tag:blogger.com,1999:blog-6015643236189571024.post7688182931752214400..comments2023-08-13T22:17:51.460+08:00Comments on Against the wind: tongkooionghttp://www.blogger.com/profile/06882389221773346482noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-6015643236189571024.post-44956949100535350742013-12-30T03:30:45.154+08:002013-12-30T03:30:45.154+08:00Right to housing has been recognised as fundamenta...Right to housing has been recognised as fundamental and the UN has long recognised it. I'm just not sure couched in a framework of basic human rights - thus creating a direct albeit implied government role as the obligor - is the best way to deal with homelessness. Sure, one can envisage an array of tax regimes as levers to calibrate resource allocation to achieve a desired outcome and this can take different shades and hues depending on socio economic scenarios. Maybe it's the season but stewards of capital may want to think of drivers other than returns/profits as fruits of their labour. If more such stewards put aside traditional measures, we need only very small governments. Big governments aren't sustainable. We are obliged - we ourselves - to help our fellow men to be adequately housed.Ian Tehhttps://www.blogger.com/profile/10251492009214801747noreply@blogger.comtag:blogger.com,1999:blog-6015643236189571024.post-81599578943789521682013-12-29T17:11:44.784+08:002013-12-29T17:11:44.784+08:00The fundamental question is whether housing is a b...The fundamental question is whether housing is a basic human right. I think it is. How then do we ensure affordability and availability?<br /><br />At a minimum, speculating on this asset class must be discouraged. In Australia, foreigners can only purchase new developments. Consequently, all homes ultimately end up with residents. In US and Canada, property taxes are very high and gains are treated as income to discourage speculation. This tax is applied to fund local schools and public transportation system.<br /><br />Discouraging speculation on its own is probably not sufficient in Asia, where owning multiple homes by those who can afford has become a tradition and proven effective in wealth creation. There is a need for social safety net to protect the homeless. And I will post some photos of these homeless families in future. The government has a role, directly or indirectly, to help create supply of affordable homes. Private sector motivation to maximize profit makes them an unreliable source.<br /><br />Whether the Malaysian government can be effective is another question. We know in the case of Singapore, the HDB policy has become an integral part of nation building.tongkooionghttps://www.blogger.com/profile/06882389221773346482noreply@blogger.comtag:blogger.com,1999:blog-6015643236189571024.post-5934577327994089512013-12-28T07:42:19.858+08:002013-12-28T07:42:19.858+08:00With every right there is a corresponding obligati...With every right there is a corresponding obligation. I wonder who bears the obligation to provide housing. Even affordable housing. The government? Where is the place of liberalism then? Or is Malaysia wanting ever bigger government?Ian Tehhttps://www.blogger.com/profile/10251492009214801747noreply@blogger.comtag:blogger.com,1999:blog-6015643236189571024.post-24686087615114851392013-12-27T18:15:03.985+08:002013-12-27T18:15:03.985+08:00Yes - I totally agree with the idea that housing i...Yes - I totally agree with the idea that housing is not to be an instrument of speculation. However, I would like to point out that the comparison given in this article is seriously flawed. UK average house price is around £165k vs an average wage of £25k which is 6.6x. With the number of foreign millionaires in Singapore, using gdp per capita is pretty meaningless - the median wage in singapore is just aroound $40000 pa (3480x12) vs an HDB on around $300000 of 7.5x. <br /><br />More importantly, it is the dual income households who are bidding against these stuffs so comparing this against a GDP per capita (Rather than average household income) is rather misleading. <br />Malaysia (like most SE countries) is actually a country with 2 stage of economic development - the big cities approaching western standards and the kampungs - and again - this make the average prices rather meaningless.<br /><br />Finally, the way to solve this has been thought out of Henry George over 100 years ago - it is the land value tax. Most property value appreciation occurs in the value of the land/location rather then the increase in build cost. Tax away the unjust gain and use it for a productive purpose (e.g. very basic safety net) is really the way to solve this. <br /><br />In the mean time, the monopoly game continues.Casperhttps://www.blogger.com/profile/06968066001104486355noreply@blogger.com