Relations with China have changed much from Prime Minister Whitlam’s establishment of diplomatic relations in 1972, and the 1973 diplomatic trip that paved the way for rapid expansion.
By 2008 Australia’s two-way trade with China was worth some $68Bn.
However, with the reign of Xi Jinping China has rapidly grown as a World Power … yet it has taken the Liberal Coalition a long time to come to terms with this!
In delaying action to address our reliance on the PRC as our major market!
We have in fact exported Australian businesses and jobs to the PRC … we have lost much of our manufacturing to China so that now we are in short supply of cars, building materials, and more … much of which are imported from China!
WHAT about the IRONY of the sell-out of Australia … that has accelerated since 2013?
The TROJAN HORSE of fly in and buy-up of our property from the great behemoth above, Singapore and Hong Kong?
When last we looked there have been no changes to the FIRB Ruling allowing developers to sell 100% of ‘new homes’ to foreign buyers esp. in China; this accelerated from 2013!
And the Morrison government ‘Under the Cover of Covid’ quietly began prioritising visas for ultra-wealthy foreign investors late last year’ (2020!!!)
The LIBERAL COALITION has not introduced the second tranche of the Anti-Money Laundering Laws for the real estate gatekeepers. In fact they were made exempt in October 2018! So that ‘Black Money’ from China is awash in our Real Estate!
The Irony of all this is, we must make sure we can rely on our allies, the USA and UK for protection because we are so hopelessly backward with our military capabilities, it’s laughable.
As CROOK as this government is on every policy under the sun with a prime example such as the sell-out of our property – residential, commercial and agricultural to these foreigners …
And Australia’s economy is based on Housing 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 recently on ABC Q & A!
Now given the constant bullying and threats of sorts from the great behemoth above and beyond, so that when it comes to border control and hard-line security, the LNP make much of their stance now through the media that they are doing something … but at the Taxpayers expense …
Who are buying this?
SO we must remind ourselves and others that the ScOmO government have not earnt another shot at winning the next election!
Following daily reports of rising Covid-19 victims and the everlasting lockdowns … with loss of life for too many … enormous stress and strain for medical professionals, many Australians suffering Long Covid, businesses and livelihoods destroyed … the devastating impact of this may live on for decades.
Why did ScOmO Government fail to order the Pfizer when documents reveal that Pfizer reached out in June 2020 for a meeting with federal Health Minister Greg Hunt, but he did not take up the invitation! Inadequate supplies slowed the rollout. This government failed to build quarantine stations hence the spread through the hotels, and the wider community!
Why did ScOmO seize on this AUKUS Pact with much media fanfare … is there an election coming up?
On Tuesday, 14 September 2021 ScOmO greeted the media … it looks like they were all there …
‘G’day’ he said, and announced that the ‘relatively benign security environment’ is now behind us, and that Australia is now a party to a partnership with the United Kingdom and the United States to maintain peace, stability and security in this our region!’
Apart from this binding Australia to a US war on China … it has led to France recalling their diplomats from Australia … today we heard a news report that ScOmO talked with the French a day ahead of this announcement, and that allegedly there had been problems with the French submarines that had not been resolved.
WHO will foot the BILL to compensate the French, and Who will foot the bill for these very expensive nuclear submarines through this partnership with the US and the UK?
TAXPAYERS … not the wealthy investor class who eliminate taxation, but the pay as you earn taxpayer mugs …
… who are looking to a future of life long tenancy … with very little prospects as they have insecure work and low wages …
This was all set in train with the policies of the Howard Government in the late 1990s and ScOmO counts the former prime minister John Howard as his political inspiration.
In the Abbott Coalition Government ScOmO was unflinching in the plan to “stop the boats”. With a policy of turning back boats that attempted to reach Australia. “If people seek to get here the wrong way, they won’t get here,” he said.
YET foreign money launderers can fly in and buy our homes! And gain a Permanent Resident Visa!!
There are too many other failures of this government to mention … as we are subject to this latest CHARADE!!!
DAILY we hear reports that it is the very low interest rates and government grants that have pushed up house prices. TRUE!
AND the impact of Tax Benefits for investors of Negative Gearing and Capital Gains Tax … sadly the ‘Silent Majority’ who largely don’t benefit were spooked by the dirty 2019 Lib campaign … TRUE!
BUT we figure there is even more to it than that!
CONTEMPLATE the impact of … the Residential & Commercial Market Research companies (we won’t name them) but daily we hear reports from them that:
-house prices are rising daily; weekly; monthly; and predict also in early 2022
-the consequence of this is that sellers hold off! They want even more!
.this means the supply reduces and maintains the hike
COULD it be that meanwhile Real Estate Agents suggest to prospective sellers to hold off … that house prices are going to increase further, and that they (the agents) have enough listings currently …
THIS in turn means that if there is another hike following sales by these sellers … that they too may well be confronted with being priced out!
SADLY those who can still afford to buy are looking in a market that is largely made up of “Crap” … not only are they unaffordable, but many have termite damage up in the framing and roof timbers, concrete cancer in the slab, drainage and waterproofing issues, faulty electrical wiring, leaky roof …. and so on!
WHERE will all this end but in tragedy not only for purchasers who will later have to meet higher mortgage repayments and expensive restoration works, but sadly for a whole Cohort of Australians denied security of a home! To be life-long tenants!
IS that the Plan? What next for the Investor class? Could that be Build-to-Rent? It would seem through these price hikes they have a Whole Cohort of Australians captured;locked out of Home Ownership!
MEANWHILE the Liberal Coalition policies also remain in tact that allow foreign buyers to buy our housing and gain permanent residency, and to launder hot money too! The Morrison Government exempted the Real Estate Gatekeepers from the AML Laws in October 2018!
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 policyto 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?’
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 applyto all future cases … ‘.
Thus it was a COMPROMISE which allowed investors to maintain their investmentsin ‘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.
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?’
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 a 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
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 nowissued 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.
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
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