’Australians trying to crack into the property market are facing the extra hurdle of competing against mystery foreign investors, according to corporate transparency experts and the federal opposition.’
There have been calls for a public register of ultimate company owners since 2016 …
BUT is that enough?
The Morrison Government has not committed to such a register!
Labor has not yet committed to implementing such a register if it wins the next election … obviously it is keeping its powder dry following the dirty LNP coalition campaign in 2019 …
The Pandora Papers have revealed how offshore business structures are being used in Australia to conceal corporate ownership.
This is impacting our Families … and YET we need to provide more proof of identity to get a library card than what is needed to register a company in Australia.
IT is not only about multimillion-dollar purchases, but Australians are unaware of who they are competing with when trying to buy a home because real estate agents, accountants and lawyers are not required to report a suspicious transaction like the banks!
This is because the Morrison Government exempted these gatekeepers from the second tranche of the Anti-Money Laundering Laws in October 2018!
And this invasion really distorts the market! Treasurer Josh Frydenberg only indicated that work was underway to establish a register in the future …why be so vague?
AND despite the Pandora Papers now being public there was nothing further to add!
Shadow Treasurer Jim Chalmers said:
“Every time a wealthy, powerful, influential person gets away with these kinds of practices, ordinary working people have to pay more.
“That’s why we need to do what we can to try and stamp it out. That begins with transparency.”
Help keep family & friends informed by SHARING our questions and this article!
‘That Howl of Despair is the Sound of Housing Dreamsbeing Dashed!‘ by Greg Jericho!
What a mess … yet another one …
… Home ownership for those now aged 25 – 34 is down to 40%
By the end of 2021 house prices may have risen by 40%
-wages will be lucky to grow by 2%
Michelle Bullock Assistant Governor RBA noted:
“if rapid price rises ultimately prove to be unsustainable, they could lead to sharp declines in price and turnover in the future”.
And help to keep others informed by sharing this article please!
It appears that our young people have been set up by wealthy property investor lobby groups for life-long tenancy either through private rentals of old houses/units or the current move by this lot for Build-to-Rent for alleged luxury apartments with facilities to take even more of their incomes! Please consider sharing so others know!
WHAT CAAN Commentators had to say about this:
-**Reserve Bank governor Philip Lowe says he understands concerns about rapid house price growth, but it’s helping household wealth to grow. ***……😆…😂…🤣, TRUE, but only for those that have homes. …😫. I like the bank governor, but at times he can come out with some doozies,………..but he also said, ***”While it is true that higher interest rates would, all else equal, see lower housing prices***….TRUE too, and that’s what’s been lacking. We have fuelled this housing affordability crisis via ultra-low interest rates. We need higher interest rates, and we need lower house prices. Furthermore, we must always prescribe to the idea that the purchase of a house must always be for the sole purpose of providing for a HOME before it can be entertained as use for WEALTH creation.
-Scotty’s got a ‘Wealth, War and “Freedom’ election to win..
–Community Action Alliance for NSW Just wondering if the powerful lobby groups for investors hold sway over ‘the Governor’ with so much of their money tied to our banking system? It would seem so! With their members: the tradies, the mums and dad investors, the doctors, the dentists, the bakers, the uber drivers, the fresh fruit salad bar operator, the proctologist, the goodfellas all enjoying considerable tax benefits!
-We have a scandalous system called *negative gearing*, the purpose of which is to subsidise those that have the fortunate means to earn more than the poor mug next door that can’t. If you keep this phenomenon in mind every time this issue of housing affordability comes up,…which by the way, is all too often these days,…coupled with ultra low-interest rates that purposefully target investors you will understand why we are in the mess we are in.
-” Home ownership for those now aged 25–34 is down to 40%.” Will never see this headline from Realestate or Domain amongst all their breathless ”New suburb price record shattered!’ spiels..
DAILY we hear reports that it is the very low interest rates and government grants that have pushed up house prices. TRUE!
AND the impact of Tax Benefits for investors of Negative Gearing and Capital Gains Tax … sadly the ‘Silent Majority’ who largely don’t benefit were spooked by the dirty 2019 Lib campaign … TRUE!
BUT we figure there is even more to it than that!
CONTEMPLATE the impact of … the Residential & Commercial Market Research companies (we won’t name them) but daily we hear reports from them that:
-house prices are rising daily; weekly; monthly; and predict also in early 2022
-the consequence of this is that sellers hold off! They want even more!
.this means the supply reduces and maintains the hike
COULD it be that meanwhile Real Estate Agents suggest to prospective sellers to hold off … that house prices are going to increase further, and that they (the agents) have enough listings currently …
THIS in turn means that if there is another hike following sales by these sellers … that they too may well be confronted with being priced out!
SADLY those who can still afford to buy are looking in a market that is largely made up of “Crap” … not only are they unaffordable, but many have termite damage up in the framing and roof timbers, concrete cancer in the slab, drainage and waterproofing issues, faulty electrical wiring, leaky roof …. and so on!
WHERE will all this end but in tragedy not only for purchasers who will later have to meet higher mortgage repayments and expensive restoration works, but sadly for a whole Cohort of Australians denied security of a home! To be life-long tenants!
IS that the Plan? What next for the Investor class? Could that be Build-to-Rent? It would seem through these price hikes they have a Whole Cohort of Australians captured;locked out of Home Ownership!
MEANWHILE the Liberal Coalition policies also remain in tact that allow foreign buyers to buy our housing and gain permanent residency, and to launder hot money too! The Morrison Government exempted the Real Estate Gatekeepers from the AML Laws in October 2018!
THE RBA Guvnor has gone as far as he can go … and it would seem it is now up to the ScOmO Guvmnt to implement … at the very minimum … grandfathering Negative Gearing … yes, you B……s!
In the leadup to the 2019 Election the Labor opposition proposed a policyto open the doors for First Home Buyers and others locked out of Home Ownership … without penalising Investors … they proposed GRANDFATHERING NEGATIVE GEARING!
Hence the Liberals ran a dirty scaremongering campaign … of lies as revealed in ‘Are any of the Coalition’s claims of new Labor taxes actually true?’
What GRANDFATHERING means … perhaps it was beyond the grasp of some!
‘A grandfather clause (or grandfather policy or grandfathering) is a provision in which an OLD RULE CONTINUES TO APPLY to some existing situations while a new rule will applyto all future cases … ‘.
Thus it was a COMPROMISE which allowed investors to maintain their investmentsin ‘established’ housing, and allowed them to continue to grow their property portfolios by investing in ‘new homes‘.
This too would ensure the growth of the development sector with more homes being built; more jobs and more $. And it opened the door for Home Buyers to buy an ‘established’ home, it increased the housing supply for them!
However, now we have a predicament where HOUSING is more UNATTAINABLE! FFS!!!
AND as George writes …
‘If you explain this to a CAPITALIST MINDSET, they don’t get it. Indeed, many generally don’t understand the ramifications of NEGATIVE GEARING, because they don’t see how it affects others.
They don’t see how it would adversely affect them, actually, if suddenly their earning capacity ceases. Negative gearing is a form of TAX PERK, a bad one …. the more you earn, the greater the benefit of the perk. That sits very well with them, and so the quest for more and more …
They couldn’t give blooming rats how it affects anyone else but themselves.
Who’s to blame? We are, of course, the *SILENT MAJORITY* …….
Many were scared, SPOOKED!! And voted last time around for NG to stay in place!
We cannot afford to let the likes of JOSHY BOY and ScOmO scare the masses again. It is a real scourge on housing affordability …..
As the great YANIS VAROUFAKIS has said, too much emphasis is on HOUSING, and he was DEAD RIGHT. The fact that you can earn above certain brackets on the wage scale entitles you to a larger amount of the TAX PERK?
While others can’t? Can’t even afford to buy a HOME?….. …oh dear me. It is MADNESS.
VIEW what Yanis Varoufakis had to say about Australia’s emphasis on Housing on
Q & A:
FRANKING CREDITS is another … a LOOPHOLE, let’s not forget that one …….
It is very CROOK.
READ MORE: ‘Franking Credits: How Good is Free Money?’
So, it is the system that is broken. I’ll say again, as a reminder … we had the opportunity to fix it, we squandered it.
To make matters even worse for us all, particularly for the down and outs, the poor people who have been suffering continually, and who were unable to recover, damaged, scared from the days of the HOWARD tenure will have to endure further taunting.
It has been brought up on the 6.00pm NEWS, talk that the LNP under the gleeful eye of JOSHY BOY, will BROADEN THE BASE OF THE GST … or even INCREASE THE GST….….to recoup the losses incurred due to the Pandemic.
If ever there is a way to make QUICK BIG BUCKS for government coffers … it is the GST… a REGRESSIVE AND EVIL TAX.
Let that sink in, I doubt very much we will be able to sleep tonight ….. It will be a BEX job.
Some officials from Treasury, and the RBA fronted a parliamentary committee which is looking at this mess made for Millennials who are …
… less likely to own a home than at any time since 1947
In the early 1990s the cost of a house to income earnt was 2.5 times … now it is more than 6 times (and that’s for a flat) …
Then in the late 1990s the Howard Government introduced Tax Benefits of negative gearing and the capital gains tax for investors …
Now with the very low interest rates, buyers are borrowing many more times their annual salary … fuelling the price hike!
Labor Committee member Matt Thistlethwaite rejected that the Morrison government’s schemes helped people get over the threshold of the deposit because these schemes increased the demand and prices to benefit the property sector
In June 2021 quarter prices rose 6.7%!
Thus the Morrison Government housing policies are designed to cramp supply and escalate demand … so what a surprise housing has become more unaffordable!
The Treasury Rep conceded that changes to stamp duty, and reforming zoning and planning laws could improve affordability but only marginally …
Independent Economist Saul Eslake said the key was increasing the housing stock starting with social housing, and removing the Federal Government schemes (stimulus).
-by eliminating the cash grants to home buyers that benefit the property sector
-and the tax benefits (neg gearing and CGT) that cast adrift (lock out) First Home Buyers
The RBA made it very clear that the high population growth from 2005 spiked house prices
And now the low interest rates were key!
And young people are also hindered by insecure work!
The RBA Governor on Tuesday 14 September allayed fears for borrowers because interest rates would not rise before 2024. And that the bank is watching over lending standards …
THAT appears to be as far as the Governor can go … and what needs to happen is for the Morrison government to implement … at the very minimum … grandfathering Negative Gearing … yes, you B……s!
READ MORE FROM THIS REPORT OF DAVID TAYLOR!
‘We’re back to record property price growth, so what’s being done about it?’
A new Asset-Class for wealthy investors is emerging here in Australia …
It is with BUILD-TO-RENT, and the big boys from the United States have arrived – Greystar
Consider the way this text is worded … because it is apparent to us that a conditioning process is underway!
WILL it become gospel?
”… with a third of Australians now deciding to rent rather than servicing mortgages, choosing instead to spend more money on their lifestyles or on alternative forms of investment.”
THAT would not be because they have been locked out further by a 21% price hike during 2021 … to buy a place of their own … to have the security … and the opportunity to make it ‘their own’ … and to become a part of a community!
THAT they then seek second best to find some JOY if they possibly can after paying a hefty rent (dead money), and or working the stockmarket hoping to achieve the goal of home ownership long term perhaps?
IT is then put that ‘Increasing strains on housing affordability due to surging house prices has also driven many to consider rental accommodation.’
What choice is there if you have been locked out?
“ … and with the right policy settings there is a genuine opportunity to accelerate housing supply, create jobs and stimulate growth as we look to navigate our way out of the pandemic,” Key said.
IT appears it is not only the developers of apartment towers for sale, but now the BTR sector is selling its way into our country by enticing investors.
WITH a former staffer of the developer lobby, the Property Council of Australia – who wrote their policy before he entered politics – and who is now our PM that we now have the great scourge of the Australian political economy – HOUSING yet it is not providing home ownership for the majority!
AUSTRALIA … WE HAD IT SO GOOD! In the 1960s and until about 1991 we had 70% home ownership!
AUSTRALIA now rather than investing in green jobs, artificial intelligence and robotics like China and the United States, our wall of money is wasted on real estate!
AS said by Economist Yanis Varoufakis on last week’s ABC Q & A!
READ MORE how the BTR sector has been boosted last year by changes to land tax treatment announced by NSW and then by Victoria in its last budget … from The Urban Developer
TENANTS’ UNION OF NSW CHIEF EXECUTIVE LEO PATTERSON ROSS SAID:
“People are living in converted garages, in dodgy apartment buildings with illegal conversions, and all because we haven’t set up our housing system to house Australians, we’ve set it up as an investment [opportunity].”
ESSENTIAL WORKERS LIKE …
-Aged-care nurses, supermarket managers and factory workers
–Checkout operators, commercial cleaners, delivery drivers and childcare workers
-Social workers, registered nurses, truck drivers and teachers
THIS appalling predicament has its roots dating back to the late 1990s when the Howard Government set this in train …
… the Howard Government enticed Middle Class Chinese to invest in our Education and Real Estate to gain ‘Flexible Citizenship’ … this then led to the growth of Temporary Visas, and through investment these Visa Holders were able to gain a ‘Permanent Resident’ Visa!
The increased competition further reduced the supply and pumped up house prices locking out Australians from the prospect of home ownership … our Real Estate is awash with ‘Black Money’!
AND the Howard Government introduced Negative Gearing and Capital Gains Tax discounts which allowed wealthy investors to grow their housing portfolios of established housing at the expense of home buyers seeking an abode to live in!
In this constrained housing market obviously these Tax Benefits should only be available for ‘NEW HOUSING’ construction!
READ MORE! AND PLEASE SHARE!
Essential workers face rental stress right across Sydney
WHAT is needed is HOUSING for AUSTRALIANS … with affordable BUILD-TO-RENT that allows Tenants to BUY!
… Not Foreign Billions and Housing to be marketed to even more foreign buyers with Benefits!
AND what we have learnt from our Commentators …
‘That rent to buy was what the Department of Housing used to do!
Now it’s all about profits, forcing community housing groups to do the same. It’s become a vicious nightmare of CEO’s (many in charities) receiving exorbitant wages, and Rents based on 40% of household income!
This will continue to stifle home ownership. And coupled with elderly home owners having to sell their homes to finance their aged care and then you see the whole mess for our future generations (no inheritance) for those just above the poverty line.’
CAAN: And when was the damage inflicted? It was the late 1990s when the Howard Government … John Howard scapegoated refugees (who were in relatively small numbers) as his government opened the floodgates of the backdoor to migration (with Temporary Visa Holders).
‘John Howard’s Bait-and-Switch: Is it time for a debate on the mass immigration “Ponzi scheme”?’
Australia went from a sustainable Permanent Migration system of 70,000 people p.a., to escalate, and prior to the Pandemic there were 2.3 MILLION Visa holders in Australia; of which 1.6 MILLION were Visa workers willing to be exploited (with inferior wages and conditions) lured by the prospect of Permanent Residency.
Who could blame them?
However, this led to high unemployment and underemployment of Australians. Those ‘unAustralian’ employers put about hateful comments like: “Australians won’t work; don’t work”.
Obviously many employers (and companies) have enjoyed the benefits of greater profits from paying such low (below Award) wages; and enjoy TAX BENEFITS contrary to those who pay full tax!
Another very poor Liberal HOWARD Government policy was the introduction of the TAX BENEFITS of NEGATIVE GEARING AND CAPITAL GAINS making HOUSING a financial asset … something you buy and sell and accumulate.
THUS the financialisation of housing that was Shelter!
Our Families locked out not only by Low Wages, and increasingly now Super Inflated Housing Prices due to the competition from those negatively gearing!
INVESTORS are buying up more housing because bank interest rates are too low to leave their money in bank accounts! And the Housing Property Market opened up for them once again with the Chinese withdrawing from their Real Estate Tours. The Chinese are still house shopping here, but have been eclipsed by the Singaporeans (70% Chinese) who have spent $20Bn in the two years to mid 2020!
Businesses in Byron Bay and other coastal towns too have felt the impact of the loss of affordable rental accommodation because they are losing their workers! The fabric of the community is falling apart!
This is due to landlords letting their properties out to short term rentals on AirBnb, and Stayz rather than leasing homes to families and singles for 6 months or more at a lower monthly rate!
‘Banning AirBnb and Shipping in Portable Homes considered as Housing Crisis bites in Coastal Towns’
We hear often ‘We’re all in this together’… however it would seem this has another meaning … another Commentator reminded us that NSW INC raised more than $1 BILLION in Stamp Duty 2019!
See how this all ties in together!
What of the Housing Crisis Nightmare for Australians and First Home Buyers … next? As the floodgates open again to more Chinese, Singaporeans and Indian Middle Class Visa Holders ready to scoop up!
Is this too what is behind the Liberals saying: ‘Sell your Family Home … Downsize … Go Regional’… To open up more opportunities for redevelopment? For more development of high-rise … duplex … townhouses … terraces … villas and retirement villages? FFS!