SINCE 2009 there continued to be much media reporting of the wealthy Baby Boomers living in $MILLION Mansions enjoying their investments, collecting pensions while denying Millennials (and others including Gen X) the opportunity of entering the First Home Buyers market let alone affordable rentals as they pay the taxes to benefit the Boomers …
BUT what happened in 2008, we put it to you, that the Developer Lobby – the Property Council of Australia and the Urban Taskforce went to the Australian Government and said:
“We are going broke … you have to fix this! We have a plan for you … let’s build and sell up to 100 per cent of our new dwellings off the plan to foreign investors!”
HENCE the FIRB ruling change of 2008 following the GFC was implemented in 2009.
THUS they succeeded in pulling off this “Sting” …. ouch! A giant PONZI Scheme!
CAAN Photo: Herring Road Precinct, Macquarie Park 2019
WHAT this meant is that the developer lobby were given the green light to build ‘new homes’ for foreign buyers. Not only apartments but cottages, and duplex, townhouses, rows of terraces, manor homes …. through the Medium-Density Housing Code.
CAAN Photo: A duplex in the Parramatta LGA!
Following community-wide objection to this Housing Code led by Mayors and Councillors, the Berejiklian Government concerned about a backlash at the ballot box, implemented a freeze of either 12 months or 24 months across local government areas. The 12 month freeze is up in July 2019!
CAAN Photo: duplex development in Parramatta LGA due to Complying Development a like project could arrive nextdoor to you!
Rezoning for higher density together with the failure of the Turnbull Government to implement the second tranche of the Anti-Money Laundering Legislation to be applied to the Real Estate Sector robbed communities Sydney-wide of their amenity.
Then in October 2018 the Real Estate Gatekeepers were exempted by the Morrison Government … it appears to have been indefinitely deferred unless the Financial Action Task Force (FATF) – an inter-governmental body which monitors efforts to combat financial crime, and previously called out Australia for failing to crack down on the significant risk of money laundering through Australian property – returns in September 2019 to monitor Australia’s progress on anti-money laundering laws!
In the lead-up to the Election Labor proposed a crackdown on dirty money laundered through Australian Real Estate (February 2019)
“The international standard setter will want to see evidence Australia has acted upon the weaknesses set out in its 2015 mutual evaluation report. Chief among these was the failure to regulate lawyers, accountants and real estate agents.”
In the absence of this legislation the Proxy (the onshore buyers agent) can purchase not only “new” homes but established homes, and avoid the higher Stamp Duty, fees and surcharges for foreign buyers introduced by the Turnbull Government.
AS reported in the Australian Financial Review 70 PC of Chinese pay cash to buy Australian Homes Sparking Money Laundry Worry!
And by Credit Suisse … it had risen to 82 PC of Chinese pay cash to buy Australian Real Estate!
The Great Australian Dream Gone … thanks to Government policies …
A whole Cohort of Australians have been denied the opportunities of those who have gone before them!
Here in Australia we have the Elite Housing Class and the Renting Class made up of not only the “working class” but also the “middle class”!
WHAT we do not hear of …
-any mention of the ‘new’ housing market target 100% for foreign buyers particularly from Asia
-no mention of the increased competition from overseas hiking up the price of housing
-the proof … developers have warned that without the Asian market prices will fall and construction will crash!
-what has been overlooked is the very limited capacity people have in securing jobs outside major centres
-sure cheaper housing can be found well beyond the major centres, reason being, not many people want to live there
-indeed some more remote locations have cheap housing, all the time, little or no capital growth, don’t recall reading that
-ok, buy small, less desirable location, get a toe in the door but it can be a nightmare too, from poor quality housing
-huge renovation costs, difficulty in getting repairs done, unknown past use, the list goes on
DO you get the impression that numerous articles are subtly asking the reader to get used to the idea that your aspirations are wrong?
-that it is ok to rent; they do it overseas, so why not here?
HOWEVER in Australia there are no regulations to ensure Renters have the security of long tenure and quality affordable housing!
-the old hairy chestnut, it’s the regulations not keeping up with the times, we need to change the rules, but to suit who, developers?
THE NSW Baird Government enhanced this Ponzi with its “Plan for Growing Sydney” and with the subliminal messages of Sydney is Growing; the population growth; the construction boom especially in Sydney and Melbourne with high immigration and 1.3 million Visa holders all needing housing! Reported midway through 2018 there were 2.2 Million Visa holders in Australia of which 1.6 Million were Visa Workers all needing accommodation!
Followed by the formation of The Greater Sydney Commission to create three cities within Sydney, a second airport for the Sydney Basin, and yet another lucrative avenue for developers of the Medium-Density Housing Code having rezoned our low-density suburbs for medium density of as many as 10 terraces on a 600M2 lot!
The Medium Density Housing Code too can be sold 100 PC to foreign buyers with less than 50 units in a development … (May 2017 Budget Regulation ).
ADD to the competition VISA Manipulation including the Guardian Visa from 1 July 2016 primary school students as young as 6 years of age can apply for student visas and their guardians can also apply for Guardian visas (subclass 580), and buy either several new homes or one established home each!
These visa-rule changes, which were announced during Prime Minister Malcolm Turnbull’s visit to China in April 2016 also mean Visa holders can buy homes to gain Permanent Residency!
HERE on this Website you will find CAAN Posts not only concerning how a whole Cohort have been locked out of home ownership and affordable rentals, but related issues:
-the lowest wages growth
-the privatisation of our Public Services & Assets
-the loss of Standards in building practices
-the loss of our heritage; the loss and destruction of our environment, the pulling apart of all that we have valued …
WITH the LNP Berejiklian Government having returned to govern in New South Wales March 2019 and the LNP Morrison Government May 2019 … where to now?
LIKE: Community Action Alliance for NSW (CAAN) Facebook: