‘Move to More’ Regions Marketing for more Homeless!

APART from Millennials rush to the bush to find affordable housing

SCOMO GOVT with No Fair Go for HOUSING … did they create the FOMO?  Through low interest rates … many borrow a lot more … and an influx of investors …. pushing up house priceseven more!

With demand greater than supply …

The Feds now have another campaign run by the Regional Australia Institute (the RAI) to entice City people to move to the Regions … where housing is already unaffordable for many to now jack it up more!

HOMELESSNESS is increasing in the mainland regions and in Tasmania …

IT’S so bad in Byron that Deputy Mayor Michael Lyon lodged a motion for the next Council meeting on 25 March about the ‘Housing Crisis’!!  He is seeking support from other councils for the State Government to address this!

Byron Bay, one of NSW’s 11 “most searched” regions on the ‘Move to More’ website where the median house price rose 37% last year!

-some regions have a rental vacancy rate of 1.5% , 1%, or less!

DO our pollies think things through?  With city people earning higher incomes to price country people out of their homes!

HOW GOOD’S THAT?

READ MORE!

RB Governor invites ScoMo to pick up the Tools to stop soaring House Prices

Philip Lowe looks at the camera, with a blurred podium in background.
RBA governor Philip Lowe says the board is keeping a close eye on the booming housing market.(ABC News: John Gunn)

The time is nigh, we suggest Mr Lowe, regulators need to step in to deflate it!

It’s apparent there can only be one buyer, and with hundreds of buyers now attending each Open Home inspection … and not one or two buyers bidding at auctions, but 8 or 10 from the large crowd … that there can only be one to succeed … we have a shortage of the homes Australians want, and can afford to buy!

Vendors soon become priced out too!  

Migration and visa manipulation will only exacerbate this crisis! 

Whose interests are Sc.Mo and the NSW Princess serving?

Mr Lowe has laid it at the feet of Sc.Mo … that it was up to governments and financial regulators to address soaring housing costs. 

THE TOOLS, he said, to address this include GOVERNMENT POLICY CHANGES by reducing the favourable tax treatment of housing (for some) or so-called macroprudential policies.

READ MORE!

https://www.abc.net.au/news/2021-03-10/reserve-bank-warns-on-house-price-boom/13232954

In Sydney … low interest rates have driven up House Prices …

Record-low interest rates have enabled buyers to borrow more, driving up competition and prices, and leaving them with less. Photo: Peter Rae

Are the Banks laughing?  Awash with cash …

Are the Banks happy to lend to those that overextend? 

Would they be happy to foreclose on a property?  To resell?  Cough … cough

…  The Reserve Bank will keep rates low for the next 3 years … even if house prices continue to soar (more)!

So buyers borrow more … with large crowds at open homes and auctions … as more bid the price hikes!

AND there can be but one buyer! 

What is the future for those turned away? Life-long tenancy?

The Reserve Bank focus is the economy; the Governor repeatedly has raised the issue of low wages growth with the PM …

Why not a clamp down on property investors? Or is the PM’s attention elsewhere?   Meanwhile … queues for Open Homes line the street … extending from 30 minutes to an hour.

Auctions are now between 8 to 10 bidders  …

Who else is behind this?  Scomo wrote the policy for the developer lobby, the Property Council of Australia before entering politics …  How good’s that?

READ MORE! ‘Sydney property: Low interest rates and increased borrowing power drive up prices, send buyers back to the bank’

MEDICH FAMILY pockets $499,950M from Badgery’s Creek Bonanza!

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MEDICH FAMILY POCKETS $499,950M FROM BADGERY’S CREEK BONANZA

-Medich Family’s 344-hectare land parcel at Badgerys Creek transacted for $499,950 million. Medich brothers purchased the Badgerys Creek site from the CSIRO for $3.5 million in 1996.

-2017 the sale of the Badgery’s Creek land to BOYUAN Holdings Limited (BHL) contingent on FIRB approval; deal did not go ahead

-THE BUYER entity named ‘Roberts Jones Bringelly’ whose directors include CHENG JIA PAN and BO GONG. THE BUYER also purchased 73 hectares of MEDICH land in Bringelly for $77 million

– Roberts Jones Bringelly has appointed BHL as the development agents for the project

-the Elizabeth Drive site to become a major employment, logistics and mixed-use precinct servicing the Airport and greater Aerotropolis

BUT what does this really mean for Australia?

READ MORE!

NEW ZEALAND … ANZ Bank Tackles its Heated Property Market!

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New Zealand … ANZ Bank tackles HEATED PROPERTY MARKET!

TO stop Property Investors Scooping Up Homes  …

How?  By demanding 40% deposit for investors! 

WHY not do the same here in Australia?

To ‘make way for Home Buyers’, and not the Financialization of Housing … FFS!

READ MORE!!

Property Investors Deposit Up 40%: What It Means For Homebuyers

17  DECEMBER 2020

The ‘Australia New Zealand Bank, the biggest bank and money lender in New Zealand … is now increasing its minimum deposit to 40% for residential property investors.

This was announced on Tuesday, 15 December 2020; effective immediately.

The Bank’s big move was implemented as soon as they learnt that 32.4% of mortgage lending went to investors; with a mere 18.3% to first-time homebuyers.

READ MORE!

https://www.glimp.co.nz/property-investors-deposit-up-40-what-it-means-for-homebuyers

RBNZ targets residential property investors with new high LVR restrictions: Most investors to need 40% deposits and most owner-occupiers 20% deposits

9 FEBRUARY 2021

The Reserve Bank New Zealand (RBNZ) witnessed a rapid acceleration in the housing market, and new records being set for the national median price, and a strong pace for new mortgage lending!

This raised concerns about the risk of a sharp correction in the housing market for financial stability! With evidence of speculation surfacing, and many buyers highly leveraged!

That highly indebted borrowers … mostly investors are vulnerable to house price corrections, and more prone to rapid ‘fire sales’ that may magnify any downturn!

READ MORE!

https://www.interest.co.nz/banking/108940/rbnz-targets-residential-property-investors-new-lvr-restrictions-most-investors-need

China’s Parliament approved a Decision to change Hong Kong’s Electoral system!

people with face masks on hold up signs in a streets in hong kong

Australia’s foreign affairs minister concerned over China’s latest move to endorse tighter control over Hong Kong

Australia’s Foreign Affairs Minister Marise Payne has expressed her concerns after China’s parliament approved a draft decision to change Hong Kong’s electoral system.

Key points:

  • None of the almost 3,000 votes were cast against the move to give China greater powers over Hong Kong
  • China was the only major economy to grow last year and that is expected to continue
  • Under the changes, a 1,500-member committee would pick Hong Kong’s leader and a “relatively large” number of the island’s 90 politicians

The changes would further reduce democratic representation in the city’s institutions.

Ms Payne said on Twitter, the reforms weaken the country’s democratic institutions and impact the Hong Kong people’s freedom of political expression.

Chinese Premier Li Keqiang, China’s second-ranked leader, held a highly stage-managed press conference to close China’s National People’s Congress (NPC) in Beijing — where the electoral reforms passed with no opposing votes.

READ MORE!

Foreign activities … raising some Eyebrows in Federal Opposition … ASIO and Government Ranks!

Melbourne-based Chinese businessman Huifeng "Haha" Liu.

Liberal Party donor Huifeng ‘Haha’ Liu ‘engaged in acts of foreign interference’: ASIO

ABC Investigations

By Sean Rubinsztein-Dunlop and Echo Hui

‘A Liberal Party donor who developed relationships with federal Assistant Treasurer Michael Sukkar and MP Gladys Liu engaged in “acts of foreign interference” and activities for Beijing, according to Australia’s domestic spy agency.

The bombshell findings by the Australian Security Intelligence Organisation (ASIO) are contained in Melbourne-based Chinese businessman Huifeng “Haha” Liu‘s court application to fight the Federal Government to avoid deportation.’    …

Federal Opposition legal affairs spokesman Mark Dreyfus, a member of Parliament’s intelligence and security committee, called on Prime Minister Scott Morrison to come clean on the Liberal Party’s ties to Mr Liu, in response to ASIO’s “deeply disturbing” findings.

“The real question is how long has Mr Morrison known that a donor to his party and a man connected to Gladys Liu and to Michael Sukkar has been identified by ASIO as an agent of foreign interference?” he asked.

“Gladys Liu and Michael Sukkar need to explain what their links are to Haha Liu.

“Mr Morrison has failed to hold his MPs to account but it’s now obvious he can’t just brush this one under the carpet.”

READ MORE!

https://www.abc.net.au/news/2021-03-12/asio-assessment-revealed-in-haha-liu-court-application/13234740

Chinese takeover of island near Australian military training area causes unease inside defence and government

Exclusive by defence correspondent Andrew Greene

A decision to grant a Chinese linked company a mining licence on a remote West Australian island, close to a military training area, is raising concerns inside Defence and federal government ranks.

Key points:

  • A Hong Kong-based company was last year granted a 12-year lease of abandoned mining operations on Cockatoo Island
  • The Foreign Investment Review Board examined the deal, but security officials have privately expressed concerns
  • Liberal Senator Concetta Fierravanti-Wells says the leasing to a Chinese linked company shows current laws are “defective”

In October, the private Hong Kong-based entity was announced as the new owner of abandoned iron ore operations on Cockatoo Island in WA’s Kimberley region, next to the Yampi Sound Defence Training Area.

A map of the Kimberley region, highlighting Cockatoo Island.

READ MORE!

https://www.abc.net.au/news/2021-03-12/chinese-island-lease-on-remote-wa-island-causes-concern/13240282

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Will House Prices Escalate further when Migration returns?

Photo: Peter Rae

Will Scomo have a ‘Spark of conscience’?  A pang of conscience for Australians, or open the floodgates?

‘The reopening of international borders could put further upward pressure on house prices and should be done gradually to avoid overheating the property market even further, experts warn.’

READ MORE!

Will house prices go up even further once the international borders are opened?

RELATED ARTICLES:

DON’T KID YOURSELF … THE GOVERNMENT HAS NO INTEREST IN BOOSTING WAGES …

IF YOU’VE BEEN FEELING POORER OVER THE LAST DECADE … THIS GRAPH EXPLAINS WHY

https://www.abc.net.au/news/2021-03-07/this-graph-explains-why-you-have-been-feeling-poorer/13221796?fbclid=IwAR2DU_y-Fr4kQzc5ZYcZIlOAz9Mc0LJbFGT-B1SKMAQOI5vrkdoQzPqMrt4

NEW OVERSEAS BUYERS FROM HONG KONG, SINGAPORE, THE UK AND US COULD IMPACT AUSSIE HOUSING PRICES …

HOW GOOD’S the FIRB for Property Moguls?

https://www.news.com.au/finance/real-estate/buying/new-overseas-buyers-from-uk-us-singapore-and-hong-kong-could-impact-aussie-housing-prices/news-story/d5eef8a5b033a2157c35eb2434b1a1ec

More Thoughts about ‘Michael Pascoe: Easy Money driving Housing Boom … ‘

From a CAAN Contributor

IT’S on the money alright!

As said … bank deposits are up to near the second highest they have ever been, credit card debt hasn’t grown.  In fact it has declined!

The backlog of 2020 is catching up … bank lending writing new records with government handouts record low interest rates low stock levels as building starts declined in 2020

The demand for detached housing going to record levels as people living in apartments scramble to leave after their pandemic experience in 4 walls … yarda yarda

Yes, and he is right about no wage growth, growing debt that only needs an interest rate rise to see it all come crashing down … CHAOS!

What Michael did not mention:

-interest rates are not expected to increase any time soon, may be in 2022, a big if…

-migration, now that could do even more harm to our housing supply issues, it’s the elephant in the room, but don’t mention it because it will bring down the ‘thought police’ upon all

-doubt, and more doubt has fuelled the shortage of housing stock on the market, home owners haven’t been sure about what is going to happen next so they are sitting on their hands

According to the ABC Business … I think it was … there was a comparison Pre Covid to Post Covid i.e., February 2020 to February 2021 which showed 93% of jobs had been recovered in Australia … the best outcome in modern economies like the UK, US and parts of the EU which have only achieved 65 – 85% recovery of jobs … Well Done Australia!

What Michael also said:

-those that are selling are asking for more because people are paying, they are buying what is available, the FOMO has taken hold!

.banks are awash with money, they are paying nothing for it so why wouldn’t you go into real estate?

BUT

-What about the other unmentionables like 

.the dirty money coming out and being spent on real estate

.the company execs exercising their will following achieving record profits in 2019-2020 having been given massive subsidies courtesy of their Liberal Government mates, are happy to spend up big in real estate

LET’S NOT FORGET …

-all the firms and businesses that did close their doors owing to the pandemic …

.real estate agencies, cafes, restaurants, tourist base businesses, airline employees, travel agents, to name some

.the banks were still recovering from the Royal Commission damage when the pandemic hit and so as soon as they could, once they received the nod and wink from those in government, started to work on rebuilding their reputations, and no better way to do this BUT to start lending, big time, hence starting in December 2020 through January 2021 they got into a race to lend the most

.it’s a win/win, banks are happy, the government’s happy because they were backing a building led recovery, and the banks have gone ahead and done the hard yards for them

ALL THE WHILE …

-the Government can say, ‘look what is happening, things are on the move again’ the inference being ‘look at what we have done.’

The real question is ‘did this lending spree come about through some understanding between the government and the banks not to proceed with reform of the sector?’

THEN …

.those who have done badly as office rentals have shrunk and will continue to do so as leases are not renewed, and tasks are sent home to where the employees live, putting even more pressure on wages to flatten further

NOTICED BIG TIME …

It must have hit the Libs like a bombshell when FAIRWORK Australia continued to pursue ‘wage theft’ (previously known as mistakes, oversites, errors etc etc) even during the pandemic …

Meanwhile the shopping centres are steadily showing signs of strain, the number of empty shops has not declined

Personally, I don’t think there’s going to be a crash anytime soon, there may be some increase in the number of properties for sale as things tighten up a bit, an increase in mortgage defaults etc, with Job Keeper and Job Seeker being pared back … there’s likely to be some ripples, but even the left concedes it is going to affect certain sectors a hell of a lot more than others, and targetted assistance to certain areas is on the cards

At ground level it will remain much the same but …

workforce mobility has taken a back step, affecting supply of places for sale

-workforce participation, working from home has boomed, hence less houses for sale and those working from home are now looking for better digs than the 4 walls of a small apartment

ALL IN ALL

Not a pretty picture but that’s the market place

RELATED ARTICLE: ‘Michael Pascoe: Easy Money driving Housing Boom … ‘ or …

‘Getting FOMO while others borrow easily? Buyer, be aware in the boom’

https://thenewdaily.com.au/news/2021/03/09/michael-pascoe-easy-money-housing-boom/?utm_source=Adestra&utm_medium=email&utm_campaign=Morning%20News%20-%2020210309

HOW good’s a Budget Surplus?

Q. HOW good’s a budget surplus? 

IT’s a situation in which the federal government is sucking more money out of the community, via taxation, than it is spending into the community (infrastructure)

AND …  it slows the economy down — by taking spending power away from households and businesses   

Q. What contributed to Wage Stagnation between 2013 and 2019?  (The Dog Days) 

Australia’s immigration policy!  Our population swelled by 35% from 19M to 25.6M in 20 years!

Prof Garnaut recommended a return to Permanent Migration and a focus on education and skills with a net migration of around 0.5% of the population per year

What it would seem was overlooked … that these Visa workers are paid ‘non-Award Wages’ …

    AND … note in the Dog Days top executive and business incomes were rising rapidly

READ MORE!

If you’ve been feeling poorer over the last decade, this graph explains why

https://www.abc.net.au/news/2021-03-07/this-graph-explains-why-you-have-been-feeling-poorer/13221796

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