Here’s what the ScOmO Guvmnt can do to alleviate Rocketing House Prices …

Part 2!

THE RBA Guvnor has gone as far as he can go … and it would seem it is now up to the ScOmO Guvmnt to implement … at the very minimum … grandfathering Negative Gearing … yes, you B……s! 

In the leadup to the 2019 Election the Labor opposition proposed a policy to open the doors for First Home Buyers and others locked out of Home Ownership … without penalising Investors … they proposed GRANDFATHERING NEGATIVE GEARING!

Hence the Liberals ran a dirty scaremongering campaign … of lies as revealed in ‘Are any of the Coalition’s claims of new Labor taxes actually true?’

https://www.theguardian.com/australia-news/2019/may/14/are-any-of-the-coalitions-claims-of-new-labor-taxes-actually-true

What GRANDFATHERING means … perhaps it was beyond the grasp of some!

‘A grandfather clause (or grandfather policy or grandfathering) is a provision in which an OLD RULE CONTINUES TO APPLY to some existing situations while a new rule will apply to all future cases … ‘.

Thus it was a COMPROMISE which allowed investors to maintain their investments in ‘established’ housing, and allowed them to continue to grow their property portfolios by investing in ‘new homes‘.

This too would ensure the growth of the development sector with more homes being built; more jobs and more $. And it opened the door for Home Buyers to buy an ‘established’ home, it increased the housing supply for them!

However, now we have a predicament where HOUSING is more UNATTAINABLE! FFS!!!

AND as George writes

‘If you explain this to a CAPITALIST MINDSET, they don’t get it.  Indeed, many generally don’t understand the ramifications of NEGATIVE GEARING, because they don’t see how it affects others.

They don’t see how it would adversely affect them, actually, if suddenly their earning capacity ceases. Negative gearing is a form of TAX PERK, a bad one …. the more you earn, the greater the benefit of the perk. That sits very well with them, and so the quest for more and more …

They couldn’t give blooming rats how it affects anyone else but themselves.

Who’s to blame?  We are, of course, the *SILENT MAJORITY*😆….

Many were scared, SPOOKED!! And voted last time around for NG to stay in place!

We cannot afford to let the likes of JOSHY BOY and ScOmO scare the masses again. It is a real scourge on housing affordability …..

As the great YANIS VAROUFAKIS has said, too much emphasis is on HOUSING, and he was DEAD RIGHT. The fact that you can earn above certain brackets on the wage scale entitles you to a larger amount of the TAX PERK?

While others can’t?  Can’t even afford to buy a HOME?….😖. …oh dear me. It is MADNESS.

VIEW what Yanis Varoufakis had to say about Australia’s emphasis on Housing on

Q & A:

FRANKING CREDITS is another … a LOOPHOLE, let’s not forget that one …😫….

It is very CROOK.

READ MORE:  ‘Franking Credits: How Good is Free Money?’

So, it is the system that is broken.  I’ll say again, as a reminder … we had the opportunity to fix it, we squandered it.

To make matters even worse for us all, particularly for the down and outs, the poor people who have been suffering continually, and who were unable to recover, damaged, scared from the days of the HOWARD tenure will have to endure further taunting.  

It has been brought up on the 6.00pm NEWS, talk that the LNP under the gleeful eye of JOSHY BOY, will BROADEN THE BASE OF THE GST … or even INCREASE THE GST….👹….to recoup the losses incurred due to the Pandemic.

If ever there is a way to make QUICK BIG BUCKS for government coffers … it is the GST… a REGRESSIVE AND EVIL TAX.

Let that sink in,  I doubt very much we will be able to sleep tonight ….. It will be a BEX job.

So is the Sc.mmo Guvmnt doing anything about the Record House Price Growth?

Part 1!

Some officials from Treasury, and the RBA fronted a parliamentary committee which is looking at this mess made for Millennials who are …

less likely to own a home than at any time since 1947

In the early 1990s the cost of a house to income earnt was 2.5 times … now it is more than 6 times (and that’s for a flat) …

Then in the late 1990s the Howard Government introduced Tax Benefits of negative gearing and the capital gains tax for investors …

Now with the very low interest rates, buyers are borrowing many more times their annual salary … fuelling the price hike! 

Labor Committee member Matt Thistlethwaite rejected that the Morrison government’s schemes helped people get over the threshold of the deposit because these schemes increased the demand and prices to benefit the property sector

In June 2021 quarter prices rose 6.7%!

Thus the Morrison Government housing policies are designed to cramp supply and escalate demand … so what a surprise housing has become more unaffordable!

The Treasury Rep conceded that changes to stamp duty, and reforming zoning and planning laws could improve affordability but only marginally …

Independent Economist Saul Eslake said the key was increasing the housing stock starting with social housing, and removing the Federal Government schemes (stimulus).

-by eliminating the cash grants to home buyers that benefit the property sector

-and the tax benefits (neg gearing and CGT) that cast adrift (lock out) First Home Buyers

The RBA made it very clear that the high population growth from 2005 spiked house prices

And now the low interest rates were key!

And young people are also hindered by insecure work!

The RBA Governor on Tuesday 14 September allayed fears for borrowers because interest rates would not rise before 2024.  And that the bank is watching over lending standards …

THAT appears to be as far as the Governor can go … and what needs to happen is for the Morrison government to implement … at the very minimum … grandfathering Negative Gearing … yes, you B……s!

READ MORE FROM THIS REPORT OF DAVID TAYLOR!

‘We’re back to record property price growth, so what’s being done about it?’

https://www.abc.net.au/news/2021-09-15/house-prices-grow-what-is-being-done/100462060

Our Young People have been Paying a ‘Heavy Price’ for some time!

THE Delta Variant, it appears, has only worsened the predicament for our Young People

BECAUSE in the lead-up to this, globalisation was costly for them … they have been paying a ‘heavy price’ for a long time

-they were bearing the brunt of job losses and low wages from the late 1990s policies:

.with competition from hundreds of thousands of temporary Visa workers

.and low wages growth

.loss of Award conditions

EMPLOYMENT for young people had just begun to recover with border closures to Visa workers

.but the Delta variant has plunged us into Lockdown

More PANDEMICS are likely … does it make $ense to maintain an economy based on low paid Visa workers?

READ MORE!

Philip Lowe: Young people paying ‘heavy price’ for Delta containment

https://thenewdaily.com.au/finance/finance-news/2021/09/14/philip-lowe-rba/?utm_source=Adestra&utm_medium=email&utm_campaign=Morning%20News%20-%2020210915

More Moves Afoot … for Build-to-Rent for the Haves v Have-Nots!

A new Asset-Class for wealthy investors is emerging here in Australia …

It is with BUILD-TO-RENT, and the big boys from the United States have arrived – Greystar

Consider the way this text is worded … because it is apparent to us that a conditioning process is underway! 

WILL it become gospel? 

”… with third of Australians now deciding to rent rather than servicing mortgages, choosing instead to spend more money on their lifestyles or on alternative forms of investment.

THAT would not be because they have been locked out further by a 21% price hike during 2021 … to buy a place of their own … to have the security … and the opportunity to make it ‘their own’ … and to become a part of a community!

THAT they then seek second best to find some JOY if they possibly can after paying a hefty rent (dead money), and or working the stockmarket hoping to achieve the goal of home ownership long term perhaps?

IT is then put that ‘Increasing strains on housing affordability due to surging house prices has also driven many to consider rental accommodation.’

What choice is there if you have been locked out?

“ … and with the right policy settings there is a genuine opportunity to accelerate housing supply, create jobs and stimulate growth as we look to navigate our way out of the pandemic,” Key said.

IT appears it is not only the developers of apartment towers for sale, but now the BTR sector is selling its way into our country by enticing investors.

WITH a former staffer of the developer lobby, the Property Council of Australia – who wrote their policy before he entered politics – and who is now our PM that we now have the great scourge of the Australian political economy – HOUSING yet it is not providing home ownership for the majority!

AUSTRALIA … WE HAD IT SO GOOD! In the 1960s and until about 1991 we had 70% home ownership!

AUSTRALIA now rather than investing in green jobs, artificial intelligence and robotics like China and the United States, our wall of money is wasted on real estate!

AS said by Economist Yanis Varoufakis on last week’s ABC Q & A!

READ MORE how the BTR sector has been boosted last year by changes to land tax treatment announced by NSW and then by Victoria in its last budget … from The Urban Developer

https://www.theurbandeveloper.com/articles/greystar-approval-south-yarra-build-to-rent?utm_source=TUD+-+Daily+Briefing&utm_campaign=8fb8d19bac-EMAIL_CAMPAIGN_2021_08_11_01_49_COPY_01&utm_medium=email&utm_term=0_982c36d415-8fb8d19bac-195692726

From Sydney Criminal Lawyers A Follow Up on …

Teflon Gladys: Less Accountable Than Ever

11/09/2021 BY SONIA HICKEY

WHY has Gladys Berejiklian announced an abrupt end to the 11.00 a.m. Covid-19 presser?

The decision followed a journalist’s questions whether she is the subject of a corruption inquiry by ICAC – questions which she refused to answer, and many believe …

-that ICAC has now upped the ante in its investigation into her former boyfriend, Daryl Maguire

-documents reveal that she had dinner at Maguire’s Wagga Wagga home with a business associate he partnered with to run a cash-for-Visa scheme

.despite telling ICAC that she was ‘shocked’ to hear of the scam

questions remain about what she knew about Maguire’s business dealings; how much she turned a blind eye to, and in doing so whether she acted corruptly

ICAC has now issued S22 Orders to Berejiklian’s staff, other senior NSW ministerial offices and government departments

-ICAC investigators are focusing on a $5.5M grant awarded to a shooting association

Berejiklian’s office has also been implicated in a number of other corruption scandals over the past 18 months

-including her office shredding and deleting at least three documents concerning the distribution of $252M in Stronger Communities Fund grants: 95% allocated to councils in Coalition seats prior to the last State Election

-a significant question yet to be answered: why the Berejiklian/Maguire relationship was not formally declared under the NSW Ministerial Code of Conduct

-under the Cover of Covid focus has been drawn away from the corruption inquiries; ICAC reports it is determined to continue with its investigations

As a result, the Premier may still have important questions to answer, which could seriously damage her credibility in the eyes of both her party and the people of New South Wales.

READ MORE!

Why are Essential Workers suffering Rental Stress and How did we get here?

TENANTS’ UNION OF NSW CHIEF EXECUTIVE LEO PATTERSON ROSS SAID:

“People are living in converted garages, in dodgy apartment buildings with illegal conversions, and all because we haven’t set up our housing system to house Australians, we’ve set it up as an investment [opportunity].”

ESSENTIAL WORKERS LIKE …

-Aged-care nurses, supermarket managers and factory workers

Checkout operators, commercial cleaners, delivery drivers and childcare workers

-Social workers, registered nurses, truck drivers and teachers

-Paramedics

THIS appalling predicament has its roots dating back to the late 1990s when the Howard Government set this in train …

… the Howard Government enticed Middle Class Chinese to invest in our Education and Real Estate to gain ‘Flexible Citizenship’ … this then led to the growth of Temporary Visas, and through investment these Visa Holders were able to gain a ‘Permanent Resident’ Visa!

The increased competition further reduced the supply and pumped up house prices locking out Australians from the prospect of home ownership … our Real Estate is awash with ‘Black Money’!

AND the Howard Government introduced Negative Gearing and Capital Gains Tax discounts which allowed wealthy investors to grow their housing portfolios of established housing at the expense of home buyers seeking an abode to live in!

In this constrained housing market obviously these Tax Benefits should only be available for ‘NEW HOUSING’ construction! 

READ MORE!  AND PLEASE SHARE!

Essential workers face rental stress right across Sydney

ABC Q & A With Economist Yanis Varoufakis on Australia’s Economic Response to Covid-19

ABC Q & A: 9 SEPTEMBER 2021 WITH ECONOMIST JANIS VAROUFAKIS

How would Yanis Varoufakis rate Australia’s economic response to COVID-19? #QandA

QUESTION FROM BOJAN STANOJCIC:

How would you rate Australia’s economic response to the Covid-19 Crisis, and if you were in charge would you have done things differently?

YANIS VAROUFAKIS:

All the boring questions come to me because I have this predicament of being an economist, and a Greek Economist.

Okay, I shall compare the treatment – the response during the Covid-19 period to what happened after 2009 under the Kevin Rudd Government, after the GFC.

Both responses were large. The 2009 response was more effective in a sense that money went directly to families, independently of their circumstances.

So it was a more efficient system.

The support of the Australian economy now – during the Pandemic has been larger, and it had to be larger because the shock was greater, but I very much fear that it has created a large wall of money – which as the Pandemic recedes – and we hope it will soon so that I can come and visit my daughter to begin with – that this wall of money is not going to fuel house prices, yet again, asset prices because this is the great scourge of the Australian political economyHOUSING!

If all this money becomes higher asset prices it will be a monumental waste of all this liquidity that has been created by the Bank of Australia instead of going into investing so that we have good green jobs for experts, for the Arts – for that matter which is not a luxury to be added on to whatever else Australians are doing.

So to cut a long story short, take this liquidity and put it to good use, and do not waste it on real estate!

PART 2 WITH YANIS VAROUFAKIS:

VIRGINIA TRIOLI:

… Yanis, something that you have noted, and that concerns you, is that Australia is falling behind not only because the model that we have relied on for quite some time, which is our heavy reliance on China you regard that as out-moded that that is finished, and that we need to look elsewhere.

What is the solution to that, Yanis?

YANIS VAROUFAKIS:

Investment! It is not just Australia by the way; not being critical of Australia. It is also the European Union. The two blocks that are suffering, if you want, I consider Australia a small block, and the European Union. The European Union and Australia.

Because the business models of both Europe and Australia have relied upon for prosperity are now defunct, and it is the United States and China that are steaming ahead, coming out of the crisis stronger.

This, of course, is clouded over by the merging Cold War between them, and Australia and the European Union are running a very serious risk of being left behind.

Because the … future are Green Energy, artificial intelligence, robotics, and this is where there is insufficient investment – both in Australia and in the European Union.

And at the same time we have to remember that if Sierra Leone, or you know, some developing country that is simply impoverished are not investing – well you can understand that they don’t have the money to invest.

But both Australia and the European Union – we are swimming in money. We never had so much money as we have today, but we are wasting it, we are not investing it into the things that we need, and I totally concur with the point we just heard about the manner in which Women’s rising discontent has been completely ignored by the Government.

But in the end, imagine we were exploring The Universe – Startrek like – and we chanced upon some alien Civilisation we would look at where they were putting their resources you know judge their collective character.

Where are we putting our resources today? In the large corporations that are already sitting on a huge stash of – into men and into the powerful …

(Interview disrupted due to being out of sync.)

WATCH AND PLEASE SHARE!

https://twitter.com/i/status/1435926721568534528

How come some Foreign Student enrolments grew in 2021 as we lost Biggest Market for Coal Barley and Seafood?

UTS began preparing for a worst-case scenario collapse between Australia and China having to assess the prospect of evacuating staff and the loss of $Ms in student fees!


The paper,
 “Distentanglement – UTS China activities worst case scenario”, was prepared by an internal China Working Group.

Stating “the most substantial challenge” would be faced by staff at risk of being detained in China and who would require repatriation.

HOW come International education has not been affected by the China/Australia trade stoush like that of coal, barley and seafood?

IS it because this is about People? 

-Chinese student commencements have increased almost 10 per cent in 2021

.currently online during the Lockdowns …

IS this because these students will gain a Permanent Resident Visa? … Not only can they attend out education institutions, but they can buy our real estate, and bring out family members on other Visas …. e.g. …. Family, Parent, Grandparent, and Guardian! 

It’s a bit like the Trojan Horse, isn’t it?

READ MORE!

Worst Case Scenario UTS Contingency Plans if Australia China Relationship collapses

https://www.smh.com.au/politics/federal/worst-case-scenario-uts-contingency-plans-if-australia-china-relationship-collapses-20210907-p58pkw.html

Campsie under Lockdown faced with Density Push!

‘A COVID-19-struck community with severely limited open space has been asked to review a plan to increase the number of homes by more than 70 per cent while enduring the strictest lockdown the city has seen.’

Mayor Khal Asfour:

‘As Mayor, I am dedicated to building stronger ties between Council and the community; …   I intend to continue to lead the advocacy on important matters, such as sustainable development and infrastructure support, to make our City an even better place to live, work in and enjoy. ‘​

https://www.cbcity.nsw.gov.au/council/mayor-councillors/councillor-khal-asfour

HOW are these fine words reflected in what is proposed for Campsie? 

WHEN Campsie residents are faced with a density increase from 24,500 to almost 40,000 dwellings by 2036

With little increase in public space under a Masterplan that will be put to a planning panel in a week’s time in a blueprint:

-allegedly to make Campsie more environmentally sustainable, affordable and connected to the Cooks River

-Beirut’s 2021 population is now estimated at 2,434,609

https://worldpopulationreview.com/world-cities/beirut-population

Sydney’s 2021 population is now estimated at 4,991,654. In 1950, the population of Sydney was 1,689,935.

Greater Sydney population

In 2019 the Estimated Resident Population for Greater Sydney was 5,312,163.

As with the established pattern of NSW INC residents were only given days’ notice to provide feedback on the draft at the same time as outdoor recreation is heavily policed, and children limited to playing at the front of apartment blocks, and in driveways!

Campsie is already overcrowded with the Council having to resort to the Belmore Sports Ground to account for a third of the open space in the plan!

It is proposed to upgrade existing parks, create small pockets of open space and improve street amenity.

Will the river foreshore escape redevelopment?

Campsie will remain stuck with the overhead high-tension power lines as their removal is not a given.

ICAC previously investigated attempts by Daryl Maguire to increase the height of buildings for a developer friend, and NSW government’s 2017 plan for Campsie was shelved following community backlash.

So under the Cover of Covid, it appears, that NSW INC and the Council are proposing this huge redevelopment knowing full well that the community is too stretched to cope with this!

Canterbury MP Sophie Cotsis said:

“I’ve made representations to the council and the NSW Planning Minister to withdraw this proposal, which will have a significant, adverse impact on residents and their properties.”

Contrary to the council spokeswoman a pattern has been established under the Cover of Covid with the push for high immigration, and increased development already underway!  And to fill the carriages of the Metro

-from Singapore … China … India …

There is a disconnect with Australian home buyers currently faced with a housing shortage, and priced out of their communities!

Since 2012 thousands of alleged sets of engagement and community consultations have proved meaningless for many Sydney communities.  Especially when one hears the buzzwords :  ‘ …. To become a strategic centre, a cultural and lifestyle centre’

Read more!

https://www.smh.com.au/national/nsw/campsie-residents-feel-the-pain-over-their-locked-down-suburb-s-density-push-20210903-p58ofs.html#comments

The Feds berated for shifty foreign investment in Tasmania

The Morrison Government has been berated for shifty foreign investment in Tasmania

View the Media Release from Peter Whish Wilson

The Senate Inquiry Report, ‘The Senate Economics References Committee Greenfields, Cash Cows and the Regulations of Foreign Investment in Australia’

Greenfields, cash cows and the regulation of foreign investment in Australia (aph.gov.au)

reveals serious flaws in Australia’s foreign investment approval process, and Australia’s corporate transparency and anti-money laundering regime.

Three outstanding overseas investment approvals were analysed:

-the Musselroe Bay Resort development; part of a money laundering scheme

Bellamy’s takeover by Mengniu

Van Diemen’s Land (VDL) Dairy takeover by Moon Lake Investments

Senator Peter Whish Wilson summed up the problems with FIRB approvals:

-at the discretion of the Treasurer

-lack of transparency; allowing a government to extract an arrangement with foreign investors free from public scrutiny to suit its political ends

-the sale of VDL to Moon Lake, a political donor to the Liberal Party over that of a local consortium

Recommendations were made, but we ask why the need for foreign investment when Australia is a wealthy nation? The answer, it would seem, is apparent ….