When this Adelaide resident heard that bosses of Australian firms earn many hundreds of times what workers do, it did not sit right with him! He has to work a number of casual, part-time jobs, and volunteer!
He said that it left him feeling disappointed and disillusioned with the system that has evolved!
He questioned how it was possible that such could be earned by any individual!
As a consequence of COVID-19 he said …
“I’m in a very insecure world,” he said. “I think a lot of people are in my position.”
HOWEVER, will publishing CEO pay ratios be enough? A good start perhaps!
PRIOR to the late 1990s when Workers’ Pay and Conditions were undermined by the policy changes of the Howard Government, we enjoyed good wages and conditions that enabled us to live in our own homes, afford a motor vehicle or two, enjoy holidays and home comforts!
Our families, however now, may not even own a car, and they rent! Into their 30s!
How did this Divide come about?
The Howard Government introduced Temporary Migration of Visa holders including Visa workers to replace permanent migration of 70,000 per annum.
Prior to the Pandemic there were 2.3 MILLION Visa holders in Australia of which 1.6 MILLION were Visa workers … this led to high unemployment and underemployment of Australians!
These overseas people were lured by the prospect not only of work, but gaining permanent residency as they accepted low rates of pay and poor working conditions.
HENCE THE GREAT DIVIDE TODAY!
JOIN A UNION TO RESTORE BETTER PAY AND CONDITIONS!
The Emergence of ‘Celebrity’ in Real Estate as The Divide is growing … the cream of our Intelligentsia … University lecturers, Computer Scientists, Scientists, digital technology technicians … and many others have lost their careers … or remain screwed on very low wages …
YET we have real estate agents cruising in their ‘Beamers’ wearing Italian-made suits, and sporting Saint Laurent pointed toe boots …
They are moving up to Hunters Hill … and investing in acreages … while buyers do all the work!
Buyers spend hours daily on the internet searching for ‘a home’ …
Buyers have to slot in as many inspections as they can … driving themselves … long gone are the days when the agent ‘looked after’ the buyer
Earlier in 2021 buyers werejoined by hundreds of others at 30 minute ‘Open Homes’ X 2 per week … could this have been to create competition and price hikes?
Now as COVID steps up its agenda … there are one-to-one private inspections for 10 minutes … in a time slot from 1.00 to 3.30 p.m., one or two days a week.
Back at the shop, agents call the ‘interested buyers’ and suggest the property is now selling $300,000 … $500,000 more than the Guide!
Is this the case? It’s all by the agent’ssuggestion, isn’t it? How do we really know?
Commissions of $30,000 and more on each propertysold each week!
As if this is not more than enough … with so much cash to splash some are now having their faces plastered on billboards … they are on Instagram …
The ‘winners’ among them are those that can make connection and feign emotional intelligence … afterall they are ‘wired’ to sell at the highest price!
‘Living Large: The Rise of Celebrity Real Estate Agents‘
Clearly we were set up not only by the big boys in Real Estate but the RBA! FFS!
‘ …Centre for Independent Studies chief economist Peter Tulip said it was “well within possibility” that Sydney house prices would rise by 30 per cent by the end of the year.
“Almost all of that has just occurred within the past six months, as I understand, so we are on track for a very large increase in 2021.”
In 2019, he modelled for the Reserve Bank of Australia that a permanent one percentage point cut in the cash rate would result in an increase in house prices of 30 per cent after three years.’
WHAT role have the realtors played in this price hike? They do set the price …
The pattern from the end 2020 was for agents to advertise a home $100,000 below the guide said to attract more buyers.
But then in January 2021 prices were advertised $200,000 above that gained just weeks earlier! For like homes … however some did not even have a lick of paint!
‘ … the massive daily house price growth has locked many people out of the market, including first-home buyer Pankaj Kumar, who has been looking to purchase a house in the Ryde area for more than three years.
He started with a $900,000 budget in 2019. But even with an increased amount of $1.65 million today, he is still priced out of the area.
“There was a time when properties were selling $30,000 or $40,000 above [the price guide], but when they go $300,000 above, you can’t budget for that,” Mr Kumar said. “It has become impossible.”
‘The Ryde region recorded one of the highest house price rises in Sydney, jumping 11.7 per cent – or $219,500 – in the second quarter to a median of $2.1 million.
It rose 26.9 per cent – or $445,000 – in the year to June.‘
‘Sydney house prices reach record median $1,410,133 – rising almost $1200 a day in just three months’
OBVIOUSLY we do need a ‘top level Inquiry into Uncontrolled House Prices‘ because this not only locks out many Australians but may well negatively impact wealthy Boomers who have gone guarantor for their families to buy a home!
WHEN will the Scummo Government do what it should?
TONIGHT, 14 JUNE 2021 view the video, and skip along to about 47.52 minutes, and JULIA BAIRD introduced the topic of Housing Affordability.
‘Now most Australians grew up being taught that if they worked hard, saved money, cut down on the avocado toast, that one day they would be able to buy a house, but new research shows that this dream is out of reach for our younger generations.
The Australia Talks National Survey found 65% of participants agreed that for most young people owning a house just isn’t an option … ‘
CAAN particularly looks at the conversation with Nicki Hutley, economics consultant for Social Outcomes and the Climate Council.
JB: How are we to read this Nicki?
Nicki Hutley: It’s hardly surprising we have had a housing crisis in this country probably for two decades, and all levels of government hold responsibility for this. It is around local government planning, it’s around state government planning and legislation …
KEY POINTS FROM NICKI HUTLEY:
-to make housing more affordable for more people by extension that means that ‘housing is potentially going to go down in price’
-many Australians hold a lot of their wealth in housing
-the economic consequences of the wealth effect when house prices go down it flows through the economy; a very delicately balanced issue
When we look at the drivers::
-a whole host of issues including self-interest and nimbyism
Host Julia Baird then raised the issue of how expensive the housing market is becoming here.
JB: This is a two-bedroom house in Sydney’s inner-city suburb of Darlinghurst; a 90 sq metre block; a buyers guide of $1.7M. … It would be more than a lick of paint to be liveable. How can this be sustainable? The prices going so far up year upon year especially since the Pandemic.
NH: it is certainly not sustainable. I would have thought we already got to that point.
… but what recent research tells us:
-wealthy boomers are helping their kids out now; an intergenerational transfer of wealth from older Australians to help their kids get into the market
–60% of first home buyers are getting support from parents or grandparents to the tune of an average of $93,000
-whereas a normal average couple on an average income it would take them a decadeto save for the deposit
-the big issue, interest rates are incredibly low; those who already own property it is much easier to access the finance to then dab more in investment properties
-we are creating this cycle where we have got more and more of the haves concentrating, and then this group that are being shut out of the market
JB: We have seen the political will in New Zealand to tackle a very heated market to crack down on investor buyers over people who want a roof over their head. Every time we talk about capital gains and negative gearing – that every time we do it ends in a bog. What is going to happen here?
Which levers will be pulled?
NH: There are some short term and long term things. To actually properly address housing affordability without having a double collapse in the economy there are things we can do in the short term:
–get rid of Negative Gearing and Capital Gains Tax * to bring down prices *
.it wont be catastrophic; there are always some winners and losers; the losers will be very vocal
CAAN: Can anyone recall if this was raised on ‘The Drum’ during 2019 in the leadup to the election? When Bill Shorten announced that if elected Labor would grandfather negative gearing and address capital gains tax?
House prices have been escalating since the early 2000s, and again particularly during 2015 and 2017! (due to the high temporary migration visas inviting investment in our housing).
NH Points cont’d:
-a lot of costs are driven by ‘supply and demand’ and the cost of land
-and also government charges; dealing with infrastructure charges particularly in new areas you can be slammed
-those who live in more central parts of Sydney have all the infrastructure paid out of general revenue
-regionalisation policies need to be looked at more carefully
–latest intergenerational report that the Sydney population will increase to 11 million in 4 decades *
CAAN: Whose side are our Liberal Coalition Governments on?
WHY do we have to have 11 million people living in Sydney when at some 5.5 million we have a shortage of affordable housing, and sit in gridlock? Our infrastructure is inadequate! And much of our heritage and urban bushlands have been bulldozed!
Perhaps this is explained with the ‘integenerational report’ being written for the Berejiklian Government, and whose interests does it serve?
WHY not build housing for the incumbents? Those who sold in 2020 have also been locked out by the price hike of January 2021!! And continuing …
Alexander Downer agreed with Nicki Hutley.
KEY POINTS FROM ALEXANDER DOWNER:
–interest rates are at record lows which inevitably pushes up prices
–government subsidies for First Home Buyerspush up housing prices
-unless you push up the supply – it’s a phenomenon at the moment everywhere in the US, the UK, and so on.
Money for toys for the boys, with some crumbs for women and children #Budget2021
So tradie welfare more important than our elderly. How good are tradies?
AND what’s more important?
There has been an emphasis over many years now on developing Australia’s capabilities’ in innovation and technology … to turn us into a ‘Smart Nation’ …off loading manufacturing, giving up on skilled hands on based working jobs and looking to CHINA.
Importing Skilled workers instead … ‘As required’.. Well, it has backfired big time. Now we are desperate. The Morrison Government cut $325.8 million from vocational funding in its agenda to deprioritise TAFE.
Since being in government the Federal Coalition has overseen 140,000 fewer apprentices now than when it was elected, and cut $3 billion from vocational education funding.
Now In times of PANDEMIC imposed upon us by the very nation we relied on even with the plethora of visas and purpose 457’s in the past usually from CHINA we are left to hang dry. We hopelessly turned to the tertiary sector rivers of gold Universities to drive so called ‘Smart’ Jobs …