150% correct..I live in Whitsundays and the complex i live in is HALF EMPTY with Apartments Empty and NEVER BEEN LIVED IN... So DFA is correct again..Overseas Owners must be Forced to Use or LOOSE IT ... Hamilton Island has Overseas buyers Lined up to purchase the Island after Owners Oatley's decided to sell.. Low AUD is making Property CHEAP compared to there own country.. Immigration on Steriods has also opened the flood gates under this Government..
@@peterk4501 Mate my complex is Owned by Chinese Group who own Port Douglas Mirage and Whisper Bay Resort . i am a owner occupier which is only 20% of the complex , Half the aparts here are Empty and not even ready to use..
@@paulanderson6545 may be true as you say in those touristy parts, but by and large Sydney siders have that foreign investor line drummed into them for 60yr old orange brick shacks selling for $2mill. Whitsundays is a nice place to be !
Immigration on steroids has been the policy of every government, Labor or LNP. It was only paused by the LNP due to Covid. Big business loves high immigration because of the increase in demand and it keeps wages low, and big business owns both parties, so high immigration it is. You need to vote elsewhere than the two majors if you want to stop immigration.
@@petersanders2815 Totallky agree , and as i used to be a LNP member but left when Turncoat was leader , i now vote for One Nation or UAP and live where expenses have halved since i bought too, (Body corp fees etc.) There is many bargain buys around if people decide to move and live in paradise too..
Hi Martin, gosh, I lost a bundle on the Gold Coast 2011-2012 when interest rate rises went 8 times up in 10 months. Apartments in Surfers Paradise and Broadbeach that were 800K before the rate rises quickly dropped to 400k due to over supply, lower bank valuations killed contracts. The rental on these new apartments mentioned will be way above what the local workers could afford, holiday rentals seasonal with body corporate charges and sales asking price will not stack up for investors. Banks have previously blacklisted apartments in the volatile Gold Coast market.
No one here's of these stories like you mention....in Australia real-estate is ALWAYS A WINNER, but reality is different as you know. No one talks of real-estate falling 50% as you did, a d I sense it's about to much worse this time around
Banks have really tightened up on lending in the past 12 months too. My friends daughter was pre approved for 450k last year and that has been dropped to 300k this year (same job & more savings), and another 20 something I know is looking to buy on the coast, was pre approved for 550k last year, that's been dropped to 480k now. Same story re same job and more savings.
A Chinese development of villas in Sydney's Sth is near completion and I have been told by somebody in the know that not ONE single villas has yet been sold, How is this allowed to continue???????
If you're going to have a govt so stupid as to sell Australia to overseas speculators then don't complain if you get screwed. The problrm is the fed/state govts, not the investor seeking to maximise profit.
Typical Chinese/Asian investor attitude. Ethics has nothing to do with it. Australia, reap what you sew. Feel sorry for the uniformed citizens who think the regulators care about them. Newsflash: they don't.
In my opinion the housing "boom" is one of the key driving forces behind us all becoming poorer. Housing policy intervention is sorely needed, vacant property taxes and land taxes for large amounts of residential land are required to make land banking and staged releases commercially unattractive and incentives have to be introduced (perhaps using the funds from the taxes) to make medium density affordable housing attractive. We know urban sprawl and suburbanization destroys cities and is bad for people and the environment so we should try to reverse it as much as possible.
Lets start by getting rid of negative gearing tax breaks for a start. Reduce imigration to historic norms. Look at tightening up foriegn ownership. Land taxes are scary because they will always go up and basically mean you never truley own your home (your costs can't be fixed and therefore you may be forced out in retirement if rates and taxes go up beyond your means)
Agree with you on higher density Australians have prefered stabd alone homes but so many now are part of households of 1-3 people, more apartments are necessary. I actually prefer and apartment to the new developments in suburbs with a tiny yard and neighbours you can reach out and touch.
It's called land banking, an Aussie past time since the 1890s, and even older than that. This is how an 80% collapse in prices comes to be, when these vacant places suddenly become "supply"... via forced selling. No one cares what the vendors wish to do, sell or hold, they will be forced to sell and no one will ask them once the huge debt levels they hold get called in.
Most people who land bank can afford to pay in cash without borrowing so your idea of them collapsing in debt is unfounded. They'll only sell if the govt introduces a vacancy tax.
Another interesting on is the Smith collective on the Gold Coast (commonwealth games accommodation). Apparently have a lot of vacancies throughout. Also thanks for the great content.
Every aspect of this discussion is just talk? If the investment was paid for with cash, and it is privately owned, then it is no one else's business what their plans are as long as the towers are safely kept in the air. If the government cared about everyone being housed at all, they would create a government industry that provided that with money that is just printed out of thin air initially anyway, and instead of paying any interest on it to the federal reserve system who do nothing to get the ownership of that money, the new owners of the houses bought from the government program would pay all that money back probably with just the CPI added and all the initial building costs in there. That would be practical housing for first and hardship buyers. Of course, not bringing in immigrants that need housing would help, but funding them the same way would work. This would create another aspect of the building industry, teach apprentices, create maintenance and marketing, etc., etc. The economy would not suffer since the current vacant homes are just sitting as they cannot be afforded. More land development would be needed and infrastructure, and if all was paid for in the same way, without an interest bill, and by making inflation illegal, Australia would grow as it used to with people being able to afford to have children again. Communism is too severe, socialism is almost as severe, but this system of cutting down excess profit making would flatten the graphs. User pays would be good if it did not fund offshore banker families and our politicians and bureaucrats, but that is what is needed.
The construction of thatbuilding was a shambles! There were multiple companies that took over construction only to go bust. If i wasbuying i would not be looking at then jewel
I love the RBA Steering Australia off a cliff by not acting on inflation only to come out a few months later and say we got it wrong... Zero accountability
I am very wary of Gvt intervention at the best of times. More taxation does not equate to more services, -Gvt's are the least efficient managers of money. Affordable housing is another woke myth that needs to be debunked. People have always had to sacrifice to buy housing - it's never been easy. People calling for more Gvt support are the same people who complain about their taxes and ask their tax agent to dodgy their tax return - I know this because I am tax agent. Never in 25 years has one single person asked me how to pay more tax. Taxation only raises revenue - it does not solve any problems be it housing, climate change, obesity or equity. More funds to the Gvt increases increases Gvt power and the likelihood of corruption.
Jewel was never completed. It was a tools down scenario where administrators were called in to manage it out of it's financial black hole as everything went enormously overbudget, because like you said they didn't do presell. I suspect the sold units are being used to finance the next units being finished and then to sell to finish the next and so on. There still businesses owed a small fortune by the Chinese Developers.
I don't think Governments should be able to force developers to make thier properties available at all... If the Government actually wants to alleviate the shortfall of available properties, they themselves should develop and make properties available & also turn the Immigration Tap Down ! More Government intervention will only discourage future investors into the future. It is unfair to intervene in the private sector to remedy the failings of Bad Government Policies in my humble opinion.
I can almost guarantee they held other security instead of pre-sales (i'd imagine that they'd be more flexible given the size of the project rather than small commercial construction where pre-sales would be very much required) and they did the math and have sufficient body corporate, growth in sale price, and lack of downward price pressure from availability whose total exceeds the total maintenance, interest and partial debt reduction required. aka it's still worth it to squeeze out the additional sales price as they make more money overall. They may even use the increased regularity of said income for other projects should the debt left on the building be minimal. The real problem is, the more people who do this, the more of a self fulfilling prophecy this becomes.
You only have to walk around any large development of an evening to see how many apartments are vacant showing no sign of life at all. My personal view is such places of residence should be compulsory purchased then made available as social housing or low cost housing to help those starting out on the property ownership ladder. It has to be better than building on prime farming land on the outskirts where there is no established infrastructure so you have to drive all over the place be it to schools,food retailers or other points of interest. We still have many layers of corruption to work through before this issue is sorted out.
I agree, there should be an approach to release vacant property for occupation. But that goes against the traditional "leave it to the market" neo-liberal approach...
A very good reason why a property might be empty is that the property is private property and it is no one's business what people or businesses do with their possessions. Interfere with private property and anything else similar and we no longer live in a free society. The government is the problem in every way. Tax, rates, fees, charges, re and green tape, zoning, planning and list goes on.
It is a slippery slope dictating to property deveopers or owners, if you mandate requireets like having to put it ito supply That would reduce developments, I woud expect because the slternative is, they could just hold land instead of holding apartmet blocks Leave things without government interference is the better move People need to move to housing that they csn afford to buy or rent If that means they have to move from heavily populated areas, that is really nothing new I had to buy a country house, I can't leave there right now as there wasn't a job there for me.. them's the breaks.. Sometiesyou just got to rent where you can work till you can find s way to live in a houseyou can afford to buy People have to be flexible, realistic snd make the best moves they can is the way I see it No use wishing on a star
If they’ll let me live in my property by taking it out of my SMSF without having to pay stamp duty, that’d free up the house I’m renting. I’m about to lose good tenants, but won’t be risking bad ones. That property is going to sit empty until I can live in it. I’m stomaching $20,000pa body Corp, plus water and council rates, but stuff ‘em. The rules aren’t there to benefit me.
a 1 % transaction tax , with no tax deuction's , tax advantage , or laws changed to help failed businessmen . will fix all of this . so many want extra taxs , when it is the way we are taxed , that caused all the debt
I live in Essendon. Two 3bedroom houses I can see from my front window were sold by auction to the same old Chinese couple at 1.8 million a pop 6 months ago about a month apart. Both are now security shuttered and unoccupied with the lawns and gardens maintained by the couple themselves every couple of weeks. I am pretty sure these will be for family members in the future but it is not just apartments that are bought and put to sleep.
Dont forget also that this building took out several smaller apartments displacing many people over 10 years ago. Such a waste of prime real estate.
150% correct..I live in Whitsundays and the complex i live in is HALF EMPTY with Apartments Empty and NEVER BEEN LIVED IN... So DFA is correct again..Overseas Owners must be Forced to Use or LOOSE IT ... Hamilton Island has Overseas buyers Lined up to purchase the Island after Owners Oatley's decided to sell.. Low AUD is making Property CHEAP compared to there own country.. Immigration on Steriods has also opened the flood gates under this Government..
It's not overseas investors, that's nonsense domestic political talk to take attention away from the fact that it's Aussies buying it all up on debt .
@@peterk4501 Mate my complex is Owned by Chinese Group who own Port Douglas Mirage and Whisper Bay Resort . i am a owner occupier which is only 20% of the complex , Half the aparts here are Empty and not even ready to use..
@@paulanderson6545 may be true as you say in those touristy parts, but by and large Sydney siders have that foreign investor line drummed into them for 60yr old orange brick shacks selling for $2mill. Whitsundays is a nice place to be !
Immigration on steroids has been the policy of every government, Labor or LNP. It was only paused by the LNP due to Covid. Big business loves high immigration because of the increase in demand and it keeps wages low, and big business owns both parties, so high immigration it is. You need to vote elsewhere than the two majors if you want to stop immigration.
@@petersanders2815 Totallky agree , and as i used to be a LNP member but left when Turncoat was leader , i now vote for One Nation or UAP and live where expenses have halved since i bought too, (Body corp fees etc.) There is many bargain buys around if people decide to move and live in paradise too..
Hi Martin, gosh, I lost a bundle on the Gold Coast 2011-2012 when interest rate rises went 8 times up in 10 months. Apartments in Surfers Paradise and Broadbeach that were 800K before the rate rises quickly dropped to 400k due to over supply, lower bank valuations killed contracts. The rental on these new apartments mentioned will be way above what the local workers could afford, holiday rentals seasonal with body corporate charges and sales asking price will not stack up for investors. Banks have previously blacklisted apartments in the volatile Gold Coast market.
No one here's of these stories like you mention....in Australia real-estate is ALWAYS A WINNER, but reality is different as you know. No one talks of real-estate falling 50% as you did, a d I sense it's about to much worse this time around
Banks have really tightened up on lending in the past 12 months too. My friends daughter was pre approved for 450k last year and that has been dropped to 300k this year (same job & more savings), and another 20 something I know is looking to buy on the coast, was pre approved for 550k last year, that's been dropped to 480k now. Same story re same job and more savings.
The reduction in pre-approvals is not showing up due to the lower supply ATM. As supply increases, watch what happens to all property prices
That's a real story
Easy solution: increase land tax on foreign purchases.
Or only permit expense claims against rental income against that one property
Just don't allow it at all
Extra tax for vacancies
A Chinese development of villas in Sydney's Sth is near completion and I have been told by somebody in the know that not ONE single villas has yet been sold,
How is this allowed to continue???????
corruption and greed!
Money laundering on daily basis
Chinese ghost housing, with a distinctively Australian flavour.
There's a NDIS house over the road sitting vacant since June at $620 per week.
sell it!
If you're going to have a govt so stupid as to sell Australia to overseas speculators then don't complain if you get screwed. The problrm is the fed/state govts, not the investor seeking to maximise profit.
Typical Chinese/Asian investor attitude. Ethics has nothing to do with it.
Australia, reap what you sew. Feel sorry for the uniformed citizens who think the regulators care about them. Newsflash: they don't.
In my opinion the housing "boom" is one of the key driving forces behind us all becoming poorer. Housing policy intervention is sorely needed, vacant property taxes and land taxes for large amounts of residential land are required to make land banking and staged releases commercially unattractive and incentives have to be introduced (perhaps using the funds from the taxes) to make medium density affordable housing attractive. We know urban sprawl and suburbanization destroys cities and is bad for people and the environment so we should try to reverse it as much as possible.
We don't need land taxes. We just need to cut immigration and foreign ownership. The market would then self correct
spot on sista! close the borders for 50 years! @@nicolle_2944
Lets start by getting rid of negative gearing tax breaks for a start.
Reduce imigration to historic norms.
Look at tightening up foriegn ownership.
Land taxes are scary because they will always go up and basically mean you never truley own your home (your costs can't be fixed and therefore you may be forced out in retirement if rates and taxes go up beyond your means)
Agree with you on higher density
Australians have prefered stabd alone homes but so many now are part of households of 1-3 people, more apartments are necessary.
I actually prefer and apartment to the new developments in suburbs with a tiny yard and neighbours you can reach out and touch.
Write to your MP, hassle them. Governments will not bring these policies to the table at an election or otherwise if you don’t.
Vacant property tax of 500%
It's called land banking, an Aussie past time since the 1890s, and even older than that.
This is how an 80% collapse in prices comes to be, when these vacant places suddenly become "supply"... via forced selling. No one cares what the vendors wish to do, sell or hold, they will be forced to sell and no one will ask them once the huge debt levels they hold get called in.
Most people who land bank can afford to pay in cash without borrowing so your idea of them collapsing in debt is unfounded. They'll only sell if the govt introduces a vacancy tax.
What a good point in regards to supply. :)
And the fees for a vacant property in FIRB or ATO is?
Another interesting on is the Smith collective on the Gold Coast (commonwealth games accommodation). Apparently have a lot of vacancies throughout. Also thanks for the great content.
Thanks, appreciated.
Lucky its only 2 towers, China usually build entire Cities and leave them vacant.
And architecturally, I think they are eyesores 🤮
we are in AUSTRALIA forget china@@tinaryan4023
They are very ugly towers. Look terrible close up and from a distance. I m often around that area.
Great presentation thank you
Very welcome
Washing machine?
I remember building those things lol.
Not suprised at all.
Every aspect of this discussion is just talk?
If the investment was paid for with cash, and it is privately owned, then it is no one else's business what their plans are as long as the towers are safely kept in the air.
If the government cared about everyone being housed at all, they would create a government industry that provided that with money that is just printed out of thin air initially anyway, and instead of paying any interest on it to the federal reserve system who do nothing to get the ownership of that money, the new owners of the houses bought from the government program would pay all that money back probably with just the CPI added and all the initial building costs in there. That would be practical housing for first and hardship buyers.
Of course, not bringing in immigrants that need housing would help, but funding them the same way would work.
This would create another aspect of the building industry, teach apprentices, create maintenance and marketing, etc., etc.
The economy would not suffer since the current vacant homes are just sitting as they cannot be afforded.
More land development would be needed and infrastructure, and if all was paid for in the same way, without an interest bill, and by making inflation illegal, Australia would grow as it used to with people being able to afford to have children again.
Communism is too severe, socialism is almost as severe, but this system of cutting down excess profit making would flatten the graphs.
User pays would be good if it did not fund offshore banker families and our politicians and bureaucrats, but that is what is needed.
The construction of thatbuilding was a shambles! There were multiple companies that took over construction only to go bust. If i wasbuying i would not be looking at then jewel
Hello Martin I moved to Gold Coast in July 😄
I love the RBA
Steering Australia off a cliff by not acting on inflation only to come out a few months later and say we got it wrong...
Zero accountability
Yes little accountability is the core issue...
I am very wary of Gvt intervention at the best of times. More taxation does not equate to more services, -Gvt's are the least efficient managers of money.
Affordable housing is another woke myth that needs to be debunked. People have always had to sacrifice to buy housing - it's never been easy.
People calling for more Gvt support are the same people who complain about their taxes and ask their tax agent to dodgy their tax return - I know this because I am tax agent. Never in 25 years has one single person asked me how to pay more tax.
Taxation only raises revenue - it does not solve any problems be it housing, climate change, obesity or equity. More funds to the Gvt increases increases Gvt power and the likelihood of corruption.
Jewel was never completed.
It was a tools down scenario where administrators were called in to manage it out of it's financial black hole as everything went enormously overbudget, because like you said they didn't do presell.
I suspect the sold units are being used to finance the next units being finished and then to sell to finish the next and so on.
There still businesses owed a small fortune by the Chinese Developers.
Australia has always bèen FOR SALE and as a non product producer will continue to be.
I don't think Governments should be able to force developers to make thier properties available at all...
If the Government actually wants to alleviate the shortfall of available properties,
they themselves should develop and make properties available
& also turn the Immigration Tap Down !
More Government intervention will only discourage future investors into the future.
It is unfair to intervene in the private sector to remedy the failings of Bad Government Policies in my humble opinion.
I can almost guarantee they held other security instead of pre-sales (i'd imagine that they'd be more flexible given the size of the project rather than small commercial construction where pre-sales would be very much required) and they did the math and have sufficient body corporate, growth in sale price, and lack of downward price pressure from availability whose total exceeds the total maintenance, interest and partial debt reduction required. aka it's still worth it to squeeze out the additional sales price as they make more money overall. They may even use the increased regularity of said income for other projects should the debt left on the building be minimal. The real problem is, the more people who do this, the more of a self fulfilling prophecy this becomes.
You only have to walk around any large development of an evening to see how many apartments are vacant showing no sign of life at all.
My personal view is such places of residence should be compulsory purchased then made available as social housing or low cost housing to help those starting out on the property ownership ladder. It has to be better than building on prime farming land on the outskirts where there is no established infrastructure so you have to drive all over the place be it to schools,food retailers or other points of interest.
We still have many layers of corruption to work through before this issue is sorted out.
I agree, there should be an approach to release vacant property for occupation. But that goes against the traditional "leave it to the market" neo-liberal approach...
A very good reason why a property might be empty is that the property is private property and it is no one's business what people or businesses do with their possessions.
Interfere with private property and anything else similar and we no longer live in a free society.
The government is the problem in every way. Tax, rates, fees, charges, re and green tape, zoning, planning and list goes on.
Thanks Mr. Martin...I'm sure Billy Shorten knows exactly what your talking about...eh?
It is a slippery slope dictating to property deveopers or owners, if you mandate requireets like having to put it ito supply
That would reduce developments, I woud expect because the slternative is, they could just hold land instead of holding apartmet blocks
Leave things without government interference is the better move
People need to move to housing that they csn afford to buy or rent
If that means they have to move from heavily populated areas, that is really nothing new
I had to buy a country house, I can't leave there right now as there wasn't a job there for me.. them's the breaks..
Sometiesyou just got to rent where you can work till you can find s way to live in a houseyou can afford to buy
People have to be flexible, realistic snd make the best moves they can is the way I see it
No use wishing on a star
If they’ll let me live in my property by taking it out of my SMSF without having to pay stamp duty, that’d free up the house I’m renting.
I’m about to lose good tenants, but won’t be risking bad ones. That property is going to sit empty until I can live in it.
I’m stomaching $20,000pa body Corp, plus water and council rates, but stuff ‘em. The rules aren’t there to benefit me.
a 1 % transaction tax , with no tax deuction's , tax advantage , or laws changed to help failed businessmen . will fix all of this .
so many want extra taxs , when it is the way we are taxed , that caused all the debt
It had nothing to do with providing homes....other motives
So The Aussie Banksters Still Have Plenty Of Money to Loan Out !
The Party Continues !
Coz there are no jobs in surfers paradise that can afford the rental rates.
I live in Essendon. Two 3bedroom houses I can see from my front window were sold by auction to the same old Chinese couple at 1.8 million a pop 6 months ago about a month apart. Both are now security shuttered and unoccupied with the lawns and gardens maintained by the couple themselves every couple of weeks. I am pretty sure these will be for family members in the future but it is not just apartments that are bought and put to sleep.
Yes, it is widespread.
crisis indeed! Surfboard (Ao vivo)
Like a stool...
More property to the market, a world war or civilisation ending event. Plague or eruption