Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
The host said she doesn't want her house value to go down, but wants her kids to be able to afford a house. There is the entire story. You cant have it both ways lady! Either you keep your inflated nest egg as is, or your children (and Australias children) can have a better future by having affordable housing choice. I know which I chose- the younger generations should come first! (And i say this as a home owner. But i own just 1 home, and its the one i live it. Owning more than that in this kind of market is immoral).
The obsession with property sees our banks only lend for property. So new business ventures can't access capital, regardless of interest rates. Makes for a dumb, unproductive economy.
Exactly right, business ventures are high risk and the banks know that full well.. Loans for property are very low risk and is why the bank love mortgages.. It's gold plated business with little to no risk..
Alan is very genuine and its sad to see him speaking such honesty and respect for the betterment of Australia in contrast to these vultures that would break the backs of Australia's future generations just to make a more $$$
real dystopian watching Alan sincerely confront the housing crisis only to be shut down with variations of "aww but that would hurt my business/my property price"
My cousin bought a home on the Gold coast for $480k just before covid. 3 years later it was worth at least $1.2 million. That's an increase of over $5000 a week. What job has pay rises that keep up with that sort of increase?
Halting immigration until housing catches up would be a good first step. Importing 1.2 million people within a 2 year period into a country with a housing crisis is asking for trouble.
At least Alan is able to use the word migration, I've seen may interviews and podcast that don't mention the word for, what looks like, fear of appearing unwelcoming. It's not about being unwelcoming it's about having the infrastructure to support them.
Yeah it's remarkable how often our public conversations about housing never ever discuss demand, or migration levels. People are just petrified of being called racist.
@@demetriot yes, and ensuring the people already here aren't being adversely affected by the number of immigrants - which unfortunately is what is happening atm.
I love the comment from Alan about investing in companies as opposed to housing. As Australians as obsessed with investment properties the more we have funded these unproductive investments. The only jobs they provided are 100000s of real estate agents like these two, buyers agents. They aren’t investing in companies that try to improve society at all, no medical discoveries, technological advances. So here we are stuck with a bunch of have’s and have not’s and the haves just hoarding wealth in unproductive assets that aren’t beneficial for society or the next generation.
One of the least diverse and impressive economies in the world, despite our massive resource endowerement. House and holes, despite such a creative, educated and wealthy populace. Shameful.
"we want affordable housing, but don't want to see the value of my house drop" Is she for real? You can't have it both ways! Increasing supply outpaces demand would definitely drop prices. Why do you think the government is bringing so many migrants? And some of us are not here to buy a mcmansion with cinema room. A lot just want a stock standard 3 bedroom home with a good sized backyard. These property pundits are so way out of touch, the faster this bubble implodes the better our country will be! But no... They gotta kick the can. This country's f**ked.
What if we dropped income tax for a land tax to stop people speculating on property? This will make the ownership of property (property costs + land taxes) instead of (property cost and a tax free haven).
@@ianmcnamee1652 people want to keep their tax free haven asset (their home). You have to change that so it stops being the most coveted thing in Australia.
If the six story places looked like the ones in Paris, I imagine less people would care. People expect medium to high density Australian buildings to be rubbish cheap and potentially not structurally sound.
Ironic that a show called" Elephant in the room " barely mentions the ACTUAL elephant in the room, which is record levels of immigration. The argument about negative gearing and regulation is just smoke. If local regulation was the cause for local house prices why is EVERY Western nation having the same problem of high house prices? Elephant in the room indeed.
Im a home owner and im sure a ton of home owners like myself would vote for a government that scrapped 50% CGT form the sale of property! and the taxpayer subsidies (negative gearing) that renters pay for to discount for their landlords income!!!
"Abolishing negative gearing, stop home owner and builder grant, reforming capital gains tax, and banning foreign buyers from purchasing residential property while encouraging them to invest in commercial property could help balance the housing market. Providing tax incentives for first-home buyers on their mortgage interest payments for the first ten years (similar to the U.S. housing policy) would promote home ownership, reduce demand for rental properties, and lessen the burden on taxpayers in the form of rental assistance. Additionally, 80% of newly released land should be allocated to first-home buyers."
GOVERNMENT That is the problem for housing in Australia. Labor & Libs are both guilty. You can talk all you want about rezoning and density this & that, about wages catching up blah, blah, blah. The Housing Ponzi in Australia will destroy lives if no one works in the interests of the Australian people and their future. We are a nation of rich & abundant resources that could sustain our collective qualities of life if we had sincere decision makers. But we don't. MASS IMMIGRATION is, in the current climate, frankly criminal. Our country's riches built on resources does not need more people. More people dilute that wealth. A wealth that is underachieved by a corrupt Government that under taxes and gives away much of Australia's resources with behind door handshakes & golden escalators. Infrastructure is being stretched. Why the hell are people dying in Ambulances waiting to get into the ER? - Stop Mass Immigration - Strangle Airbnb & Stayz to be less attractive than leasing longterm - Restrict CGT discounts to New Builds Only. Give us a Government brave enough to work for Australia (not the WEF)
Restricting CGT will not produce more housing and will reduce the amount that investors are putting into housing which means fewer houses built or refurbished because of that less investment.. If you disagree then show me anywhere that less investment has resulted in fewer goods produced.
@@Rob-fx2dw Restricting CGT to new builds only - how does that equate to fewer houses built? I would suggest more, as those addicted to the capital appreciation carrot of RE investing will in some part join RE investors who already build to take advantage of the CGT benefit still applicable to new builds. The Government and some of its bidders will have us believe that "Supply, supply, supply so build, build, build" is the simple, in a box, problem & solution to the housing crisis. The last Census noted 1 Million vacant homes. Many would have been residents simply not home on Census night, but there were significant numbers that were vacant, holiday homes, and landbanked, let's just say for arguments sake 20%. That's 200, 000 homes. Without CGT benefits many owners would no longer see economical benefit in keeping these properties. They become offloaded, increasing supply dramatically, letting air out of the inflated market, reducing prices somewhat and opening opportunity for many renters who are atm priced out of the market - freeing up other existing rentals at the same time. This can only work in conjunction with other measures like net zero immigration. As for your question - It doesn't make the sense I think you wanted it to.
Nice to hear a discussion about housing between individuals with varying viewpoints rather than all these channels which are clearly on one side or the other. More discussion should be like this. Thank you
Needs a government-owned infrastructure development bank, as the Commonwealth Bank used to be (Hamiltonian Banking model which built America as a power-house of productivity)
Low density urban sprawl makes high quality public transport unviable at any population level. That's why our trains have always lagged Europe despite our huge population increase. What makes PT work well is adequate density and urban design that prioritises people over cars: that's what Europe has that we don't.
@@nottenvironmental6208 yes, they have all sorts of incentives in the pipeline. BlackRock/ Vanguard/State Street already own 25% of US residential property (82% of the stock market) and they're coming for Australia's houses now.
The wisest thing that should be on everyone's mind currently should be to invest in different streams of income that don't depend on the government. Especially with the current economic crisis around the world. This is still a good time to invest in gold, silver, and digital currencies.
I began investing in stocks and Def earlier this year, and it is the best choice I've ever made. My portfolio is rounding up to almost a million and I have realized that when a stock makes it to the news, chances are you're quite late to the party, the idea is to get in early on blue chips before it becomes public. There are lots of life changing opportunities in the market, and maximize it.
Supply and demand. 300,000 people returned to Australia when Covid struck causing a greater demand for homes and rentals. Many investors get a better return having their homes available for Air Bnb. Lastly immigration numbers are too high. There is no easy or short term fix.
Good points Zoe. I think you found the easy & short term fixes in the problems. Stop mass immigration immediately and adjust policy to make Airbnb & Stayz less attractive than leasing as permanent rentals. Thirdly Negative gearing and CGT discounts could be restricted to new builds only. A motivated Government could enact all of this within a month, but that would require a Govt working in the interests of the people of Australia. That's not Labor or Libs unfortunately
Gotta love the opinion of home owners. You don’t want your home to drop in value. Mate it practically doubled in value in one bloody year, it’s not like you worked for that money.
Amazing how no one seems to understand Demand side economics, although Alan at least mentioned it briefly. 99% discuss on supply side which is inelastic and politically unpalatable. Even if pulled off it means Melb and Syd become high density, congested hell holes. Demand is so simple to fix and has limited downside. Match population growth to house building capacity. That equation is well out of balance currently, hence the shortage of both rentals and homes. Reducing demand will also temper house price growth and lift wages. It's still a long path out, but at least it doesn't require us to destroy livability.
He has some great insights but falls for the great fallacy that everyone would live closer to the inner city for work, if only they could and that therefore we should be providing for connections from (eg) Geelong to Melbourne so folks can live in a cheaper house and commute to the inner city. But 9 in 10 people living in our major capitals do not work in the inner city. What's wrong with policies that support more job opportunities in places like Geelong, rather than turning it into a commuters dormitory?
No, you don't own your home! but only a subscription plan (land taxes, council taxes etc) for the exclusive use of it.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated from you.
More likely you would increase the proportion of first home buyers. Less renters overall. The point is we want ppl to have house in retirement, but investors gobble them up, now young generations are fuked
Capital gains tax should be reduced not increased. Increasing CGT would just reduce investment in business which would be bad for everyone. It would also have no impact on house prices. It is more about supply and demand. Unfortunately red tape is killing the construction industry which hampers the ability to increase supply.
Yes, you can encourage people to sell high-value properties by introducing a residential property tax. Additionally, consider abolishing stamp duty and implementing a progressive land tax that targets properties above the median household price or large land parcels.
All housing solutions require short term sacrifice from people who own property for the longer term benefit of the whole of society. Who would vote for that?
@kerrimackay521, All housing solutions require short term sacrifice from people who own property for the longer term benefit of their children, grandchildren, and great grandchildren. Who would vote for that? For instance, if I bought a house 50 years ago for $10,000 and now it is worth $1,000,000. Am I really richer or am I only richer on paper? If you sell the house to realise the $990,000 capital gain, are you going to buy another house or are you going to live on the street with $990,000 in the bank? If you buy another house in the same suburb or in another suburg with the same distance from the CBD as your old house, what makes you think that the new house in a different suburb will not sell for a price around $1,000,000 before taking into account of the stamp duties and real estate agent's fees in selling up to buy a different house in a different suburb? And after purchasing the new house, are you now better off with a realised capital gain of $990,000 in the bank account? That is why housing wealth is all illusory and not real.
I'm a home owner and property investor and would be happy for valuations to go down in order to help young people buy their home. Biggest problem is that people need to park wealth somewhere and unfortunately property has been that place for decades. I'm hopeful Bitcoin will become a stronger, more attractive market within the next decades, leaving property to be what it should be, home and shelter ❤
give investors (private and companies) incentives for new builds and penalise them for existing properties, thus forcing supply growth and decreasing demand for existing.
People on average incomes do not buy median priced house as their first home. Nor they did 50 years ago. This is a useless metric. What needs to be looked at as an affordability metric is median house prices in the first home buyer segment vs average wages.
Unfortunately. Houses NEED to stand still for 20 years. Otherwise you will not have a job at all as Australia is so uncompetitive. I own my house but I would love for it to go down in price as otherwise my business and the people I employ care cactus...
You have overlooked the fact that not all people want big homes with no yards. The new estates with small yards 450m2 550m2 have covenants that restrict buyers from building smaller homes. In essence they have a minimum size home and hence they have no option than to build the size home they are dictated to build.
Rent seeker used to be a pejorative term. Now everyone wants to be a 'property investor' aka landlord. The more landloads we have, the less home owners we have. Very simple. Landlords provide a minimal benefit at an exhirbinate cost, subsidised by givernments. Time to end negative gearing on more than 1 property among other reforms.
The trouble is govt used to supply housing for low income families but no longer do, leaving only property investors who still have to service loans.... No investors = no rental homes!
@@lspag7415 there would be very little need for rental homes if investors were not bidding up prices above what working families can pay. Investors should only receive incentives when building new homes.
The main reason people are not building is because its just as unaffordable as buying plus it has a huge risk as the price may explode over your capability OR the builder screws you and your left with a desaster. So do not expect supply to get better until land prices and building costs go down. I.e. house prices in general need to go down to allow new houses ro be built.
Does the median price include m²? Because I reckon the plan is to build a bunch of shoeboxes to bring the median down. Younger skilled Australians should move to Christchurch New Zealand. They have a free pass to move here, and a lot have already made the move.
If we’re going to be renters for life can we have discussions on the type of houses being built. We don’t want carports! We want garages! We want proper shaded outdoor spaces! We want a garden! We want backyards! Don’t need cinema room but need big pantries. We hate inspections every 3months! We hate having to move we want to build community! Stop rent increases!
Govt. needs to provide better connectivity. Make satellite cities and specialised economic zones etc. and spread out. There is no more nation building anymore in Australia. It's a shame.
Costs have increased for sure but people's expectations have too. So much money goes on tech and cars as well as extras in today's houses. Everything including furniture is expendable. How many people today have only second hand sheets as curtains, milk crates for chairs and old fruit crates as tables in their homes. People used to knuckle down and live with bare necessities, no air conditioning included. Times have changed. Houses have to have all the bells and whistles now days and everything including furniture bought on finance, of course it is a struggle. People don't have the same work ethic as in the past either. Difficult to work 38 hours a week for some. Rely on working 60 to 70 hours per week to make ends meet. In my 20's that would be more like 120 hours per week. Productivity? Farmers that I knew, growing crops such as wheat, family members all seeding day and night to get the crop in, then doing exactly the same when it came time to harvest the crops. Just ridiculous hours but commitment and work ethic that seems to be a little lacking these days. You can do the math on the work to lifestyle ratio and compare that to today's generation might answer a few questions. Different priorities.
if house prices don't increase next 20 years or half compared to income, then owners still be happy as they are able to pay off loans quicker. So much money in housing , 4 trillion, when it could be put to better use is a big problem when your lacking money for schooling and health and welfare. Housing in australia is a ponsi scheme
Shshsh Alan, don't mention the other thing the Howard government did around the same time as halving CGT... dramatically increasing net overseas migration. But look over there, it was definitely only the CGT changes.
@@thisthattheother7541I think you missed the point. Kohler says says the CGT concession is the only thing he could see that coincided with increase in house prices. Net overseas migration also increased at the same time and has remained at historic highs through various governments since then, culminating with the fiasco under Albanese (look at the charts). Kohler was laying all the blame on Howard's CGT concessions and I am saying the permanent increase in Net Overseas Migration since 2000 may in fact be a significant culprit.
Conclusions way off the mark and missing some biggies. Too fatalistic and not proactive enough thought processes in this video. Alan you need to lift your game. 1. Bring in more tenant rights???. Look at Victoria. Most anti landlord state. Landlords leaving in droves, less rental supply. Will ultimately push up rents. 2. You can’t tax people on inflation that’s theft. Being back the indexation method and scrap the 50%. Fairer for all and frankly indexation is not complex for non mathematical muppets in society. 3. Quarantine losses to the property, ignore new builds argument. When you put in special rules you create perverse outcomes. Losses get quarantined in trusts and companies. Investment properties should be no different. 4. In no way should any new buyer be let near their super. Loss of compounding will hurt them massively. Why not a government deposit guarantee perhaps. Underwritten by the government, SMSF’s would prob invest if at the td rate with a govt guarantee. 5. Rejig the aged pension. If you sell your house into a govt annuity no assets test. The annuity will help fund the pension, the four bedroom house with one little old lady will be freed up, the poor dear won’t lose her pension. Annuity reversionary to the estate ‘so the kids don’t miss out’. 6. Menzies’s may have started it but every govt from both sides has been fleeing public housing for 50 years. In Europe the bottom 30% of the socioeconomic strata have access to public housing. 7. Stop council ability to halt sensible development. Good move by minns in NSW to designate development zones around public transport. Take it off of the councils but not allowing unfettered development everywhere. 8. Remove vast swathes of green tape and red tape BS that massively adds to construction costs. Again mostly the fault of councils. 9. Massively cut back immigration until the supply/demand dynamic rebalances. 10. Remove GST for first home buyers. Immediate 9% discount. 11. If this leaves the commonwealth short, as much as Bill Shorten is a twat. No refundable franking credits. Franking credits were fair until Howard made them refundable. CBA earns $100. Pays $30 in tax. Retiree gets a $70 dividend plus the $30 fr cr refund. No tax is collected on CBA profit. This is ABSOLUTELY ludicrous. We need to end retiree theft from the young. The money can be put into public housing and increase supply. 12. Don’t victimise landlords. The housing mess is 100% government ineptitude. We shouldn’t bring down a small section of society and blame them for something that isn’t their fault. Fix the legislative levers, make it fair for all and the system will right itself.
Main reason I wanted to own a house, is the Alan's second reason. Which is I needed to be able to have a family pet, ability to fix issues with house quickly and no rent inspections.
I have to disagree with Alan around European vs Aus cities and when they were built. True that many were built prior to cars becoming affordable/pre-WW2But many were also rebuilt after the destruction of WW2. As well as many examples of European cities moving away from car centric design, eg Germany and Netherlands.
Australia has the wealth to support its people but the greed of politicians and corporate make sure we struggle. Just have a good look at the gas Sol last year. Qatar earned 80 billion and Australia earned 2 billion for the same amount of gas sold last year. The reason? A politician named Matt Ferguson enabled the free presentation of Iz gas to corporate thieves who employed him after his term in government. It’s called the Neoliberal assault prevalent in most western nations. Prof Noam Chomsky spoke about this problem and was very verbal on this matter. And we’re still asking questions today when the answer has been there all along. Look at Finland as an example of not allowing corporate thieves to prosper from your own natural resources
The council can solve housing issues by allowing a large house to have more than one kitchen. In the kuringai council, don't allow to have two kitchens in a large two storey house with a large block of land. It is simple and easy to fix issues.
The fact that she said "i dont want my property to fall in value by the way" is the precise issue. If your property rises in value, its of little benefit if every other property rises in value too.
The Government giving 1st home buyer incentives is like the dog chasing its own tail. Also what is not mentioned is that immigrants, more so than indigenous Australians, are used to sharing a house to get ahead in property. I am not casting dispersions just stating life experience.
Australia has created one of the biggest real estate bubbles in history of mankind! The consequences of this could be disastrous. Nonetheless, there’s a shift happening where pension funds are moving from stock market investments, like the ASX, into real estate. In the next few years, we might see superannuation funds buying up Australian houses on a massive scale. This is likely in preparation for what’s coming. Don’t believe that superannuation funds will immediately buy properties worth millions; what they want now is government approval to do so. When the housing market crashes and property prices plummet, like Wile E. Coyote without a parachute, all the foreclosed properties will be snapped up by superannuation funds and rented out as they disengage from a non-performing stock market
Australian government should learn from Singapore government to build more social housings and sell them in reasonable price and restrict them to resale.
silliest comment ever. australia is huge, plenty of land available for all citizens and residents. sg is tiny, suffers from significant lack of land. absolutely no need to model oz housing on sg housing. oz federal and local govt are lazy with zero intention and desire to improve the lives of its citizens. just build to increase the housing supply (not social housing. plenty of land to build proper houses that citizens want) and oz housing crisis is solved.
The world has a dishonest money system, and as i see it this is the problem. Money needs to be a measurement of something. If a litre or kilometre or measurements changed consistently the country would be chaos. So why is it acceptable for it to happen to our money. This is why so many builders and others are going bankrupt in a supposably booming economy. It ends in a currency crisis, history tells you what lays ahead.
Alan the V/line trains to Geelong are fast and I have experienced them as reliable. You obviously don’t use them. . I go to Geelong quite regularly. The do need a commuter train . There should be greater density of housing in the western suburbs. Yes the V/Line trains need to carry more passengers.
How to fix the prop market? 1. Abolish local councils role in approvals and dealings w developers 2. Abolish -ve gearing. Reintroduce it for the first 10 years of your OWN home ownersip. 3. Allow people facing foreclosure/repossession to on-sell their mortgage/home to the private sector and NOT the banks. 3. Return the power of the sale to the owner and NOT the real estate agent. You decide how much comm you're prepared to pay. Finally.... wait for all the babyboomers to drop off the perch :)
I cannot believe the elephant in the room was not addressed and that is immigration. Australia had 750,000 new immigrants in 2023. This is a ridiculous number. We have to slow down the immigration numbers and allow the market to breathe and rebalance. We are at record low stock levels that we have not seen before. Why was immigration not discussed in this?
Australia grants about 200,000 permanent resident visas per year and has done so for at least 20 years. Look it up, it is publicly available information. This level of immigration actually stimulates the economy, for every 10 immigrants, 11 jobs are created. Most immigrants come as highly skilled, they get jobs quickly, work hard, pay taxes, and because they are also young, counter our aging population problem.
There is only one way to fix the housing crisis which is to take the planning approval process out of the hands of council bureaucrats. If it’s zoned residential, build on it!
Berlin has a population of 3.5 million and is about half the size of Melbourne or Sydney physically! If you just build more suburban sprawl that is not within 1km of a railway station, no one will catch the train, they will just drive their cars. What is wrong with living in an apartment, what is wrong with building taller buildings and therefore increasing the supply of homes?????? Why are you seeing change as unachievable?
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
The host said she doesn't want her house value to go down, but wants her kids to be able to afford a house. There is the entire story. You cant have it both ways lady! Either you keep your inflated nest egg as is, or your children (and Australias children) can have a better future by having affordable housing choice. I know which I chose- the younger generations should come first! (And i say this as a home owner. But i own just 1 home, and its the one i live it. Owning more than that in this kind of market is immoral).
I would like to think that a lot of Australians see it this way. Short term thinking never helps.
These two are always a bit out of touch.
@@ianmcnamee1652 💯 Ian
Housing as investment has ruined Shelter in Australia.
Just plain greed.
That sounds like I want money, my children want money, rest go to hell
! minute in and couldn't stand the bullshit .
The obsession with property sees our banks only lend for property. So new business ventures can't access capital, regardless of interest rates. Makes for a dumb, unproductive economy.
Exactly right, business ventures are high risk and the banks know that full well.. Loans for property are very low risk and is why the bank love mortgages.. It's gold plated business with little to no risk..
STAY TUNED FOR ANOTHER SEASON OF THE BLOOOOCK
it's like a giant vacuum cleaner, sucking in wealth from across the globe.
Alan is very genuine and its sad to see him speaking such honesty and respect for the betterment of Australia in contrast to these vultures that would break the backs of Australia's future generations just to make a more $$$
vultures ... good word for them
real dystopian watching Alan sincerely confront the housing crisis only to be shut down with variations of "aww but that would hurt my business/my property price"
My cousin bought a home on the Gold coast for $480k just before covid. 3 years later it was worth at least $1.2 million. That's an increase of over $5000 a week.
What job has pay rises that keep up with that sort of increase?
Halting immigration until housing catches up would be a good first step.
Importing 1.2 million people within a 2 year period into a country with a housing crisis is asking for trouble.
At least Alan is able to use the word migration, I've seen may interviews and podcast that don't mention the word for, what looks like, fear of appearing unwelcoming. It's not about being unwelcoming it's about having the infrastructure to support them.
Why didn't the futurefund build housing? Or did they?
Yeah it's remarkable how often our public conversations about housing never ever discuss demand, or migration levels. People are just petrified of being called racist.
Walk in robes and bathrooms,whoes going to clean 4 bathrooms a day?
@@demetriot yes, and ensuring the people already here aren't being adversely affected by the number of immigrants - which unfortunately is what is happening atm.
I love the comment from Alan about investing in companies as opposed to housing.
As Australians as obsessed with investment properties the more we have funded these unproductive investments. The only jobs they provided are 100000s of real estate agents like these two, buyers agents. They aren’t investing in companies that try to improve society at all, no medical discoveries, technological advances.
So here we are stuck with a bunch of have’s and have not’s and the haves just hoarding wealth in unproductive assets that aren’t beneficial for society or the next generation.
Agreed, invest in business, housing should not be an abstract asset.
One of the least diverse and impressive economies in the world, despite our massive resource endowerement. House and holes, despite such a creative, educated and wealthy populace. Shameful.
Nearly all our superannuation is invested in companies, ie, the sharemarket.
"we want affordable housing, but don't want to see the value of my house drop"
Is she for real? You can't have it both ways! Increasing supply outpaces demand would definitely drop prices. Why do you think the government is bringing so many migrants?
And some of us are not here to buy a mcmansion with cinema room. A lot just want a stock standard 3 bedroom home with a good sized backyard.
These property pundits are so way out of touch, the faster this bubble implodes the better our country will be! But no... They gotta kick the can.
This country's f**ked.
I own my house and I wish it dropped 50%. it would be better for society and banks will finally learn their lesson
What if we dropped income tax for a land tax to stop people speculating on property? This will make the ownership of property (property costs + land taxes) instead of (property cost and a tax free haven).
@@ianmcnamee1652 people want to keep their tax free haven asset (their home). You have to change that so it stops being the most coveted thing in Australia.
@@AussieZeKieLnice I guess you would also welcome communism and take away free markets. Good job bucko
drop income tax for under 100k earners to 0%. tax brackets start from 100k+ up to 90 cent for $1 over 2 million.
You are a dreamer. Banks 'learning lessons'? They know it now, they do it every day !
The two host have no interest in house prices being more affordable just like most Australians. The new Australia is every man for themselves.
Its a bubble... and bubbles don't deflate, they *pop*
If the six story places looked like the ones in Paris, I imagine less people would care. People expect medium to high density Australian buildings to be rubbish cheap and potentially not structurally sound.
Ironic that a show called" Elephant in the room " barely mentions the ACTUAL elephant in the room, which is record levels of immigration. The argument about negative gearing and regulation is just smoke. If local regulation was the cause for local house prices why is EVERY Western nation having the same problem of high house prices?
Elephant in the room indeed.
it wouldn't be politically correct for Alan to mention immigration. His masters in the Greens Party would not approve of that narrative.
Im a home owner and im sure a ton of home owners like myself would vote for a government that scrapped 50% CGT form the sale of property! and the taxpayer subsidies (negative gearing) that renters pay for to discount for their landlords income!!!
keep the CGT discount. Why should I have to pay tax through the arse? I pay enough income tax as it is.
Boo bloody Hoo!
"Abolishing negative gearing, stop home owner and builder grant, reforming capital gains tax, and banning foreign buyers from purchasing residential property while encouraging them to invest in commercial property could help balance the housing market. Providing tax incentives for first-home buyers on their mortgage interest payments for the first ten years (similar to the U.S. housing policy) would promote home ownership, reduce demand for rental properties, and lessen the burden on taxpayers in the form of rental assistance. Additionally, 80% of newly released land should be allocated to first-home buyers."
GOVERNMENT
That is the problem for housing in Australia.
Labor & Libs are both guilty.
You can talk all you want about rezoning and density this & that, about wages catching up blah, blah, blah.
The Housing Ponzi in Australia will destroy lives if no one works in the interests of the Australian people and their future.
We are a nation of rich & abundant resources that could sustain our collective qualities of life if we had sincere decision makers. But we don't.
MASS IMMIGRATION is, in the current climate, frankly criminal. Our country's riches built on resources does not need more people. More people dilute that wealth. A wealth that is underachieved by a corrupt Government that under taxes and gives away much of Australia's resources with behind door handshakes & golden escalators.
Infrastructure is being stretched. Why the hell are people dying in Ambulances waiting to get into the ER?
- Stop Mass Immigration
- Strangle Airbnb & Stayz to be less attractive than leasing longterm
- Restrict CGT discounts to New Builds Only.
Give us a Government brave enough to work for Australia (not the WEF)
Beautifully said my friend.
@@alexinanalogue2645 Yes
Restricting CGT will not produce more housing and will reduce the amount that investors are putting into housing which means fewer houses built or refurbished because of that less investment..
If you disagree then show me anywhere that less investment has resulted in fewer goods produced.
@@Rob-fx2dw Restricting CGT to new builds only - how does that equate to fewer houses built? I would suggest more, as those addicted to the capital appreciation carrot of RE investing will in some part join RE investors who already build to take advantage of the CGT benefit still applicable to new builds.
The Government and some of its bidders will have us believe that "Supply, supply, supply so build, build, build" is the simple, in a box, problem & solution to the housing crisis. The last Census noted 1 Million vacant homes. Many would have been residents simply not home on Census night, but there were significant numbers that were vacant, holiday homes, and landbanked, let's just say for arguments sake 20%. That's 200, 000 homes. Without CGT benefits many owners would no longer see economical benefit in keeping these properties. They become offloaded, increasing supply dramatically, letting air out of the inflated market, reducing prices somewhat and opening opportunity for many renters who are atm priced out of the market - freeing up other existing rentals at the same time. This can only work in conjunction with other measures like net zero immigration.
As for your question - It doesn't make the sense I think you wanted it to.
Increasing supply won’t fix the issue because there is no price ceiling. Look at what vacant land is selling for? $500k+ based on what?
8% cash rate for 6 months and no Banks bailout would fix this mess in 12 months.
Also no equity should be considered for property loan, only the real money should be considered
@@srinivasdumpala637 ???
No, it is a shortage of buildings; not everybody wants to live in a shoebox apartment !
@@linmal2242 Demand side immigration. You cannot keep up with the BS lefity agenda.
Nice to hear a discussion about housing between individuals with varying viewpoints rather than all these channels which are clearly on one side or the other. More discussion should be like this. Thank you
As Alan said, the charts clearly show that 1999 is the tipping point. Negative Gearing and the Capital Gains Discount.
Increasing capital gains tax would discourage people from ever selling the property.
The main reason I want to own a house is so I'm left alone. I can't even stick a poster in a wall without permission. That's my take
Needs a government-owned infrastructure development bank, as the Commonwealth Bank used to be (Hamiltonian Banking model which built America as a power-house of productivity)
Low density urban sprawl makes high quality public transport unviable at any population level. That's why our trains have always lagged Europe despite our huge population increase. What makes PT work well is adequate density and urban design that prioritises people over cars: that's what Europe has that we don't.
Governments love high property prices. They get more stamp duty and more tax when prices rise.
Labor has proposed giving tax breaks for foreign corporations to own Australian homes. Corporate donations are the problem, not the solution
@@nottenvironmental6208 those tax breaks are rewarded favourably post career 😂
@@nottenvironmental6208 yes, they have all sorts of incentives in the pipeline. BlackRock/ Vanguard/State Street already own 25% of US residential property (82% of the stock market) and they're coming for Australia's houses now.
We should recommence a Housing Commision to develop not for profit.
The wisest thing that should be on everyone's mind currently should be to invest in different streams of income that don't depend on the government. Especially with the current economic crisis around the world. This is still a good time to invest in gold, silver, and digital currencies.
I began investing in stocks and Def earlier this year, and it is the best choice I've ever made. My portfolio is rounding up to almost a million and I have realized that when a stock makes it to the news, chances are you're quite late to the party, the idea is to get in early on blue chips before it becomes public. There are lots of life changing opportunities in the market, and maximize it.
Having a discussion with financial advisors such as Stella Cornwall is highly recommended for adjusting your portfolio.
Stella Cornwall is really a good investment advisor. Was privileged to attend some of her seminars. That's how I started my own crypto investment.
I totally agree! Her transparency is something I really admire. She's open and honest about everything.
Stella is considered a key crypto strategist with one of the best copy trading portfolios and is also very active in the cryptocurrency space.
1950s there were usually only 1 working adult. Similar in 1980s.
Just means household income relative to house prices is likely higher.
Supply and demand. 300,000 people returned to Australia when Covid struck causing a greater demand for homes and rentals. Many investors get a better return having their homes available for Air Bnb. Lastly immigration numbers are too high. There is no easy or short term fix.
Good points Zoe. I think you found the easy & short term fixes in the problems. Stop mass immigration immediately and adjust policy to make Airbnb & Stayz less attractive than leasing as permanent rentals. Thirdly Negative gearing and CGT discounts could be restricted to new builds only.
A motivated Government could enact all of this within a month, but that would require a Govt working in the interests of the people of Australia. That's not Labor or Libs unfortunately
No-one mentions HECS, which is massive and prevents young people from ever saving for a deposit.
How about the government reduce the bureaucracy and taxation on builds? From what I have seen the taxes add as much as 30% to the cost of building
Compliance and regulations make it more than that
Is profit from housing investments or an increase in the valua of housing counted as part of Australia's GDP?
My parents are both in their ,90's, still going strong.
Close the floodgates Labor! Australians living in cars and tents! Disgraceful.
Gotta love the opinion of home owners. You don’t want your home to drop in value. Mate it practically doubled in value in one bloody year, it’s not like you worked for that money.
Amazing how no one seems to understand Demand side economics, although Alan at least mentioned it briefly. 99% discuss on supply side which is inelastic and politically unpalatable. Even if pulled off it means Melb and Syd become high density, congested hell holes. Demand is so simple to fix and has limited downside. Match population growth to house building capacity. That equation is well out of balance currently, hence the shortage of both rentals and homes. Reducing demand will also temper house price growth and lift wages. It's still a long path out, but at least it doesn't require us to destroy livability.
He has some great insights but falls for the great fallacy that everyone would live closer to the inner city for work, if only they could and that therefore we should be providing for connections from (eg) Geelong to Melbourne so folks can live in a cheaper house and commute to the inner city. But 9 in 10 people living in our major capitals do not work in the inner city. What's wrong with policies that support more job opportunities in places like Geelong, rather than turning it into a commuters dormitory?
Dividend Franking is ok up to 30% as the money has already been taxed.
No, you don't own your home! but only a subscription plan (land taxes, council taxes etc) for the exclusive use of it.. Is obvious if not evident that once you stop pay the subscription plan the property will be confiscated from you.
Scrap the 50% CGT discount, and only allow negative gearing on new builds.
Then you would have a REAL rental crisis ! Private Landlords are half at least of the rentals.
More likely you would increase the proportion of first home buyers. Less renters overall. The point is we want ppl to have house in retirement, but investors gobble them up, now young generations are fuked
So you think CGT should be at 100%?? What problems would that cause?
Capital gains tax should be reduced not increased. Increasing CGT would just reduce investment in business which would be bad for everyone. It would also have no impact on house prices. It is more about supply and demand. Unfortunately red tape is killing the construction industry which hampers the ability to increase supply.
Yes, you can encourage people to sell high-value properties by introducing a residential property tax. Additionally, consider abolishing stamp duty and implementing a progressive land tax that targets properties above the median household price or large land parcels.
All housing solutions require short term sacrifice from people who own property for the longer term benefit of the whole of society. Who would vote for that?
It's not a sacrifice if valuations have overshot. They can sell and downsize. It's only an issue if they stay and market drops.
You would hope people who had children
FOMO driven society. They can’t help themselves
@kerrimackay521,
All housing solutions require short term sacrifice from people who own property for the longer term benefit of their children, grandchildren, and great grandchildren. Who would vote for that?
For instance, if I bought a house 50 years ago for $10,000 and now it is worth $1,000,000. Am I really richer or am I only richer on paper? If you sell the house to realise the $990,000 capital gain, are you going to buy another house or are you going to live on the street with $990,000 in the bank? If you buy another house in the same suburb or in another suburg with the same distance from the CBD as your old house, what makes you think that the new house in a different suburb will not sell for a price around $1,000,000 before taking into account of the stamp duties and real estate agent's fees in selling up to buy a different house in a different suburb? And after purchasing the new house, are you now better off with a realised capital gain of $990,000 in the bank account? That is why housing wealth is all illusory and not real.
I'm a home owner and property investor and would be happy for valuations to go down in order to help young people buy their home.
Biggest problem is that people need to park wealth somewhere and unfortunately property has been that place for decades.
I'm hopeful Bitcoin will become a stronger, more attractive market within the next decades, leaving property to be what it should be, home and shelter ❤
The major limits in increasing supply are the highly restricted zoning. This situation is clear in textbooks printed 15 to 20 years ago.
Stagnating wages while house prices rose! Then add in record immigration! Oh and government Housing Commission not building enough community housing
I agree we could allocate housing better.
give investors (private and companies) incentives for new builds and penalise them for existing properties, thus forcing supply growth and decreasing demand for existing.
People on average incomes do not buy median priced house as their first home. Nor they did 50 years ago.
This is a useless metric.
What needs to be looked at as an affordability metric is median house prices in the first home buyer segment vs average wages.
Unfortunately. Houses NEED to stand still for 20 years. Otherwise you will not have a job at all as Australia is so uncompetitive.
I own my house but I would love for it to go down in price as otherwise my business and the people I employ care cactus...
You have overlooked the fact that not all people want big homes with no yards. The new estates with small yards 450m2 550m2 have covenants that restrict buyers from building smaller homes. In essence they have a minimum size home and hence they have no option than to build the size home they are dictated to build.
Rent seeker used to be a pejorative term.
Now everyone wants to be a 'property investor' aka landlord.
The more landloads we have, the less home owners we have. Very simple.
Landlords provide a minimal benefit at an exhirbinate cost, subsidised by givernments.
Time to end negative gearing on more than 1 property among other reforms.
The trouble is govt used to supply housing for low income families but no longer do, leaving only property investors who still have to service loans....
No investors = no rental homes!
@@lspag7415 there would be very little need for rental homes if investors were not bidding up prices above what working families can pay. Investors should only receive incentives when building new homes.
The main reason people are not building is because its just as unaffordable as buying plus it has a huge risk as the price may explode over your capability OR the builder screws you and your left with a desaster.
So do not expect supply to get better until land prices and building costs go down. I.e. house prices in general need to go down to allow new houses ro be built.
Excellent thank you compulsory listening
They never mentioned b and b replacing rental properties.
A lot of issues related to supply flexibility and costs of the new development was missed in that conversation.
Downsizing with all proceeds being able to go into superannuation would help.
Does the median price include m²? Because I reckon the plan is to build a bunch of shoeboxes to bring the median down. Younger skilled Australians should move to Christchurch New Zealand. They have a free pass to move here, and a lot have already made the move.
We don't have a housing crisis, we have a crisis which is resulting in people becoming homeless. We need to look upstream to find the cause.
Treating housing as a business is the root cause. The suffering will never end until that changes.
If we’re going to be renters for life can we have discussions on the type of houses being built. We don’t want carports! We want garages! We want proper shaded outdoor spaces! We want a garden! We want backyards! Don’t need cinema room but need big pantries. We hate inspections every 3months! We hate having to move we want to build community! Stop rent increases!
Excellent interview with Mr Kohler
Really enjoy listening to thoughtful people having a serious discussion,
Govt. needs to provide better connectivity. Make satellite cities and specialised economic zones etc. and spread out. There is no more nation building anymore in Australia. It's a shame.
Costs have increased for sure but people's expectations have too. So much money goes on tech and cars as well as extras in today's houses. Everything including furniture is expendable. How many people today have only second hand sheets as curtains, milk crates for chairs and old fruit crates as tables in their homes. People used to knuckle down and live with bare necessities, no air conditioning included. Times have changed. Houses have to have all the bells and whistles now days and everything including furniture bought on finance, of course it is a struggle. People don't have the same work ethic as in the past either. Difficult to work 38 hours a week for some. Rely on working 60 to 70 hours per week to make ends meet. In my 20's that would be more like 120 hours per week. Productivity? Farmers that I knew, growing crops such as wheat, family members all seeding day and night to get the crop in, then doing exactly the same when it came time to harvest the crops. Just ridiculous hours but commitment and work ethic that seems to be a little lacking these days. You can do the math on the work to lifestyle ratio and compare that to today's generation might answer a few questions. Different priorities.
Dam! that lack of water supply! No mountains in AUS
We need another asset class to compete with housing which creates jobs. We need to encourage Aussies to invest in companies more
if house prices don't increase next 20 years or half compared to income, then owners still be happy as they are able to pay off loans quicker. So much money in housing , 4 trillion, when it could be put to better use is a big problem when your lacking money for schooling and health and welfare. Housing in australia is a ponsi scheme
alan is a politician puppet.....just spruking government housing policy for prices always to rise
Shshsh Alan, don't mention the other thing the Howard government did around the same time as halving CGT... dramatically increasing net overseas migration. But look over there, it was definitely only the CGT changes.
His white paper does discuss it
Howard was voted out 17 years ago - how can you sheet home all responsibility to him lol
Mass immigration has occur in the last two years own it
@@thisthattheother7541I think you missed the point. Kohler says says the CGT concession is the only thing he could see that coincided with increase in house prices. Net overseas migration also increased at the same time and has remained at historic highs through various governments since then, culminating with the fiasco under Albanese (look at the charts). Kohler was laying all the blame on Howard's CGT concessions and I am saying the permanent increase in Net Overseas Migration since 2000 may in fact be a significant culprit.
@@joek292 Thanks Joek, can you give TLDR? I take it he dismissed the correlation as not being causative for some reason?
Conclusions way off the mark and missing some biggies. Too fatalistic and not proactive enough thought processes in this video. Alan you need to lift your game.
1. Bring in more tenant rights???. Look at Victoria. Most anti landlord state. Landlords leaving in droves, less rental supply. Will ultimately push up rents.
2. You can’t tax people on inflation that’s theft. Being back the indexation method and scrap the 50%. Fairer for all and frankly indexation is not complex for non mathematical muppets in society.
3. Quarantine losses to the property, ignore new builds argument. When you put in special rules you create perverse outcomes. Losses get quarantined in trusts and companies. Investment properties should be no different.
4. In no way should any new buyer be let near their super. Loss of compounding will hurt them massively. Why not a government deposit guarantee perhaps. Underwritten by the government, SMSF’s would prob invest if at the td rate with a govt guarantee.
5. Rejig the aged pension. If you sell your house into a govt annuity no assets test. The annuity will help fund the pension, the four bedroom house with one little old lady will be freed up, the poor dear won’t lose her pension. Annuity reversionary to the estate ‘so the kids don’t miss out’.
6. Menzies’s may have started it but every govt from both sides has been fleeing public housing for 50 years. In Europe the bottom 30% of the socioeconomic strata have access to public housing.
7. Stop council ability to halt sensible development. Good move by minns in NSW to designate development zones around public transport. Take it off of the councils but not allowing unfettered development everywhere.
8. Remove vast swathes of green tape and red tape BS that massively adds to construction costs. Again mostly the fault of councils.
9. Massively cut back immigration until the supply/demand dynamic rebalances.
10. Remove GST for first home buyers. Immediate 9% discount.
11. If this leaves the commonwealth short, as much as Bill Shorten is a twat. No refundable franking credits. Franking credits were fair until Howard made them refundable. CBA earns $100. Pays $30 in tax. Retiree gets a $70 dividend plus the $30 fr cr refund. No tax is collected on CBA profit. This is ABSOLUTELY ludicrous.
We need to end retiree theft from the young. The money can be put into public housing and increase supply.
12. Don’t victimise landlords. The housing mess is 100% government ineptitude. We shouldn’t bring down a small section of society and blame them for something that isn’t their fault.
Fix the legislative levers, make it fair for all and the system will right itself.
Main reason I wanted to own a house, is the Alan's second reason. Which is I needed to be able to have a family pet, ability to fix issues with house quickly and no rent inspections.
Its becoming that only those born with wealthy parents will ever own their own home
Alan; you are still not addressing the water/sewerage supply systems !
Encouraging people to downsize would also help this crisis...
Allowing tiny home developments too. Many people want this option.
Yes can I please live in the tiniest house possible with narrow streets.
I have to disagree with Alan around European vs Aus cities and when they were built. True that many were built prior to cars becoming affordable/pre-WW2But many were also rebuilt after the destruction of WW2. As well as many examples of European cities moving away from car centric design, eg Germany and Netherlands.
Australia has the wealth to support its people but the greed of politicians and corporate make sure we struggle. Just have a good look at the gas Sol last year. Qatar earned 80 billion and Australia earned 2 billion for the same amount of gas sold last year. The reason? A politician named Matt Ferguson enabled the free presentation of Iz gas to corporate thieves who employed him after his term in government. It’s called the Neoliberal assault prevalent in most western nations. Prof Noam Chomsky spoke about this problem and was very verbal on this matter. And we’re still asking questions today when the answer has been there all along.
Look at Finland as an example of not allowing corporate thieves to prosper from your own natural resources
The council can solve housing issues by allowing a large house to have more than one kitchen. In the kuringai council, don't allow to have two kitchens in a large two storey house with a large block of land. It is simple and easy to fix issues.
I have an idea of allowing people to use their superannuation to guarantor the house loan instead of drawing it out for a deposit.
Hey this is an interesting idea, have never heard this one before
This would only increase demand and decrease affordability further.
On new builds, sure. If on existing property, then it will continue to inflate prices with no incentive to increase supply.
The fact that she said "i dont want my property to fall in value by the way" is the precise issue. If your property rises in value, its of little benefit if every other property rises in value too.
There's all you need to know. The opening disclaimer saying don't take any advice we're giving you. OK I won't goodbye.
That's very true.
Precisely !!!! Household size DOES paly a very important role.
The Government giving 1st home buyer incentives is like the dog chasing its own tail.
Also what is not mentioned is that immigrants, more so than indigenous Australians, are used to sharing a house to get ahead in property. I am not casting dispersions just stating life experience.
The reduction in allowable salary sacrifice into superannuation caused people to invest in property instead of superannuation.
Australia has created one of the biggest real estate bubbles in history of mankind! The consequences of this could be disastrous. Nonetheless, there’s a shift happening where pension funds are moving from stock market investments, like the ASX, into real estate. In the next few years, we might see superannuation funds buying up Australian houses on a massive scale. This is likely in preparation for what’s coming. Don’t believe that superannuation funds will immediately buy properties worth millions; what they want now is government approval to do so. When the housing market crashes and property prices plummet, like Wile E. Coyote without a parachute, all the foreclosed properties will be snapped up by superannuation funds and rented out as they disengage from a non-performing stock market
"everyone seems to be okay with now having a back yard anymore"........
No boomer..... No we are not okay with that. We don't have a choice.
Negative gearing was so unfair to non home owners
Australian government should learn from Singapore government to build more social housings and sell them in reasonable price and restrict them to resale.
silliest comment ever. australia is huge, plenty of land available for all citizens and residents. sg is tiny, suffers from significant lack of land. absolutely no need to model oz housing on sg housing. oz federal and local govt are lazy with zero intention and desire to improve the lives of its citizens. just build to increase the housing supply (not social housing. plenty of land to build proper houses that citizens want) and oz housing crisis is solved.
If Australians don't want there property to decrease, when need more tradesman to build housing.
The government needs to do more training.
The world has a dishonest money system, and as i see it this is the problem. Money needs to be a measurement of something. If a litre or kilometre or measurements changed consistently the country would be chaos. So why is it acceptable for it to happen to our money. This is why so many builders and others are going bankrupt in a supposably booming economy. It ends in a currency crisis, history tells you what lays ahead.
If they drop negative gearing, there will be no rental properties, so the government would have to build new properties for rentals.
Alan the V/line trains to Geelong are fast and I have experienced them as reliable. You obviously don’t use them. . I go to Geelong quite regularly. The do need a commuter train . There should be greater density of housing in the western suburbs. Yes the V/Line trains need to carry more passengers.
You can get to Melbourne from Geelong in less than an hour.
Alan is great.
How to fix the prop market? 1. Abolish local councils role in approvals and dealings w developers 2. Abolish -ve gearing. Reintroduce it for the first 10 years of your OWN home ownersip. 3. Allow people facing foreclosure/repossession to on-sell their mortgage/home to the private sector and NOT the banks. 3. Return the power of the sale to the owner and NOT the real estate agent. You decide how much comm you're prepared to pay. Finally.... wait for all the babyboomers to drop off the perch :)
I cannot believe the elephant in the room was not addressed and that is immigration. Australia had 750,000 new immigrants in 2023. This is a ridiculous number. We have to slow down the immigration numbers and allow the market to breathe and rebalance. We are at record low stock levels that we have not seen before. Why was immigration not discussed in this?
We all know the answer: anyone seeking to discuss immigration is immediately labelled a racist
Australia grants about 200,000 permanent resident visas per year and has done so for at least 20 years. Look it up, it is publicly available information. This level of immigration actually stimulates the economy, for every 10 immigrants, 11 jobs are created. Most immigrants come as highly skilled, they get jobs quickly, work hard, pay taxes, and because they are also young, counter our aging population problem.
In the 30 years since I bought my house in Canberra in 1987, average size of New houses increased from about 16 squares to 26 squares.
There is only one way to fix the housing crisis which is to take the planning approval process out of the hands of council bureaucrats. If it’s zoned residential, build on it!
Detective of Money Politics is following this very important and informative content cheers VK3GFS and 73s Frank
Strata/Body Corp can have a greater impact than govt. Eg Govt has no plan to ban AirBnb but many strata/BCs have banned it.
Berlin has a population of 3.5 million and is about half the size of Melbourne or Sydney physically! If you just build more suburban sprawl that is not within 1km of a railway station, no one will catch the train, they will just drive their cars. What is wrong with living in an apartment, what is wrong with building taller buildings and therefore increasing the supply of homes?????? Why are you seeing change as unachievable?
Berlin has roughly 4 million people - not 6 times the population of Melbourne.
The hosts as well as the journalist do not seem to understand that investment means lower prices than otherwise.