ABOUT the Golden Triangle … Meth problem for Australia with profits warehoused in Australian Property

CONCLUDING THIS 60 MINUTES REPORT ‘DIRTY DEALING’ PARTS 1 AND 2 … it is a business model with millions in drug profits that are being warehoused in Australian property.

They still move large quantities of cash they use to procure property in Australia, and sell this property downstream so therefore that money is laundered.

In one year alone, 2016 Chinese washed $1Billion in suspicious transactions through the Australian property market.

THERE IS LITTLE OVERSIGHT OF REAL ESTATE AGENTS, ACCOUNTANTS AND LAWYERS IN AUSTRALIA!

There are real estate agents, lawyers and accountants in Australia who are helping these criminals.

It is not beyond this syndicate of real estate agents, and accountancy businesses that look legitimate but if they own it, it is business as usual.

The only winners are the billionaire drug lords.

It is a blood trade therefore any part you play in it is directly contributing to the harm!

IN OCTOBER 2018 THE MORRISON GOVERNMENT EXEMPTED THE REAL ESTATE GATEKEEPERS FROM THE SECOND TRANCHE OF THE ANTI-MONEY LAUNDERING LAWS

Read more:  ‘October 2018 … Real Estate Agents, Lawyers and Accountants to Avoid Money Laundering Laws’

https://www.afr.com/companies/financial-services/real-estate-agents-lawyers-and-accountants-to-avoid-money-laundering-laws-20181008-h16dcd

*The Australian Criminal Intelligence Commission (ACIC) estimates organised crime costs the Australian community $36 billion each year and “the most common professions exploited by organised crime include lawyers, accountants, financial and tax advisers, registered migration agents, stockbrokers, real estate agents and customs brokers,” their report said.

View: ‘Money Laundering Laws Chris Bowen Dirty Money’

https://www.abc.net.au/news/2019-02-25/money-laundering-laws-chris-bowen-dirty-money/10846552

VIEW ‘DIRTY DEALING’ FROM 60 MINUTES:

https://9now.nine.com.au/60-minutes/chris-uhlmann-thailand-myanmar-golden-triangle-drug-trade-to-australia-ice-problem/866fa4d2-96fc-4b36-ab9d-116e75c25493?fbclid=IwAR3EzMF-uqdTSCeEQ0MMYEvCgV5RHOEymWFfhnQSYydOFjTdSTesaZx-WbU

The Kings Romans Casino in the Golden Triangle Special Economic Zone in Laos.

The Kings Romans Casino in the Golden Triangle Special Economic Zone in Laos.CREDIT:NINE

Read more:

https://www.smh.com.au/world/asia/inside-the-golden-triangle-where-warlords-and-drug-barons-reign-20200310-p548io.html

Ban on $10,000 cash purchases set to become law despite concerns

WHY does the Morrison Coalition Government not root out and stop all property money laundering instead? Cough … cough …

WHEN only as recently as October 2018 the Morrison Coalition Government exempted the Real Estate Gatekeepers from the Second Tranche of the AML Laws … disgraceful!

-hence the resurge of buyers from China and Hong Kong …locking out our FHBs

(Real Estate Agents, Lawyers, Accountants and Conveyancers = Gatekeepers)

AND the other issue of hidden political cash donations … ?

NOW not only the Real Estate Gatekeepers have been flourishing in money laundering but it emerges Funeral Directors too … apart from Tradies, and some notorious ‘ethnic’ communities who launder in our Real Estate …

WHY pick on ‘Pensioners’? ... What are they doing with wads of $10,000 in cash anyway?

ON another level, is the Government moving ahead with negative rates, and making customers pay the banks to hold their money?

Ban on $10,000 cash purchases set to become law despite concerns

Rob Harris
By Rob Harris

February 28, 2020

View all comments

A controversial bill to ban cash payments over $10,000 and impose two-year jail sentences on those caught using cash above that limit is poised to pass Federal Parliament despite bitter divisions within both major parties.

The Morrison government is set to win support from Labor to legislate the controversial crackdown, which is likely to be opposed by the entire Senate crossbench from the Greens to One Nation.

A controversial ban on cash purchases over $10,000 is set to pass Parliament despite unrest among government MPs.
A controversial ban on cash purchases over $10,000 is set to pass Parliament despite unrest among government MPs.CREDIT:LOUISE KENNERLEY

*The proposal has been criticised by tradespeople, pensioners and some ethnic communities, with government MPs reporting a fierce backlash from within their own branches over the laws.

*Some Labor MPs have also expressed reservations over the laws, aimed at cracking down on crime syndicates that launder money through the black-market economy.

But the opposition will likely vote in favour of the laws when a Senate committee inquiry hands down a recommendation that the bill be supported on Friday.

Assistant Minister Michael Sukkar has moved to quell unrest among the Coalition party room over the bill in the face of a torrent of criticism from backbench MPs as well as party members who believe the crackdown on cash is a breach of the government’s stated belief in the free market.

RELATED ARTICLE

Businesses are pushing back on the government's plan to ban cash transactions of more than $10,000.
SMALL BUSINESS

*Funeral directors say cash ban could hit people ‘at their lowest point’

Mr Sukkar said the laws were a recommendation from the government’s Black Economy Taskforce as a way to stop criminal gangs using large cash purchases of cars, houses and jewellery to launder their gains from illegal activities.

“The key focus of the bill is reducing the ease with which organised crime gangs can operate throughout the country,” Mr Sukkar said.

Government sources told The Age and The Sydney Morning Herald they were prepared to call the bluff of Coalition senators and the “tin foil hat brigade” who might cross the floor on the issue.

A video recording of Mr Frydenberg being asked about the cash ban at a Liberal Party function in Brisbane last week shows the Treasurer pressed on what the government hoped to achieve from the move.

He said the government was acting on recommendations of its own black economy task force.

“This was really to go to the heart of the issue of ensuring there’s less of a black economy and more of an economy sticking to the right rules,” he said.

The Greens have told supporters it is also opposed to the ban, drawing on some of the internal criticisms made by rank-and-file members of the Liberal Party.

“The bill is a case of the cure being worse than the disease,” the Greens have told supporters in emails seen by The Age and The Sydney Morning Herald.

“The bill would criminalise the use of legal tender. In doing so, the bill challenges the freedoms that hard currency provides and lays a path towards further restrictions on the use of cash and even negative interest rates.”

RELATED ARTICLE

Assistant Treasurer Michael Sukkar, has privately criticised the plan to his Liberal colleagues out of frustration that he inherited the proposal from the last term of Parliament.
EXCLUSIVE
CASH ECONOMY

‘Antithetical to our Liberal principles’: MPs move to prevent $10,000 cash ban

While the Australian Tax Office wants to stamp out the “black economy” by curbing large cash payments, critics said the cost would be far greater than the benefits if Australians were banned from using more than $10,000 in cash.

Rank-and-file Liberal Party members have expressed privacy concerns over the new laws while those also against the change include the Housing Industry Association, NSW Farmers, the Australian Dental Association and big retail groups that say customers like to save cash to make big payments.

Rob Harris

Rob Harris is the National Affairs Editor for The Sydney Morning Herald and The Age, based at Parliament House in Canberra

SOURCE: https://www.smh.com.au/politics/federal/ban-on-10-000-cash-purchases-set-to-become-law-despite-concerns-20200227-p5453n.html?fbclid=IwAR0RyPDkIRcsfjZTbmvzb7hjhpYHflR9Q1wE2_5xPkNlrK6E-94dxn4xrjU#comments

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Mystery surrounds the $60 million Chinese owned vacant estates of Toorak

The Mansion on St George’s Road TOORAK was flattened 4 years ago DESPITE its Heritage Listing …

The last time the property was up for sale was in 2013; a couple paid $18M for it and then demolished it in 2015.

That caused much controversy in this community as many considered this Mansion to be the centrepiece of this very lavish street.

-the site is up for grabs with an asking price of $40M

-the local community action group have expressed the desire for a single dwelling of two storeys

‘the sale is happening off the market’

WHAT does this mean?

-is it selling or has it already been sold without public advertising?

-what is the urgency for an immediate sale?

-are the vendors in trouble with the CCP?

HOW likely is it that they would be in trouble with the Australian authorities when the Real Estate Sector is exempt from Anti-Money Laundering Laws?

RELATED ARTICLE ….

https://caanhousinginequalitywithaussieslockedout.com/2020/02/22/how-did-the-real-estate-gatekeepers-weasel-their-way-out-of-the-second-tranche-of-the-anti-money-laundering-laws/?fbclid=IwAR3FZylMqsZU9KPlRt8bb8Osrn60TTTt9HvuOMTFSO7KCdOtKKCKRAyBmCY

Mystery surrounds the $60 million Chinese-owned vacant estates of Toorak

Tom Cowie
By Tom Cowie

View all comments

Nearly $60 million worth of real estate in one of Toorak’s most-exclusive streets has been reduced to a patch of dirt, with mystery surrounding what’s going to happen to it.

On well-heeled St Georges Road, where two grand mansions once stood side by side, sits a couple of Melbourne’s priciest vacant blocks after bulldozers razed both properties.

Melbourne real estate records were smashed a few years ago when a Chinese buyer paid just under $40 million for the 1920s Mowbray mansion at 18 St Georges Road.

The gates of Mowbray remain after a 1930s mansion was knocked down in Toorak.
The gates of Mowbray remain after a 1930s mansion was knocked down in Toorak.CREDIT:LUIS ENRIQUE ASCUI

The palatial six-bedder, sitting on 5000sqm with a swimming pool and tennis court, succumbed to the dozer blade in recent months after it was damaged by fire and vandals started getting inside the vacant property.

The gates bearing the Mowbray name are still standing.

RELATED ARTICLE

Palatial spreads kept empty? That’s rich

Title documents show the property belongs to a buyer by the name of Qi Yang. The Australian Financial Review reported at the time that Mr Qi won Foreign Investment Review Board approval to buy the land, which came with a hefty $5 million stamp duty bill.

The City of Stonnington said no plans had been lodged for the property after a demolition permit was granted in May last year.

The vacant block at 16 St Georges Road in Toorak.
The vacant block at 16 St Georges Road in Toorak.CREDIT:TOM COWIE

Under the council’s planning scheme, a building permit is only required for two or more dwellings or a subdivision.

There is no sign of tradies next door either, since the Idylwilde mansion was controversially torn down in 2015, prompting an outcry in the community over lost heritage.

Bought for $18.5 million in 2013, the former landmark 1913 estate at 16 St Georges Road is now chock full of weeds and surrounded by security fencing.

*The lack of action has prompted speculation about landbanking.

The former house at 16 St Georges Road, Toorak.
The former house at 16 St Georges Road, Toorak.

*Owner Xiaoyan “Kylie” Bao put the property on the market last year with a $40 million plus price guide after plans to build a grand $18 million home were shelved.

However, one buyers’ advocate who deals with high-end property said the owner would be lucky to get anywhere near that.

The Idylewilde mansion was destroyed in 2015.
The Idylewilde mansion was destroyed in 2015.CREDIT:EDDIE JIM

“They paid way over the top,” the property watcher said.

Those two vacant blocks could soon be joined by another, if a third mansion is demolished further down the street.

A 7200sqm block at 29-31 St Georges Road is quietly up for sale after sitting dormant for nearly three decades.

*The rumoured asking price is as much as $75 million, after the property was bought by the Yu family for $5 million in 1991.

A chunk of change like that would obliterate the property record established by Mowbray and later eclipsed when Australia’s former government house, Stonington in Malvern, sold for $52.5 million in 2018.

The former Mowbray mansion at 18 St Georges Road in Toorak.
The former Mowbray mansion at 18 St Georges Road in Toorak.

Several planning applications have been knocked back over the years to build units on the land, however there might finally be a change of ownership around the corner.

A half-built French Renaissance-style house on the land would probably be knocked over, according to selling agent Andrew Baines.

“It’s purely land,” he said.

The tennis court, pool and mansion are no more at 18 St Georges Road.
The tennis court, pool and mansion are no more at 18 St Georges Road.CREDIT:LUIS ENRIQUE ASCUI

Toorak Village Residents Action Group president Eddie Young said the neighbours were waiting to see what would happen with the properties.

He said he had been told that a single dwelling would be built at 18 St Georges Road, which locals were pleased with.

Next door, however, was another story.

“It’s a mystery,” he said. “And it looks dreadful.”Play Video

Coronavirus evacuees describe relief

Play video1:30Vacant Toorak block on the market for $40 million

VIEW SOURCE LINK BELOW TO PLAY VIDEO

A controversial block in Melbourne’s blue ribbon suburb of Toorak is up for sale with an eye-watering price tag of $40 million.

Tom Cowie

Tom Cowie is a journalist at The Age covering general news.

SOURCE: https://www.theage.com.au/national/victoria/mystery-surrounds-the-60-million-chinese-owned-vacant-estates-of-toorak-20200207-p53yq9.html?fbclid=IwAR2a5Q-OIEkHlOWw6oVDFmdebBkr0bBKubq7FiFADyXOmQBLOgiszQxlQCs

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HOW did the REAL ESTATE GATEKEEPERS weasel their way out of the Second Tranche of the Anti-Money Laundering Laws?

A Paris-based financial group has warned Asian criminals are laundering money through the Australian property market.

Photo: Daily Telegraph: May 2018; A Paris-based financial group has warned Asian criminals are laundering money through the Australian property market. https://www.dailytelegraph.com.au/news/nsw/police-warn-government-foreign-crims-buying-homes-to-launder-money/news-story/132907707f783f1eec77f49499d049ea

COMMUNITY ACTION ALLIANCE FOR NSW (CAAN) provides a a recent Chronology of how this took place!

IN July 2018 … The Law Council of Australia opposed the extension of the Anti-Money Laundering Laws, the second tranche of the Legislation.

Executive board member Konrad de Kerloy said lawyers were already heavily regulated and the implementation of new AML laws would fall on professionals in rural and regional Australia.

“Whilst no lawyers want to be involved in wittingly or unwittingly in money laundering, the question is really, does the cost justify the imposition of an extra layer of regulation on lawyers?” Mr Konrad said.

The Real Estate Institute of Australia is also concerned about the cost of new legislation.

President Malcolm Gunning said the institute supports changes to AML laws but said real estate agents will need training to bring them up to speed.

“The Real Estate Institutes are not opposed to it, but the concern is the responsibility that goes with it and the education that is required to be able to enact that,” he told the Business in an interview.

Real estate agents aren’t lawyers, they don’t study the law in depth, so if we are to be gatekeepers as with the conveyancers and say, necessarily the accountants and the advisers, then we need to be better educated.”

CAAN:  This begs the question if ‘Real Estate Agents’ are not lawyers … and it is submitted that they will need training to bring them up to speed on the AML … how come they can command such excessive commissions?

Is their very large commission solely based on the inflated cost of housing?  Cough … cough …

Their job is not up there with the complex work of a Solicitor, a Doctor, a Structural Engineer, or an Architect …

The real estate agent has access behind the Great Firewall to an exclusive audience of Chinese buyers on Juwai.com

Chinese Australian Dwelling Investment Tracker with title

Photo: Juwai.com

There are numerous Chinese newspapers circulated esp. in Sydney largely advertising Australian Real Estate including ‘The Chinese Vision Times’ and the ‘Epoch Times’ … and there are Chinese Property Papers … FFS!

After the Second World War, millions of people moved to Australia and built homes inspired by their European backgrounds. (Image: wikimedia /  CC0 1.0)

Photo: From ‘The Chinese Vision Times‘; Good Ol’ Post-War Australian Homes Face the Bulldozer. ‘ … almost 4.2 million people moved to Australia between 1945 and 1985. These people built homes inspired by their European backgrounds and contributed heavily to the aesthetic and architectural culture of Australia. Today, these post-war homes are increasingly being demolished.’

NOTE … all too numerous attractive mid-Century and Heritage homes have been demolished to make way for redevelopment and a ‘Permanent Resident Visa’

A historic mansion at 16 St Georges Street in Toorak, south-east Melbourne, has been suddenly demolished on Wednesday morning
Angry neighbours awoke on Wednesday morning to find the stately home with heritage significance partially demolished

Photos: The Daily Mail before and after demolition: https://www.dailymail.co.uk/news/article-3282299/Chinese-investor-DEMOLISHES-historic-20-million-mansion-despite-neighbours-battling-save-beautiful-house.html

AUSTRALIA … What does that tell you? Cough … cough … as the ‘Race Card’ is pulled …

(Image via pixabay / CC0 1.0)

Photo: The Chinese Vision Times; Australian’s today have no use for such big homes so they are being bulldozed. (Image: via pixabay CC0 1.0)

AUSTRALIAN HOMES are being ‘banked‘, demolished for redevelopment of more medium-density to house foreign buyers particularly from China and Hong Kong

Image may contain: sky, house, plant, tree, cloud and outdoor

CAAN Photo: 10 Townhouse development by Chinese developer where there was a home and a market garden.

With access to the Australian press, social media including WeChat, agency websites, and videos promoting sales … Real Estate is not rocket science … nor is it difficult with open house sessions.

We did a search and came up with this information …

IN NSW the average commission is 2.46 per cent of e.g. a property priced at $775,000 would cost $16,275 in Agent’s commission. Agents can charge a flat fee or a tiered commission (based on a percentage of the sale price)

Some agents include advertising and marketing costs in their commission, while for others this is an additional fee.

Search for: finder.com.au typical real estate agent fees

View: ‘Australia a place of choice for Money Laundering due to lack of Regulation: ANZ’

https://caanhousinginequalitywithaussieslockedout.com/2018/07/26/australia-a-place-of-choice-for-money-laundering-due-to-lack-of-regulation-anz/

Malcolm Gunning from the Real Estate Institute of Australia smiles at the camera.

Malcolm Gunning; ABC News: Sue Lannin

This is the same Malcolm Gunning ... who proposed in September 2018 ‘Get two jobs’ and the Propertygandist’s advice for people struggling to pay rent

Was he gunning for Aussies? … Not only does he propose Millennials work two jobs … where the bloody hell are the jobs? Yet he implies “migrants” are more industrious.

IT would seem the “generation selfish” Gunning is talking about are Millennial RE AGENTS cruising around in their BEAMERS & AUDIS … in their designer suits splashing out on international holidays and smashed Avo … or is that passe?

*In October 2018 … unbeknowns to most …

‘The Scomo Govt exempted (excluded) the Real Estate Gatekeepers from the Anti-Money Laundering Laws in October 2018’ *

-real estate agents, lawyers and accountants

https://caanhousinginequalitywithaussieslockedout.com/2018/10/09/2665/

Enabling the Real Estate Gatekeepers to continue to market and seal deals with foreign buyers particularly in China and Hong Kong, and allowing the foreign buyers to splash their cash, their ‘hot money’ in our domestic housing to gain a Permanent Residency Visa along with Medicare benefits!

Following in February 2019 it was reported in the Australian Financial Review that REAL ESTATE AGENTS with the backing of the Law Council of Australia pulled off this Sting …

They were able to weasel their way out of this legislation allegedly on the basis that ‘imposing the full AML/CTF (the second tranche of the AML Laws) may create conflicts with the lawyer’s duty of confidentiality and the principle of client professional privilege!

President of the Law Council of Australia Arthur Moses, SC, said their profession was already extensively regulated by the states and territories under a comprehensive and robust regulatory system.

“The Law Council is concerned that imposing the full AML/CTF regulatory regime may create conflicts with the lawyer’s duty of confidentiality and the principle of client professional privilege, as well as increasing the cost of legal services to the community,” he said.

CAAN asked these questions

WHY is it with the purchase of real estate there should be some difference compared to buying or selling a vehicle, why is it different?

Why is it difficult to apply laws to the purchase of real estate?

Why is that compromising a lawyer?  Why should real estate be any different to any other matter?

If there are laws governing real estate so be it.  It should not make any difference to a lawyer. If lawyers have a matter before them that involves a crime they have two choices:

-do it for their client knowing their risk

-not do it

View:  ‘Labor to Target Lawyers, Accountants, Real Estate Agents’

https://caanhousinginequalitywithaussieslockedout.wordpress.com/2019/02/25/8720/

In June 2019 the new President of the Real Estate Institute of Australia, Adrian Kelly said that others should also bear the regulatory burden.

“We are working with government on an approach that minimises the impact on agents because much of the information can be sought from others involved in the transaction process, including the banks and their conveying process.”

Further, Mr Kelly said they had been working with governments on any changes and that “in essence, we don’t have a problem” with Tranche 2 of the legislation.

“But what we do need to remember is that most estate agencies across Australia are very small businesses … we need to be mindful of the costs and red tape which might come about from whatever changes government decides,” he said.

https://caanhousinginequalitywithaussieslockedout.com/2019/06/28/australia-is-failing-to-combat-dirty-money-entering-the-property-market/

Image may contain: sky, tree, basketball court, bridge and outdoor

CAAN Photo: Mid Century home demolished to be replaced by fugly medium-density redevelopment

WHERE is the mindfulness concerning the inflated cost of housing beyond the means of very many Australians? ... A Whole Cohort of Australians … pushed aside by foreign ‘black money’ laundering in our domestic housing market … with buyers particularly from China and Hong Kong and their Proxies taking over our suburbs, communities, neighbourhoods, and shopping centres … and the jobs?

WHAT NEXT AUSTRALIA? Before we are finished …

DIRTY MOENY Spotlight on Estate Agents!

Dirty money spotlight on estate agents

The real estate sector has continually been identified as a weak spot in Australia’s anti-money laundering regime, with financial intelligence agency AUSTRAC estimating $1 billion in suspicious transactions from China in 2016.

Edmund TadrosAngus Grigg and Neil Chenoweth

Nov 11, 2019

Australia is set to receive another black mark for its lax anti-money laundering laws, putting renewed pressure on the federal government to force real estate agents to report suspicious sales.

The Financial Action Taskforce, which sits under the G7 major world economies, is due to release its latest report before Christmas and those who have seen an early draft say it will make for uncomfortable reading in Canberra.

“We’re going to get another kicking,” said one person familiar with the process.

The renewed focus on the real estate sector and its lack of reporting requirements comes after The Australian Financial Review revealed that a 32-year-old Chinese-born man, Bo Zhang, had six houses in Sydney’s Mosman worth $37 million, but lived in none of them.

Sam Mooy
One of the Mosman houses owned by the mysterious Bo Zhang.  Sam Mooy

In addition, the mysterious Mr Zhang has purchased $1.2 billion worth of hotel, apartment and retail developments in Sydney and on the Gold Coast.Advertisement

The real estate sector has continually been identified as a weak spot in Australia’s anti-money laundering regime, with financial intelligence agency AUSTRAC estimating $1 billion in suspicious transactions came into the Australian property market from China in the 2016 financial year.

The Financial Action Taskforce added that, “large amounts are suspected to be laundered out of China into the Australian real estate market“.

The taskforce’s most recent report said Australia was non-compliant or only partially compliant with 14 of its 40 recommendations.

RELATED

Huang Xiangmo’s mystery $1.2b man

At issue is Australia’s delay in enacting so-called “Tranche II” of the anti-money laundering laws, which would compel real estate agents, lawyers and accountants to report suspicious transactions.

All have fiercely resisted the move, and for the last 13 years both sides of politics have failed to implement tougher measures.

It is understood the government is due to receive a submission from the Department of Home Affairs by Christmas, which would outline options to toughen Australia’s anti-money laundering regime.

A government spokesman said: “The Morrison government is committed to continually improving Australia’s anti-money laundering and counter-terrorism financing laws and working with industry to ensure that Australia’s financial system is hardened against criminals and terrorists without placing undue burden on industry.”

The inaction has brought together an unlikely coalition of the Australian Bankers Association and the Greens, which are both pushing for the introduction of Tranche II.

“The exemption for lawyers, accountants and real estate agents is a gaping hole in Australia’s anti-money laundering laws,” said Greens Senator Peter Whish-Wilson.

“We’ve had 13 years of inaction, from both Liberal and Labor governments, on the fabled Tranche II.”

Senator Whish-Wilson said during this period of inaction billions of dollars had washed through the Australian property market.

“In particular, investors are using real estate as a safe haven and to clean up money coming out of China,” he said.

The Australian Bankers Associations also supports toughening anti-money laundering rules and pointed the Financial Review to a submission it made last year.

“The ABA recommends progressing the Tranche II reforms as a priority. It is vital that Australia closes the current gaps in the Australian money laundering/terrorism financing regime,” its submission said.

SOURCE: https://www.afr.com/property/residential/dirty-money-spotlight-on-estate-agents-20191107-p538ay

HOW Foreign Businesses now own HALF of AUSTRALIAs Malls driving out Local Traders … Retail Apocalypse … What does this mean?

AND WHY is this happening? Cough … cough … with the best economic managers …

The developer lobby, the Property Council of Australia has their ‘man’ in the Big Chair … that was ensured by developer political donations 8 to 1!

cashed-up Singapore investors actively eyeing Australian assets

-will more High-rise Residential Apartment Precincts replace what were our Shopping Malls … ?

.with self-contained retail outlets

also across Regional Centres!

‘Retail assets in metropolitan areas with development potential have also been highly sought after due to stronger underlying land values,’ JLL reported

-with a longer-term view to re-development.  *

… TELL OTHERS WHAT IS GOING ON … Why not Copy and Paste this into an email for your contacts … Start the conversation Australia !

-How much longer before Australians will be the Minority … and have no say at all? *

NEXT MAKE YOUR OBJECTIONS TO YOUR LOCAL MPs WITH A DEMAND THE FOREIGN INVESTMENT REVIEW BOARD BE SHUT DOWN!!

-2019 foreigners bought up 22 per cent of Australia’s shopping malls that changed ownership

Westfield was sold to French property giant Unibail-Rodamco for $32.7billion two years ago; Frank Lowy has returned to Israel!

HOW Mall owners killed retailers … by operating a pyramid like scheme … the more the shop owners earnt the more rent they paid!

How greedy foreign businesses now own HALF of Australia’s malls and are driving out local traders as online shopping steals customers in a retail apocalypse – and your suburban centre could be next

  • There are now fewer Australian-owned shopping centres than ever before 
  • Small business retailers struggling to pay surging rents charged by foreigners
  • Australian companies now face some of the highest retail rents in the world
  • Owners are forced to shut up shop, leaving once-bustling malls abandoned 

By ALISHA ROUSE and STEPHEN JOHNSON FOR DAILY MAIL AUSTRALIA

UPDATED:  14 February 2020

94 View comments

Greedy foreign multinationals and technology have been blamed for Australia’s retail apocalypse.

*An increasing number of suburban malls across Australia are derelict as more home-grown retailers are put into administration.

This is occurring as ordinary workers miss out on decent pay rises and the economy grows at a slower-than-usual pace – pushing retail sales growth to a record low.

Online shopping is also taking customers away from traditional shopfronts, with fashion sellers in particular struggling.

*Retailers, however, are blaming shopping mall landlords for jacking up the rent, as an increasing number of them fall into foreign hands, with cashed-up Singapore investors actively eyeing Australian assets.

Scroll down for video Westfield Marion (pictured), the biggest shopping centre in Adelaide, was sold off to Singaporean company SPH REIT, who bought a 50 per cent share for $670 million+8

  • Westfield Marion (pictured), the biggest shopping centre in Adelaide, was sold off to Singaporean company SPH REIT, who bought a 50 per cent share for $670 million

Dropping like FLIES: Some of Australia’s recent retail casualties

2016: Dick Smith, Masters hardware, Payless Shoes

2017: Topshop Australia

2018: Avon, Espirit, Toys ‘R’ Us, Max Brenner, Roger David

2019: Ed Harry, Diana Ferrari, Napoleon Perdis, Ziera, Bardot, Harris Scarfe  

2020: Jeans West , Collete Hayman, EB Games, Co-op bookstore

In New South Wales alone, foreign interests own almost half, or 49.3 per cent, of the state’s commercial real estate by value, Property Council of Australia data showed.

Last year, foreigners bought up 22 per cent of Australia’s shopping malls that changed ownership, American commercial real estate group JLL revealed last week.

‘Singaporean capital sources have continued to be relatively active,’ it said.

That was a sharp increase from 18 per cent in 2018 and 16 per cent in 2017.

Australia’s largest shopping mall group Westfield was sold to French property giant Unibail-Rodamco for $32.7billion two years ago.

Its billionaire founder Frank Lowy, who this year turns 90, announced in December 2017 he would virtually step back from the global empire he began in Sydney’s west during the 1950s. 

JLL’s Australian shopping centre report for 2020 forecast large-scale investors ‘driven by opportunistic timing’ would buy up shopping malls to cash in on ‘attractive yields’ with a longer-term view to re-development.  *

‘Retail assets in metropolitan areas with development potential have also been highly sought after due to stronger underlying land values,’ it said.

One Victorian fashion shop owner told Daily Mail Australia her dwindling sales barely covered the rent.

Other owners blamed surging costs, making it difficult for them to hire staff or remain solvent.

‘Christmas was slower than expected and I used to rely on that period to cover the rent,’ one said.

‘But now it is much more difficult.’Many shopping plazas, like the Northcote Plaza in Melbourne (pictured) have seen a decline in visitors, as rents skyrocket for small businesses+8

  • Many shopping plazas, like the Northcote Plaza in Melbourne (pictured) have seen a decline in visitors, as rents skyrocket for small businesses

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Retail Doctor Group, a business consultancy, said Australia could be left with fewer traditional shops unless changes were made to combat the rise of online commerce giants like Amazon.

‘We haven’t even reached base camp with what’s about to change,’ the group’s chief executive Brian Walker told Daily Mail Australia.

‘Twenty-five years ago, there was a little online bookshop opening in Seattle, that business now turns over $250 billion a year.’ 

Shop owners in downtown Sydney last year paid an average of $12,825 a month in rent, data from real estate group Colliers showed.

As of September last year, Australia’s retail sector grew at the slowest pace since the 1991 recession.

The news has since worsened with Australian Bureau of Statistics figures released last week showing retail trade grew by just 0.3 per cent in 2019 –  the slowest annual growth rate on record.The RBA has cut the cash rate to a new record low of 0.75 per cent

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Australian Bureau of Statistics figures released last week showing retail trade grew by just 0.3 per cent in 2019 - the slowest annual growth rate on record. Pictured: the Myer store at Hornsby in Sydney's north shortly before it closed in January after 40 years+8

Australian Bureau of Statistics figures released last week showing retail trade grew by just 0.3 per cent in 2019 – the slowest annual growth rate on record. Pictured: the Myer store at Hornsby in Sydney’s north shortly before it closed in January after 40 years

HOW COULD OVERSEAS BUY-UPS AFFECT THE FUTURE OF AUSTRALIAN RETAIL? 

In 2019, offshore investor acquisitions of Australian retail shopping centres topped $1.4 billion.

That accounted for 22 per cent of all transactions, JLL’s Australian Shopping Centre Investment and Outlook Review 2020 report found.

*As investment companies look to make big profits on relatively cheap retail space, many increase rents.

Sky-high rents could leave many Australian-owned businesses, big and small, forced to close.

It comes as the likes of US online shopping giant Amazon seeks to grab a bigger market share.  

CommSec senior economic Ryan Felsman said consumers were staying away from shops because they had little left in the bank after paying their bills – despite interest rates being at a record low.

Consumer spending remains constrained by modest wage growth and elevated mortgage debt,’ he said.

Business advisory firm BDO’s national leader for retail, Mark Schiavello, said retailers needed to adapt to survive.

‘Retailers who stick with a 90s style experience or operating model will continue to struggle,’ he told Daily Mail Australia.

‘Today’s shopper doesn’t go to a store to transact, that can be done anywhere, anytime. 

‘They go to stores to experience, feel and connect with a brand.’ 

Foreign-owned property groups have increasingly turned to commercial real estate, hoping for higher yields even in a tough retail environment.

This included the $670 million sale of half of Adelaide’s biggest shopping centre, Westfield Marion, to Singaporean group SPH REIT.

A 50 per cent share of the Central Park centre in Sydney was also sold to a Singaporean-based company, SC Capital, for $174.5 million. 

This means just 32 per cent of retail lots were bought by private Australian investors. A 50 per cent share of the Central Park centre (pictured) in Sydney was also sold to a Singaporean-based company, SC Capital, for $174.5 million+8

  • A 50 per cent share of the Central Park centre (pictured) in Sydney was also sold to a Singaporean-based company, SC Capital, for $174.5 million

*Regional shopping centres, the backbone of many smaller communities, accounted for the bulk of shopping centres sold last year. 

The situation is looking dire for small businesses, who have seen rents skyrocket.

Australian Small Business and Family Enterprise Ombudsman Kate Carnell, a former Australian Capital Territory chief minister, said rental increases often outpaced inflation.

*Small businesses are also dealing with unsympathetic landlords who allow big, national brands to open stores – often selling similar products – right next to their shops.  Shopping centres, such as the Northcote Plaza in Melbourne (pictured) are struggling to keep up footfall while retailers worry about rising costs+8

  • Shopping centres, such as the Northcote Plaza in Melbourne (pictured) are struggling to keep up footfall while retailers worry about rising costs

*The pressure on business comes amid a series of closures of once-dominant retail brands, leaving the Australian shopping sector at risk of foreign takeover. 

A Kmart in Melbourne’s Northcote Plaza will close in November after 39 years after its parent company Wesfarmers declined to renew the pricey lease. 

The increasing popularity of online shopping, along with weak wages growth, is leaving families with less money to spend in their local mall. 

Online shopping was likely to erode the viability of bricks-and-mortar stores, Australia Post predicted.Harris Scarfe, (pictured), founded in 1849, took consumers by surprise when it entered administration in December and is now about to close at least 21 stores+8

  • Harris Scarfe, (pictured), founded in 1849, took consumers by surprise when it entered administration in December and is now about to close at least 21 stores

HOW CAN SHOPPING CENTRES SURVIVE? 

Brian Walker, the chief executive of the Retail Doctor Group, told Daily Mail Australia shopping malls will have to quickly adapt to the modern customer’s demands.

This includes offering community activities, expertise, and a series of extra offerings – making going to a shopping centre an ‘experience’. 

‘I think the signs are already there,’ he said. ‘That the great retailers won’t think about retail so much, they’ll think about brand.

‘Shopping centres are trying to adapt into this model by offering great shopping and dwelling experiences. 

‘They will think increasingly about their brand and how customers will be attracted there.

‘The A-Grade centres, the Chadstones of this world, they will flourish. They’ll be fine, and we see that globally – the Harrods and so forth, they’ll be fine.

‘And we’ll see a return to the community hubs, and those will have much more interactions with their communities – evening classes, education, much more community focus.

‘There’ll be less focus on the product sales, because that will be going on online. There’ll be much more focus on expertise, knowledge, uniqueness and experience.’ 

More than 7.6 million Australian households shopped online in 2018, making it the rare area of growth in an otherwise struggling sector. 

The news is grim. 

Homewares store chain Harris Scarfe, founded in 1849, went into administration in December and is now about to close at least 21 outlets.

Days later the country’s sixth-largest wine company McWilliam’s Wines, which has been around for 140 years, announced it had appointed voluntary administrators.Fashion chain Bardot (pictured, its store in Melbourne) is closing 58 stores across Australia+8

Fashion chain Bardot (pictured, its store in Melbourne) is closing 58 stores across Australia

Video game retailer EB Games was the next to announce it would downsize, with 19 stores set to close in coming weeks.

Major fashion chain Bardot has also revealed plans to close 58 stores nationwide before March.

In January, popular jewellery and accessories chain Colette by Colette Hayman was placed into voluntary administration despite sales revenue of $140million last year.

Administrators from Deloitte Restructuring Services said a weak retail climate had hurt the business.

*Small businesses with concerns about their rental agreements are advised to contact their state’s small business commissioner or the Australian Small Business and Family Enterprise Ombudsman, before they signed a lease.Jewellery and accessories chain Colette (pictured) has been placed into voluntary administration+8

  • Jewellery and accessories chain Colette (pictured) has been placed into voluntary administration

SOURCE: https://www.dailymail.co.uk/news/article-7993191/The-REAL-reason-Australias-retail-apocalypse-Foreign-investors-scooping-major-brands.html#reader-comments

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WHY are homes under Major Flight Paths Selling for Millions?

THE HOUSING BOOM will have enormous consequences …

‘We are creating a separate class of Australians, and that is not a Society that I think most of us want to see’! View 7.30 Monday 10 February!

MAKE your objections to your local MPs … AND tell others!

Planes fly over Sydenham after taking off from Sydney airport where one the runways is about to undergo maintence work. Two residents who live George Street ( did not want to be indentified ) watch a plane travel over her home.

Demand has surged for homes in suburbs under major flight paths.

IT has been reported by Aidan Devine that the demand has surged for homes in suburbs under major flight paths some selling for more than $2 Million

IT beggars belief that First Home Buyers, even very many Boomers would be able, or willing to pay $2M for a house directly under major flight paths. Why would they? When home owners in these areas have complained for decades about the aircraft noise

WHY would they buy there when homes in more desirable areas … a little further out are priced at $1.5 M or less?

WHO are these buyers?

PERHAPS this coincides with the increased inquiries from Hong Kong and China?

Image may contain: 1 person, eyeglasses

THE Morrison Government in October 2018 exempted (excluded) the Real Estate Gatekeepers from the Anti-money Laundering Laws … facilitating those in Hong Kong fleeing from the unrest and CCP control, and the continuum of Chinese seeking Permanent Residency in Australia …

Read more:

https://caanhousinginequalitywithaussieslockedout.com/2020/02/08/owen-wilson-re-group-speaks-to-the-business-about-increased-inquiries-from-hk-and-china/?fbclid=IwAR2wAvJlayaTZPT1d7RUafPbBaqMS5vMdvZC9Bc8k28L1vabMUPZHl_yra4

SOME 6 months ago we learnt of a young professional couple who purchased their first home, a semi, in Sydney’s Inner West for less than $1M …

EXTRACT …

‘Demand has surged for homes in suburbs under major flight paths.

Houses directly underneath noisy flight paths have been selling for millions as rampant property price rises squeeze buyers out of Sydney’s inner ring suburbs.

The desperate buyers helped drive up prices by up to 20 per cent over the past three months in the suburb of Marrickville, which has consistently had the most complaints to council about air traffic noise. *

A dozen homes in Marrickville sold for over $2 million in the second half of 2019, with the highest price coming in at just under $3 million.

The popular suburb sits directly underneath Sydney Airport’s busy flight path “B” departing from Runway 34L, the usual take off point for heavy duty long haul jets such as the Airbus 380 and Boeing 777.

Prices also look set to boom in nearby St Peters, Petersham, Stanmore and Summer Hill, which also sit under the same flight path.Aerial view of a Qantas plane taking off from Sydney Airport, with houses in the background.

A pocket of inner west suburbs near Tempe sit under one of Sydney’s busiest flight paths.

Demand for listings in Stanmore and Petersham jumped nearly 30 per cent over the past six months, while there was a 50 per cent increase in Summer Hill, realestate.com.au data showed.

Are they either foreign buyers or developers/investors land-banking?

‘It comes as finance data published earlier this week revealed most NSW house hunters have been trying to get into the market for months without success: two in five given pre-approval for a loan were yet to actually buy something.

Realestate.com.au chief economist Nerida Conisbee said that buyers had to compromise if they wanted an affordable home.

This Marrickville HOUSE sold for nearly $3 million late last year.

This home on Edwin St in Tempe sold for $1.625 million.

FURTHER, Ms Conisbee said that …

-there are a lot of people cashed up; ready to buy but very little is listed

-pushing up prices and forcing buyers to consider suburbs with bigger drawbacks.

CAAN: Very little is listed locally, but what of sites like Juwai.com, and the REA Group and others listing overseas? And local developers making offers home owners cannot refuse?

“Some of these suburbs are very noisy, but they also offer houses on big blocks, which are the most popular housing type at the moment,” Ms Conisbee said.

PERHAPS ‘houses on big blocks are the most popular housing type at the moment’ because the large lots lend themselves to the Medium-Density Housing Code?

READ MORE:

Homes under major flight paths are selling for millions as buyers scramble to get backyards

Aidan Devine 08 FEB 2020

Demand has surged for homes in suburbs under major flight paths.

https://www.realestate.com.au/news/homes-under-major-flight-paths-are-selling-for-millions-as-buyers-scramble-to-get-backyards/?rsf=syn:news:nca:dt:spa

Aerial view of a Qantas plane taking off from Sydney Airport, with houses in the background.

There are no affordable houses left in Sydney or Melbourne

SINCE late 2019 there has been a reported increase in inquiries from Hong Kong and China’s buyers …

https://caanhousinginequalitywithaussieslockedout.com/2020/02/08/owen-wilson-re-group-speaks-to-the-business-about-increased-inquiries-from-hk-and-china/?fbclid=IwAR2wAvJlayaTZPT1d7RUafPbBaqMS5vMdvZC9Bc8k28L1vabMUPZHl_yra4

PERHAPS that is why there are no longer any affordable homes in Sydney or Melbourne … it’s a NUMBERS GAME!

50,000 people from China were flying into Australia every week … until they were stopped by the CoronaVirus!

BUT that will not stop them …. they can buy online! All REA GROUP Agents operate digitally …

IN the Year of the Rat … 2020 … more Australians will have insecure work, continue to work for low wages, and be locked out of the home market by the foreign intrusion into our housing market … facilitated by scummy government policies …

Foreign buyers can launder ‘hot money’ in our Real Estate with the Real Estate Gatekeepers excluded from anti-money laundering laws!

the exemption occurred in October 2018!

PLEASE SHARE … and/or COPY AND PASTE into an Email … chat with others to let them know … they need to be updated! WHY not question your local MPs about this??

There are no affordable houses left in Sydney or Melbourne

By Leith van Onselen in Australian Property

February 7, 2020 | 29 comments

CoreLogic has released alarming research showing that there are no affordable houses in either Sydney or Melbourne:

While the median property value provides a useful reference point for the ‘typical’ home value in an area, buyers on a tight budget might find it more practical to narrow down their property search by examining lower quartile values

The lower quartile (or the most affordable 25% or properties in a region) provides a better view of the market entry point, while the upper quartile (most expensive 25% of properties) gives an indication about premium values…

Sydney Australia’s most expensive housing market has a median house value of $994,300. However the lower quartile house value, at $697,370, provides an entry point to the market that is almost $300,000 lower than the median.

In some cases, such as the North Sydney & Hornsby subregion or the Eastern Suburbs, the difference between the median and lower quartile can be more than half a million dollars.

Across Sydney’s sub-regions, there are three areas with a lower quartile house value below $600,000. These are the Central Coast ($525,590), Outer South West ($564,730) and Outer West & Blue Mountains ($575,890).

Additionally, Sydney has the largest inter-quartile range (the difference between the upper and lower quartile) with the upper quartile 126% higher than the lower quartile, implying a significant level of diversity in housing values across the city.

Melbourne With a city-wide median house value of $798,670, Melbourne is Australia’s second most expensive capital city housing market (after Sydney). The lower quartile value for Melbourne houses, at $614,330, is $184,300 lower than the median. This provided an easier entry point for budget-constrained buyers. Three sub-regions of Melbourne have a lower quartile house value that is greater than one million dollars (Inner, Inner East and Inner South), and four regions have a lower quartile house value below $600,000: North West ($549,790), South East ($573,590), West ($524,820) and Mornington Peninsula ($580,130)…

The situation will obviously worsen as the ‘Big Australia’ mass immigration policy doubles the size of Sydney and Melbourne over the next half century, swelling their populations to around 10 million each:

Full report here.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2020/02/there-are-no-affordable-houses-left-in-sydney-or-melbourne/

Planes fly over Sydenham after taking off from Sydney airport where one the runways is about to undergo maintence work. Two residents who live George Street ( did not want to be indentified ) watch a plane travel over her home.
Photo: Daily Telegraph: What has it come to when homes directly under the flight path in Marrickville are now selling for more than $2 Million?

AUSTRALIAN C.rr.ption worsened significantly since 2012

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DESPITE THIS the government has abandoned efforts to bring real estate gatekeepers into the AML regulatory net …

SHARE ON FACEBOOK … then copy and paste this report into an email for your contacts! EVERYONE should know!

Start the conversation across Sydney, NSW and Australia!

Australian corruption worsened “significantly” since 2012

By Leith van Onselen in Australian Economy

Transparency International has released its latest * corruption index, which reveals that Australia is among 21 nations where perceived corruption has worsened “significantly” over the past eight years.

*Copied below!

From The Guardian:

Australia scored 77 from a possible 100, the same mark as last year. It means Australia has again failed to reverse a longer-term decline of eight points since 2012

Australia is listed as being among 21 nations that have “significantly declined” in the same time period.

The Transparency International Australia chief executive, Serena Lillywhite, said the “corrosive” influence of money in politics was continuing to undermine government integrity.

“What the corruption perceptions index clearly shows is that the murkier the political donations trail is, the more corrupt a country is perceived to be,” Lillywhite told the Guardian…

Australia is among two-thirds of countries across the world that are either stagnating or showing signs of deterioration in their anti-corruption efforts…

Countries that perform well on the CPI gave stronger campaign finance regulation, and broader political consultation, not just listening to well connected individuals and special interest groups,” she said…

Scores are based on perceptions of corruption among experts and business executives. The aggregate score combines 13 surveys and assessments of corruption from a variety of reputable bodies.

*In 2017, Transparency International ranked Australia as having the world’s weakest property anti-money laundering (AML) rules, failing all 10 priority areas.

Since then, the federal government has abandoned efforts to bring real estate gatekeepers into the AML regulatory net.

CAAN: The Morrison Government exempted the Real Estate Gatekeepers from the second tranche of the AML LAWS in October 2018!

LVO:

When combined with various donations and grants scandals, no wonder perceived corruption has worsened.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Image result for photo doors wide open transparency international

SOURCE: https://www.macrobusiness.com.au/2020/01/australia-corruption-worsened-significantly-since-2012/

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  3. Corruption and unsolicited proposals: Risks, accountability and best practices

CORRUPTION AND UNSOLICITED PROPOSALS: RISKS, ACCOUNTABILITY AND BEST PRACTICES

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This Anti-Corruption Helpdesk brief was produced in response to a query from one of Transparency International’s national chapters. The Anti-Corruption Helpdesk is operated by Transparency International and funded by the European Union

Query

What are the corruption risks posed by unsolicited proposals (USPs)? If governments choose to consider USPs, how can they minimise risks, and ensure transparency and accountability in the delivery of infrastructure projects? What are the international best practices in USP policies?

Summary

Unsolicited proposals (USPs) have grown in popularity as an innovative, cost-saving type of public-private partnership. However, the unsolicited, sometimes secretive, nature of these projects and the barriers to traditional competition in public-private partnerships make them vulnerable to corruption risks. This brief details concrete steps governments can take to minimise corruption risk when dealing with USPs during the submission, evaluation, study development, procurement and implementation phases. General best practices include clearly explained guidelines with detailed timelines, opening the project for competitive tender when it has been accepted, establishing clear guidelines for the government and private sector roles, and disclosing details of the project to the public as early as possible to mitigate perceptions of corruption. It concludes with some successful examples of past projects.

Contents

  1. Introduction
  2. Corruption and USPs
  3. Minimising risk and ensuring accountability in USP policies
  4. Best practices in USP policies

Main points

  • USPs are vulnerable to several corruption risks because of their low levels of transparency and competition.
  • There are mechanisms that governments can enact before even receiving a USP to be transparent and accountable about the submission and evaluation process.
  • When proceeding with a USP there are ways that governments can make the tender and procurement process open to competition to eliminate opportunities for patronage or kickbacks.
  • Clear evaluations and specific ex ante timelines throughout the process can reduce opportunities for corrupt coordination and mitigate the public’s doubts.

Authors

Jessie Bullock, tihelpdesk@transparency.org

Reviewer:

Marie Chêne, Transparency International

Date

15/01/2020

Tags

SOURCE:    https://knowledgehub.transparency.org/helpdesk/corruption-and-unsolicited-proposals-risks-accountability-and-best-practices

The Economist does the housing affordability disaster

CAAN: We reckon if we had ‘honourable members’ serving Australian constituents at the Federal Government level … looking to ensure the needs of their constituents … they would enforce the second tranche of the anti-money laundering laws for the Real Estate Gatekeepers (re agents, lawyers and accountants) … that would pretty much solve our problems of housing affordability for Australians … the real estate tours and money launderers would disappear …

And if we had ‘honourable members’ rather than NSW INC, they would protect where we live from being Shanghai’d, and save the remaining beautiful vistas … that too could happen pretty much overnight!

SCROLL down for CAAN Photos of examples of the Awfulizers … cheap and nasty looking developments now across Sydney … built for the foreign buyers … where we had Aussie neighbourhoods with cottages, gum trees, urban bushlands, and parks … not so long ago … pretty much before 2011 …

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CAAN Photo Asquith

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CAAN Photo Melrose Park

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CAAN Photo Macquarie Park

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CAAN Photo Sydney Olympic Park

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CAAN Photo Macquarie Park

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CAAN Photo Summer Hill

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CAAN Photo … the Godzillas of Meadowbank

Awful, aren’t they? And 85% defective on completion … soon to be slums …

LEITH VAN ONSELEN: You don’t “fix” housing affordability by sucking sub-prime buyers into the market and raising demand.

You fix it by implementing policies that lower demand and boost supply. In Australia’s case, this means:

  • Normalising Australia’s immigration program by returning the permanent intake back to the level that existed before John Howard ramped-up it up in the early-2000s – i.e. below 100,000 from 210,000 currently [reduces demand];
  • Undertaking tax reforms like unwinding negative gearing and the CGT discount [reduces speculative demand];
  • Tightening rules and enforcement on foreign ownership [reduces foreign demand];

  • Extending * ANTI-MONEY LAUNDERING RULES TO REAL ESTATE GATEKEEPERS [reduces foreign demand];

  • Banning borrowing into property by SMSFs [reduces speculative demand]; and
  • Providing the states with incentive payments to:
    • undertake land-use and planning reforms, as well as provide housing-related infrastructure [boosts supply];
    • swap stamp duties for land taxes [boosts effective supply];
    • reform rental tenancy laws to give greater security of tenure [reduces demand for home ownership and reduces rental turnover]; and
    • force developers to supply housing for lower income earners via inclusionary zoning [boosts supply of affordable rentals].

MB has actively promoted these reforms over many years. Yet they continue to be ignored, in favour of gimmicks that entrench the status quo.

READ ‘The Economist does the housing affordability disaster’

By Leith van Onselen in Australian PropertyGlobal Housing

January 20, 2020 | 8 comments

The Economist has published an article on the West’s “horrible housing blunder”, which pins the blame for unaffordable housing well and truly on supply-side constraints, combined with inefficient demand-side subsidies:

At the root of that failure is a lack of building, especially near the thriving cities in which jobs are plentiful. From Sydney to Sydenham, fiddly regulations protect an elite of existing homeowners and prevent developers from building the skyscrapers and flats that the modern economy demands. The resulting high rents and house prices make it hard for workers to move to where the most productive jobs are, and have slowed growth…

Over a period of decades, falling interest rates have compounded inadequate supply and led to a surge in prices…

The soaring cost of housing has created gaping inequalities and inflamed both generational and geographical divides…

Those who own homes often become nimbys who resist development in an effort to protect their investments. Data-crunching by The Economist suggests that the number of new houses constructed per person in the rich world has fallen by half since the 1960s. Because supply is constrained and the system is skewed towards ownership, most people feel they risk being left behind if they rent. As a result politicians focus on subsidising marginal buyers, as Britain has done in recent years. That channels cash to the middle classes and further boosts prices. And it fuels the build-up of mortgage debt that makes crises more likely…

Far from shoring up capitalism, housing policies have made the system unsafe, inefficient and unfair. Time to tear down this rotten edifice and build a new housing market that works.

You don’t “fix” housing affordability by sucking sub-prime buyers into the market and raising demand. You fix it by implementing policies that lower demand and boost supply. In Australia’s case, this means:

  • Normalising Australia’s immigration program by returning the permanent intake back to the level that existed before John Howard ramped-up it up in the early-2000s – i.e. below 100,000 from 210,000 currently [reduces demand];
  • Undertaking tax reforms like unwinding negative gearing and the CGT discount [reduces speculative demand];
  • Tightening rules and enforcement on foreign ownership [reduces foreign demand];
  • Extending anti-money laundering rules to real estate gatekeepers [reduces foreign demand];
  • Banning borrowing into property by SMSFs [reduces speculative demand]; and
  • Providing the states with incentive payments to:
    • undertake land-use and planning reforms, as well as provide housing-related infrastructure [boosts supply];
    • swap stamp duties for land taxes [boosts effective supply];
    • reform rental tenancy laws to give greater security of tenure [reduces demand for home ownership and reduces rental turnover]; and
    • force developers to supply housing for lower income earners via inclusionary zoning [boosts supply of affordable rentals].

MB has actively promoted these reforms over many years. Yet they continue to be ignored, in favour of gimmicks that entrench the status quo.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2020/01/the-economist-does-the-housing-affordability-disaster/

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