housing.
The policy coming into operation today will make the owners of housing about $60bn wealthier.
What it will have the exact opposite of doing is making housing more affordable.
I'm writing an article for the weekend on why governments regularly choose 'feel good' policy over actually good policy.
Sadly, all governments do it ...