Deputy Prime Minister and former Shadow Minister for Finance and Debt Reduction came up with an economic doozie when he recommended that people “cash out your house in Sydney, Melbourne or Brisbane, and buy a house in Armidale and you put money in the bank”.
It is a quaint idea until you look at a few basic facts.
The combined population of Sydney, Melbourne and Brisbane is around 13 million.
According to the website realestate.com.au, there are 477 properties for sale in Armidale. There are a further 160 available for rent. If 0.004 per cent of the population of Sydney, Melbourne and Brisbane took up the challenge and bought and rented in Armidale, all properties would be sold and rented. There would be a crazed bidding for housing and prices would go crazy and indeed, there would be a serious dwelling shortage.
Local renters would be crunched when rents were renegotiated and propbably have to leave.
Interestingly, the population of Armidale is 23,000. It would rise 3 fold if just 0.5 per cent of the people of Sydney, Melbourne and Brisbane took up Mr Joyce’s challenge to move. Imagine the stress on the schools, hospitals and roads.
Mr Joyce’s idea is a good one as long as no one takes it up.