yes fair enough but whilst there is no doubt that security mechanisms over mortgages are stronger in Australia than the US there is also no doubt that a property value shock would cause massive write offs for lenders no matter what the security arrangements are.
I am not a great fan of sudden changing of the rules on investment decisions that have been made on different rules. I have an investment property in another state and I bought it on the basis of a certain economic return. Completely destroying that return and in the process destroying the value is one way to make investors in anything in this country nervous and they will flee to another safe haven, whatever that is.
I am all for moving to more socially equitable policies on housing but it needs to be done gradually and in a managed way. If it is done over time the market finds it's sweet spot and values will have a much softer landing.
Of course land tax is a state tax which would mean that the only way to do these things is in a coordinated fashion because otherwise we will just have a fight for investment between states.
