RATS … STARTING TO RUN THE SHOW IN AUSTRALIA’S EAST COAST CITIES …

In SYDNEY and MELBOURNE … Where else can they be found?

Both leading pest experts from either City nominate major CONSTRUCTION … Tunnelling … for disturbing them from where they live … forcing them to move on … a bit like us too?

Rats are starting to run the show in Australia’s east coast cities

Rats have been an issue in Australian cities since the First Fleet. Photo: Getty

Cait Kelly

Cait KellyReporter

COMMENT

An infestation of rodents is bringing a new kind of rat race to Australia’s eastern cities.

The construction boom, poor waste management and colder weather over winter have brought the usually invisible rodents out onto the streets.

Residents and business owners in Sydney and Melbourne have noted an infestation of vermin over the past three months.

Sam Yehia, from Sydney’s Best Pest Control, said major construction work under way was a key contributor to residents noticing the rodents more.

“At the moment, there’s a lot of building work disturbing them and they’re moving,” Mr Yehia told The New Daily.

“Basically you’re disturbing where they’re living.”

The number of complaints of rats in the harbour city has been rising at a steady rate for four years.

Rats live in our cities because we provide a food source – garbage. Photo: Getty

It is so bad that the City of Sydney council announced it was doubling the number of rat baits to try and curb the growing population.

But Mr Yehia said the attempt would have little effect on the number of rats.

“They’re just reactive policies. They’re reacting to what the media is saying,” he said.

“It will have a limited effect because it comes down to how many bait stations you’re putting down and how often you’re getting it done.”

Currently, on the New South Wales Food Authority’s website, there are 155 active pest penalties.

“When it comes to commercial, most restaurants are also more reactive than proactive,” Mr Yehia said.

“One reason is that it’s an added cost they don’t want. Second is the rats start to go where to food sources are.

“In Sydney itself, at the moment you’re getting an increase.”

‘Get used to it’

It’s not just Sydney.

Simon Dixon from Exopest said construction was also causing the rats and mice to scurry out into the open in Melbourne.

With construction on the nine-kilometre Metro Tunnel not expected to finish until 2025, he said Melburnians should get used to the rat plague.

“We’ve got five to 10 years of tunnelling, so the rats have to find new homes,” he said.

“We’re throwing tenants out on the street effectively.”

In Melbourne alone, there are estimated to be four rats to every person.

Getting rid of the rodents is obviously hard, but using baits and storing food properly will help, Mr Dixon said.

“We’ve been living with rats since the first rat plague, but we have to be aware there are more around now,” he said.

“Make sure you do the baiting and store food properly. The biggest problem is the lanes and bins. Rodents are good climbers and they’ve got a food source in the lanes.”

The best thing to do though is just embrace the rats, he said.

“Just get used to it, they’re here to stay,” he said.

“They’re pretty friendly, but they do jump. They’re agile, so look out.”

SOURCE: https://thenewdaily.com.au/news/national/2019/09/26/rats-sydney-melbourne/?utm_source=Adestra&utm_medium=email&utm_campaign=Morning%20News%20-%2020190927

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CONSTRUCTION JOBLESS HITS HIGH … as the downturn bites

TRADIES … the clock is ticking … the bosses will Phoenix … they’ll be okay … to counter this to ‘not be the victim’ why not serve your local community with home maintenance and renovation jobs?

WHY not take more time and care with these home projects … and refrain from overcharging?

WILL the guvmint ever learn … why do they persist with putting ‘all their eggs in the one basket’?

FIRST it was mining … NEXT overdevelopment … What Next?

Construction jobless hits high, as the downturn bites

construction companies collapse

In NSW, 556 construction companies went bust in 2018-19 – 101 more than in 2017-18. Photo: ABC

David Ross Finance reporter

COMMENT

Underemployment in construction is close to hitting an all-time high, as the sector shows further signs of the impact of the nation’s economic slowdown.

Data released by the Australian Bureau of Statistics (ABS) on Thursday found underemployment in the construction sector has hit 81,100 workers – or 6.9 per cent of the workforce.

The figure is among the highest underemployment in construction since the ABS began collecting the data only twice since 1991 has underemployment in construction been greater than it is today.

(Underemployment is the measure of how many of those working in a sector would like to have more work, and it’s become a nagging problem for Australia’s economy.)

The data is another symptom of the fallout from a consistent slide in dwelling approvals, which have seen dramatic falls in the 2018 and 2019 financial years.

Approvals apartment and house approvals have slumped 47.28 per cent and 11.68 per cent respectively over the past two years.

Construction is hugely important to the Australian economy, accounting for almost one in 10 jobs, and has done much of the heavy lifting in the economy, as the mining boom busted.

During the GFC, underemployment leapt 54 per cent between November 2008 and February 2009 from 4.34 per cent to 6.7 per cent – a rate of underemployment for construction workers lower than it is today.

The sobering news also came as ASIC released data showing the downturn was sparking the failure of many more businesseswith 556 construction companies going bust in 2018-19 in NSW – 101 more than in 2017-18.

Jobs vacancy data, also released on Thursday, backed up the bad news for the construction sector showing a 1.3 per cent decline in new job listings over the past quarter, suggesting the growth in jobs generally was also slowing.

Callam Pickering, economist at jobs site Indeed, told The New Daily it was clear things were looking bad, and worse was coming with unemployment set to rise.

“When people finish up projects they’re left with no new jobs to go to, which is why a lot of construction workers are looking at new sectors of the economy,” he said.

“Over the next couple of years, from a worker perspective, employment is likely to decline.”

He said the high rate of underemployment suggests businesses were “trying to keep on good workers but are doing that by reducing hours”.

But if things don’t pick up, he said they’ll unlikely be able to maintain that arrangement.

Infrastructure not the holy grail for jobs, says experts

There’s less work around, and commentators are tipping there to be even less in the future.

Indeed’s Mr Pickering said the widely expected employment windfall of major infrastructure projects, to pick up the slack from falling residential construction, wasn’t coming true.

“What we’re seeing here is that a lot of these big infrastructure projects are capital-intensive but not labour-intensive residential construction is labour-intensive,” he said.

Steve Jovcevski, Mozo’s property expert and a property developer in Sydney, told The New Daily things weren’t looking good for construction, but that wasn’t unexpected.

“We were building so many apartments in Sydney and Melbourne it was getting to an area of oversupply,” he said.

“The industry is in holding mode. If things do pick up, then all well and good, but if they don’t they’ll look at sacking staff.”

But, he said, the latest figures didn’t look like they were turning around, and that the impact will flow through the construction chain from top to bottom as the downturn rolled on.

“It will start to affect sales staff in the real estate industry first, the people selling off the plan and people lending,” he said.

“As time goes on it’ll be project managers, construction managers on-site, then tradespeople – a lot of their contracts will be terminated.”

But he said the problems around building quality issues weren’t doing construction any favours, leading many to put off buying into new buildings and that the downturn may be good for the industry in the long run as it put less pressure on getting jobs done and more on getting them done right.

“Slap it up and make your money – that model will disappear,” he said.

“That’s the other problem. Scrutinising the industry, people are scared to buy new products. Banks are also concerned.”

All that said, tradies – the clock is ticking.

SOURCE: https://thenewdaily.com.au/money/property/2019/09/26/construction-jobs-crisis/?utm_source=Adestra&utm_medium=email&utm_campaign=Morning%20News%20-%2020190927

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HT’s CARTER STREET PRECINCT: Sydney Olympic Park and the emergence of CHINESE LIVING CENTRES

JUST this week visited Sydney Olympic Park, and was stunned to view this massive new Meriton Precinct occupying a whole block of Carter Street!

YET meanwhile there are reports of many construction companies are collapsing … and phoenixing … but HT, who it seems, was the creator of the Housing Ponzi … has not succumb!

Perhaps this can be explained away by some of his well-known quotes …

-“Well, since I am not a modest person I say I had the biggest hand in it because I devoted myself to Sydney. I did a little bit in Queensland, but absolutely I am Sydney!”

-“I will bring in more migrants”

“China has more than 1 billion people, and they love Australia. I think they love Australia as much as we love Australia. So there will always be enough of them that will buy.”

-“The problem with Australians is they are very slow. They ask their lawyer, they ask their financial adviser, they ask their family, they ask everybody.

-“The Chinese don’t ask anybody, they come off the plane, buy their unit and go.”

We have it on good information that HT’s new Carter Street Precinct for Sydney Olympic Park has almost sold out! With the success of this Precinct, Meriton is preparing another site opposite in Carter Street.

Meriton also has many apartments set aside for rental. Is that too a win/win for Harry? Can he pick up Government subsidies … affording the company economies of scale?

And can Harry pick up Government subsidies from the Early Childcare Centres within the Meriton precincts?

Meriton has a huge market target with 1.4 Billion People in China

THIS, it would seem explains why the Chinese diaspora is spreading across Sydney radiating out from Chatswood, as they buy up high-rise precincts and what were formerly our Shopping Centres of Chatswood, Macquarie Park and beyond become ‘CHINESE LIVING CENTRES’ with high-rise apartment towers above, and where they gather together in the Centre … throughout the day … eat, shop, play, and entertain and move about on the MTR Hong Kong Consortium Metro … it’s as though we are incidental …

The Chinese papers …. The Vision China Times … it’s all about Property, Home Improvements and Finance; Epoch Times, and the Chinese Sydney Property Weekly … are all full of advertisements for our Real Estate …

With those of high net worth and ultra high net worth buying up our neighbourhood and heritage homes … soon demolished for ‘new homes’ which allows them to gain a ‘Permanent Resident’ Visa, is this why where we live is being destroyed for higher density with the loss of open green space, Our Heritage, urban bushlands … our schools, hospitals, trains, buses are all full-up … our roads congested … ?

IS this what the push for the ‘low-rise Medium Density Housing Code’ is all about … why SYDNEY is growing? With as many as 10 terraces on a 600M2 lot? Is this number still proposed? Because what it will mean … the greedy will landbank our suburbs and turn them into a construction zone! 100% for ‘Foreign Buyers’!!

The NSW planning department endorsed the CHATSWOOD CBD Planning and Urban Design Strategy in August to turn Chatswood into an even bigger business district.

AND as GeoPolitical Strategist David Lee recently pointed out the Sydney Metro from the northwest leads to Chatswood enabling the Chinese money to capitalise on its access to the Metro and a fast train …

WITH that the Diaspora spreads across the North Shore and the North Western suburbs, the Inner West including Sydney Olympic Parkthe expansion of the CCP into Sydney is not confined to Chatswood!

CLICK onto about 9.5 minutes into the talk and David Lee, a GeoPolitical Strategist hones in on Chatswoo … 15% of the entire GDP of Australia comes from Sydney to Chatswood

https://caanhousinginequalitywithaussieslockedout.com/2019/09/01/a-geopolitical-strategist-on-the-mk-hong-kong-the-u-s-and-australia/?fbclid=IwAR10lD12mz0OZPkHTJtR2qjV-9XsPZPg5c8M86-348dp5zLJy9aZZWoOdXQ

A pictorial tour of Meriton Carter Street Precinct, Sydney Olympic Park

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CAAN Photo fronting onto Carter Street

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CAAN Photo at the rear of the Precinct

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CAAN Photo

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CAAN Photo

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CAAN Photo: The people including Sales Consultants in the office and wandering around the Precinct appear to have all been from China.

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CAAN Photo

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CAAN Photo: A massive Precinct … the only way to convey the size of this development would be from the air!

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CAAN Photo: Sales Rep
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CAAN Photo: New site opposite in Carter Street under preparation!

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Fasco-housing complex summit: Property shortages coming

By Unconventional Economist in Australian Property

September 26, 2019 | 4 comments

The AFR’s property rent-seeking summit is underway, with attendees warning that housing shortages are set to re-emerge as manic population growth outruns falling dwelling construction:

Treasurer Josh Frydenberg has taken the stage.

He says population growth has been a major driver for housing demand in Australia, noting the population grew by 1.7 per cent between 2005 and 2015.

But he’s noted dwelling investment is forecast to fall by 7 per cent in 2020 budget…

AMP Capital head economist Shane Oliver has said if housing approvals fall it could lead to a housing shortage as population continues to climb.

“That’s the issue of supply that needs to be addressed,” he said.

They are not wrong. As shown in the next chart, both approvals and commencements are crashing as population growth remains turbo-charged:

That said, it must be noted that income growth is also set to fall back so we may see some pressure released owing to weaker demand as more share.

This suggests firmly that “the issue of supply that needs to be addressed” is the demand-side of the equation. Australia will never sustainably balance the market as long as mass immigration continues.

SOURCE: https://www.macrobusiness.com.au/2019/09/fasco-housing-complex-summit-property-shortages-coming/

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Fasco-housing complex guts ASIC HEM push

By Houses and Holes in Australian banksAustralian PoliticsAustralian Property

September 26, 2019 | 19 comments

Scott Morrison has urged banks to keep the economy alive by continuing to offer credit.

Photo: Canberra Times

Yesterday Generalissimo ScoMo ordered more mortgages, at the AFR:

Photo: AFR

Scott Morrison says Australia’s banks must not shy away from lending after the Hayne commission as he pushes back against what he calls an “instinctiveness” in society towards responsible lending standards that are too onerous.

Speaking to the Australian American Association in New York, the Prime Minister said that while it was important to implement the findings of the royal commission, as well as other reforms such as the Banking Executive Accountability Regime, “we need our banks to keep lending”.

“We can’t be scared of our own shadows in our economy, the animal spirits in our economy and the role of the banking and financial system in extending credit.

Photo: AFR

Today we get the result, also at the AFR:

Treasurer Josh Frydenberg has pushed back against regulators being too stringent in enforcing responsible lending rules, warning that this could penalise “hard-working families” trying to get a housing loan and hurt the economy.

In a speech to be delivered at The Australian Financial Review’s Property Summit in Sydney on Thursday, Mr Frydenberg will welcome the pick-up in capital city housing prices, citing Treasury research that a 10 per cent increase in house prices could boost GDP by 0.5 per cent.

“It’s in everyone’s interest that the aspirations of hard-working families are not collateral damage in this regulatory process,” Mr Frydenberg will say.

With a co-ordinated assault from the oligarchs, also at AFR:

Westpac Banking Corp CEO Brian Hartzer backed Mr Morrison’s comments, telling The Australian Financial Review Westpac “is open for business and we are committed to extending finance across all sectors of the Australian economy”.

NAB CEO and chairman-elect Philip Chronican said business investment is key to improving productivity and driving growth and NAB is growing market share lending to business customers.

ANZ deputy chief executive officer Alexis George also said the bank is open for business and agrees with the Prime Minister “it is important for the banking industry to continue providing credit to help the economy keep moving. We understand that our role in society is to provide credit to businesses and individuals. ANZ takes that role very seriously, including ensuring that we do so responsibly.”

What the fasco-housing complex has in its sights is, of course, the following from the ABC:

Westpac Bank logo on a tall office tower.

Photo: ABC

The corporate regulator is appealing a landmark Federal Court ruling in favour of Westpac that validated the bank’s automated home loan approval process for hundreds of thousands of mortgages.

Last month, Justice Nye Perram of the Federal Court found in the bank’s favour in a case brought by the Australian Securities and Investments Commission (ASIC) as a test of the responsible lending laws.

ASIC had alleged that Westpac breached the laws by failing to properly take account of customers’ individual declared expenses when they were applying for home loans, instead relying on a benchmark ‘Household Expenditure Measure’ (HEM), which was widely criticised at the banking royal commission for being set too low for many customers.

By using the benchmark, thousands of customers were given loans larger than they would have been granted had the bank assessed them on their actual living costs.

However, many more customers were granted loans smaller than they would have been eligible for had the bank used their declared expenses which, in a large number of applications, were lower than the HEM.

The National Consumer Credit Protection Act requires lenders to make reasonable enquiries about the financial circumstances of prospective borrowers and not to grant them a loan if they could not afford to repay it, or could only afford the repayments by being pushed into “substantial hardship”.

In the most famous line of his judgment, Justice Perram found that knowing a customer’s current living expenses was immaterial to deciding whether they could afford repayments on a loan.

“Knowing the amount I actually expend on food tells one nothing about what that conceptual minimum [of how much one can spend without going into “substantial hardship”] is. But it is that conceptual minimum which drives the question of whether I can afford to make the repayments on the loan.”

Justice Perram’s judgment, should it stand, effectively validates the bank’s use of the HEM benchmark in assessing loan applications — a benchmark used in some way by most home lending institutions.

ASIC commissioner Sean Hughes said the regulator felt compelled to appeal after Justice Perram ruled that a lender “may do what it wants in the assessment process”.

“The Credit Act imposes a number of legal obligations on credit providers, including the need to make reasonable inquiries about a borrower’s financial circumstances, verifying information obtained from borrowers and making an assessment of whether a loan is unsuitable for the borrower,” he said in a statement.

“ASIC considers that the Federal Court’s decision creates uncertainty as to what is required for a lender to comply with its assessment obligation, nor does ASIC regard the decision as consistent with the legislative intention of the responsible lending regime.

“For those reasons, ASIC will appeal to the Full Court of the Federal Court.”

But the fasco-housing complex is not only above the law, it is the law. Generalissmo SocMo and his banker cronies have gotten together to neuter what’s left of a well-meaning executive following the Hayne RC.

APRA has been show-trialed and corrupted. The RBA has been summoned to the palace to explain why interest rates are not lower. Now the corporate regulator will be publicly shamed and legal process perverted to ensure that nothing prevents a return to mortgage fraud as quickly as possible.

Heil fasco-housing complex!

SOURCE: https://www.macrobusiness.com.au/2019/09/fasco-housing-complex-guts-asic-hem-push/

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Plans to move Chatswood Public School dumped despite overcrowding

Year 2 students Ashleigh Ho and Victoria Spencer outside Chatswood Public School.

THIS interview with GeoPolitical Strategist David Lee we reckon explains why schools in Chatswood are overcrowded …

Forward to about 9.5 minutes in, and David hones in on Chatswood!

15% of the entire GDP of Australia comes from Sydney to Chatswood

Chatswood built by the Chinese Communist Party;  built ostensibly with China’s money

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Hunger Games hits Sydney’s migrant-stuffed schools

By Unconventional Economist in Australian Economy

September 26, 2019 | 4 comments

The sad reality for overcrowded schools

Photo: 9 News: Girraween Public 34 demountables replaced playground!

Another day, another report on Sydney’s schools being crush-loaded by immigration. This time in the cross-hairs is the Chinese stronghold of Chatswood:

Parents are furious that plans to move Chatswood Public School to a bigger site have been dumped even though the school has had to ban handball, hold four separate assemblies and stagger lunchtimes to deal with the “severe” overcrowding.

The Parents & Citizens Association has also been paying $10,000 a year to have the school’s toilets cleaned between recess and lunch because of pressure on the facilities, which they say have not been upgraded despite a 54 per cent increase in enrolments since 2012…

The parents began their campaign for better facilities six years ago. Since then, enrolments have grown by more than 350. In 2017 there were 11 kindergarten classes.

“For some students the school has been massively over-capacity for their entire primary school education,” said Ms Austin…

Lunch times were staggered, ball games were banned before school because there were too many people in the playground, and lines for the toilets were so long that some children had accidents… parent, Mariana Rudan, said the overcrowding was “beyond ridiculous. The kids are not allowed to play anything at all.”

Hundreds of schools in Sydney are full or overflowing with students. (AAP)

Hundreds of schools in Sydney are full or overflowing with students. (AAP) (AAP)

Oh, the “vibrancy”. The sad reality is that Sydney’s entire school system is at “breaking point”:

NSW Education enrolment data for 2018, released to 9 News under freedom of information laws, reveals 636 schools in NSW have between 100 percent to 150 per cent of student places filled.

That’s the equivalent to almost a third (31 percent) of all public schools in NSW – or an even greater proportion of those in Greater Sydney.

Despite school ovals, carparks and play areas being filled with demountables and temporary classrooms set up in halls, libraries and gymnasiums, there are more kids than official places in many suburbs of Sydney…

Schools across Sydney’s west, east, north and south dominate the list of the most densely-packed classrooms…

In 2016, the Grattan Institute estimated that NSW would need 213 new schools by 2026 to cope with a projected 175,000 (14%) surge in students:

Moreover, this schools requirement is only the tip of the iceberg given the ABS’ latest medium (Panel B) population projections have Sydney’s population ballooning by 94,000 people a year to 9.7 million people by 2066 – driven entirely by mass immigration:

Remember, Infrastructure Australia’s modelling shows that access to schools let alone hospitals, jobs, roads and green space will all decline as Sydney’s population balloons to a projected 7.4 million people by 2046 (let alone 9.7 million people by 2066, as projected by the ABS), irrespective of how Sydney builds-out:

All of this, yet again, highlights the dysfunctional ‘Big Australia’ policy in action.

There is no way to fix or build enough schools fast enough to keep pace with the projected 94,000 annual increase in Sydney’s population.

What we are experiencing is a planned degradation of living standards to support the massive wealth accumulation of a few billionaires, like Highrise Harry and Gerry Harvey.

Hunger Games hits Sydney’s migrant-stuffed schools

SOURCE: https://www.macrobusiness.com.au/2019/09/hunger-games-hits-sydneys-migrant-stuffed-schools/

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CONSTRUCTION COMPANIES IN NSW COLLAPSING AT RECORD RATE

KEY POINTS …

  • NSW has been hit by a construction slowdown resulting in stressed companies going under at a record rate
  • The president of an association representing insolvency firms has described the trend as “a spiral”
  • Experts have raised concerns about the rise of “phoenixing”where a company is liquidated to avoid paying its debts

Construction companies in NSW collapsing at record rate as building slowdown bites

By Nick Sas

26 SEPTEMBER 2019

An apartment construction site in Cronulla sits idle after the developer went under, March 20, 2019.

PHOTO: This apartment construction site in Cronulla was left half-finished after the developer went under. (ABC News: John Gunn)

RELATED STORY: The Sydney suburb full of apartments with no-one living in them

RELATED STORY: ‘Buyers should be aware’: Why property developers will ‘do anything’ to avoid reducing their prices

RELATED STORY: Developers bought everything next to Stine’s house, then nothing happened

RELATED STORY: When almost 1,700 construction businesses went bust in a year, people like Joe paid the price

New figures show the housing slowdown is biting NSW hard, with the number of construction companies going under last quarter hitting its highest level in almost four years. 

The statistics, provided by ASIC, show 169 NSW-based construction companies went into administration, receivership or a court-ordered shutdown in the June quarter — the highest number since the September quarter in 2015.

Over the whole 2018-19 financial year, 556 construction companies went under101 more than the previous financial year.

Experts say it is a reflection of the state’s slowing apartment and housing marketwith about 50,000 less apartments being constructed compared to the same time two years ago, and a marked slowdown in housing construction.

An increasing number of half-finished apartment projects are dotting the Sydney landscape, with property development giant Ralan Group — which collapsed in July owing $500 million to creditors — the most high-profile example.

Welcome to Sydney’s ghost towers

Welcome to Sydney's ghost towers

Record apartment rental vacancies and a softening housing market are creating an odd phenomenon — apartments with no-one in them.

Association of Independent Insolvency Practitioners president Stephen Hathway said there was no doubt the industry was “stressed”.

Mr Hathway, who also runs his own liquidation firm, said small construction companies had been hit hardest.

“These days it’s subcontractors on subcontractors,” he said.

“And the general feel I’m getting from talking to my fellow liquidators, is that in the building industry subbies just slow down paying the little ones [construction companies].

“It’s a spiral, and it’s always a bit of a scurry at the end to make sure you get paid before it all falls over.”

While ASIC declined to comment on the building data, it said the most common reason companies went into administration was for “inadequate cash flow” or “poor financial control”.

*Experts have also pointed to the trend of “phoenix activity” in NSW — where a new company is created to continue the business of a company deliberately liquidated to avoid paying its debts, taxes or creditors.

The NSW Government said it worked with “various agencies” to combat phoenixing behaviour and was committed to “strengthening the building sector” through a number of reforms.

Despite making up about 6 per cent of NSW’s gross domestic product, the state’s construction industry is over-represented in the number of failed businesses, making up 20.6 per cent of all companies calling in the administrators over the 2018-19 financial year.

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Construction companies in NSW collapsing at record rate as building slowdown bites

By Nick Sas

Updated about 2 hours ago

An apartment construction site in Cronulla sits idle after the developer went under, March 20, 2019.

PHOTO: This apartment construction site in Cronulla was left half-finished after the developer went under. (ABC News: John Gunn)RELATED STORY: The Sydney suburb full of apartments with no-one living in themRELATED STORY: ‘Buyers should be aware’: Why property developers will ‘do anything’ to avoid reducing their pricesRELATED STORY: Developers bought everything next to Stine’s house, then nothing happenedRELATED STORY: When almost 1,700 construction businesses went bust in a year, people like Joe paid the price

New figures show the housing slowdown is biting NSW hard, with the number of construction companies going under last quarter hitting its highest level in almost four years. 

Key points:

  • NSW has been hit by a construction slowdown resulting in stressed companies going under at a record rate
  • The president of an association representing insolvency firms has described the trend as “a spiral”
  • Experts have raised concerns about the rise of “phoenixing” — where a company is liquidated to avoid paying its debts

The statistics, provided by ASIC, show 169 NSW-based construction companies went into administration, receivership or a court-ordered shutdown in the June quarter — the highest number since the September quarter in 2015.

Over the whole 2018-19 financial year, 556 construction companies went under — 101 more than the previous financial year.

Experts say it is a reflection of the state’s slowing apartment and housing market, with about 50,000 less apartments being constructed compared to the same time two years ago, and a marked slowdown in housing construction.

An increasing number of half-finished apartment projects are dotting the Sydney landscape, with property development giant Ralan Group — which collapsed in July owing $500 million to creditors — the most high-profile example.

Welcome to Sydney’s ghost towers

Welcome to Sydney's ghost towers

Record apartment rental vacancies and a softening housing market are creating an odd phenomenon — apartments with no-one in them.

Association of Independent Insolvency Practitioners president Stephen Hathway said there was no doubt the industry was “stressed”.

Mr Hathway, who also runs his own liquidation firm, said small construction companies had been hit hardest.

“These days it’s subcontractors on subcontractors,” he said.

“And the general feel I’m getting from talking to my fellow liquidators, is that in the building industry subbies just slow down paying the little ones [construction companies].

“It’s a spiral, and it’s always a bit of a scurry at the end to make sure you get paid before it all falls over.”

While ASIC declined to comment on the building data, it said the most common reason companies went into administration was for “inadequate cash flow” or “poor financial control”.

Experts have also pointed to the trend of “phoenix activity” in NSW — where a new company is created to continue the business of a company deliberately liquidated to avoid paying its debts, taxes or creditors.

The NSW Government said it worked with “various agencies” to combat phoenixing behaviour and was committed to “strengthening the building sector” through a number of reforms.

Despite making up about 6 per cent of NSW’s gross domestic product, the state’s construction industry is over-represented in the number of failed businesses, making up 20.6 per cent of all companies calling in the administrators over the 2018-19 financial year.

Topics: building-and-constructionindustrybusiness-economics-and-financegovernment-and-politicsnswsydney-2000

First posted about 3 hours ago Print Email Facebook Twitter More

Contact Nick Sas

SOURCE: https://www.abc.net.au/news/2019-09-26/nsw-construction-companies-liquidated-in-record-numbers/11512002

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AUSTRALIA’s biggest companies asked to put themselves on Foreign Influence Transparency Register

AND are those foreign owners of Australian companies asked to register e.g. the new owners of Arnott, and John Holland, Optus, and all the developers and building corporations?

Related Articles:

Liberal MP Gladys Liu’s Links to Secretive United Front Chinese Influence Arm

https://caanhousinginequalitywithaussieslockedout.com/2019/08/14/liberal-mp-gladys-lius-links-to-secretive-united-front-chinese-influence-arm

Chinese Outfits dodge Foreign Influence Register

The Australian Council for the Promotion of the Peaceful Reunification of China (the ACPPRC) denies it is a Communist party arm DESPITE security agencies warning it is linked to the United Front and it along with the Confucius Institute have not registered!

Why hasn’t the Scomo Government compelled these organisations to sign up?

https://caanhousinginequalitywithaussieslockedout.com/2019/03/29/9770/

Australia’s biggest companies asked to put themselves on Foreign Influence Transparency Register

By political reporter Tom Iggulden

25 SEPTEMBER 2019

Chinese flags fly high outside the Australian Parliament House in Canberra

PHOTO: The Government has written to federal politicians from the last parliament and several government agencies. (AAP: Lukas Coch)

RELATED STORY: ‘Our only crime is to be born Chinese’: Why new foreign influence laws are sparking anger

RELATED STORY: 9/11 conspiracist among nine entities declaring activities on foreign influence register

RELATED STORY: After six months and 50 changes, the foreign interference bill might get over the line

More than 500 of Australia’s biggest companies and not-for-profits have been asked to put themselves on the Foreign Influence Transparency Register, the ABC can reveal.

Key points:

  • Just 45 people and organisations have registered so far
  • Recipients of letters are “strongly encourage[d]” to consider whether they have undertaken “registerable activity”
  • The High Court and the departments of Foreign Affairs and Defence were also asked to help in reporting potentially registerable activities

Documents obtained under Freedom of Information show the big banks, large telecommunications companies, media organisations (including the ABC), multicultural groups and advocacy groups were written to in a mass mailout earlier this year.

The list also includes all Australia’s universities, several Chinese language media organisations, controversial Chinese company Landbridge and some refugee support advocates.

Just 45 people and organisations have so far registered.

The mass mailout “strongly encourage[d]” recipients to consider whether they had undertaken “registerable activity”, defined as “undertaken on behalf of a foreign principal” and “for political or governmental influence”.

The Australian Institute of International Affairs is one such organisation to get the letter.

Yesterday it organised a roundtable of visiting Chinese academics brought to Australia by the Chinese embassy.

One, Chen Hong of East China Normal University, told the ABC that concerns about China’s political influence on Australian politics were “a hysterical response to the so-called mad China threat, it is totally fabricated”.

Four members of China’s embassy in Canberra attended the event and helped organise it.

But the institute’s executive director, Bryce Wakefield, said he did not believe the event needed to be registered.

“I had a long conversation with somebody from the Attorney-General’s office, because we were interested in this issue, and she said that really the foreign influence transparency scheme pertains to direct influence of federal politicians and federal politics, and that is not the case here,” he said.

But the institute does plan on registering after taking a donation from the Japanese Government earlier in the year.

The Government also asked 227 federal politicians from the last parliament and several government agencies for help in reporting foreign attempts at interfering in political processes.

Such agencies included the High Court and the departments of Defence, Foreign Affairs, Treasury and Home Affairs.DOCUMENTPAGESTEXTZoom

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Contact Tom Iggulden

SOURCE: https://www.abc.net.au/news/2019-09-25/australian-companies-asked-go-on-foreign-transparency-register/11545184

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Heil fasco-housing complex!

A Chronology … Houses and Holes explains ‘The Sting’, and how it all happened!

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Heil fasco-housing complex!

Heil fasco-housing complex!

By Houses and Holes in Australian Politics

September 25, 2019 | 109 comments

Nine years ago I wrote:

Australian housing doesn’t have anything to do with economics. It long since ceased being a “market” at all.

Rather, it is a political complex – a quango – that represents the single largest page in the socio-economic contract between the government, the Australian financial system and an ageing baby-boomer population.

When the baby-boomer generation first took power and reshaped Australia in the 1980s, the promise was for a new kind of meritocracy.

The old “Australian Settlement” described brilliantly by Paul Kelly in the End of Certainty  a protectionist social contract between unions, industry, government and the people – was swept aside in favour of a neo-liberal vision.

The new world demanded an open, more dynamic Australia. An Australia that rewarded entrepreneurial effort and flexibility. A productive Australia.

For a while it worked. Australia dropped its tariffs, deregulated government enterprise, most especially the banks, and after a false start at the end of the eighties, embarked on an historic productivity boom.

But at some point a distortion began to grow at the heart of the new vision. It’s dark seed was sown by the original architects of the new world when they back-tracked on the removal of negative gearing tax policy for housing in the 80s.

*By the late 1990s it had become a cancer eating away at the achievements of the baby-boomer generation and a second wave of bipartisan supporters of the new vision took power only to further deregulate finance and install fabulous capital gains tax privileges on property investment.

(Howard Grubmnt)

*As we entered the 2000s, the new vision threatened to stall and the same baby-boomers that had convinced us all to embark on their neo-liberal journey deployed new, more direct subsidies for houses, in the form of first home buyer grants that sought to co-opt the baby-boomer’s children in the same now rapidly distorting vision.

*Through the 2000s, the neo-liberal vision became virtually unrecognisable. The dynamic and open Australia mutated into a speculative abomination based almost entirely on houses.

*Our precious capital, freed in the 80s to find the most productive outlets possible became instead the key stone in a system of offshore borrowing and asset inflation.

*The final death knell of the new vision surely came in 2003 when the old national good luck arrived in the nick of time. As the housing quango lay dying in 2003, along came a commodities boom the likes of which nobody has seen in century. The transformation was complete.

The entrepreneurial vision of those pioneering 80s baby-boomers replaced with happy-jack dirt salesmen and a bloated entitlement state that now had the money to keep its most hideous progeny, the great, quivering housing sack that hung from its belly, alive.

In 2008, when the world woke up and the mutated vision was revealed in all its horrible form, the government deployed every available mechanism to keep the thing alive.

*Unheard of guarantees across the financial system, moral hazards like leaves in the wind, wholesale immigration, massive direct subsidies, huge general stimulus.

*This might be forgiveable if it was at least honest and openly declared. But it wasn’t and isn’t.

* Instead, those that had sat outside the system, hoping for a house or sagely planning to swoop when the bubble burst, are insulted with blandishments about how robust the system is, how they missed out on the “market”.

*Even though this so called “market” long since ceased to bear any relation to laws of supply and demand.

I feel sympathy to my bones for those that are running the buying strike campaign and those that participate in it. I understand completely where they are coming from.

*A buyers strike is an entirely appropriate and justifiable response to the Australian politico-housing complex.

It is a political act targeted at a political system that lies to their face.

Ever since, we have watched the same politico-housing complex throw successive generations into a property mincer that has now consumed the entire economy.

Which brings me to my point. The evolving new level of real estate bastardisation, irrationality and power in the nation’s capitals is more totalitarian in nature than the exercise of interests over government.

It has moved well beyond the simple influence of lobbying or spruiking in the press.

The politco-housing complex has evolved into a structure so complete that it is now a world view, a complete, closed-loop ideology, bound up with nationalism, geopolitics and power.

There is an inexorable logic to this. It was obvious to anyone with eyes that the politico-housing complex had become a parasite killing its host. The complex had so distorted the underlying economy, had so corrupted national identity, and had so compromised national security, that it was either going to die or had to evolve.

*The first of the great challenges to the politico-housing complex was economic.

Over the past two economic cycles, the politico-housing complex has flattened households under a mountain of debt that has killed inflation and monetary policy.

Thus the complex has become ever more dependent upon fiscal support for life, both for funding and supporting a gutted underlying economy.

*The second great challenge to the politico-housing complex was that its core pillar, mass immigration, was directly undermining Australian living standards. Wages growth has been destroyed. Public services like roads, rail, health, education and law have been crush-loaded and debauched.

What did Gladys Liu say to ScoMo about Hong Kong?

*The Australian backyard is history and the great outdoors itself is gone as shoddy apartments have predominated in dwelling construction

Study: Apartment living bad for children’s health

*All of this has happened without a vote for it. Indeed, all polls indicate strong resistance to further population growth.

*The third great challenge for the politico-housing complex was political. The last election presented a generational threat when Labor sensed the marginalisation of younger voters was a political opportunity.

*But, from the verge of extinction, the politico-housing complex suddenly evolved to confront each of these three challenges.

*The key moment was a Property Council of Australia coup at the last election, with its former head of research, Scott Morrison, appointed PM.

*That has entrenched the power of a cabal of public and private oligarchs that have taken control of national interest policy in the name of real estate.

The first order of business has been to capture fiscal support for the economy and more credit. The coup has been followed up with the co-opting of regulators using classic fascist techniques of show trials and personal favours.

Next underway is the cultural war to bring all “business” into line as well. Daily now, business leaders are bashed by marauding ministers of the new ‘fasco-housing complex’.

*The second feature of the newly formed fasco-housing complex is to sustain mass immigration no matter the cost to economy, living standards, democracy or security.

In classic fascist practice, the deleterious impacts are disguised through the use of relentless mass propaganda, disseminated forcefully by oligarchic aligned media.

*Its greatest trick is to endlessly debate solutions to the destructive flow of peoples as if that is the answer, while misrepresenting any and all resistance to the flow itself using public shaming, via such tags as “racist”.

A terrific example of this is underway today at Nine’s metropolitan newspapers as it conducts a gala event around how to manage population growth.

*Fresh from running fasco-housing complex fund raisers for Property Council Generalissimo ScoMo, Nine has dedicated days of debate to the topic without once mentioning that we could simply cut the migrant intake.

*The truth is that there are no solutions to the fallout from overly fast immigration within the Australian system, nor are there intended to be.

*The debate only serves to provide the illusion of choice as the putsch goes about its daily business of building shoddy apartments for money-laundering Chinese and propagating new generations of ‘fasco-housing complex youth’.

*The third leg of the fasco-housing complex is political transformation. Since the election of the Property Council PM, the fasco-housing complex has set about distorting the results in every way possible.

*The truth is that the Property Council PM only fell over the line thanks to Queenslanders who voted for nationalist fringe parties seeking tighter borders.

*But that has been completely repackaged as a fulsome embrace of “aspirationalism”read fasco-housing code for higher house prices – permanently erasing any prospect of future political push back against the complex.

*Yet behind that lie is the truth that the Queenslanders were right. We do need tighter borders.

Chinese house prices keep slowing

*The political system is reeling from an inundation of cashed-up foreign influences, mostly sponsored by the Communist Party of China and, again, revolving around property. These are now distorting the political system itself to more and more resemble the mobster patronage system of the CCP, the world’s greatest fascistic state, not to mention sailing Australia further into its sphere of influence. Freedom itself may end up being the ultimate casualty of the fasco-housing complex.

Grovelling to China “the worst thing you can do”

Like all fascistic systems, the fasco-housing complex is pre-enlightenment, preferring religious zeal to reason in the formulation of national goals. It uses force to bring objectives to fruition, including ultra-nationalist bullying of conscientious objectors, the use of mass brainwashing propaganda via an effectively nationalised press, and the seamless fusion of public and private elites in a unified oligarchy of nationalist destiny.

That it revolves around realty is a uniquely Australian evil, best left as a banal footnote in the history of such systems.

Heil fasco-housing complex!

SOURCE: https://www.macrobusiness.com.au/2019/09/heil-fasco-housing-complex/

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AUSSIE Families flock to rental market as they’re priced out of home ownership

Any major party that restores Home Ownership for a Whole Cohort of Australians priced out in their own country will be a Winner … even with ‘The Quiet Australians’ … the Boomers …

Meanwhile the Big Neighbour to the North has eased its capital controls and they are flying in and buying … at HT’s Precincts … nearly sold out!

This is despite the ‘Defective Apartments Crisis” … what’s the lure? Is it the ‘Permanent Resident’ Visa?

Image may contain: sky, cloud and outdoor

Image may contain: sky, skyscraper, cloud and outdoor

Key Points …

7% of poor households paying 75% of their income to landlords

-surge in house prices left families, disabled and those over 65 most at risk

-costs of eviction particularly high for these households

2.1 million households; 6.3 million in the rental market

little growth in supply of social housing (public, community and state-owned or managed Indigenous housing)

number in the private rental market has exploded by 134%

house prices grown 7 times faster

Families flock to rental market as they’re priced out of home ownership

Shane Wright
By Shane Wright

September 24, 2019

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Decades of skyrocketing house prices have driven the highest proportion of Australians into the private rental market since 1960, with up to 7 per cent of poor households paying three-quarters of their income to landlords.

In a report that found the private rental market worked well for most people, the Productivity Commission said the entire market was changing rapidly, in part due to the surge in house prices that was leaving families, the disabled and those over 65 most at risk.

Families are increasingly being forced into the private rental market, the Productivity Commission has found.
Families are increasingly being forced into the private rental market, the Productivity Commission has found.

Between the end of World War II and the mid-1980s, the proportion of Australians renting a home fell sharply on the back of a nationwide building boom and strong wages growth for low and middle-income earners. But over the past 30 years, the proportion of people who rent has grown, accelerating over the past two decades in line with soaring house prices.

The commission found there were now at least 2.1 million households, covering 6.3 million people, in the rental market, which was once considered a short-term housing choice for young people. Advertisement

“Rising house prices over recent decades have extended the period needed to save for a deposit on a home,” the report said. “There has been little growth in supply of social housing (that is, public, community and state-owned or managed Indigenous housing) over the same period and waiting lists are long.

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The big winners of the property boom have typically been older Australians lucky enough to buy a house before prices took off.
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Home ownership now the great divider of Australian society

“For these reasons, while rates of private renting have risen among households across the income distribution, the strongest growth has been among low-income households, especially those with families.

Between 1994-95 and 2017-18, the total number of low-income households grew by 42 per cent but the number in the private rental market exploded by 134 per cent.

And while rents themselves increased over the same period, number in the private rental market exploded by 134 per cent

The commission found a quarter of low-income households spent more than half their income on rent, with 7 per cent spending more than 75 per cent. Almost one in five low-income households were left with less than $250 a week once they paid rent.

Where traditionally renters might have suffered rental stress for a short period before buying a house or getting a pay rise, the commission found half of renters were “stuck” paying more than 30 per cent of their income on rent for at least four years.

Commissioner Jonathan Coppel said more low-income households than ever were renting privately because home ownership and public housing had become less attainable.

Labor's post election policy priorities
1:34

Labor’s post election policy priorities

“The needs of renters are changing. More families with children are renting as well as people with a disability and retirees. The costs of eviction can be particularly high for these households,” he said. “In a wider discussion on the adequacy of income-support payments, there is merit in examining options that raise the maximum level of rent assistance.”

The commission found the Commonwealth rent assistance program was helping to offset the growing cost of rent for many people. But it found the maximum payment under the scheme was not keeping pace with rents, which were growing faster than overall inflation.

The share of people on the program able to claim the maximum payment had grown to 80 per cent, from 57 per cent in 2001. State and territory governments had failed to increase public housing supply, effectively pushing the cost of supporting low-income households on to the federal government.

Shane Wright

Shane is a senior economics correspondent for The Age and The Sydney Morning Herald.

SOURCE: https://www.smh.com.au/politics/federal/families-flock-to-rental-market-as-they-re-priced-out-of-home-ownership-20190924-p52ucr.html

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