VIEW RELATED ARTICLE ON THE FIRB:
AND SEARCH CAAN WEBSITE … for more reports on …
-the Foreign Investment Review Board, (FIRB), David Irvine and Phil Gaetjens
-the second tranche of the Anti-Money Laundering Laws shelved; the real estate gatekeepers made exempt in October 2018 by the Morrison Government
IS it WorkChoices by Stealth alone that is at the core of the loss of Home Ownership? Or is there more to it?
… FINALLY a little truth is revealed in this article but what is at the core of the rotten apple is again overlooked!
‘How Australia’s casual workers and investors are behind the decline in home ownership‘
IT is not only the inflated price of housing but new research reveals that the casualisation of the workforce and the growth of property investors together have led to the decline in home ownership ….
HOWEVER what is not revealed here is that it is not only homegrown property investors but a World-wide market particularly from China with a resource of some 1.4 BILLION People including millions of High Net Worth!
That is perhaps where ‘the growth in property investors’ stemmed from … a consequence of the ‘FIRB’ ruling allowing developers to sell 100% of ‘new homes’ overseas
-by 2040 those aged 25 to 55 will have only a 51 per cent chance of owning their own home
– down from 60 per cent in 1981
–home ownership will fall to 63 per cent; down from 67 per cent in 2016
QUESTION: How many of that 67% in 2016 are Australian born compared to new ‘Permanent Residents’ from overseas?
Swinburne University of Technology undertook the research on behalf of the Australian Housing and Urban Research Institute. (AHURI)
-in the 1950s, ‘60s and ‘70s the majority had stable incomes in full time work
-a change occurred in the 70s; now more than 24% have casual work
-casual work locks out these workers from gaining a mortgage
No refererence to where ‘the demand’ for Australian housing came from?
Which caused the price hike …
Professor Burke came close with this comment:
“The financialisation of housing is an international factor and is best understood as the process where housing is treated as a commodity to be invested in rather than a home, meaning more and more money flows into housing but without any necessary improvement in housing supply or quality,” he said.
Professor Burke conceded that:
-renters needed greater security and quality housing
-policies to enable them to build wealth
-more social housing was needed
BUT THEN rather than laying the blame at the feet of very pooor government policies written to benefit developers and their overseas buyers particularly from China the Professor laid the blame at the feet of ‘older home owners’ having acquired wealth … often over 40 years or more to buy the ‘family home’ … it is alleged wealth through home ownership … aside from the cost of maintenance, rates, taxes …
Forgetting that if one sells, it is at a loss with the cost of real estate sale, legal expenses, stamp duty, moving etc etc
-that the inflated price is due to the foreign demand particularly from China
–the Morrison Government exempted the Real Estate Gatekeepers from the second tranche of the anti-money laundering laws in October 2018
IT would seem these are the reasons that we will have long-term social problems until AUSTRALIANS jack up and demand a stop to these policies!
AND a thorough investigation of the FIRB! Disband the FIRB!
AND VOTE FOR A PARTY THAT WILL ADDRESS THIS!
READ more from Melissa Heagney, ‘How Australia’s casual workers and investors are behind the decline in home ownership’