AUSTRALIA … Where did the Generational Betrayal Emanate from?

LET’S take a look at where the betrayal comes from.  Sadly this report overlooks where it comes from, and why would that be?

A generational betrayal confronts the next government – and that’s why we need to raise the GST’

WHEN one reads this … ask are we being manipulated?

BECAUSE it would seem there is a push underway by the Liberals for raising the GST … will they increase it to 20% across the board? Cough … cough …

IF they are returned ….

Do you think it is likely that much of what we read now is about blaming the Boomer generation alone for record house prices … inferring that they all own investment properties?  Or that houses prices were low when they bought into the market … with no mention of the ‘other players’ in the Generational Betrayal …

True many Liberal Party supporters own investment properties!  Especially those in ‘small businesses’

Some have 3, 5, 10 or more … hundreds … thousands even …

Throughout the 1980s Boomers were likely to be paying a mortgage rate about 13% or 14%.  In the late 1980s the rates rose to 17.5%.  It hurt!

But for the majority ‘their castle’ in Sydney was paid off over a lifetime.  Until recently it had a median of $1.6M (now falling) and if sold they immediately lose thou$ands with costs of conveyancing, stamp duty, removalists, AND renting as they searched for another home. During that search prices escalated as much as $200,000 within three weeks. Then finding they had to relocate … a long way away or downsize!

RATHER than grandfathering Tax Benefits or even eliminating them … the Liberal Coalition are preparing us for a rise in the GST that taxes The Poor more than the Wealthy …

REMEMBER and compare this … from 1 July 2020 incorporated small and family businesses paid less tax due to legislated tax cuts passed by the ScOmO government …. And unincorporated businesses with an income tax offset increase from 8% to 13% … and many of these business owners enjoy the tax benefits from house investment portfolios too!

During the Pandemic this government extended its Instant Asset Write Off to $150,000 for another six months, and provided the Cash Flow Boost to small businesses up to $100,000 for employing people …

Apart from income support of JOBKEEPER, JobSeeker, and a wage subsidy for apprentices and trainees

AND big companies are able to avoid paying TAX for a range of reasons!  Including where they are at in the economic cycle, and when they are not yet generating revenue.  Equally when they begin to generate revenue they can carry forward their losses to avoid paying tax!

Some companies when they do pay Tax it’s as little as 10%

YET when LABOR attempted to restore some balance by proposing to grandfather negatively geared established properties which meant investors could keep them, and invest in ‘new homes’ in future, which would have opened the housing market to First Home Buyers and owner occupiers … which was a Win/Win for both sides … yet Voters bought this scare campaign

How would house prices tumble … as raised by investor alliances … when this would have increased demand from a whole Cohort of First Home Buyers and owner Occupiers?  With more buyers?

Why would rents rise then? 

RENTS are rising now, and there are fewer homes for sale for home buyers … because of the competition from the growth of Investors (increased demand), and their house portfolios …

AND the growth of ‘Short Term Stay’ Rentals that has decimated the stock for leasing longer term. Also negatively impacting the hotel/motel market!

SO rather than ensuring businesses small and large pay their fair share of Tax, and go closer to a balanced budget, the Liberals propose taxing the rest of us more by increasing the GST!

Making multinationals pay tax on turnover, and not profit would be a good start … blocking them from shifting their profits overseas! 

Getting the mining/fossil fuel companies to pay proportionate Resources Tax makes sense!

WHY not get the Big End of Town and those who aspire to be like them to pay their fair share rather than the rest of us paying more tax to subsidise them? 

IF the Constituency as a whole were to pay a fair share of Tax for free tertiary education, improved healthcare services (rather than the Liberals cuts), better aged care, dental care and more public housing (now known as social housing) … we could all enjoy these benefits like they do in Finland ...

5.5 MILLION People call Finland Home!

FINLAND among the best in the world … in 2017/18 awarded the safest country in the World; with the best governance, third least corruption with the best protection of property rights!

Australia’s Public Schools are run down, as Private Schools build more lavish gates, halls and swimming pools … our Key Workers – teachers and nurses et al are exhausted, and inflation is rising  ????

AS those with franking credits (free money), negative gearing and Family Trusts benefit … it is time for a rational discussion!

THE BETRAYAL has been from the Liberal Coalition that has occupied the seat of power for too long and ensured its donors and supporters avoid paying their fair share of Tax!

READ more about this nonsense:

A generational betrayal confronts the next government – and that’s why we need to raise the GST

WHO in their Right Mind would allow the Government to have EQUITY in their Home?

WHO in their Right Mind would allow the Government to have EQUITY in their Home?

IN the SMH today this piece, “New hope for first-home buyers in return for giving STATE some equity”

HOWEVER … it seems the Community are onto it!

THESE are their views on Social Media

WOULD this be about boosting demand and increasing prices?  Cough … cough … Who would be the winners?  Would that be deve-lopers, and existing owners? Especially investors

EQUITY GONE!  Welcome to NSW … the equity state … for some …

AND allowing for the Status Quo to remain … by sweeping under the carpet the real causes of negative gearing … capital gains tax … super low interest rates … government grants … franking credits …

AND we must not forget the ‘Big Australia’ with millions having come to our shores seeking Permanent Residency by buying a home these numbers increase competition … pushing up prices!

AND ‘Hot Money’ is awash in the Australian Housing Market … the second tranche of the Anti-Money Laundering Laws for the Gatekeepers was shelved for more than a decade, and then the Morrison Government exempted the Gatekeepers in October 2018 … 

REMEMBER just a few months ago when this was just a conspiracy theory … Now they’re talking about parents ‘giving’ equity to the government to help their kids buy a home … and both could end up owning nothing

This is #socialism from what claims to be a #Liberal government, and would be the beginning of the end of private property ownership.

The State Government becoming a lender won’t help affordability. It will simply push up prices and mortgage repayments more. These increased repayments will push people out of the market, and lead to more defaults in the market!

So, basically we’ve spent decades distorting the property system, and now we’re going to make it worse for you to keep those property prices juiced. #auspol with a tax handout to home owners.  Isn’t this Peter Costello’s policy all over again?

The Liberal Coalition particularly with the Howard Government in the late 1990s have been distorting the property system by enticing the Middle Class Chinese to invest in our housing to gain ‘Flexible Citizenship’, and this led to a housing boom in the early 2000s peaking in 2004 … and again from late 2013 with a large range of temporary visas allowing wealthy foreigners to buy ‘new homes’ to gain a Permanent Resident Visa. This boosted demand from this high population growth 

Increasing 👏 demand 👏 does 👏 not 👏 reduce 👏 prices.#auspol

Dom_Perrottet Chairman of the Peoples Republic of State Owned Private Property. #Sydney so toxic that state intervention in the property market is the new way of subsidising #LNP donor developers 

AND this Scheme raises the question:

How many of these ‘give people money to buy a house’ policies are the government going to try before they admit that they just drive house prices up further? 

WHAT a “Proper Government”  would do … would be to start with funding Public Housing 

Oh the things they’ll do rather than release more land, neuter councils, etc.

CAAN: However, if and when the Government releases more land the Feds must desist with high immigration because what is the point of releasing more land for housing as they maintain the overseas competition? Oh, how silly of us … they want to maintain the competition to jack-up prices … and …

Until negative gearing and money laundering is jettisoned, housing will be expensive. This “idea” is S.H.I.T.

Government is doing everything they can to get people into the market. Now they want to be an equity partner with First Home Buyers who can’t afford to get in!

. Banks won’t wear it, if borrower defaults then they want all the equity including parents share! Game changer should be non recourse loans as in the US. Banks would then behave
!





Commentators now get Why 4 out of 5 First Home Buyers are locked out of most of Sydney and Melbourne!

They noted the following:

Over the last forty years I have known large numbers of migrants who have told me the same story. Told by Immigration that their skills were in short supply, and that they would walk into high paying jobs.

*When they got here they found that these jobs did not exist.

CAAN: It would appear “the Squattocracy,” the political and social power of squatters who had become rich exploiting illegally occupied Crown land have moved into this realm

The voters, our fellow Australians are to blame!  Through pure greed mums and dads, grandma and grandpa – the ones that voted this government back in knowing that Labor had good policies.

So please for all the people that returned this do-nothing (but damaging) government back in, and worry about their kids save your BS crocodile tears, and vote for what’s best for your kids and country.

We have had our time in the sun – this is pure greed and will leave our kids in servitude without a balanced life.

And for a lot of young people never able to have a home of their own

-Average income workers can’t afford to buy the roof over their head, and face a retirement in poverty.  Thank you Liberal Party!!

And a big thanks to ex-PM John  “no-one ever complained to me about their house going up in value” Howard!

CAAN:  Yes, it was in the late 1990s that the Howard Government introduced the TAX Benefits of NEGATIVE GEARING and CAPITAL GAINS that meant housing became an investment rather than shelter for everyone.

There was an opportunity at the 2019 Election for Voters to grandfather their investment properties (to retain them) and to invest in ‘new homes’ if they so wished!  Negative Gearing was not being removed!

This would have led to more homes being built, and more jobs for the construction consortia; a Win/Win however they believed the scaremongering …. Lies of the Lib Coalition …

SO now we have this frightening predicament …

What happens when salaries for the middle class are kept down, down, down like a bad Coles jingle, and all the wealth is held by the top 20% of upper management and executives who have no compunction about feeding themselves, so long as those below them are kept on the GIG Economy?

CAAN:  The Australian Unions are doing a lot of work, and are very active on social media … it’s time that Everyone (and our Youth) got with the strengthUNITED we stand … divided we fall as is evident! 

*Union fees are 100% tax deductible, which means you can reduce how much you pay in *tax if you’re a UNION MEMBER … hey hey!

And when the immigration gate gets thrown open again it will get worse.
Young Australians will have them to contend with along with established home owners seeking investment properties and overseas buyers.
When is government of any persuasion going to DO SOMETHING?

CAAN:  Why do you suppose this is so?  The solution was on offer back in 2019, so who voted for this? There was a call from Labor to cut temporary migration numbersprior to the Pandemic there were 2.3 MILLION Visa Holders in Australia of which 1.6 MILLION were Visa workers … (prior to this being introduced by the Howard Government in the late 1990s we had permanent migration of 70,000 per annum.)

WHO benefits … hehe ?

READ MORE!

https://www.smh.com.au/business/the-economy/four-out-of-five-first-home-buyers-locked-out-of-most-of-sydney-and-melbourne-20211210-p59gni.html

2021 … the Most Expensive Housing Market in Short Supply … Why?


PART 1!

2021 … There has been an extraordinary shortage of homes for sale to meet the needs of Australians seeking to buy a home!

Sydney house prices reach record median $1,410,133 – rising almost $1200 a day in just three months.’ And buyers are not getting a lot for this!

https://www.domain.com.au/news/sydney-house-prices-reach-record-median-1410133-rising-more-than-1200-in-a-day-in-just-three-months-1075735/

WHENEVER this issue is aired in the media … at the dinner table … at the tennis club …

THIS is what Property Investors usually say

‘If investors don’t invest in property there would be no rentals.’

Are they trying to shut down any other point of view? Cough … cough …

Back in 2014 ECONOMIST SAUL ESLAKE ‘Put Paid to This’!

Summarised here below are the points Saul Eslake made:

-RBA Stability Review revealed that with strong investor demand housing loans accounted for about 40% of all home loans

15% of voters took advantage of negative gearing to buy assets and deduct the interest costs against other income (CAAN: Free Money)

-it would be easy for Canberra to decide that any new investment past a certain date would not be eligible for negative gearing

RATHER THAN THE RBA TACKLE THE UNBALANCED HOUSING MARKET AND HURT THE WRONG PEOPLE SUCH AS FIRST HOME BUYERS …

-the Government (Canberra) could curtail negative gearing by reducing borrowing by investors *

businesses … unlike property investors … do not get a 50% discount on any profits they make concerning capital gains tax (CGT)

-what happened in 1985 when Treasurer Paul Keating abolished negative gearing rents rose in Sydney and Perth but not in any other market!

.because in 1986-87 Sydney and Perth had vacancy rates of less than 2% which led to rent rises

-if landlords dump their properties other people will buy these properties; they will move from being renters to home owners!

.and a drop in demand for rental properties

investors are more inclined to take out ‘interest only’ loans because the interest costs on investment property are tax deductible

64% of loan approvals to investors are ‘interest only’ loans compared with 31% owner-occupiers

-if investors are not reducing the principal on their loan(s); risk they will be in negative equity if house prices fall

investors with incomes in the top 20% owe 60% of all investor housing debt; more than one quarter of Australia’s housing debt

READ MORE!

Kill negative gearing to calm housing market, says Saul Eslake

https://www.smh.com.au/business/the-economy/kill-negative-gearing-to-calm-housing-market-says-saul-eslake-20140929-10nr84.html

Here’s what the ScOmO Guvmnt can do to alleviate Rocketing House Prices …

Part 2!

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 policy to 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?’

https://www.theguardian.com/australia-news/2019/may/14/are-any-of-the-coalitions-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 apply to all future cases … ‘.

Thus it was a COMPROMISE which allowed investors to maintain their investments in ‘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.

So is the Sc.mmo Guvmnt doing anything about the Record House Price Growth?

Part 1!

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?’

https://www.abc.net.au/news/2021-09-15/house-prices-grow-what-is-being-done/100462060

Australia … we used to have 70% Home Ownership!

AUSTRALIA … we used to have 70% Home Ownership …

WHAT happened to this?

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”?’

https://www.news.com.au/finance/economy/australian-economy/john-howards-baitandswitch-is-it-time-for-a-debate-on-the-mass-immigration-ponzi-scheme/news-story/163e317be07822ca17641dd98415713f

Big Australia’

https://en.wikipedia.org/wiki/Big_Australia

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!

What is happening with those bags full of Cash?’

Read more!
https://bit.ly/38oYLUU

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!

Read more!

Banning AirBnb and Shipping in Portable Homes considered as Housing Crisis bites in Coastal Towns’

https://www.abc.net.au/news/2021-08-28/coastal-families-lose-homes-to-airbnb-and-owners-fleeing-cities/100380642?fbclid=IwAR0E6yvyeI3B5r14mxiXVxDSF0lXiIxaRWvgI2elUm6xljcCvWNCQ0mU7vE

AND what has been happening as we so eagerly wait for the 11.00 a.m. presser about the failure of our governments to act early to stop the spread of Covid?

UNDER THE COVER OF COVID …

The developer sector has been beavering away marketing ‘Build-to-Rent’! It has called on the Big Boys from New York!

So another investment avenue for our local Ingestors too!

‘More Foreign Billions pouring into Build-to-Rent (BTR) … ‘

https://www.theurbandeveloper.com/articles/build-to-rent-breakthrough-year?utm_source=TUD+-+Daily+Briefing&utm_campaign=e2a40c93cb-EMAIL_CAMPAIGN_6_11_2021_9_36_COPY_01&utm_medium=email&utm_term=0_982c36d415-e2a40c93cb-195692726

And …

Countdown Begins for Build-to-Rent’s Breakthrough Year’

https://www.theurbandeveloper.com/articles/build-to-rent-breakthrough-year?utm_source=TUD+-+Daily+Briefing&utm_campaign=e2a40c93cb-EMAIL_CAMPAIGN_6_11_2021_9_36_COPY_01&utm_medium=email&utm_term=0_982c36d415-e2a40c93cb-195692726

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!

More Foreign Billions pouring into Build-to-Rent (BTR) …

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! However …

UNDER THE COVER OF COVID … we have seen more reports recently about the push for BTR … 

HAS it all been part of a “Plan” with house prices having escalated 20% already into 2021 … pricing out many Australians? 

ARE they to become life-long tenants?

Our Youth are ‘a sitting shot’ because dating back to the LIBERAL Howard Government in the late 90s the policies were set in train for low wages; competition for jobs from Visa workers; foreign real estate buying sprees … with ‘Hot Money’ which led to the Housing Boom of 2001 – 2004 locking out our Youth from the housing market.

The real estate gatekeepers were exempted from the Anti-Money Laundering Laws in October 2018 by the Morrison Liberal Coalition Government; and still current!

Leading up to the Pandemic there were 2.3 Million Visa Holders in Australia of which 1.6 Million were Visa workers …

Australia has become like the United States with its ‘Working Poor’ … and the growth of homelessness …

On the other side are those with ‘Tax Benefits’ of negative gearing and capital gains; policies also dating back to the Howard years …

Investors are again swooping in on home sales

Now ‘Billions of investment dollars from around the World’ are pouring into this ‘burgeoning Build-to-Rent sector’.

The New Yorkers, no doubt, have watched how our former egalitarian society has been pulled apart.  We used to have 70% home ownership in the mid 1960s.

Home ownership for 30 – 34 year olds decreased to 50% in 2016. 

https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure

What will the 2021 Census reveal about the decline in home ownership and the rise in renting? 

At the end of August a summit on BTR is being held with New York based, Michael Streicker, the president of Sentinel Real Estate taking part. 

Streicker is, no doubt, confident in the expansion of this asset class with our families locked out of the housing market. In the United States BTR is the top investment asset class ahead of office and industrial.  

Streicker, a New Yorker, is behind the push for high immigration in Australia!!  He said: 

“The underlying drivers of demand for housing will re-emerge in the coming years as immigration resumes and renters’ expectations for premium product, amenity and service come to the fore.”

To make our families ‘life-long tenants’ to allegedly have longer tenure, and more amenity but at premium pricing!  And if they suffer some misfortune as tenants they will have no security whatsoever!

Seriously how soon can immigration resume, and at such high numbers of 2.3 Million Visa holders with the Delta variant widespread across the Globe?


The New Yorkers are looking to three to four years hence developing a pipeline to support BTR in Melbourne, Sydney, Brisbane and Perth with $1Bn investment over the next four years.

It would appear their timing is very convenient with the Building Commissioner appointed to restore community confidence in apartment developments following the Opal Tower, Mascot Towers and other defect disasters

It would seem not only investors but the apartment development and construction consortia are set to benefit yet again?  To the detriment of our families and communities …

Under the cover of COVID more than 50 BTR projects are in the pipeline, and by 2024 there will be 18,500 BTR apartments in our property market!

More Co2 emissions and the heat-island effect …

Despite a current supply shortage of materials, fittings and fixtures for the Project Home sector, how will this sector deal with more competition from BTR?  How much longer will those who have paid a deposit for a House and Land Package have to wait to build?

‘Construction Boom: Costs of House and Land Packages Blown Out!/

https://caanhousinginequalitywithaussieslockedout.com/2021/08/18/construction-boom-costs-of-house-and-land-packages-blown-out/

READ MORE!

‘Build-To-Rent Flood is Coming as Billions Pour In’

https://www.theurbandeveloper.com/articles/build-to-rent-flood-australian-pipeline

AND … https://www.afr.com/property/residential/sentinel-strides-towards-1b-build-to-rent-portfolio-20210326-p57efy

P.S. Who is Michael Streicker?

-a former board member of the Association of Foreign Investors in Real Estate  … and ?

What else apart from Low Interest Rates and Govt Grants pushed up House Prices?

WHY did house prices jump $200,000 over Christmas 2020 into January 2021?

NOW house prices have jumped $500,000 or more to August 2021 …

APART from very low interest rates and government grants that benefited builders and pushed up house prices … competition from foreign Juwai.com buyers … and investors!

WHAT ELSE CONTRIBUTED TO THE HOUSE PRICE HIKES … FOR THESE SAME AWFUL HOUSES?

WHAT role did the Realtors play in all of this?

They set the prices … there may be a charade of asking buyers ‘what price would you put on this house?’ 

After having indicated ‘The Guide’ price

How do we know any of this is so?  When it is only what they tell us!

Early 2021 agents opened a home once or possibly twice a week for home buyers to view for as little as 30 minutes at each ‘Open Home’.

That’s all …  in the house advertisement the agent may invite buyers to contact them and arrange an inspection … however when buyers contacted agents … we have learnt … they were then told that they would have to attend the ‘Open Home’; no other times could be arranged!

The ‘Open Home’ was marketed on two major real estate sites:  domain.com.au and/or realestate.com

This marketing led, in some instances, to hundreds of attendees.   This huge competition for each home would not be about creating FOMO, would it?  (FOMO = fear of missing out)

Now in COVID August 2021 agents have had to reorganise the marketing with one to one private inspections …

SO NOW Agents are running ‘Pre Auction’ Views … ‘Expressions of Interest,’ and invite Buyers to price properties … WT ****!

Not only do Buyers do most of the work searching the marketing sites of Domain or realestate.com, and drive all over Sydney and beyond, but now they are expected to price properties …

WHEN will Buyers wake up?  Why price up properties?  Because not only does it mean a bigger mortgage, but will strip one of any $$ to update, and it means more Stamp Duty

So stick to ’the Guide’!  FFS!

What SMH Readers believe will bring an End to the hideous Housing Boom!

‘ … we have to get the Tax Bludgers out of the market by doing away with negative gearing and also the DivImpCredrefund bludgers.  Why should the many be paying the taxes of the few?’

OR put another way …

-House prices are primarily influenced by 2 things:

1. NG and CGT tax concessions
. These are not only ridiculous in an overcooked property market, but also unaffordable given the high level of government debt approaching $1.4 trillion. Remove them and prices will not only plateau but fall back towards normality, and

2. Interest rates. Even a small increase in interest rates will see many defaults in the mortgage market leading to prices falling.

The real question is how long can the RBA continue playing games holding the official cash rate at 0.01% while the real rate of inflation on essential items is 5% p.a. (45% over the last decade).

The global bond market knows that inflation is rising, hence the higher yields which is normally followed by higher interest rates.

Then from another who perhaps has a vested interest in high immigration wrote:

‘One interesting thing is all those people wanting immigration stopped because it was causing the housing market to spiral out of control were wrong. And as for immigration taking our jobs, wrong again, as unemployment is (slightly) falling’

Which drew this response:

‘It’s not wrong. Just look around. Go to a physical auction and see the demographic makeup of the bidders.

Blind Freddie would tell that is a major factor. People forget we are twenty years into an immigration explosion.

The gates were opened back then, and now It’s a self-propelling momentum driven market.’

CAAN:  How can this be disputed? 

The Howard Government in the late 1990s enticed the Middle Class Chinese to invest in education and our real estate lured by ‘flexible citizenship’.  This led to a housing boom in 2004!

AND …  permanent migration of 70,000 p.a. was replaced with temporary migration through a large number of Visas including a range of investment visas, AND … family, parent, grandparent, guardian, student, PhD student, the 457 visa later replaced by the skilled work visa enabling these people to gain permanent residency esp. if they bought a ‘new home’!

Prior to the Pandemic there were 2.3 MILLION Visa holders in Australia of which 1.6 Million were visa workers!

Many from overseas were lured when they gained either student visas or work visas with the prospect of ‘permanent residency’.  They were willing to work long hours and for low rates of pay!

There have been numerous reports about the exploitation of these people.  They have come here in large numbers and this led to high unemployment and underemployment of Australians!

Read more!

‘The one million Australians forgotten in the unemployment statistics’

https://thenewdaily.com.au/finance/work/2019/10/17/unemployment-figures-marginally-attached-australia/

AND …

-Why does this article not include the opinion of Prof Cameron Murray, an expert in property economics? He produces relevant, thoughtful and informative pieces on a semi-regular basis, and knows what he is talking about.

Given the very wide range of “forecasts” this article’s experts have produced and the uncertainty that they demonstrate, your readers might have been better served by an opinion piece informed by just one economist.

…..

Auctions …  and/or pressure from Sales Negotiators …

‘If there are two people who want the same house then the prices will go up, if there is one or none the prices will stay the same or drop.’

-The “property boom” has resulted from every government in Australia ratcheting up house prices artificially over several decades by throwing cash at first home buyers.

This massive misallocation of capital, coupled with outrageous lending practices by banks, has created a potential economic disaster, which, once the slide in house prices begins, will lead to the banks ending up in difficulties again.

Intervention by the regulators could trip the collapse of this wobbly pile of debt.  Other triggers could be current fall of payrolls induced by the egregious mismanagement of the SARS COV-2 epidemics in Australia.

And an eventual increase in interest rates for house mortgages is, in the long term, inevitable.  It is simply a matter of which trigger is reached first to give an avalanche of foreclosures.  The legal practices handling bankruptcies will become the new hot industries.

Whichever party in power at the APH will collect most of the opprobrium.

-Meanwhile we keep buying properties, keep renting them out and keep getting tax advantages whilst enjoying almost free money. Long may it continue.

And there lies the reason why our future generations will largely be consigned to rent for most of their lives!

The exceptions will be those inheriting a large proportion of a house, or multiples thereof, and the highest-earning professionals.

Having a go from a base of $0 won’t be enough for most young people to enter the housing market.

Read more!

‘Housing boom tipped to end this year’

https://www.smh.com.au/politics/federal/housing-boom-tipped-to-end-this-year-20210804-p58fo6.html#comments