10 THOUSAND PLACES ADDED TO GUBMINT’S FIRST HOME LOAN SCHEME …
BUT how can that be enough?
THE AUSTRALIAN: Budget 2020: New homes key to our lost population
WELL … WELL … there you have it in the Headline!
BECAUSE … High Immigration and Permanent Resident Visa Manipulation have locked out Australian First Home Buyers …
SUCH Permanent Residency Visa lure has drawn hundreds of thousands of overseas home buyers since the late 1990s when the Howard Government made changes to our Immigration Policy for the Chinese Middle Class to invest in our education and real estate to gain “flexible citizenship” …
AND since then the vast range of Visas offering Permanent Residency when Temporary Visa Holders bought our ‘new homes’ …
SUCH INFLUX rendered aspiring Australian FHBs locked out … by the overseas competition and ‘hot money’ to boot ….
TONIGHT on the ABC NEWS Jason Clare, Shadow Minister for Housing and Homelessness, was interviewed … but sadly no transcript or video can be found!
THE GIST of what he had to say was that this was nowhere near enough … a mere extra 10,000 FHBs eligible for a home loan with a 5% deposit … he said compare that to the support given by Labor following the GFC …
FURTHER that all aspiring First Home Buyers should be given the benefit … not a mere extra 10 thousand!
SO why only an additional 10,000 places for a scheme allegedly designed to make it easier for first home buyers to purchase a home with a 5 per cent deposit?
WHAT other Plan does the Federal Government along with the MBA, the PCA, the UT, the UDIA, and the Property Investor Lobby Groups have waiting in the wings?
WITH their appetite whet for more?
WHEN concrete form workers are atop the BRW Rich List … is this about ‘wealth envy’?
IS this about this Cohort boosting their coffers through Build-to-Rent? Will it be a modern day feudal system … rendering a whole Cohort of young Australians to become life-long tenants, is that what this is about?
OR will the Morrison Government ensure that the avenue will be there for
CAAN Photo: 10 townhouses under construction where a home was demolished
‘It may be time to revisit the credit controls used in Australia in the 1950s and 1960s, which directed investment into new rather than existing housing and helped increase home ownership.’
That is what Labor proposed prior to the last Election! To limit negative gearing to new housing. Investors would only deduct net rental losses from ‘new homes’ from their wage income.
And all investments made before the changes would be grandfathered to claim losses against wage income.
Here the authors go even further!
‘Tax advantages extended housing investors, such as negative gearing and discounted capital gains taxes, should be scrapped. ….
Challenging vested interests will be hard, but the current downturn offers hope.’
We note no mention of ‘foreign buyers’ who have taken advantage of financial returns from buying our real estate with ‘hot money’ often through a Proxy buyer.
Perhaps despite so much material raising these concerns with sadly no changes by the Morrison Government apart from exempting real estate gatekeepers from the AML Laws (in October 2018) … the authors have chosen to focus on the incumbent rentier class? Who until recently were outnumbered by those from overseas …
It is not only the ‘tax advantages’ that foreign buyers seek but ‘Permanent Residency’… for now international travel is very limited … but buying online still maintains … now targeting homes sought by Australian First Home Buyers!
… there are more people wanting this style of accommodation.’ Said that with the vested interest …
WHAT this really means is that AUSTRALIANS, as we know, have been priced out of HOME OWNERSHIP …
… by both the investment and property sectors … and money launderers …. and in order to live close enough to where they work it is proposed that AUSTRALIANS have to board, or become life-long tenants in Build-to-Rent schemes … that are not so affordable …
HOW IS THAT ON?
Residents in low rise residential areas on the Northern Beaches have formed a GROUP to fight back.
WHY not do the same in your area to stop this before it starts? To forever change where you live ….
IMPORTANT! This is what the Group writes has happened:
‘ … due to current SEPP loopholes. Northern Beaches Council overwhelmingly voted for change on 27/2/18. They want affordable housing but they want to have a plan and the infrastructure in place to support any changes. ….
We are against Council’s Planning processes being by-passed.
We ARE against State Government Laws and Policy being exploited by opportunistic developers under the guise of affordable housing as “boarding house” applications.
OUR MISSION Our goal is to prevent Developers building what they term “boarding houses” under the State Environmental Planning Policy (Affordable Rental Housing) 2009 (AHSEPP).
These developments are not affordable and they are not traditional “boarding houses”. They are micro-apartments rented out at $450-500 a week for a term of 3 months. ‘
They are sold in 10 years for $500k each. They are built in quiet residential streets on R2 residential low density zoned blocks (that’s your next-door). They are 29 square feet. They can be built anywhere within 400 meters of a bus-stop on the Northern Beaches.
Parking is insufficient at 1 spot to 5 apartments. They don’t have enough green space. They don’t meet community needs and destroy quiet family streets.
Again they are NOT affordable.
OUR URGENT FOCUS To work with our Community, Council and the State Government to have the State Environmental Planning Policy (Affordable Rental Housing) 2009 (AHSEPP) revised.
This is to ensure Developers don’t circumvent Council designated planning and process through appeal in the Land and Environment Court. … ‘
AND … view this article: ‘No more Monster Boarding Houses in R2 low density zones’
Young people appear to have little prospects for employment apart from jobs in hospitality and retail. What brought this about?
We can think of some reasons. They include the Liberal Coalition policies inviting:
-Visa workers who accept low wages to gain ‘permanent residency‘
-the demise of TAFE
-employers having access to cheap labour from visa workers
-the loss of manufacturing for cheap imports
-an economy based on high density residential development esp. mixed-use development of shops, cafes and warehouses, childcare on lower floors
-thus expansion of the retail and hospitality sectors
WHAT this report does not reveal is why those aged 75 and older may own their own home is because of their age; 40, 50 years spent paying a mortgage; during that time they paid their full taxes to cover the cost of their parents aged pensions … they enjoyed job protections, good wages and conditions through Union membership. And there were more job opportunities with a bigger range of industry …
-currently though more older women are finding themselves homeless due to insecure work; less employment continuity due to child rearing; marriage breakdown and/or domestic violence
KEY POINTS from Professor Gray’s research …
-1 in 7 Australians struggled to pay rent or mortgage payments during Pandemic
-housing stress has doubled to that of 3 months earlier
-44% of young people could not meet rent or mortgage repayments
-a relationship between age and not meeting housing payments on time
-young Australians largely employed in retail or hospitality * the hardest hit sectors by the Pandemic
-young people subject to lowest wages growth and consequently little savings
-less than 2% of those 75 and over struggle to pay rent or mortgages
QUESTION why won’t the Morrison Government come clean on what their plans are for JobKeeper from September with a review of payment now underway, and what of JobSeeker?
Rather than giving the victims sufficient payment to sustain life, does this Government prefer to look after itself with a pay increase?
In May 2020 Sydney’s rental market was described as ‘very much a tenants market right now, it’s probably the biggest tenants market I’ve seen in my last 20-years’, said Louis Christopher, Managing Director, SQM Research.
THAT no doubt was due to the huge job losses from the Pandemic as tenants had to move out … return to family … become homeless … consequently Landlords had to cut rents to find new tenants …
WILL this lead tomore SUPER FUNDS investing in not just Build to Rent BUT Build to Rent to Buy?
IT appears that AUSTRALIAN SUPER is leading the way by investing 25% in Assemble Communities, an ‘affordable build-to-rent developer’!
WITH a Whole Cohort of Australians locked out of home ownership prior to the Pandemic … that this HOUSING AFFORDABILITY CRISIS has only worsened now!
THIS would seem to be the logical solution to the housing affordability predicament. Recall years ago Public Housing Tenants were able to buy their home over time!
WILL the Morrison Government invest and transform the tax system to enable this sector to thrive for Australian First Home Buyers?
BECAUSE this Government has come in for much ridicule for their “HomeBuilder” scheme …
Note how Geoff Hamner, Brendan Coates and others sum it up!
AND from Michael West: ‘HomeBuilder: a sneaky plan for the Coalition’s franking credits crew to collar the pension?’
Developer, Assemble Communities wants 60 to 70% of their projects to be affordable housing.
WILL the Morrison Government join Australian Super, and invest?And would this Government ensure that only Australian citizens could access this housing?
ACROSS SYDNEY and MELBOURNE … many suburbs have had a complete demographic change through foreign investment … with obvious consequences … and if this Cohort of Australians locked out of the housing market were in fact given the opportunity to enjoy HOME OWNERSHIP … that this might create better social cohesion!
AND like housing projects would create jobs and boost our economy …
The model allows tenants to rent for five years to progress to buying at an agreed fixed price when they entered the lease.
-fund members in receipt of a good return
-affordable housing for Australian workers
The difficulty to be overcome is the extreme financialisation of land!
-build to rent developers are at a disadvantage compared to mum and dad investors in private rentals
WHAT is needed is for the Scomo Government to deliver incentives to increase the growth of this sector and hence reduce pressure on the investors to reduce the cost of these apartments
THIS would ensure the viabililty, profitability of the property sector and benefit Australians locked out …
ISN’T it time to implement and enforce the second tranche of the Anti-Money Laundering Laws for the Real Estate Gatekeepers … ??
IN early April 2020 the NDT for the Daily Telegraph did a sympathetic story for the remaining tenants of Ivanhoe Public Housing Estate …
IVANHOE ESTATE was an architect designed Public Housing Estate of apartment blocks and townhouses set in amongst Australian bushland.
Demolition was to begin that week of 6 April even though some residents were still waiting for a replacement home!
The main road that cuts through the estate formed a community for these people over a mere 25 years before they learnt of their fate. It was a happy community conveniently located to the University, the Macquarie Park Shopping Centre, the Business and IT Park, with bus connections across Sydney! And modern housing!
The Liberal Coalition seems bent on demolishing any development aged more than 20 years … no matter that it was built to last as with the Bicentennial Projects of the stadiums and soon the Powerhouse Museum!
Ivanhoe demolished for two thirds private redevelopment … to dovetail with the Federal Government policy enabling developers to market housing projects 100% overseas particularly in China.
CHINA is now discouraging its people from returning to Australia … however the private redevelopment here would have already been purchased … will they onsell?
Perhaps it has now dawned upon Australians that they are being moved along … to get out of the way … whether it be for Public Housing demolitions … or suburban communities rezoned for higher density for new ‘Permanent Residents’ to launder their ‘hot money’ …
IT would seem that since the NSW Liberal Coalition has largely – if not entirely – demolished our Public Housing that on this occasion the Social Housing Sector have managed to get a sizeable share of the 3000 dwellings … with 950 Social Housing! And 128 affordable rental homes allocated … said to all blend with the private development …
… admittedly this is a big stride for this government that normally only provides 5% affordable and/or social housing … because now it really has to do something about homelessness …
Some residents were still on site in 45 homes because they had not been provided with a suitable alternative. The estate had only celebrated its 25th birthday when the tenants learnt of the Government’s plans …
Now after 28 years living in a home, and in a happy community it would be very distressing to be flung off in another direction, and to lose your community!
Read more! Ivanhoe public housing estate at Macquarie Park set to be demolished
THE MORRISON GOVERNMENT HAS UNVEILED ITS $688M HOMEBUILDER PACKAGE: NICKI HUTLEY IN AN INTERVIEW WITH RACHEL PUPAZZONI: THE BUSINESS
THIS week the Government’s Homebuilder Package was unveiled to keep the construction industry hammering along …
-the sector supports more than 1 million jobs; facing a 40% fall in work after current contracts are completed
-owner occupiers can apply for $25,000 towards building or renovating their homes
-but they have to spend $150,000 to get the grant
-new builds are capped $750,000
-renovations can be made if the home is worth less than $1.5 million
-eligible builders will have to already be registered which has a tight 6 month timeframe
CONCERN the scheme does not go far enough:
Nicki Hutley made these points:
– the higher end of income earners; people in the top 90% most likely to be able to afford this package; they will have to spend $250,000 or $125,00 of their own money
-those able to do the renovations; obviously a lot more if you are going to build a house
-if you have a total package of $700,000 max. income of $200,000; it is unclear if you have enough money or whether the value of the home build in big cities where people have higher incomes will meet the criteria
Rachel: The government is forecasting it will receive about 27,000 applications
If this package is targeted towards people on higher incomes yet we are in a recession
-Nicki in response said that many will be nervous about their job; where the economy is going; people will put renovations off; some may view it is nice I will get an early Christmas present from the government of $25,000
–but the size and scope of that spend is not a sensible decision for most to make
-it will tweek some people over the fence; but the government is not likely to get the 30,000 number they are thinking
Rachel raised the issue that there is quite a bit of criticism because there is nothing for public or social housing
Nicki in response:
–in my opinion the government has totally missed the mark; think about the chronic issue of housing affordability, and affordable housing, social housing, the need for refuges for domestic and family violence
–a one in a century opportunity to use stimulus to do excellent social good; not to take taxpayers money to be put in the hands of middle income or wealthier families but to stimulate the economy to benefit more people and not just the few those least likely to need that support
–providing lower cost housing for most people; community housing model needs government support by granting land
-giving additional grants like the Rudd Government; it did stimulate some spending
–we can support that sector to provide more housing for more people who cannot access any sort of housing
–the levels of homelessness are rising particularly older women; this is the sector we need to support the most
-in normal circumstances this would add to house prices as we have seen with first home owners grant in the past
-because the market is so soft; difficult to say whether it will get passed through and see a rush of people
-clearly a rush on the sector in the next six months will push up prices unnecessarily
-it would be unusual if we did not see some upward pressure
-it is going to have to be managed very carefully; builders will have to be licenced; a good thing
–obviously will have some adverse effects
AT CAAN we are seeing and reading of more Economists seeing the poor policies of this Government for what they are … noticeably now since 2017.
HAS the ‘penny dropped’ that with high immigration, visa manipulation and money laundering that a whole Cohort of Australians are being replaced by this ‘Silent Invasion’? Not only in the housing market but the jobs market too!
HAS the real estate tourism forced out … the Economists extended families, friends, neighbours … to live as much as 60, 80 Km from their workplaces … and some have lost their jobs … even become homeless!
There has been much media for some time targeting Baby Boomers for the increased house prices. Has the media been forced to overlook this Silent Invasion of the Visa Real Estate Tours; the vast range of Visas encouraging foreign acquisition of Australia’s residential property; the FIRB ruling allowing developers to sell 100% of ‘new homes’ to foreign buyers? … and …
-the exemption for the Real Estate Gatekeepers from the second tranche of the Anti-Money Laundering Laws by the Morrison Government in October 2018! This tranche had been shelved for some 12 years prior!
Back in May 2017 Nicki Hutley was on the panel of a Forum run by the Fifth Estate on Housing Affordability where CAAN raised the issue of foreign buyers; that it had been reported that only 11 per cent of new homes were bought by foreign buyers; but that the real percentage was concealed by the role of the onshore Daigou; and that the FIRB ruling of 2008 implemented in 2009 allowed developers to sell 100% of ‘new homes’ to foreign buyers. This was Nicki’s response:
Nicki Hutley: We mapped this a while ago and it has obviously increased significantly in the last couple of years. But it is not the whole story. It’s an element of it. All of these things, I think with housing affordability, one of the things I was looking forward tonight was not getting bogged down in one thing like negative gearing but actually looking at the bigger picture.
All the drivers of demand, all the drivers of supply, and looking at it in a holistic way because there is not one silver bullet. It’s not going to be solved overnight and lots of different pieces of the puzzle need to be moved together. Yes, there has been a significant increase in foreign investment in the past couple of years. Yes there are people getting around guidelines, although those guidelines have been tightened up since the FIRB was under review.
Yes, there will always be people who get around the system but they are a relatively small proportion of the population. And the only thing we can say about that, is that if there’s development going on that is precluding other development going on …
If new development is being funded by Chinese and occupied by Chinese, it is not affecting the net impact on Australia. It’s only if that is stopping additional supply coming onto the market – though given that the construction industry is at capacity then there is good reason to suggest that that is in fact the case.
“It’s not going to be solved overnight and lots of different pieces of the puzzle need to be moved together.” – Nicki Hutley
LAST NIGHT ON 7.30 PwC Chief Economist, Jeremy Thorpe … at about 4.30 minutes into the report … talked about:
-creating a growth economy not fortress Australia -that the growth economy largely based on immigration will put us back on track quicker, and will generate billions more
ISN’t it a shame these so-called policy influencers seem to still …
-believe in the ‘trickle down’ economy -believe in the forever growth economy
These rusted on capitalists seem to have failed to understand it is:
-not always about them and their precious never-ending desires for more
–the Earth’s resources are finite despite their best efforts to deny this reality
IT was quite clear the battle-lines are already being drawn to counter some of the prevailing views following the failures of our current structures to deal with a major health, social and economic problem caused by an imported virus
These opportunists see it as their duty to warn against Australia turning … to pivot in a direction:
–away from being completely open to the whims of foreign markets, companies and foreign governments
-that differentiates us, that we can chart a course that is about doing things for ourselves
-and not being so reliant on overseas supply chains for just about everything!
They infer dangers lie ahead if we do, even using the label ‘fortress Australia’ links any such thoughts -with a negative sentiment
–suggestive of xenophobia
-less valuable…and so on
BUT what about those who think otherwise?
THE 7.30 report didn’t cover a point of view that explained what would happen if Australia did more for itself, that there may be merits derived from having a more modest immigration intake, where was the balance?
-earlier reports about a wealthier smaller Australia
–a clever Australiainvesting in itself, that it’s not just about
.digging holes in the ground .educating foreign students .selling our domestic housing to foreigners .selling anything and everything we once owned to foreigners; the money that flows in .not being clean and our government not showing any interest in knowing about it .that our real estate continues to be an international hotspot for money launderers and still it seems THAT is being tolerated … (Real Estate Gatekeepers exemption from Anti-Money Laundering Laws October 2018)
THAT IT CAN BE ABOUT DOING … MAKING … CREATING HERE IN A SUSTAINABLE WAY!
View7.30: ‘How life might look after lockdown’ … where the discussion begins with Jeremy Thorpe, PWC Chief Economist at about 4.30 minutes in