How did we Australians lose control of Our Housing Market?

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!

READ MORE!

https://www.abc.net.au/news/2020-08-18/house-prices-how-we-lost-control-of-the-market/12566552

Survey Key Points on Young Australians Share Housing hit Hard during Pandemic

Survey undertaken in June 2020

-close to three in four have lost their jobs or lost hours

-one in five share-house residents skipped meals to afford necessities

-around 50% reported reduced mental health

-82% of the demographic are aged 35 or less

-some 50% in insecure work

-a fifth are visa holders  –

Further …  

-a fifth pawned or sold some possessions to pay for necessities; similarly some were unable to pay the rent or mortgage on time

-two in five moved house or changed occupants in their home

-68% transitioned to working from home or working longer hours for the same pay!

And …

-prior to the Pandemic they were vulnerable but now more are suffering with rental stress!

-they are in insecure work within the most impacted sectors of arts and hospitality

obviously JobKeeper and JobSeeker current payments need to be maintained

-and the Pandemic has highlighted the need for more social and affordable housing

with our Youth having the highest unemployment; little savings; and in housing stress with long-term implications!

.

     READ MORE!

https://www.domain.com.au/news/young-australians-in-shared-housing-some-of-the-hardest-hit-during-covid-19-survey-finds-975992/

Little Manly Residents oppose Stuart Street Boarding House

… 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.

Say NO to Boarding Houses in Low Residential Areas on the Northern Beaches

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’

https://www.bartier.com.au/insights/articles/no-more-monster-boarding-houses-in-r2-low-density-zones/?utm_source=Mondaq&utm_medium=syndication&utm_campaign=LinkedIn-integration

READ MORE!

‘Revealed $2.6M Boarding House with 12 Rooms proposed for Prestigious Spot in Manly’

https://www.dailytelegraph.com.au/newslocal/manly-daily/revealed-26m-boarding-house-with-12-rooms-proposed-for-prestigious-spot-in-manly/news-story/bd7012a934f48ad022a108d997477d57

HOUSING STRESS HAS DOUBLED DURING THE PANDEMIC

HOUSING STRESS HAS DOUBLED DURING THE PANDEMIC

WHAT this Report leads one to question is why …

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?

View:

https://www.abc.net.au/news/2019-06-07/federal-politicians-payrise-backbenchers-morrison-albanese/11189016?fbclid=IwAR2JJUU7MVVuBKrmYhttyBvb3toAalINdppXNjiSmW87JzPXVyePeDpVDys

IF these JobMaker and JobSeeker payments are withdrawn … which is looking likely … how soon before Australia falls off an economic cliff?

From a public health crisis to an economic crisis likely to become a housing crisis

READ MORE!

Proportion of people who can’t pay their rent or mortgage doubled during pandemic

https://www.abc.net.au/triplej/programs/hack/young-people-housing-stress-coronavirus-covid-19/12404114

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CAAN Photo: Queue outside Chatswood NSW Services; along the street and around the corner; May 2020

Build-to-Rent … To Buy … And Own!

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 to more 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!

‘HomeBuilder Residential Housing Stimulus Package’

https://theurbandeveloper.com/articles/home-builder-residential-housing-stimulus-package?fbclid=IwAR2ar_1Hti61gNb3oqi_T6SmwwPZshnZDxVnLqD-w91V_NGAn6RGwHfz9lI

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 … ??

READ MORE!

build-to-rent

IVANHOE ESTATE DEMOLISHED … to Make Way for new O/S Residents …

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CAAN Photo: That’s how Ivanhoe Estate was before the wrecking ball came in to finish it off!

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!

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CAAN Photo: June long weekend the Ivanhoe Estate apartment blocks gone! Parkview 2 is rising in the background. That too had a nasty story behind it with tenants given little notice to get out! Who for? Cough … cough … Were some tenants left homeless? Why the haste when this development took years to eventuate?

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?

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CAAN Photo: The top end of the Estate facing onto Herring Road

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!

HEARTLESS!

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CAAN Photo: Praps it has been so heartless that some former tenants felt the need to express their feelings … ‘RIP FIENDS’ …

Read more!  Ivanhoe public housing estate at Macquarie Park set to be demolished

https://www.dailytelegraph.com.au/newslocal/northern-district-times/ivanhoe-public-housing-estate-at-macquarie-park-set-to-be-demolished/news-story/7838da778bbfe96feb529fca13237901?fbclid=IwAR0ebCf4Ybwsc_GGYGhERjFYzoAllzpBajfvFj3uIHasnDxxnpU6ax9jWSg

Nickey Hutley from Deloitte Access Economics speaks to Rachel Pupazzoni about the $688M HomeBuilder Package

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

VIEW THE INTERVIEW WITH NICKI HUTLEY:

https://www.abc.net.au/news/programs/the-business/2020-06-04/extended-interview-with-nicki-hutley/12323018?nw=0

Extended interview with Nicki Hutley - The Business - ABC News

ECONOMISTS incite Governments to buy unsold apartments to boost stock of Affordable Housing

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CAAN Photo: Ivanhoe Estate, Macquarie Park at May 2020 former Public Housing Estate to be redeveloped for private residential with one third allocated for Social Housing

ECONOMISTS incite Governments to buy unsold apartments to boost stock of Affordable Housing

Following Welfare Agency reports …

-some 600,000 Australians lost their jobs in April 2020

A new report recommended …

-public funds in private unsold apartments could create affordable housing

-prior to the Pandemic more than 50,000 in the queue for social housing

-using our taxes to buy apartments could arrest house price falls; and restore construction (aside from high-rise?)

-a Central Housing Bank could bring 30,000 affordable homes across Australia’s 20 largest cities in its first year

-more than 200,000 approved dwellings in Sydney alone which aligns with the need for 200,000 social housing homes (ACOSS report)

WOULD these dwellings described as ‘Affordable Housing’ be for the rental market?

TO what standard have these apartments been built? Little seems to have changed for the better to date … even after the investigation by David Chandler ..

WHY has NSW INC struggled to implement the building industry reforms recommended by the Shergold-Weir Report over two years ago … and that of Michael Lambert?

Related Article:

NSW Building Industry Watchdog warns Phoenix operators not to manipulate the NSW government’s construction push to keep the economy running

https://caanhousinginequalitywithaussieslockedout.com/2020/04/16/nsw-building-industry-watchdog-warns-phoenix-operators-not-to-manipulate-the-nsw-governments-construction-push-to-keep-the-economy-running/

READ MORE!

Governments urged to buy up apartments to boost affordable housing stocks

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CAAN Photo Icon and Romeciti high-rise residential apartments in Macquarie Park May 2020

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IS the Real Problem Our Belief System? Meanwhile …

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CAAN Photo: Chinese Sydney Property Weekly; December 2019; a number of like publications issued weekly

THE real problem is our belief system … because …

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

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CAAN Photo: Macquarie Park now consists of many RESIDENTIAL High-Rise PRECINCTS that have replaced the Business and IT Park! Developed a mere 30 years ago; gone jobs for local Australians


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 turningto 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

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CAAN Photo: the foreign buy-up of Australia’s domestic housing has led to massive demographic changes across many Sydney and Melbourne suburbs. The overseas buyers not only can gain a Permanent Resident Visa, Medicare benefits, BUT access to numerous other Visas including Student, Family, Parent, Grandparent, Guardian …


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?

WHAT about…


-earlier reports about a wealthier smaller Australia

a clever Australia investing 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!

View 7.30: ‘How life might look after lockdown’ … where the discussion begins with Jeremy Thorpe, PWC Chief Economist at about 4.30 minutes in

https://www.abc.net.au/7.30/how-life-might-look-after-lockdown/12236192

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Jeremy Thorpe on Twitter:
Jeremy Thorpe@jeremythorpe
·Appearing on @abc730 tonight discussing new @PwC_AU research – Australia Rebooted – and discussing what #recovery from #COVID19 might look like for the Australian economy

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FROM DATELINE … What has Robbed New Zealanders of the Dream?

DRAFT

Dateline

Season 2020 Episode 5  — What Happened To The New Zealand Dream?

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New Zealand is in the grip of a housing crisis. Dateline meets the struggling families living in one of the world’s most unaffordable cities, and the man helping the homeless become home owners.

AND THEN SOME …

HOW has New Zealand a progressive egalitarian place where left leaning Australians looked across the Tasman with envy … with a young feminist Leader with a social conscience who came to power promising kindness and compassion … so you might be surprised to learn that inequality is rife.

WHAT is impeding the Adern Government from fulfilling their promises?

The average house in Auckland now costs over a Million, and the average rent is almost $600 a week

The New Zealand Housing Crisis is pushing those most vulnerable into a desperate situation.

The fallout from the CoronaVirus Pandemic only worsens the situation.

With a leader who talked about compassion which is now only rhetoric when on the ground there are families seeking emergency care from New Zealand’s welfare system.

The team are on the frontline of the Housing Crisis – a volunteer organisation operating in Auckland for 10 years now.

The majority of the people they work with have been squeezed out of the rental market; they can barely afford the weekly rent or maybe homeless!

Auckland has become one of the most unaffordable cities in the World ranked behind Sydney and Melbourne.

Families like these (as shown) can’t afford to buy food! On the minimum wage housing costs 70% of their income. When prompted by the Advocate they reply that after paying for rent and bills they only have $100 a week left.

People on benefits can get an emergency grant but these need to be repaid creating a debt trap!

The worker interviewed has had personal experience of homelessness! She said:

‘I have been homeless in the past; stayed in my car for two weeks until I got into a boarding house.’ She was asked what was that like and replied:’It didn’t feel good; it wasn’t a safe environment to be in being homeless. It’s not a safe place to be at all.’

Vulnerable families are struggling to keep a roof over their head with thousands of households on the waiting list for public housing. With 8000 homeless going without a safe place to call home!

Yesterday this man was facing a night on the streets. AAAP helped him access emergency housing.

The government has just agreed to increase benefits by $25 a week as part of its Covid 19 support package but last year it ignored an expert report recommending the benefit be increased by almost 50%.

Thousands of people are homeless. One of Labor’s policies is fixing the Housing Crisis. To build 100,000 homes over 10 years; the government promised affordable housing.

But there were problems from the start.

The government fulfilled their promise *** by stopping foreigners from buying existing homes.

70% of the homeless population live in overcroweded houses. They are called the invisible homeless people camping out or living rooms of relatives ***

Eight people squeezed into a small public house with mum and dad forced to sleep in the lounge.

During the CoronaVirus Pandemic overcrowding will pose a serious risk to public health. There is little hope of a short term fix.

These people have been on a waiting list for a bigger home for three years. One of the boys has a dream to own a house. He said ‘it would feel like you could bring your family over if you want. You don’t have to hide – this is your own property you own that you can do it.’

But home ownership has been declining in New Zealand for years. Where the Landlord is King.

An investor/landlord was interviewed; his plan is to buy a house each year so that he has sufficient income to do what he wants. He said any successful landlord does not get rid of a tenant unless he has a really good reason.

He then indicated the homes that he owns; five homes on the one block.

He wants to make a good living off the rental income; he does everything himself. (maintenance)

His tenants stay a lot longer than they used to with less options probably more difficult for them to find another property.

One of his tenants said she used to rent a garage for $450 a week to live in before moving to this house. ‘We were desperate at the time – nobody would take us on; that was about a year ago; stayed there for

about two years.

Four living in a garage must have been cold in Winter? She described every time it rained water would come through.

In response to the CoronaVirus the government has announced a rent freeze but before the Pandemic some landlords were taking advantage of the Housing Crisis.

But ‘Peter’ has a Plan to help tenants gain more rental security offering a ten year lease.

It is giving tenants the room to do what they want to do with their home.

The landlord would provide the shell of the building; the tenants would rent the property and provide their own flooring, light fittings etc; the model in place in Germany and Scandinavia.

He said ‘that is an option I would like to see and I think it would make a difference to the housing market. My tenants are secure now …. when I die they are going to be looking for a new home, but there is little political ….

for any significant reforms to the housing market.’

The winners are the people already on the property ladder. For young people the crisis will play out for years to come!

New Zealanders without home ownership – it is seen as something that makes you an adult. When you don’t you have a sense of being disconnected; of not achieving of being a failure.

The man who mortgaged his own home to find a unique solution for families ….

New Zealand housing ciris

moving here for affordable housing … a … town in one of the country’s most depressed regions and ……………………….where 60% moved in the rural areas and moved out of the cities.

The reversal of the 60s urban drift where60% moved to the rural areas and moved out of the cities

The reversal in the 2000s now plroviding rentals available so many of the families are living in makeshift cabins, buses …. to living in overcrowded conditions.

This is the gateway into property….

The Maori community leader mortgaged his own house to buy this land in the hope to give the community a new lease on life.

He then found abandoned derelict public houses in Auckland and trucked them up here, and created a little suburb where there were farmlands. They had been sitting in Auckland ***

He

Ricky has an unconventional plan for addressing the housing crisis.

The first step involves ………….. homes and making them habitable again.

Ricky said: ‘You have to be able to see the goodness in everything.’

Oodoo got a house from the Trust. …

he has given us a home; put a roof over our heads, and I’m very grateful for that.

The second step of Ricky’s Plan involves housing families but it’s about more than just putting the roof over their heads.

Ultimately the ….. is to take people who are homeless turn them into home owners over 14 years.

Families pay $275 a week

Most of which goes to paying 160

cost of ….

turns around a historic decline in Maori home ownership from …..

dependence yhousing in ….

We were living from house to house with out suitcases Leon and OOdoo originally from Papua New Guinea tried making it in Australia but came back when it didn’t work out.

When they returned there was a lack of rentals …. with two kids in toe.

Nobody wanted to rent to a couple with two and three children. They appolied for social accommodation that links

NGO and she put us down on a waiting list and asked us what we were going to do if we didn’t have anywhere to go, and I told her we would go and live in a tent with our kids =.

They were provided emergency accommodation, and the opportunity to join the home ownership program

WHAT it appears this excellent program has not considered … sadly it looks like because the Ardern Government has not been able to honour all its promises, and may not be returned … that New Zealanders may well return a conservative Government that helped create this predicament in the first place with their policies!

It was during their term that the visa holder money launderers bought up New Zealand domestic housing, and house prices consequently escalated with the high competition

VIEW:

https://www.sbs.com.au/ondemand/video/1709195843583/dateline-what-happened-to-the-new-zealand-dream