Calls for Empty House Tax Review

An empty House Tax here in Australia could raise a comparable $40M in each State …

-to fund housing initiatives

-but that does not restore housing affordability for the incumbents locked out by foreign buyers

AND on the important level of ‘community well-being’ … this could be achieved through the restoration of housing affordability for incumbents by blocking the Proxy laundering the ‘hot money’ in Australia’s domestic housing market …

This in turn will stop the vacant land banking and vacant properties full stop.

Contrary to the Morrison Government in the lead-up to the May 2019 Election, Labor had a plan to stop property money laundering … it was going to implement the Second Tranche of the Anti-Money Laundering LEGISLATION … and reverse the Real Estate Gatekeepers exemption made by the Morrison Government in October 2018!

-that would have eliminated the Proxy, and the ‘hot money’

-and restored the home market for Australian First Home Buyers

MEANWHILE the Chinese developer lobby here in Australia are replicating their ‘ghost cities’ that fall apart … as reported by Serpentza …

RESIDENTIAL RENEE MCKEOWN WED 12 FEB 20

Calls for Empty House Tax Review

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There are calls for an empty home tax to be reviewed and enforced across Australia after Victoria raised $5.4 million from a possible $120 million last financial year.

There were more than 20,000 empty homes in Melbourne and that number could be even higher in Sydney and Brisbane according to research from Prosper Australia.

However Victoria was the only state to impose a vacant residential land tax at 1 per cent for properties left empty for more than six months in a year in Melbourne.

Australia’s housing market was deemed “severely unaffordable” and among the most expensive in the world, while rent and house prices also went up last year.

Prosper Australia director of research Karl Fitzgerald said there was a missed opportunity—although the tax was brought in, it was not properly enforced and investors were still choking the supply.

“Quite a few housing advocates are simmering with rage because we’ve seen such a dramatic rollback of housing supply,” Fitzgerald said.

“More and more people are having their finance approved but cant find property to buy.

“We found at a minimum 20,000 properties were vacant [in Melbourne] and use zero litres of water over a 12 month period. Yet only 900 people self reported [for the tax].

“The government needs to impose fines, there’s no real penalty for not declaring.

“There’s a whole pile of issues [around this tax] it only included inner and middle ring properties, so it primarily targets foreign investors who own empty apartments but ignores the big land banks. ”

*A similar tax was introduced in Vancouver, Canada where almost $40 million was raised to fund affordable housing initiatives and saw a reduction in empty properties.

The tax led to 22 per cent fewer vacant properties in 2018 compared to a year earlier and a 7 per cent increase in tenancy.

City of Vancouver mayor Kennedy Stewart said the main objective of the tax was to address housing affordability.

“For those who choose to keep their properties unoccupied, we appreciate their contributions to the funds that are supporting various, much-needed affordable housing initiatives across the city,” Stewart said.

“The main objective of Vancouver’s Empty Homes Tax is to influence property owners to put their empty properties on the rental market and the data shows that is happening.”

Prosper Australia director of research said more could be done in Australia, not just the inner Melbourne region.

“We have tried to get access to this [vacancy] data interstate and it hasn’t been easy,” Fitzgerald said.

“We are surprised the government hasn’t really been on the front foot if they were genuinely serious about addressing affordable homes.”

Related: Mortgage Stress Rises as Debt Soars for Older Australians#vacancy rate#Vancouver#Affordable Housing#vacant residential land tax

AUTHOR Renee McKeown

SOURCE: https://theurbandeveloper.com/articles/calls-for-empty-house-tax-review?fbclid=IwAR32bM9jZrrvkDHuqDPbNMqTdHCeSl4fO_5i_avcg6bHhDtBwb6pKsVz2dI

COVID-19 spreads to Aussie property

Photo: The Australian; Toorak, dubbed the “ghost mansion”, is being sold off market for $80m

IS a Pandemic what it takes to restore the property market for Australian First Home Buyers?

Will the Property Sector get their act together?

Even developers are closing the gates … cancelling launches and investment seminars for the target overseas market …

And even Scomo can’t prop up the mates market … with the Pandemic worsening …

BECAUSE many comments on Facebook are not readily visible we SHARE it with you here

From George Smilas

WOW, really? are we supposed to be devastated? ….devastating that the flow of wealthy international investors from China have stalled because of a real risk of a deadly infectious disease threatening our people here?

…Not buying up apartments built for the sole purpose of further increasing the riches of our ELITES?. I feel really sorry,…. But WHY you think? …Why are they cancelling investment seminars?

…Are there not other investors around the world aside from CHINA?…Or is it because there is no $$$$$$ to be made elsewhere other than CHINA?….I want to know.

Have we put our efforts all in one basket and relying on just CHINA? …. Is that the case?…I want to know…… I seem to remember this notion of affordable housing being bandied around….is this our chance to get our homeless into a HOME now?…..I want to know.

Otherwise, if not… Let’s shop around for another market for our illustrious high density precincts….SHOCK HORROR ….I’m sure there are others who are used to living this type of lifestyle. BANGLADESHIS perhaps?…….Why not?…open up our options?…….Oh… OHHH wait, they haven’t got the $$$$$$’s…..

Well, I say to the developer lobby groups and spruikers of residential trash….suck it up and realise all good things come to an end….diversify your market.

Shut down your spruiking trash seminars to Chinese only investors and avail your apartments for what they are worth to our domestic market….fill them up!!… and maybe …just maybe start building quality buildings that don’t fall apart.

😊

COVID-19 spreads to Aussie property

By David Llewellyn-Smith in Australian Property

February 13, 2020 | 37 comments

Via The Australian:

Story image for Developers are cancelling launches of new apartment blocks and investment seminars targeting offshore buyers as they confront a potential fall in sales due to the coronavirus outbreak. from The Australian

Developers are cancelling launches of new apartment blocks and investment seminars targeting offshore buyers as they confront a potential fall in sales due to the coronavirus outbreak.

The property industry had hoped the new year would be marked by a pick-up in demand. While local buyers are out in force, a predicted surge in offshore investors into the top end of the residential market has been delayed.

Measures to contain the spread of the coronavirus in China and travel restrictions are causing problems for agencies as buyers can’t get to Australia.

…Investorist founder Jon Ellis said sales volumes coming out of China would remain low.

“The whole industry is in a bit of a pickle,” Mr Ellis said. “No property developers are going over there and also no agencies.”

He expects investment in Australia will slow as Chinese outflows fall off globally but he predicted they could pick up again after the scare dissipates. “Once coronavirus settles down and is under control, I think people will look back to Australia and will see it as very favourable. But certainly for the next month or two, I would not expect to see many contracts coming out of China,” Mr Ellis.

*But when will that be, Mr Ellis? And if it comes too early, as the CCP appears to be planning for, what will the private reaction to travel as the virus spreads globally? As well, students won’t return now until mid-year enrolments.

Given we already have a meaty property construction bust underway this is poor timing:

I expect house prices to slow and construction to bust all year.

David Llewellyn-Smith

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

SOURCE: https://www.macrobusiness.com.au/2020/02/covid-19-spreads-to-aussie-property/

The coronavirus and subsequent ban on non-citizens travelling to Australia from China has left prestige vendors short of foreign buyers. Photo: Janie Barrett

Apartment Complex for Rosebery close to enormous Green Square Precinct

When the HOUSING PONZI first emerged in NSW in 2012 we recall a handful of high-rise Precincts were proposed … the talk of the URBAN TASKFORCE was that Sydney was growing and the people had to be housed somewhere, and the solution was high-rise precincts close to public transport …

GREEN SQUARE PRECINCT includes the suburbs of Alexandria, Zetland, Waterloo, Rosebery and Beaconsfield …

-2016 Census more than 38,000 people lived there

-the population is expected to hit 61,000; more dense than London and New York

-Heffron MP, Ron Hoenig called for the Planning Minister to revoke approved Green Square developments

-December 2018 it was standing room only on the trains

more than 7,000 dwellings in Waterloo alone may exceed the population of Hong Kong

DESPITE inadequate infrastructure and amenity for residents the profits to be made by developers from the endless line of Vibrants … it’s so easy they fly in to buy lured by Permanent Residency

Tzannes, Fender Katsalidis design Sydney housing complex

Tzannes, Fender Katsalidis design Sydney housing complex

NEWS |  Editorial Desk AAU  7 Feb 2020Epsom Road Apartments by Tzannes in association with Fender Katsalidis.1/2VIEW GALLERY

Epsom Road Apartments by Tzannes in association with Fender Katsalidis.

Image: Synthetica

Tzannes and Fender Katsalidis have jointly designed an apartment complex in Sydney’s Roseberry that will add to the enormous level of development taking place in the area.

The project site lies close to the Green Square district and is bounded to the east by Southern Cross Drive and the Australian Golf Club.

Epsom Road Apartments by Tzannes in association with Fender Katsalidis.

The complex will comprise five apartment buildings arranged around three sides of the proposed Garraway Park, designed by Oculus. The facades of the buildings facing the park will feature green walls that act as “bookends” to the space.

Two U-shaped buildings in the north and south, rising to seven stories, will centre on a landscaped space, while the “wall” of buildings flanking Southern Cross Drive will reach 12 stories in height. McGregor Coxall is the landscape architect for the project.

The apartments are a mix of studios and one-, two- and three-bedroom units.

The project’s proximity to Green Square places it in Australia’s most intense development area and most densely populated precinct, with a population density approaching that of Hong Kong.

The City of Sydney has attempted to serve the booming population with a series of prominent new public projects, including Green Square Library and Plaza by Stewart Hollenstein in association with Stewart Architecture, Peter Stutchbury Architecture’s Joynton Avenue Creative Centre and the under-construction Green Square Aquatic Centre by Andrew Burges Architects with Grimshaw and Taylor Cullity Lethlean.

SOURCE: https://architectureau.com/articles/tzannes-fender-katsalidisapartment-complex/?utm_source=dlvr.it&utm_medium=twitter&fbclid=IwAR0llPaUR4_BffVxdPxbycqG0dBBOcKHl89S1_yf2qZJCgJcQJTgGMwL-u0

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Gittins … Blame Housing for Weak Economy

RBA governor Philip Lowe thinks mortgage-holders are using their money to pay down their house debts.

RBA governor Philip Lowe thinks mortgage-holders are using their money to pay down their house debts. CREDIT:AAP

What was achievable … the Great Australian Dream of Owning Your Own Home has become a nightmare with a Whole Cohort of Australians locked out!

SEARCH CAAN WEBSITE TO LEARN WHY!

-Proxy Buyers

-Real Estate Gatekeepers (RE Agents, Lawyers and Accountants) excluded from Anti-Money Laundering Laws

.Scomo Government exempted them in October 2018

Read more:

https://caanhousinginequalitywithaussieslockedout.com/2018/10/09/2665/

.foreign buyers lured by our domestic housing to gain a ‘Permanent Resident Visa’

.the huge competition for Australian Housing escalated house prices

Related Article: Ross Gittins: The Great Australian Dream is Keeping the Economy Weak

https://caanhousinginequalitywithaussieslockedout.com/2020/02/12/the-great-australian-dream-is-keeping-the-economy-weak/

AS long as the economy relies on mass immigration and the housing ponzi to juice growth via consumption and pushing the capacity envelope, productivity and growth will remain poor.

Tell others … start the conversation …

Gittins: Blame housing for weak economy

By Leith van Onselen in Australian EconomyAustralian Property

February 12, 2020 | 9 comments

Ross Gittins has blamed Australia’s record high mortgage debt for hamstringing the economy:

Do you worry about the enormous size of your mortgage? If you do, it seems you’re not the only one. And the way Reserve Bank governor Dr Philip Lowe sees it, people like you are the main reason consumer spending is so weak and the Reserve and the Morrison government are having so much trouble getting the economy moving.

Until the global financial crisis in 2008, we were used to an economy that, after allowing for inflation, grew by about 3 per cent a year.

The latest figures show it growing by barely more than half that. (This, of course, is before we feel the temporary effects of bushfires and the coronavirus.)

This explains why the Reserve cut its official interest rate three times last year, dropping it from a record low of 1.5 per cent to an even more amazing 0.75 per cent. Cutting interest rates is intended to encourage people to borrow and spend. So far, however, it’s shown little sign of working.

Similarly, the first stage of the massive tax cuts that were Scott Morrison’s key promise at last year’s election, a new tax break worth more than $1000 a year to middle-income-earners, was expected to give the economy a kick along once people started spending the much bigger tax refunds they got after the end of last financial year…

So, rather than increase their spending on goods and services, they cut it and used whatever spare money they could to pay down their mortgage…

Gittins isn’t wrong.

Australian households are carrying one of the highest debt loads in the world:

They have also experienced a prolonged period of stagnant income growth:

Instead of spending the extra disposable income from tax cuts and lower mortgage rates, households are instead cutting consumption and paying down debt.

This is reflected in falling mortgage and personal credit growth:

Rising housing equity injection:

Falling new car sales:

Weak retail sales:

Weak household consumption growth:

And a private sector that is in recession:

That’s the cyclical story.

But the more important structural story is that Australia’s housing obsession is one in a series of factors that has crushed multifactor productivity (the driver of living standards) and lowered the economy’s long-run growth potential, namely:

  • Crush-loading infrastructure via the immigration ponzi, thus diluting Australia’s capital stock and requiring expensive new infrastructure to be built that is less efficient than what was already in place;
  • Massive over-investment in unproductive capital via the housing bubble;
  • Massive mis-allocation into white elephant energy infrastructure;
  • Over-inflated land costs; and
  • Oligopolies and rent-seeking across almost all facets of the economy, thus destroying innovation, efficiency and good management.

In short, Australia’s economic structure is stuffed. And as long as the economy relies on mass immigration and the housing ponzi to juice growth via consumption and pushing the capacity envelope, productivity and growth will remain poor.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2020/02/gittins-blame-housing-for-weak-economy/

Coronavirus outbreak having big impact on tourism, economy and budget

The Great Australian Dream is Keeping the Economy Weak

The Great Australian Dream is keeping the economy weak

Ross Gittins
Ross Gittins

Economics Editor February 12, 2020

View all comments

Do you worry about the enormous size of your mortgage? If you do, it seems you’re not the only one. And the way Reserve Bank governor Dr Philip Lowe sees it, people like you are the main reason consumer spending is so weak and the Reserve and the Morrison government are having so much trouble getting the economy moving.

Until the global financial crisis in 2008, we were used to an economy that, after allowing for inflation, grew by about 3 per cent a year. The latest figures show it growing by barely more than half that. (This, of course, is before we feel the temporary effects of bushfires and the coronavirus.)

This explains why the Reserve cut its official interest rate three times last year, dropping it from a record low of 1.5 per cent to an even more amazing 0.75 per cent. Cutting interest rates is intended to encourage people to borrow and spend. So far, however, it’s shown little sign of working.Play Video

Markets still trying to price-in Coronavirus risk

Play video2:44Coronavirus outbreak having big impact on tourism, economy and budget

The federal government has responded to the current situation on the Coronavirus, as well as a ministry reshuffle.

Similarly, the first stage of the massive tax cuts that were Scott Morrison’s key promise at last year’s election, a new tax break worth more than $1000 a year to middle-income-earners, was expected to give the economy a kick along once people started spending the much bigger tax refunds they got after the end of last financial year.Advertisement

Despite Treasurer Josh Frydenberg’s confident predictions, it didn’t happen. Why have the authorities had so little success at pushing the economy along? Why did real consumer spending per person actually fall in the year to September?

That’s what Lowe sought to explain to the House of Reps economics committee last Friday. His theory – which he backed up with statistical evidence – is that, the combination of weak growth in wages with falling house prices has really worried a lot of people with big mortgages.

RBA governor Philip Lowe thinks mortgage-holders are using their money to pay down their house debts.
RBA governor Philip Lowe thinks mortgage-holders are using their money to pay down their house debts.CREDIT:AAP

So, rather than increase their spending on goods and services, they cut it and used whatever spare money they could to pay down their mortgage.

In principle when interest rates fall, people with home loans now have more money to spend on other things. In practice, however, most people leave their monthly payments unchanged. The amount they’re paying above the bank’s newly reduced minimum payment comes straight off the principal they owe, thus further reducing (by a little) the interest they’re charged.

That’s pretty much standard behaviour for Australian home-buyers. But this time they’ve also avoided spending their tax refunds, leaving the money in their “offset account”. They may or may not decide to spend it later. But for as long as it’s sitting in the offset account it’s reducing their net mortgage debt and the interest they’re paying.

But get this: not content with those two moves, households have also decided to cut their consumer spending and so save a higher proportion of their income. It’s a safe bet that people with home loans have got that extra saving parked in their offset accounts.

Illustration: Simon Letch
Illustration: Simon LetchCREDIT:

Lowe makes the point that, when worried home-buyers take money sent their way to get them spending and use it to reduce their debt, this does bring forward the day when they feel confident enough to start spending again. That’s true, but very much second prize.

If people with mortgages are feeling anxious, that’s hardly surprising. By June last year, household debt reached a record 188 per cent of annual household disposable income, before falling a bit in the September quarter (see above). About half that debt was for owner-occupied housing and about a quarter for personal loans and credit cards, leaving about a quarter for housing investment debt.

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This is higher than in most rich countries, but that’s mainly because of our generous tax breaks for negatively geared property investors, a loophole most other, more sensible countries have closed.

But hang on. Those of us living in Melbourne or Sydney (but not elsewhere in Australia) know that, in response to the recent cuts in interest rates, people have resumed borrowing for housing, causing house prices to stop falling and start rising again.

Is this a good thing? Lowe can see advantages and disadvantages. On the plus side, rising house prices are likely to make people with big mortgages feel less uncomfortable and so get closer to the point where they allow their spending to grow. It also brings forward the day when the building of new homes stops falling and starts rising again.

On the negative side, is it really a great thing for house prices to take off every time interest rates come down? How’s that going to help our kids become home owners?

Lowe asks whether we benefit as a society from having very high housing prices relative to the level of our incomes. “There are things that we could do on the structural side . . . to have a lower level of housing prices relative to income.” They’re much lower across the United States, for instance, even though, by and large, the Americans’ interest rates have been lower than ours.

What are these “things on the structural side” we could be doing to make our housing more affordable? He didn’t say. But I think he was referring to more liberal council zoning regulations and to getting rid of the many tax concessions that favour home owners at the expense of would-be home owners, including negative gearing.

Ross Gittins is the Herald’s economic editor.

Ross Gittins

Ross Gittins is the Economics Editor of The Sydney Morning Herald.

SOURCE: https://www.theage.com.au/business/the-economy/the-great-australian-dream-is-keeping-the-economy-weak-20200211-p53zmq.html

Half of over-55s are open to downsizing — if they can find homes that suit them

A house for sale seen in Canberra

ANALYSIS

THE EMPHASIS is for Older Australians to downsize to create housing opportunities … allegedly … for younger households by freeing up ‘Family Homes’ …

BUT who are these ‘younger households’?

HOUSE PRICES in Sydney have risen sharply recently with buyers from both Hong Kong and China again in our housing market, and our aspiring Australian First Home Buyers are left holding their ‘loan approvals’ locked out by the flow of ‘black money’

DOWNSIZING opens the market for developers and overseas buyers!

OLDER AUSTRALIANS may be tempted by the ‘hot money price rise’ but in turn it is destroying Our Society as our Families are forced into short term tenancy … having to find alternative accommodation and meet prohibitively expensive moving costs!

BLACK MONEY IS TRANSIENT … IT IS VERY BAD FOR OUR ECONOMY!

PLEASE SHARE AND TELL OTHERS!

Half of over-55s are open to downsizing — if they can find homes that suit them

The Conversation By Amity James, Steven Rowley and Wendy Stone

WEDNESDAY 12 FEBRUARY 2020

PHOTO: Downsizing, or rightsizing, is considered an essential component of meeting the housing aspirations of older Australians. (AAP: Lukas Coch)

Half of over-55s are open to downsizing – if only they could find homes that suit them

February 12, 2020

Authors

  1. Amity JamesSenior Lecturer, School of Economics, Finance and Property, Curtin University
  2. Steven RowleyHead of School, Economics, Finance and Property, Curtin University. Director, Australian Housing and Urban Research Institute, Curtin Research Centre, Curtin University
  3. Wendy StoneAssociate Professor, Centre for Urban Transitions and Director, Australian Housing and Urban Research Institute Swinburne Research Centre, Swinburne University of Technology

More than half of Australians over the age of 55 are open to downsizing, according to a new report based on a survey of 2,400 households.

The main barrier to moving to a smaller home is a lack of housing that matches their needs and preferences. The rapid growth in the number of older Australians adds to the major challenge housing markets face in meeting their diverse housing needs.

Downsizing, or rightsizing, is considered an essential component of meeting the housing aspirations of older Australians. At the same time, downsizing creates housing opportunities for younger households by freeing up family homes.

CAAN: The issue with this is that in Older Australians selling … ‘the buyers’ … in the majority appear to be either developers or overseas buyers with ‘hot money’. Aspiring Australian First Home Buyers may have the loan approval however, they are outbid by ‘hot money’!


Read more: What sort of housing do older Australians want and where do they want to live?


The ageing population also creates fiscal challenges for government, in terms of delivering services to the home and providing residential care. Downsizing can enable older Australians to age well and age in place rather than potentially move prematurely into residential care.

The report released today by the Australian Housing and Urban Research Institute (AHURI), for which 2,400 households over 55 were surveyed, found 26% of such households had downsized. Another third had thought about it. Overall, the findings point to a strong appetite among older Australians to downsize their dwellings.

With about 6.5 million Australians aged 55 or older, living in about 4.3 million households, our findings suggest downsizing could be relevant to 2.5 million households.

Why downsize? And what are the obstacles?

We know older Australians downsize in response to life events such as changes in health and relationship status, or children leaving the parental home. Lifestyle preferences and difficulties maintaining their garden or house also shape downsizing behaviour.

Barriers to downsizing include a lack of suitable housing and a lack of financial incentives. There are also emotional and physical barriers to moving. Financial factors, however, do not greatly impact the decision to move, nor does perceived financial well-being increase once they have downsized.


Read more: Downsizing cost trap awaits retirees – five reasons to be wary

CAAN: Strata titles can apply to multi-dwelling developments and duplex! Not just apartment developments! Very expensive!

Reason 1 – upfront moving costs are high

Reason 2 – levies are high

Reason 3 – costs of maintenance

Reason 4 – loss of financial security

Reason 5 – loss of security of tenure

Loss of security of tenure is usually associated with renters. However, the recent introduction of termination legislation in New South Wales gives other owners the right to vote to terminate a strata title scheme. When this occurs, all owners, including reluctant owners of apartments within that scheme, are compelled to sell.


Where those who had downsized were dissatisfied, this was most commonly related to the new dwelling, particularly its size, and the neighbourhood.

Is it actually downsizing?

One of the policy rationales for downsizing is to reduce the underutilisation of dwellings. However, this is at odds with the attitude of many older Australians.

They consider “spare” bedrooms necessary for use as permanent guest rooms (58%), studies (50%), or dedicated rooms for children or grandchildren (31%).

Space remains important to Australian downsizers. Over half of them move to a dwelling with three or more bedrooms. A third move to an apartment.

However, two-thirds of downsizers surveyed did move to a dwelling with fewer bedrooms. Three bedrooms was the preferred dwelling size for older Australians. Downsizing the garden was essential for most.

Author provided

Older Australians aspire to attain or retain home ownership. Their preferred neighbourhood has shopping, medical, recreational and public transport services all within walking distance.

Downsizers appear mobile. While under a quarter downsized within their original neighbourhood, 42% moved to a neighbourhood completely new to them.

The survey finding of a lack of suitable housing options matching would-be downsizers’ preferences may explain why so few were able to downsize in their original neighbourhood.

Delivering what older Australians want

If the local market does not have enough options available to meet the needs of older households, it is very difficult to downsize within an existing community. Moving to another desired location can also be problematic.

Meeting the needs of older Australians generally means an increase in medium-density housing. Developers are likely to require incentives to produce these medium-density products rather than potentially more profitable high-density development – although there is, of course, a downsizing market for well-located apartments.

Most downsizers want less garden to maintain, but still want a three-bedroom home. Ben Romalis/Shutterstock

Read more: People want and need more housing choice. It’s about time governments stood up to deliver it


The retirement industry has begun responding to the aspirations of older Australians. It is developing larger dwellings and offering a growing range of options, from high-end to affordable — all of which are accessible and suitable for ageing in place.

Equity-rich older Australians may wish to build a new dwelling in which to downsize. But they are often unable to borrow for this unless they have considerable capital available.

To support this avenue, new development finance models could be created to allow older Australians to develop without first having to sell the primary home. This shift would allow more collaborative forms of development, such as a group of like-minded individuals developing a site as housing for a small community.


Read more: Co-housing works well for older people, once they get past the image problem


For those vulnerable private renters moving into retirement, more secure rental accommodation through the social housing sector and delivered privately is essential. The community housing sector has a key role to play.

Where next?

The Australian housing landscape must shift towards a model of dwelling diversity with secure tenures – ownership and rental – in neighbourhoods where residents can walk easily to weekly services and recreation facilities, participate socially and be close to public transport options.


Read more: Fall in ageing Australians’ home-ownership rates looms as seismic shock for housing policy


Design is equally important. Australians need adaptable dwellings that can change to meet housing needs.

Such a landscape will provide effective downsizing options in which households can age well in the places that best meet their needs and aspirations.


Read more: For Australians to have the choice of growing old at home, here is what needs to change

SOURCE: https://theconversation.com/half-of-over-55s-are-open-to-downsizing-if-only-they-could-find-homes-that-suit-them-130531

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WHO blocked NSW Anti-Corruption Measure?

Prime Minister Scott Morrison and his representative on the NSW Liberal State Executive Alex Hawke. Picture: Kym Smith

Prime Minister Scott Morrison and his representative on the NSW Liberal State Executive Alex Hawke. Picture: Kym Smith

SERIOUSLY … we can’t buy this … can you? Does it seem staged that the NSW Grubment is attempting to block developers from running for local councils? 

A move to appease NSW voters?

AGREE it should happen but …

With the recent past history of NSW INC …

NSW planning minister hands reins to developers

In June 2019, Stokes announced a scheme to speed up approvals for higher density developments in suburban developments, telling an Urban Development Institute of Australia NSW annual luncheon that he hoped to ensure that all local councils in the state adopt the ‘missing middle’ scheme by the end of 2019.

In November 2019, Stokes attacked so-called “NIMBY baby boomers” for opposing high-rise development across Sydney.

NSW INC well knows what SCOMO is about …

ScoMo blocks anti-corruption measure

By Leith van Onselen in Australian Politics

February 11, 2020 | 3 comments

NSW Premier Gladys Berejiklian Picture: Bianca De Marchi

NSW Premier Gladys Berejiklian Picture: Bianca De Marchi

The NSW Government is attempting to block developers from running for local councils. However, the motion has reportedly been blocked by Alex Hawke, who is Prime Minister Scott Morrison’s representative:

As revealed by The Sauce last week, a motion backed by both the moderates and Right faction members was put to the NSW Liberal State Executive last Friday for the party to use its own powers to stop developers from running as endorsed Liberals.

However, the bid – supported by Premier Gladys Berejiklian – was blocked by Centre Right powerbroker Alex Hawke, who is Prime Minister Scott Morrison’s representative on the committee…

While the motion failed, The Sauce has confirmed talks are ongoing among several senior Liberals with legislation among options being explored.

It is understood any draft legislation would likely have the support of Labor and the Greens…

A senior Liberal source said it was still “early days” but talk of legislation was “absolutely under way”.

“There are definitely talks, and it is likely the matter will again be raised at the next executive meeting,” a Liberal source said.

“It is a problem that is not going away and there are Liberals that want it sorted before the local government elections in September.”

Yesterday we learned that political donations from the property industry favour the Coalition about eight to one, according to Australian Electoral Commission figures.

  • We also know that Prime Minister Scott Morrison worked for six years as a research manager for the Property Council of Australia. *

We know where the Morrison Government’s allegiances lie.

Leith Van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

SOURCE: https://www.macrobusiness.com.au/2020/02/scomo-blocks-anti-corruption-measure/

Post-War Australian Housing Future Urbanism … Southern Europe

Lion statues greet guests at the entrance to this house in Seddon, Melbourne

Well-tended productive gardens are a common feature of the post-war migrant home

‘You can kill a city by a thousand cuts’: The density conundrum

A very good coverage documenting for some, it was a time of neo-Baroque furniture, terrazzo-clad terraces, and statues of lions sitting atop fences, while for others, it was a time where the humble brick-veneer or weatherboard home ruled supreme.

A pleasant visual tour … a change from the State of Play in Australia’s domestic housing market today!

VIEW CAAN’s other articles for more about what is happening

Through cuts to Australian jobs, wages, secure work, high influx of Visa Workers and Real Estate Tours to gain an Aussie home and a Permanent Resident Visa … these are the root causes of why Australian Cities … particularly Sydney, Melbourne, Brisbane, Hobart …. across Australia … are being killed by a thousand cutsThe Density Conundrum

SHARE! And tell others … start the conversation … Australia!

READ MORE:

Middle Ring Suburbs such as Sunshine in Melbourne’s West are being prized for their potential to house more people: Flickr Philip Mallis

This post-War home in Melbourne’s Middle Suburb of Reservoir sold for $1.276M in December 2019: Supplied Nelson Alexander

“Back in those days, land was our joy — we looked for a big block of land and found it,” Mr Di Risio said.

“Our house was one of five houses on the street: cows were not far away from us as there was a farm nearby.”

‘You can kill a city by a thousand cuts’: The density conundrum

SOURCE: https://www.abc.net.au/news/2020-02-09/post-war-australian-housing-future-urbanism-southern-europe/11924116?nw=0&pfmredir=sm

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Older Australians who own their home more than 20 times better off than those who rent, data shows

TRUE … but does this Report tell Australians any more other than what they have already heard or experience?

BECAUSE we could not find any reference to what has caused this frightening predicament for a Whole Cohort of Australians.

The EMPHASIS rather appears to be on the divide of the Boomer Generation having home security and younger generations denied access to home ownership …

7.30 perhaps has not talked to the ‘right people’?

AND a lot of those renting are women.

This is what happens when nothing is done about … what are the causes of this ‘Divide’!!


-proxy buyers

-money laundering in real estate

.why not investigate why the Morrison Government exempted the Real Estate Gatekeepers from the Anti-Money Laundering Laws in October 2018?

-the World-wide marketing of Australian housing particularly to China and Hong Kong

.until the CoronaVirus 50,000 Chinese were flying into Australia every week

-the lowest wages growth for more than 60 years

.join a Union; you can join independently of your workplace; fees are tax deductible

1.6 Million Visa Workers in Australia

.thus high youth unemployment and underemployment

.unemployment in Australia is 19.7% not a mere 5.2%

2.3 Million Visa holders in Australia at any point in time; many on Real Estate Tours and seeking a ‘Permanent Resident Visa’ with Medicare Benefits!

NOW TELL OTHERS … start the Conversation Australia!

Older Australians who own their home more than 20 times better off than those who rent, data shows

7.30 By Geoff Thompson and Alex McDonald

Updated Mon 10 February 2020

A group of adults stand around at a house auction.

PHOTO: Home ownership rates have fallen, particularly among people aged under 40. (ABC News: Jerry Rickard)

RELATED STORY: It’s not just location and size that homebuyers are looking for

RELATED STORY: Australia has escaped property bubbles without a crash twice, is it third time unlucky?

RELATED STORY: Prospective homebuyers warn others to ignore ‘for sale’ price tag

Exclusive Australian Bureau of Statistics data has revealed the staggering difference in wealth of older Australians in owner-occupied households compared to those that rent.

Key points:

  • Those who own property as they approach retirement are much better off than those of the same age who rent, ABS data shows
  • Rates of home ownership fell among every age group between 2011 and 2016
  • Economist Brendan Coates says if fewer Australians own their home “it will have enormous consequences for all aspects of Australian life”

In 2017-18, the ABS found that property-owning households — where at least one of the occupants was 65 and over — had a median net worth of $960,000.

Similar households that were still paying off a mortgage had a median net worth of $934,900.

In stark contrast, the median net worth of similar households that rent was just $40,800.

“People who are not in the housing market will find it more difficult over time,” ANZ economist Felicity Emmett told 7.30.

“I think we will see a situation where wealth inequality and particularly intergenerational inequality rises.”

Nicki Hutley, partner at Deloitte Access Economics, believes Australia is in danger of creating a separate class of Australians who will not reap the many benefits that come with home ownership.

“Are we allowing one class of Australians to build for their retirement more easily than another class of Australians? The answer to that is unequivocally yes,” she said.

Ms Hutley has warned that Australia is in the grip of a housing affordability crisis that will lock a growing number of people out of the property market.

Analysis provided to 7.30 by the Reserve Bank of Australia confirms rates of home ownership fell among every age group between 2011 and 2016.

Chart showing home ownership by age group.

PHOTO: The rate of home ownership dropped in every age group between 2011 and 2016. (ABC News)

CAAN: 2011 was when the NSW Liberal O’Farrell Government won the election and in 2012 introduced its Planning Law Changes for Higher Density … In 2013 the Liberal Coalition took control of the Australian Government and together with its high immigration and visa manipulation housing development and house prices escalated; that is why home ownership for Australians dropped!

“When house prices are growing strongly, you see a big drop-off in the number of people moving into home ownership,” Melbourne University professor Roger Wilkins said.

Saving a 20 per cent deposit for a house in any Australian capital city now takesnine years for a typical household, while a median-priced property in Sydney now costs more than eight times the average household income, according to CoreLogic.

That is despite the recent correction wiping almost 15 per cent from Sydney property values.

Nationally, property prices are rising again and are predicted to recoup their recent losses by May.

“What’s happening now is real, but it’s not sustainable,” Ms Hutley said.

“We can’t keep having our house prices rise to these sorts of levels.

“We certainly have a housing affordability crisis in Australia.”

‘We’re likely to see fewer Australians own their own home’

The Grattan Institute’s household finances program director Brendan Coates points to sharply declining rates of home ownership among younger Australians.

Housing rebound to roll on


One of Australia’s leading forecasters is tipping Australia’s property price rebound to continue through 2020 … unless the economy rolls over.

The number of homeowners aged 18 to 39 in Sydney and Melbourne has plummeted since 2002, picking up only slightly during the recent downturn.

In 2002, 34 per cent of 18 to 39-year-olds in Melbourne were home owners. By 2018 that figure had dropped to 22 per cent, according to the HILDA Survey.

“It’s hard to see that that’s anything other than worsening affordability that’s driving that trend,” Mr Coates said.

“It is a crisis where, over the course of the next couple of decades, we’re likely to see fewer and fewer Australians — particularly poorer Australians — own their own home, and that will have enormous consequences for all aspects of Australian life.”

Hoping to achieve what their parents never could

Trudie and Dominic Harris standing in a kitchen

PHOTO: Trudie and Dominic Harris are hoping to qualify for the new first home deposit scheme. (ABC News: Michael Atkin)

In a typical year, Dominic and Trudie Harris earn about $120,000 between them.

They are hoping to achieve what their parents never could — buying a property that their eight-year-old son Liam can call home.

But the odds are stacked against them. In the Queensland suburb of Newport, where they currently rent, it takes, on average, 11 years to save a 20 per cent deposit for a house.

“Thinking it’s another 11 years to save to get into the market is crazy,” Ms Harris said.

“I’ll be 52 and Liam will be a teenager,” Mr Harris said.

The couple hopes to cut the deposit to 5 per cent by being one of the 10,000 Australians to qualify for the Federal Government’s new first home deposit scheme.

“It would be nice to get a hand up, not a handout,” Mr Harris told 7.30.

“I think the 5 per cent is a lot more achievable than 20 per cent.”

Housing deposit scheme ‘won’t have much of an impact’

Economists who 7.30 spoke toquestioned whether the Government’s home deposit scheme would make housing more affordable.

Low-deposit loan ‘bandaid’


Housing market experts generally agree that supporting low-deposit loans for first home buyers is at best a “bandaid” fix for the deeper problem of housing affordability.

“I think the first home deposit scheme is another example of a policy that sounds good,” the Grattan Institute’s Mr Coates said.

“It ends up being a policy that really benefits vendors of the kinds of homes that are attractive to first-time buyers, and that’s exactly what we’ve seen with stamp duty concessions for first home buyers in Victoria, and with first-time buyers grants in the past.”

Deloitte Access Economics’ Ms Hutley likened the scheme to previously tried “bandaid measures” that had not made housing more affordable overall.

“What I’d see as the underlying solution for housing affordability is to build more houses in the places where people want to live,” she said.

CAAN: Stop Visa manipulation with Real Estate Tours and the lure of ‘Permanent Residency’ and Medicare benefits! That is what has cut Australians out of home ownership … why can’t we talk about this?

Time to restrict TOURISM to TOURISM with no Proxy Buying of Australian domestic housing through Real Estate Tours!

CAAN: Search our Website for more reports

Read more on housing affordability:

SOURCE: https://www.abc.net.au/news/2020-02-10/older-australians-who-own-home-more-than-20-times-better-off/11815006

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SERPENTZA … Are NEW Chinese Buildings really FALLING DOWN?

WITH more and more Ghost Cities … China’s Ponzi … as only they can do it!

IT would seem that with all the concrete, steel, glass emitting more and more CO2 … that China’s URBANISATION is making an even greater contribution to Global warming … Climate Change … with Xi having driven millions of his people out of the rural areas to dwell in high-rise and high density compounds like these …

China produces most cement and therefore most cement-related CO2 emissions

VIEW: https://www.bbc.com/news/science-environment-46455844

NO. 1 CHINA

With the world’s largest population and for decades one of the fastest growing economies, China is far and away the world’s top CO2 emitter.

https://www.usatoday.com/story/money/2019/07/14/china-us-countries-that-produce-the-most-co-2-emissions/39548763/

ASIDE from being the World’s biggest emitter of CO2 …

‘Buildings just go down and everyone inside dies, and this happens very often, and in a wealthy province!’

They returned to a Villa built 3 years earlier to find it is falling down.

Building quality has dropped further compared to that of 10 or 20 years ago.

Even bigger humongous versions of what we are now sadly seeing in Sydney …. what Precincts come to your mind?

Image may contain: skyscraper, sky, cloud and outdoor

CAAN Photo: China’s Greenland ‘Lachlan’s Line’ … muscled its way in … despite strong objection from the Ryde Community …

Image may contain: sky, cloud, skyscraper and outdoor

CAAN Photo: ‘Lachlan’s Line’ with China’s Country Garden (Risland) ‘Ryde Garden’ in the background

SOURCE: https://www.youtube.com/watch?v=XopSDJq6w8E&fbclid=IwAR0GRcB_ZR_F5arUnsL4fLRHiAzrCtnEycNXCJFO7EMwBUT40MHFXbXRvEw

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