WHEN surveyed 35 per cent of Australians respond our population is getting too big for the country to handle! Can this be solved by building dense cities better?
THIS Australia Talks National Survey report, 2021 opens ‘Australia is one of the least densely populated nations in the world’.
HOWEVER what is overlooked is the fact that most people in Australia live on the coastal fringes because this continent is the driest continent on Earth! It is largely desert country.
AND there have been numerous media reports of Australians having now fled from SYDNEY and MELBOURNE because they no longer found these cities to be so ‘liveable’ …
Our population growth has not been natural but contrived through high immigration of temporary Visa Holders seeking work, or the opportunity to buy homes to gain ‘Permanent Residency.’
(visa workers have been sought after by many employers as they accept low wages. lesser working conditions and payment ‘cash in hand’ to retain their Visas!)
This competition for our housing has locked out a Whole Cohort of Australians as these wealthy overseas buyers outbid them at auctions, and prices escalated!
Our schools, hospitals, roads, trains and buses are ‘all full-up’!
THIS Ponzi Scheme has filled the coffers of developers, toll road makers, retailers …
WHY should we now have to pay more for less?
In every direction we now have higher density, and our urban bushlands, fauna and flora, our Heritage, and our amenity are disappearing …
WHY do we need double our population by 2066?
Apart from making the Property Titans wealthier? And enabling wealthy HNW to launder black money in our real estate and gain ‘Permanent Residency’ …
Perhaps if we returned to a sustainable permanent migration of 70,000 p.a. that may ease the situation and allow for Prof Giles-corti’s recommendation that rather than apartments, a mix of concentrated well-designed housing to create ‘delightful, liveable density’?
Australians think our population is getting too big but can we build better dense cities
High Temporary Migration by Visa Manipulation to buy Australia’s real estate to gain a Permanent Residency Visa … was the means by which the Property Titans ensured their coffers overflowed!
However, despite the closure of Australia’s International Border with the Pandemic this was again sorted by online purchase through Juwai.com or an onshore Proxy allowing foreign buyers to lay-by their homes …
And now the Property Sector, it appears, has again manipulated through an inadequate housing supply … the return of Expats, low interest rates and First Home Buyer Grants to generate a ten year price hike in a matter of weeks from December 2020 to January 2021 of as much as $200,000 or $300,000!
HOUSING HOWEVER IS ABOUT SHELTER … AND THIS PREDICAMENT MUST BE SOLVED AS SUMMED UP BY A CAAN COMMENTATOR!
THIS will never be solved unless we put in place the right policy tools.
HOUSING is a matter of paying the average Australian enough money to afford a ‘HOME’ without bankrupting all the rest of a family’s needs.
In other words, either you bring down the cost of HOUSING, lower rents and/or lower mortgage payments … more importantly lower HOUSING prices, or you raise the wages and salaries so that they can afford them.
One basic test of the CAPITALIST system we live in is, has it solved that problem????
…. Does the system of CAPITALISM … tool for the ability to produce GREED …. for example, give on the one hand enough wages and salaries, and on the other hand enough units of housing at affordable prices to allow people who need housing to buy their HOMES?
AND (NOT INVESTMENTS) HOMES without spending more than 20% – 30% of their income, and the answer is a RESOUNDING NO!!!!
… CAPITALISM has not done that for millions and millions, and it hasn’t done it for years and years
…. and it doesn’t look like it’s going to be doing it anytime soon.
That’s not a failure of a particular housing industry or the salary worker here or there, it is a FAILURE of the system not to have solved the obvious problem, either bring down the cost and price of housing, or raise the incomes of the people who need them otherwise you will see this CRISIS worsen, and the image of the ‘Homeless’ and down and outs become a part of what defines us here in Australia.
There are a few factors at play not just wages …..
….. NEGATIVE GEARING …. is the other BIG thing that has impacted us … the other great CAPITALIST TOOL that needs to be URGENTLY addressed …. BIG TOPIC … for another day!
Could those who loudly complain about the effect of low interest rates on house prices please clarify what they think. Do they really believe that living standards would be better with higher unemployment, lower inflation and higher mortgage rates? Why?
I would re-frame the question to how to make housing affordable while containing inflation, minimising unemployment and maintaining living standards. “Living standards” to factor in wages, size of homes, tenants’ rights, adequacy of services, commute times and congestion.
Agree! And For those who sold in 2020 faced w v limited supply Fr Dec 2020 to Jan 2021 price hike $300,000 equiv 2 10 years incrs meant priced out across much of Sydney competition fr those rejecting defect units Prices cont 2 rise
Your question implies an answer already. Let me do the same. Those who loudly advocate for QE, could you please explain how saddling future generations with debt, creating financial vulnerabilities and inequality justifies the decimal point impact to unmp rate?
If low interest rates were driving demand for bank credit for productive purposes there would be few complaints. The problem you have is that the ideology of deregulated bank credit (money) creation has been blowing unproductive asset bubbles and not much else for 20+ years. 2/3
Nice way to set up a completely false dichotomy, eh? Note also presumptive positioning of inflation as a good thing, (ie “lower inflation” is somehow a threat). Land is a factor of production. Would make sense to squash the price. Like we do wages.
I want tighter access to credit. I want private housing investment incentives removed. I want restrictions on the number of housing investments one can have. I want to raise the UI rate to #80aDay and remove mutual obligations. I want a voluntary Job Guarantee to be created.
Of course not but is macropru being used aggressively enough to offset the effect on house prices from low interest rates? The disconnect between wages and house prices suggests not. Is it ideal for so much capital to be channeled into housing?
The fear of recession is partially how we got into this mess. Too much excess, crowding of employment, inter-generational wealth inequality, mal-investment & over-leveraging into unproductive assets, unjust tax breaks, over-weight banking sector into RMLs & no room to move IRs.
What if you think low rates are at best a bandaid fix for fx appreciation and that monetary policy is a poor way to target employment and living standards if it’s main transmission is to just let more housing be built instead of investment.
Only issue with super low interest rates is the only way is up. meaning people won’t be able to service the loans when interest rates go up even 0.5%. This would cause a glut. Oz won’t have any control in interest rates as banks borrow most of their costs from overseas.
Living standards are best when we have average stable interest rates. As John Howard once said that’s 7%. Failure to manage our economy from the liberals are going to see pain from the people in the future no matter who the government is….
We have built a system where housing is used for wealth creation and not for housing. Picking out one small part of a big problem and acting like people are saying its the whole problem is disingenuous. Letting wealth inequality run rampant will have consequences.
My neighbour across the road bought $2k in cryptos and “made” $800 overnight. He was rapt. All I could think was “you gained, with zero contribution to society”. Meanwhile, the minimum wage worker is put at risk during covid.
We are witnessing a generation of “geriatric first home buyers” (I’m coining that term right now). Home buyers that are locked out until mid-late thirties. They are guaranteed to be paying mortgage entire working life and probably into retirement. They have no funds left for 1/2
depends who you talk to. Those trying to save for a house are spending less because of low rates. Those who just borrowed too much because of high house prices are not overly enjoying life. Retirees trying to live off low rates are struggling. Rich are richer. Most are worse off
Clarify? There can never be enough “clarity” for those obsessives who are still insisting that a public monetary system built around a private bank monopoly on accounts at the RBA is NOT the problem. 1/2
Spoken like a true Keynesian. How about the obscene mis-allocation of capital to non-productive (ok, at best temp. in nature) investment. The behaviour these policies create will have neg impacts for decades and will be another central bankers problem, and that’s the problem.
A useful discussion would inspect history or other nations & identify when / where nations have gotten housing right & why. My impression is government has a role in creating affordable housing & the best source of revenue for that role is likely be housing rent / speculation.
Ok boomer. You look old enough to remember the 90s when interest rates were at 13% with a lower population, lower house prices, lower household debt to GDP and lower unemployment. Low interest rates have had the opposite effect. Now people will retire with mortgages.
CAAN: Actually interest rates rose to 18% in the 90s and some also lost their homes then too!
Truly sad that a person with your background speaks like this. You won’t acknowledge the extraordinary market price distortions today and massively inflated prices across asset classes including housing? And ever widening wealth gap? Always leads to crashes which hurt the poor.
is so full of academic bullshit, so disconnected from the reality of people struggling to find affordable stable housing for their families. So clueless not to acknowledge that the major reason for housing unaffordability is low interest rates, lax lending standard
False dichotomy. Aren’t living standards better associated with productivity? IR up/down tends re-allocate/transfer/concentrate resources/wealth. Lowering IR concentrates wealth to existing assets (top %). Increase productivity tends to benefits all including bottom %.
Encouraging people to buy things they can’t afford is dangerous and simply kicking the can down the road. The younger generations will have to work to the grave. All for the benefit of rich baby boomers who are merely pushing back on the inevitable credit crunch.
Higher house prices with higher debt levels on lower interest rates and relaxed lending laws = lower mortgage payments. Let’s reverse that. House prices slow down or drop, interest rates move up = mortgage payments increase. Higher costs = impacts living standards
Why would higher interest rates lead to higher unemployment? Why would higher interest rates lead to lower inflation? The last decade and a half have shown the opposite happens. Your view of the cause and effect of this is anchored in the dismal science of the 1970s.
I’ll make you a deal – make the CPI an measure of things people put actual money into (housing especially but also equities) and see where that gets us. Right now the measure of inflation is a lever to supercharge inequality by making money cheap for speculation.
I think that you are mistakenly forcing a binary outcome where you are in hindsight, resulting the recent past as though there is no other option. The mere fact that you cannot raise rates without causing hardship proves lowering interest rates this low was an error in policy