Resident referendums to make housing affordable and urban infrastructure investments self-financing

What is it about?

One unique concept introduced is how investors get overpaid in ways not recorded by accountants and so not recognised by economists that is different from economic rent which is reported. A second way inequality is created in a way not recognised by economists like Piketty is how public investment in infrastructure creates private windfall gains from land ownership that are not required to be reported. A third contribution is how such inefficiency and inequality can be mitigated by using resident referendums in viable precincts to create two stapled title deeds to urban realty. One equity would be an exclusive private strata tile for buildings and the second equity being shares in a mutually owned self-financing Real Estate Investment Trust (REIT). The REIT removes the cost of land to halve the cost of new housing and attract commercial investors to create a virtuous self-reinforcing self-financing process.

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Why is it important?

Politicians are provided with a compelling way with low personnel risk, through providing facilitating legislation to hold resident referendums, with a basis to deliver affordable housing and attract private infrastructure investors to reduce: government expenditures, taxes and debt. Fundamental and major causes of wealth inequality are minimised while democracy is enriched from the bottom-up by: (a) Resident referendums to create locally owned communities and (b) Communities becoming financing and so self-governing.

Perspectives