What an insulting waste of half an hour. Never have I watched something so dismissive of housing crisis. Saying only low income people like cleaners cannot afford to buy a home and splicing together footage of people from the 70s who are also struggling. Doesn't mention overseas investment. Doesn't cover wage stagnation. Pointing to supply for the price, was this funded by the housing commission?
you forgot the income tax making it not worth earning more than $50-$60k a year, because if you're working for $40 an hour 38 hours a week you'd earn a little under $80k a year but after tax you only get $61k to $63k or in other words you're being taxed roughly $9 an hour and only taking home $31 an hour
So true. And some American states have better housing affordability than our smallest states in Australia. It's a damn shame that I am wiling to consider moving to a country with increase gun violence and no healthcare just to have a house of my own.
@Know1 7 dollars??? Is that 2022 or archaic statistics. General American wage at 28 / dollar according to Bloomberg. Even here, cash on hand for students is 10 dollars.
we're living in a dying country, it has disincentives with tax for even bothering to work more than part time because you wind up putting in more effort to get less and less money
Man, the guy in the helmet made an excellent point! If renting was more secure it would be a completely different option. When you're constantly getting moved out or having to find a new place for whatever reason, it makes it very hard to do anything else with your life, especially right now when it's so hard to find anything affordable in many places. If landlords couldn't just kick you out with a little notice whenever they decide to, people could stay near their work, get some community ties/support, and generally be happier and more productive.
Rental security in Australia is beyond a joke. Not only that, so is the cost. The reality is however, demand exceeds supply. It's a sellers market. If you want a "big Australia", be prepared to pay big prices.
@@Robert-cu9bm I absolutely agree. Not only is rental pricing a product of the purchase price of a house, a rental provider has to factor in rates, land tax, insurance, maintenance and ultimately income tax on the property. In Australia these add up very quickly to become a large sum.
@@georgebronte840 Since when have landlords ever been hammered? Landlords get it good compared to most everyone else in society. As a share investor I can’t deduct share losses against other income streams but apparently property squatters get the right to write down their losses against their regular income! How’s that for fairness!
Its really really simple! We need restrictions and higher taxes to stop people hiding properties under business names and we need to tax people who hold multiple properties that are sitting vacant and sitting as investments....and no you can't use your children to "house sit" your vacant investment properties. Banks need to also limit borrowing for those with 3 properties. They're rich they can sell a property or two to they need to upgrade or downsize.
unfortunately, this would not solve the affordability crisis. When there are distortions in the market, people will often blame 'the rich' and they believe that 'raising taxes' will solve the problems. If you look at the underlying cause of housing affordability in Australia, you will notice that the blame lands squarely on the face of government policy. For decades, the government has enacted policies that limit the supply of housing, whilst at the same time increasing the demand. 1. regulations restricting the use of land - reducing supply 2. difficult hurdles land owners need to jump through to subdivide - reducing supply 3. regulations on rental accommodation - reducing supply 4. artificially low-interest rates - increasing demand 5. negative gearing - increasing demand 6. government grants that hand out money to first home buyers - increasing demand Reversing or removing these policies would turn the housing market into an actual market, and prices would return to affordable levels. Unfortunately, the Australian economy has become addicted to the housing market high, and so has politics.
The reality is that contrary to popular belief, those who own investment property or properties are already paying a lot into the government coffers. By the time an investor pays rates (local government), land tax (state government) and of course income tax and capital gains tax (federal government), there is a very healthy level of taxation levelled by all three tiers of government. Governments have become addicted to the taxes gained by housing. They need no encouragement. There is also a popular misconception that many houses lay dormant. Currently we're hearing that 1 million houses were vacant on census night. I have no doubt that is true, but the nature of the modern economy and an increasing number of apartment dwellers mean that their are a lot of people absent from home for purposes such as employment. I certainly acknowledge that "land farming" is real and yes, the well healed own holiday houses but I doubt it has a significant impact. Ultimately the only way that we are going to see the way forward with regards to affordable housing is to reduce supply and decrease demand. That means that we're going to have to make some major changes. Unpopular amongst those is taxpayer money once again going toward public housing and the one that no one dares mention is reducing immigration to a trickle. Both are very unpopular options with a large voter base.
Isn’t there enough tax in this country? You need to pay tax for literally everything. This is one of the reasons why everything is so expensive. Why not just ask the government to reduce the taxes of building new properties and just build more buildings to house more people? If Japan and Singapore can do that I wonder why Australia fail to provide affordable housing.
@@haha-eg8fj there is too many advantages for those with property to avoid taxes and keep borrowing more to make multiple investment properties. If they figure out how to stop that sort of greed from happening it reduces demand from those who already have a home or those who already have mortgages......thus resolving the housing affordability crisis.
@@bign1667 This is just tall poppy syndrome. Can't solve problems only by raising taxes. There is always someone who can figure out a way to play the system. This is how capitalism works. There is also a negative gearing policy in Japan, but the Japanese property market is fairly affordable compared to the Australian property market. Once you impose a tax on something, it's hard to remove it. And the money will only go to the government which may not have the incentive to build more affordable housing for its people. An AFR article in 2017 showed as much as 40 percent of the total home cost comes from government tax. I don't want any more tax to be paid on the property. So if the government doesn't reduce the tax on building new properties and come up with a better plan for providing affordable housing in Australian cities the problem will only get worse in the future.
Know body is in a position to decelerate the property market , neither Government or investors. Its funny to see a group of people who had free university, free healthcare etc devour their young. Love it
I sold my house in Perth during the pandemic and now live in Bali, absolutely loving it! Property will dump 30% for sure with the forthcoming depression.
Well done ... Im also planning to move overseas when I retire in a few years, but will probably keep my house here, just in case I ever need to come back, which hopefully I won't.
@Know1 That's a shame ... the old age pension is barely enough to live on in Oz, and would give a much nicer retirement overseas (depending on the country). I think self funded retirees are free to live wherever, but might get stung twice on tax.
@Know1 Don't be surprised if there is a global depression ... fuel and food shortages are already happening, supply chain issues are continuing to grow. Unfortunately, the future does not look good, so people should start preparing to be more self sufficient. Stock up on non perishables, and start growing your own food.
Investors buying their second or third investment property, creating scarcity, driving up housing prices. But because they already have so much equity, the increased prices doesn't stop them from buying more, it just locks out younger people.
@@sadns2000 they're starting to care because interest rates are rising. All this talk and dedication of news for property is a push for the government to help home owners to not become homeless. Just wait till October to see what the government and banks do for those currently on mortgages and the Australian dollar dropping in value.
Still boomer "experts" going on about "supply". Supply is irrelevant to prices in the Australian housing market. Australian house prices are not determined by supply and demand (this would only be true if debt didn't exist). Prices are determined by how much the marginal buyer can BORROW. All government policies about affordability are designed to increase borrowing capacity and therefore sustain higher prices. People can blame all kinds of things but the only thing that will bring prices to sustainable and reasonable values is to limit borrowing power to 3x income. Simple. Affordability would be solved overnight and things like a "productive economy", no brain flight overseas, fertility rates etc. may have a reasonable chance of being addressed. Otherwise, it's onwards on the march to misery for the next generations of Australians.
Supply does determine prices. If you're trying to sell and there is a million other houses for sale, your competitive edge is price. Competition brings prices down.
Supply of cheap credit- that's the real supply that determines prices.. Enforce 4x income borrowing capacity and 20 year maximum term mortgages instead of 30 year mortgages
When I was in Oz in late 80's. Sudden inflation in property, timber etc. There was talk of Aussie families chipping in to provide deposit for newly weds ? The Japanese (yakuza ?) were buying up. The Chinese oligarchs / triads are doing recently ? Loads of other relevant comments / suggestions are here too.
Governments in bygone eras focused on supply-side assistance for housing...They built houses for FHBs and offered cheaper mortgages. With neoliberalism, that stopped and governments started demand-side assistance like tax concessions for investors and FHB grants. All demand-side assistance does is drive up prices...Which is what their intention was.
@@coopsnz1 There is a very big difference between socialist policies and communism. When the Liberal party was formed, its doctrine decreed that both social responsibility and capitalism should work hand in hand for the greater good of the nation and for economic management. And it worked extremely well. Australia was a truly egalitarian nation and extremely prosperous. Business's thrived and the poor had a roof over their heads. The Menzies Government was responsible for financing large numbers of public housing and also for providing discounted finance for war veterans. It also provided an economic environment in which business could be easily done. This was a conservative government. Neoliberalists seek a return to the laissez faire capitalist model of the late 18th.m 19th and early 20th. century. It is a ridiculous mindset. Laissez faire capitalism is a failed and superseded economic model. Any economist will tell you that. Any. Keynesian economic principles, while not without fault, greatly improved economic management in the latter half of the 20th. century. Neoliberalists have been gradually undermining this, ignoring the reality of economic doom they are leading us back to. Governments might own housing under a socialist model. Under a neoliberalist model, land lords own housing. Be careful what you wish for.
@@davidbrayshaw3529 taxes now when you earn & spend in Australia 40% - 80% . $100000 car tax $29000 to import . Duties" excise taxes " superannuation tax is theft . You wonder why home ownership declined since corrupt Bob hawke the socialist. Here news for you albonese own 5 properties he a ex union leader
Solution: make living in your investment property mandatory for the first 5years. A house firsts function is shelter... Stop looking at tenants as a cash cow you can squeeze till it bleeds. Give them better rights. If you wanna build wealth go into the stock market or open a business, buy a fancy painting. Btw they have done this already in other places. (See the Netherlands) Classic politicians make a study, do some talking. Another study. Talking till elections are around the corner. Repeat. For everyone who is suffering from this make sure your voice is heard. And hold politicians accountable.
Nationalise 50 percent of all house value, the state with this war chest can start building houses and returning the power to people to have a place to live ( people who don't feel secure are having less children that feeds into the demographic of the inverted pyramid ) people who are older at the top ( who need more social services, etc ) this leads to social instability ( the whole idea behind public housing, to put downward pressure on the housing bubble )
I'm sorry, if you don't advocate removing all tax incentives for people to not own more than their primary residence, your solution is disingenuous at best. The state and federal government should step in an provide green apartment housing that can only be sold and on sold to first time home owners.
Banks are gouging Australians on interest rates. When the Commonwealth Bank was operated buy the government there was a 1% differences between the reserve bank interest rate and what was charged by banks. Now it is from 1.5% to as much as 3% differences between the reserve bank interest rate and what was charged by banks. the Howard coalition government allowed the people of Australia to be ripped off by the banks.
@Half pint there low because the reserve bank had them low the issue is the difference between the reserve bank and what bank charge us. The margin has increased!
@Half pint You wrong the coalition privatized CBA. I should know I protested against it back in the 1996 when Howard completed the Privatization of the Commonwealth Bank of Australia. Stop spreading lies. I have write to and protested about this issue. you are just a coalition stooge.
@Half pint He had the chance to stop it but he didn't Fact. Now the banks have free rain and as shown in the banking royal commission the banks have been shown to be corrupt Fact. Protecting Howard reputation is supporting one party. If I recall the Greens and the Democrats wanted the sale to stop. You only think that there were two parties. You are dam right I have feelings about this issue as I am one of the victim of the banks corruption. I reserve the right to be prejudices about the banks corruption. You can sit on you high house and use your intellect but that doesn't show that you are intelligent. I just show you have no empty for the people Screwed by Howard dissension to proceed with the sale. One Day you to will be screwed by the banks and I for one hope it will be soon. When this occurs think back on this conversation and reflect that when you had a chance to challenge the banks and their politician puppets you chose the Bank.
They should incentivise new building by only allowing negative gearing on new builds. But while the people making the decisions own 1, if not multiple houses, nothing of any significance will change. Just 2 cents from a 43yo non home owner who has almost given up buying a house.
They want us to rent and subscribe for everything...not own anything. Everything is going that way. Permanent ongoing costs for everything. They don't sell you anything...just temporary access to their product for an on going fee. For real estate, that means rent.
I am amazed by how comfortable politics, professionals and "subject matter experts" can all put their heads in the sand in order to keep their treasure (assets) alive. Yes these people are most likely multi property owners so because they think of their own selves, pushing for the cut of tax incentives for multi property owners is the last thing they would do... it is a no brainer that this measure would have an immediate effect on affordability (thousands of homes would be released on the market driving the prices lower). Instead they offer medium/long term solutions such as increasing the supply which does not fix the present situation. Home ownership is a right, not a way to create wealth. There are many ways for that purpose...
This is exactly right. If you cannot offset the costs through negative gearing you'll ditch it quickly. Further these are lower value properties so they open up these to early home owners.
Biggest problem is the default option of auctioning properties, which only maximising the benefits of sellers and all buyers are losers betting against each other. It’s not that common in many other countries to see such auctions
Should be forced to sell to the highest bidder if they take the auction option. As opposed to having the option not to sell even if the reserve is met and then negotiate a higher price afterwards
No, my dream is to live a fulfilling, good life yarda yarda yarda…owning a “thing” may possibly help me get there but owning my own home isn’t the end in itself. If my life is good and I don’t own my home then I’m diminishing my life for want of the possession of a commodity - and that’s crazy.
The type of house you can build today is part of the problem. Try to find a builder that will construct a three bedroom one bathroom house with no carport or driveway no Alfresco area or built in wardrobes A simple house on a small block in a cheap suburb..? Then try to find a council that will approve the plans. They will claim the simple house would drive down the value of the area.
@@M.-.D A lot of it isn’t council criteria, it’s developer covenants on estates that force you to build XYZ to comply with the look they want for the area. I’ve heard of plenty of people who wanted to build modest houses and extend them later to keep the mortgage cost down but the developer demands a house of a specific size to meet their covenants. Same deal with the house construction, most estates demand you build say a brick home with a tile roof and no deviations are allowed. That BS came back to bite a lot of people in Springfield here in south east Queensland a few years ago when a hailstorm came through the area and dropped large hailstones. Because everyone was forced to have tile roofs due to developer covenant the damage was massive and absolute. If I lived there I’d be getting a class action together to sue the developer for forcing tiled roofs onto everyone’s houses.
@@M.-.D Council and property regulations aren’t a market, they are extortion. I just had a double carport built at my house and the council fees just for them to rubber stamp it was about $2500. That’s just extortion because they can get away with it. They should have zero say in what you can build on your own property. Red tape and excessive regulation is stopping the market from actually building the houses that people want. The houses either don’t get build because the council won’t allow it or the house is a lot more expensive than it needs to be because your forced to jump through hoops that tell you what you can and can’t build.
What so when woman entered the work force and therefore many households had more cash the government decided that people can’t be having all this cash amd raise the prices? Sounds like it’s all greed to me is the real reason why pricing is so high.
So if we return to good old family values and the woman focuses on raising the children and making a home then all the one-income families would be able to force house prices down and have time to play with the kids on the lawn and take holidays again.
The Liberals have hated the idea of paying tax on income you've received (i.e. Capital Gains) as opposed to income you've worked for. That's why in 1999, John Howard introduced the Capital Gains Tax Discount. As a result the "conservatives" turned the property market from being about one of home ownership to a Monopoly Boardgame.
Not just capitol gains concessions but they were also the first to introduce the first home buyers grant. All designed to mask a faltering economy and shift employment from manufacturing and into housing. An added bonus was stimulus created by homeowners borrowing against equity. Well done, John, your legacy lives on.
I purchased my first home at 27 in Airlie beach in 2000. The house was a modest 3 bedroom spec home, 9 months old and I paid $145k. Lived in it for a year, went traveling for 2 years, came back to Australia and sold it for $320k. Moved to Innisfail purchased a beautiful home on 117 acres of rainforest for $305 sold it 8 years later for $550k. I rode the capital gain boom, moved to the USA where I enjoy modest house prices in Michigan. Own my principle residence plus 3 rentals. I could not imagine returning to Australia and re entering the over inflated property market and having one property let alone several. Australias property boom benefited me greatly, though I truly feel for young Australians who are unable to enter the Australian property market. I hear of first home buyers having interest only $800k and higher loans that’s insane……
Good on you, If a get a chance, I'll settle somewhere in the US too, I hate it here, bad government run by idiots, stupid govt agencies and policies, and you're right, over inflated properties, some priced around 300k when it should only be around 150k, 2 bedroom dilapidated units, crazy.
With Federal politicians owning on average 2.25 houses and I suspect it may be similar among state pollies there is a clear conflict of interest as those people hold the levers that could see more affordable house prices. Combine that with fear of electoral and party donation backlash at any policies that make houses more affordable it's no wonder that they prefer policies to enable people to survive with ever increasing mortgages instead.
I was an immigrant who moved to Australia in 2002 to escape an abusive paternal home and the fallout of a long term relationship. For as long as I remember I had dreamed of having a family of my own in a house of my own. Due to some circumstancal sabotage by my parents for 4 years, I had to postpone purchasing something in 2011-12. I kept deferring starting a family until I had a modest home. It was during Covid I realised how pointless it was, that after 16 years in Australia overcoming racist experiences and bias socially, professionally etc, I was still isolated and uncared for. I moved out for good and honestly the best thing I ever did. No more realty anxiety, spiritually crushing loneliness and finally can confort my traumas head on. Good luck former homies, hope you guys get a deal when it all comes down
Nearly $4 trillion in Australia's Superannuation pool, yet we can't invest in buying up everythung with a 5km ring around shopping centres, train/bus station's or retirement villages? We can't invest in Australia apparently (but where happy to take all the taxpayer incentives), so why are we surprised when private landlords go insane with all the taxpayer incentives and salary tax holidays and pool cash inside their super account for tax free when they turn 60. Politics of envy no. Residents paying tax yes. Look it up, Fair Tax Act legislation US Congress.
we went from renting to home ownership in one move 8 months ago by moving out to a rural location and the ABC knows the location as they just did a story about our town Loving life living in paradise
I bought a house in the Byron shire in 2002 for 220k. Now worth 1.5 million. Old house with asbestos in the fibro walls. Sydney buyers don’t care about that. All the houses in my street are the same
If you accept the fact that you may never own a house then just re engineer your lifestyle, rent as cheap a property as you can and then divert your savings to alternative investments. Something like an ETF etc, over time you will have the same "money on the table" amount as if you bought a house but maybe not the same feeling of "mineness" when it comes to sharing the ownership with your bank. It's still just discipline either way.
It’s a hard job putting bread on my landlord’s families table. Philanthropist. Benefactor. Altruist. I should be canonised 👌 ( every renter in Australia currently ) It’s hard to save aggressively for a deposit when you’re crippled with rental prices. Poorer Aussies get squeezed out of the rental market altogether because wealthier renters occupy the worst houses trying to save that mirage in the desert style deposit. It’s set up this way because the people who benefit from it set it up this way. They played the long game effectively. I was the boss of the world a lot of people would get sent to their rooms to think about what they done 🙃
My parents migrated to Australia in 1954 and 1955 ( my mum). They got married, worked hard, saved and bought their house in Albert Park......now it seems that following generations have been cheated out of this dream.....WHERE has the " lucky country" gone.....
What will happen? Landlords will not sell because they will have to pay CGT. Better still allow landlords a window where they can sell tax free and watch how many more properties come on the market
Why the hell are we all forced to borrow money to buy a piece of land that already belongs to us ??! It's because our birth right estates (right to live on the land) was stolen from us when we were born. This fact has very cunningly been hidden from all Australians. Governments do not own land (they think they do), they are only meant to administrate it !! I don't mind having to pay for the roads, utilities etc to be built and connected but the land component should be free. We have all been brainwashed into believing we have no right to live on the land unless we buy the rights to it. This is escheatment of our estates on a grand scal !!
There is so much wrong with the system its not funny. One thing for example. When it's time to renew rent contracts they want you to sign asap, however come eviction time you can't just move out asap if you find something suitable because it is not economical to do so unless you can afford to burn extra rent money. They still expect you to pay up until contact ends and this needs to change asap! If renters choose to leave then it's reasonable to pay until end of contract but not if they have just had their life disrupted with an eviction notice. They need the flexibility to leave as soon as they successfully find something in order to stay secure and productive. Business's also suffer a serious fall in productivity when staff are in this situation because it is highly likely staff will be not only reserching availability but also going off to inspect properties withing business hours. Staff suddenly needing somewhere to live may lack care for the needs of customers at that point. It is absolutely a social and moral responsibility for employers to allow time for renters in these situations.
They should also compare average house size changes. Used to be all 3bed 1 bath now surely 3+ bed and 2+ bath. Plus new joinery, aircon, pool, garage, and most important council start to taking a cut for their own good too.
Exactly! In the 80s and back, a cleaner could buy a modest house and raise a family on his one income. Sure it was not easy but it was not a huge struggle. These days a dual income, both professional, struggle to keep up with mortgage repayments for a modest house.
@@mike4802 But the Boomer will tell you it's easier now because interest rates were higher. The thing is, 12% on 120,000 is far more appealing than 0% interest on 700,000+ Especially when their annual wage was 30% of their entire Mortgage.
@@MiggsMultiple Damn right! Back in the late 80's the price of a property West of Sydney was around $140,000 and the salary of a young professional was around $35,000, a factor of 4. These days the price of a property West of Sydney, same area, is around $1,800,000 and the salary of a young professional is around $100,000, a factor of 18.
Price rises are due to money creation. More money has been created in the last ten years than in the previous fifty years. The answer to every economic crisis has been for the central and commercial banks to create more money.
No. It's because there's a war a thousand kilometres away. Didn't you read in every economic text book that wars in Ukraine raise house, food and petrol prices
The reason for the nightmare and the inflation is that the government always throws the home buyers to the banks like throwing food to the sharks. The Australian government does not have control over the interest rates or housing. The government does not provide fixed rate loans to the borrowers and does not provide government built houses.
Age 35 to 40 nicely get a loan offer Age 41 to 45 still can make it by big down payments, age 46 to 50 a bit difficult maybe just 20% allow, age 51 to 55 you got to pay cash
I've been "homeless" since January - due to excessive rent increase >20% which out of principle I refused to pay. So I guess it's a partly "voluntary homelessness" but have saved $10,000 in cash (through working as a truck driver). Surely with One Million houses vacant and Thirteen Million rooms vacant, homelessness should not happen in this country.
I bought land and built a house at prospect nsw in 1979....both my husb and i had good trades and 1 child....cost $36,000 we needed to take out a 2nd mortgage....we sold 6 yrs later for $40,000....we then that year we bought land at toongabbie and built another house...by then we had 4 children...cost was $86,000 and money was tight.....were are you getting your figures from ??.... the least you could do is wait till my generations dead before lying !!!
At least we don't have big corporations buying up housing and renting it out like Canada and US. That corporate owned dystopia is slowly becoming a reality.
Read the history of Australia, particularly during the Gold Rush period. Employers could not retain labour as any fool who could afford a tent and some tools would be gone to the Victorian goldfields. They earned more there in a month than in their jobs for a year. Housing was an instrument to keep a labour force and keep population stable.
The value of the Aussie property went down even with the inflation adjustment because the value of the Aussie dollar went down. If it takes more Aussie dollars then it did yesterday for the same thing ???? Well
Tax the blokes who own more than 2-283 properties (you read that right), then make sure NOTHING goes offshore to tax havens -- I'm looking at all the large corporations here, Not the small guy who's struggling to pay the next insurance, superfund, wages, tax bill or the accountant, the bloke who needs to pay through the nose for Import taxes when we literally make nothing here, or the mum and pop who both spend thousands a year on income tax while defaulting on Mortgage in the next 2 years. We are feeding immigrants into the meat grinder of the property market, and then when that stops the government no longer gets the bribes and benefits it takes under the table from large lobbying developers. No cheap free labor for the Australian market that creates poor quality real estate with or without licenses, and drives down average wages across the board. The government gets high everyday on this very thing, and it's slowly killing all of us, turning this country into a factory farm. Don't forget that the RBA is not a government owned entity, and it's still rising interest rates make it impossible for the working class owners and even tenants to survive the high mortgage rates. Watch them prop up and bail out construction companies and banks a second -- nay -- an ad infinitum time since the start of bailouts when the fed was created in the 1930's -- and drive the small citizen into oblivion for want of higher property prices.
I lived from 2006 for a few years in Brisbane and Melbourne and was even back than surprised about the housing prices, the poor quality and the tennant competition. Amazing it that obviously got worse....
It’s a nightmare if you lack financial IQ to manage the house , and you lack maturity , most people don’t have houses largely a lot due to them not being mature enough to manage their own finances
I spent a year living with my parents. I did literally nothing but work in my bedroom for 52k salary for a whole year. I saved 80% of my income, ate only the food mum bought (and I cooked for both of us), and didn’t go out. In a year I saved up a deposit and then got a loan to build a house. Best move I ever made, 3 years down the road I love living on my own in my own place. It’s cheaper than renting and my property value has gone up $140k from what I built it for.
And there's the problem, everyone is concerned about how much their house is worth. Not about having a home. When everyone has that attitude housing becomes a investment not a necessity.
@@Zei33 You don't buy a landcruiser as a investment, not a caravan. We're talking hundreds of k there. And that's the difference, when it's seen as a investment people aren't willing to lose money on houses or even sell it for the same as they bought it for. You only hear people talking about how much their house is worth and how much they're going to make. And everyone with that attitude drivers prices up.
@Uncle Joe None of the states or territories have proper revenues because under the rules of federation, they aren't allowed to charge state taxes on goods, like they do in the US. States and territories rely on GST doled out by the Feds, rates, stamp duties, fine revenue, federal grants, land sales, vehicl rego, etc for their funding.
When a villa lucky to be 100sqm costs upwards of 700-750k (no yard) we have a big problem. Utterly crazy times. Im 41 and have saved over 100k, i'm on 80k a year atm and cant even borrow 500k. Now tell me how this is affordable. I dont have mummy or daddy to bail me out. Anyone can relate?
Bank savings need to have interest applied, to cut down foreign ownership including farming land, government subsidies should be resurrected and definitely allow a lot more land to be released to the public for housing!
I think it's great that there's this "housing crisis". I live in a car and have done for years, park up in several favourite spots and never been hassled. The Police know it's tough out there so now I pay nothing for accommodation and get along great. cheers 🍻
I'm single and I have around $150k for a deposit on a 2 bedroom unit somewhere in QLD, but I"m sadly having second thoughts as this country has nothing to offer, I might just move to Denver...
@@UA-cam_IS_WOKE Floods happen. Can't ever say you won't try a state because it has flooded... but they are offering no cost demolition and compensation amount to anyone who wants out
bit of a lie. house prices have increased by near 400-700% while wages haven't even doubled. current young people these days are incredibly overwhelmed in comparison to the prior generations.
@@gjhkhjlo they're inferring the comparison is the same from back then to now in trying to misrepresent that it's similar. the difference is actually massive. issue is viewership from older generations, older people will become upset with the channel if they try to state that younger people have it harder.
We don't have ownership there in Australia what we do have is leasehold hiden behind the curtain of " Fee Simple " now what is it you dont get, I'll give you a clue your given a " Certificate" what a piss take. Have a wonderful day or should that be g' day 🤗
“We’ve got the highest percentage of renters since the 50s, what effect is that having on the market?”. Is the target audience for these clips year 2 students? My 6yo can understand that if lots of people want to buy something the price goes up.
Long term normalised interest rates are around 6-7% OCR (emergency levels were 3%). Anyone that cannot repay their mortgage as interest rates go back up to normal levels, is part of the problem, and should not be saved. They won't die, they will just have to start again from zero and hopefully learn a lesson.
I've got to say, I feel sorry for those that got sucked into the marketing hype. Banks, Bunnings, House Rules etc. have spawned an environment in which susceptible people have been all too happy to part with "hard earned cash" that they don't have. Where are their parents? I don't know. Rising interest rates are not a new phenomenon. Retail rates were 8% when I took out my first and ONLY! mortgage. My son has been made very aware of those figures.
What an insulting waste of half an hour. Never have I watched something so dismissive of housing crisis. Saying only low income people like cleaners cannot afford to buy a home and splicing together footage of people from the 70s who are also struggling. Doesn't mention overseas investment. Doesn't cover wage stagnation. Pointing to supply for the price, was this funded by the housing commission?
@milos durovic I stopped watching ABC Australia when it became captured by an ideology. Now it's just an inversion of it's former self.
you forgot the income tax making it not worth earning more than $50-$60k a year, because if you're working for $40 an hour 38 hours a week you'd earn a little under $80k a year but after tax you only get $61k to $63k or in other words you're being taxed roughly $9 an hour and only taking home $31 an hour
If you live in a country where having somewhere to live is "a dream" then you're living in a country with very little to offer.
So true. And some American states have better housing affordability than our smallest states in Australia. It's a damn shame that I am wiling to consider moving to a country with increase gun violence and no healthcare just to have a house of my own.
@Know1
Its not that low
Is used to be
@Know1 7 dollars??? Is that 2022 or archaic statistics. General American wage at 28 / dollar according to Bloomberg. Even here, cash on hand for students is 10 dollars.
@@wsrtwetr we over taxed in Australia why you don't own a home
we're living in a dying country, it has disincentives with tax for even bothering to work more than part time because you wind up putting in more effort to get less and less money
Man, the guy in the helmet made an excellent point! If renting was more secure it would be a completely different option. When you're constantly getting moved out or having to find a new place for whatever reason, it makes it very hard to do anything else with your life, especially right now when it's so hard to find anything affordable in many places. If landlords couldn't just kick you out with a little notice whenever they decide to, people could stay near their work, get some community ties/support, and generally be happier and more productive.
Rental security in Australia is beyond a joke. Not only that, so is the cost. The reality is however, demand exceeds supply. It's a sellers market.
If you want a "big Australia", be prepared to pay big prices.
@@davidbrayshaw3529
Cost is represented by how much houses are to buy.
Rental properties are not charity.
@@Robert-cu9bm I absolutely agree. Not only is rental pricing a product of the purchase price of a house, a rental provider has to factor in rates, land tax, insurance, maintenance and ultimately income tax on the property. In Australia these add up very quickly to become a large sum.
Keep hammering landlords, then wonder why less and less properties are available for rent.
@@georgebronte840 Since when have landlords ever been hammered? Landlords get it good compared to most everyone else in society. As a share investor I can’t deduct share losses against other income streams but apparently property squatters get the right to write down their losses against their regular income! How’s that for fairness!
Its really really simple!
We need restrictions and higher taxes to stop people hiding properties under business names and we need to tax people who hold multiple properties that are sitting vacant and sitting as investments....and no you can't use your children to "house sit" your vacant investment properties.
Banks need to also limit borrowing for those with 3 properties. They're rich they can sell a property or two to they need to upgrade or downsize.
unfortunately, this would not solve the affordability crisis. When there are distortions in the market, people will often blame 'the rich' and they believe that 'raising taxes' will solve the problems. If you look at the underlying cause of housing affordability in Australia, you will notice that the blame lands squarely on the face of government policy. For decades, the government has enacted policies that limit the supply of housing, whilst at the same time increasing the demand.
1. regulations restricting the use of land - reducing supply
2. difficult hurdles land owners need to jump through to subdivide - reducing supply
3. regulations on rental accommodation - reducing supply
4. artificially low-interest rates - increasing demand
5. negative gearing - increasing demand
6. government grants that hand out money to first home buyers - increasing demand
Reversing or removing these policies would turn the housing market into an actual market, and prices would return to affordable levels. Unfortunately, the Australian economy has become addicted to the housing market high, and so has politics.
The reality is that contrary to popular belief, those who own investment property or properties are already paying a lot into the government coffers.
By the time an investor pays rates (local government), land tax (state government) and of course income tax and capital gains tax (federal government),
there is a very healthy level of taxation levelled by all three tiers of government. Governments have become addicted to the taxes gained by housing. They need no encouragement.
There is also a popular misconception that many houses lay dormant. Currently we're hearing that 1 million houses were vacant on census night.
I have no doubt that is true, but the nature of the modern economy and an increasing number of apartment dwellers mean that their are a lot of people absent from home for purposes such as employment. I certainly acknowledge that "land farming" is real and yes, the well healed own holiday houses but I doubt it has a significant impact.
Ultimately the only way that we are going to see the way forward with regards to affordable housing is to reduce supply and decrease demand.
That means that we're going to have to make some major changes. Unpopular amongst those is taxpayer money once again going toward public housing and the one that no one dares mention is reducing immigration to a trickle. Both are very unpopular options with a large voter base.
Isn’t there enough tax in this country? You need to pay tax for literally everything. This is one of the reasons why everything is so expensive. Why not just ask the government to reduce the taxes of building new properties and just build more buildings to house more people? If Japan and Singapore can do that I wonder why Australia fail to provide affordable housing.
@@haha-eg8fj there is too many advantages for those with property to avoid taxes and keep borrowing more to make multiple investment properties. If they figure out how to stop that sort of greed from happening it reduces demand from those who already have a home or those who already have mortgages......thus resolving the housing affordability crisis.
@@bign1667 This is just tall poppy syndrome. Can't solve problems only by raising taxes. There is always someone who can figure out a way to play the system. This is how capitalism works. There is also a negative gearing policy in Japan, but the Japanese property market is fairly affordable compared to the Australian property market. Once you impose a tax on something, it's hard to remove it. And the money will only go to the government which may not have the incentive to build more affordable housing for its people. An AFR article in 2017 showed as much as 40 percent of the total home cost comes from government tax. I don't want any more tax to be paid on the property. So if the government doesn't reduce the tax on building new properties and come up with a better plan for providing affordable housing in Australian cities the problem will only get worse in the future.
Know body is in a position to decelerate the property market , neither Government or investors. Its funny to see a group of people who had free university, free healthcare etc devour their young. Love it
How about preventing overseas investors from buying up housing. Preventing interstate purchases of homes unless they will be a primary residence.
@Bee Hive owners & investor are middle class aswell
Cap air BnB. Scrap negative gearing. No more than 2 homes per person. Solved. I own a home and I'd be happy to see this action taken..
its always been a nightmare , only sellers call it a dream !
I sold my house in Perth during the pandemic and now live in Bali, absolutely loving it! Property will dump 30% for sure with the forthcoming depression.
Well done ... Im also planning to move overseas when I retire in a few years, but will probably keep my house here, just in case I ever need to come back, which hopefully I won't.
selamat datang
@Know1 That's a shame ... the old age pension is barely enough to live on in Oz, and would give a much nicer retirement overseas (depending on the country). I think self funded retirees are free to live wherever, but might get stung twice on tax.
@Know1 Don't be surprised if there is a global depression ... fuel and food shortages are already happening, supply chain issues are continuing to grow. Unfortunately, the future does not look good, so people should start preparing to be more self sufficient. Stock up on non perishables, and start growing your own food.
@Know1 That's good to know, fortunately I'm kiwi, so I don't need this country's dumb pension plans! I hate Aussie policies!
Investors buying their second or third investment property, creating scarcity, driving up housing prices.
But because they already have so much equity, the increased prices doesn't stop them from buying more, it just locks out younger people.
But no one cares
If banks are unable to lend more it would encourage people to sell instead of owning the whole monopoly board of Australia
@@sadns2000 they're starting to care because interest rates are rising. All this talk and dedication of news for property is a push for the government to help home owners to not become homeless.
Just wait till October to see what the government and banks do for those currently on mortgages and the Australian dollar dropping in value.
investors don't buy first home buyer property
@@sadns2000 that's the truth
Cremation of care
Still boomer "experts" going on about "supply". Supply is irrelevant to prices in the Australian housing market. Australian house prices are not determined by supply and demand (this would only be true if debt didn't exist). Prices are determined by how much the marginal buyer can BORROW. All government policies about affordability are designed to increase borrowing capacity and therefore sustain higher prices. People can blame all kinds of things but the only thing that will bring prices to sustainable and reasonable values is to limit borrowing power to 3x income. Simple. Affordability would be solved overnight and things like a "productive economy", no brain flight overseas, fertility rates etc. may have a reasonable chance of being addressed. Otherwise, it's onwards on the march to misery for the next generations of Australians.
Supply does determine prices.
If you're trying to sell and there is a million other houses for sale, your competitive edge is price.
Competition brings prices down.
Supply of cheap credit- that's the real supply that determines prices..
Enforce 4x income borrowing capacity and 20 year maximum term mortgages instead of 30 year mortgages
The trend in the US is that institutional investors are buying houses to rent them ! Access to property is going to be harder for regular people! !
here it's that as well as wealthy immigrants buying them
When I was in Oz in late 80's. Sudden inflation in property, timber etc. There was talk of Aussie families chipping in to provide deposit for newly weds ? The Japanese (yakuza ?) were buying up. The Chinese oligarchs / triads are doing recently ? Loads of other relevant comments / suggestions are here too.
Governments in bygone eras focused on supply-side assistance for housing...They built houses for FHBs and offered cheaper mortgages. With neoliberalism, that stopped and governments started demand-side assistance like tax concessions for investors and FHB grants. All demand-side assistance does is drive up prices...Which is what their intention was.
Yes, the difference between Robert Menzies and John Howard is quite a contrast, isn't it.
That not neoluberlism that socialism that end up far left communism you don't own property the government does
@@coopsnz1 There is a very big difference between socialist policies and communism. When the Liberal party was formed, its doctrine decreed that both social responsibility and capitalism should work hand in hand
for the greater good of the nation and for economic management. And it worked extremely well. Australia was a truly egalitarian nation and extremely prosperous. Business's thrived and the poor had a roof over their heads.
The Menzies Government was responsible for financing large numbers of public housing and also for providing discounted finance for war veterans. It also provided an economic environment in which business could be easily done. This was a conservative government.
Neoliberalists seek a return to the laissez faire capitalist model of the late 18th.m 19th and early 20th. century. It is a ridiculous mindset. Laissez faire capitalism is a failed and superseded economic model. Any economist will tell you that. Any. Keynesian economic principles, while not without fault, greatly improved economic management in the latter half of the 20th. century. Neoliberalists have been gradually undermining this, ignoring the reality of
economic doom they are leading us back to.
Governments might own housing under a socialist model. Under a neoliberalist model, land lords own housing.
Be careful what you wish for.
@@davidbrayshaw3529 taxes now when you earn & spend in Australia 40% - 80% . $100000 car tax $29000 to import . Duties" excise taxes " superannuation tax is theft . You wonder why home ownership declined since corrupt Bob hawke the socialist. Here news for you albonese own 5 properties he a ex union leader
Solution: make living in your investment property mandatory for the first 5years. A house firsts function is shelter... Stop looking at tenants as a cash cow you can squeeze till it bleeds. Give them better rights. If you wanna build wealth go into the stock market or open a business, buy a fancy painting. Btw they have done this already in other places. (See the Netherlands)
Classic politicians make a study, do some talking. Another study. Talking till elections are around the corner. Repeat.
For everyone who is suffering from this make sure your voice is heard. And hold politicians accountable.
Nationalise 50 percent of all house value, the state with this war chest can start building houses and returning the power to people to have a place to live ( people who don't feel secure are having less children that feeds into the demographic of the inverted pyramid ) people who are older at the top ( who need more social services, etc ) this leads to social instability ( the whole idea behind public housing, to put downward pressure on the housing bubble )
or, hear me out, drop the income tax a bit so people have more money to play with and have a reason to bother getting a higher paying job
I'm sorry, if you don't advocate removing all tax incentives for people to not own more than their primary residence, your solution is disingenuous at best. The state and federal government should step in an provide green apartment housing that can only be sold and on sold to first time home owners.
Banks are gouging Australians on interest rates. When the Commonwealth Bank was operated buy the government there was a 1% differences between the reserve bank interest rate and what was charged by banks. Now it is from 1.5% to as much as 3% differences between the reserve bank interest rate and what was charged by banks. the Howard coalition government allowed the people of Australia to be ripped off by the banks.
@Half pint there low because the reserve bank had them low the issue is the difference between the reserve bank and what bank charge us. The margin has increased!
@Half pint You wrong the coalition privatized CBA. I should know I protested against it back in the 1996 when Howard completed the Privatization of the Commonwealth Bank of Australia. Stop spreading lies. I have write to and protested about this issue. you are just a coalition stooge.
@Half pint He had the chance to stop it but he didn't Fact. Now the banks have free rain and as shown in the banking royal commission the banks have been shown to be corrupt Fact. Protecting Howard reputation is supporting one party. If I recall the Greens and the Democrats wanted the sale to stop. You only think that there were two parties.
You are dam right I have feelings about this issue as I am one of the victim of the banks corruption. I reserve the right to be prejudices about the banks corruption. You can sit on you high house and use your intellect but that doesn't show that you are intelligent. I just show you have no empty for the people Screwed by Howard dissension to proceed with the sale.
One Day you to will be screwed by the banks and I for one hope it will be soon. When this occurs think back on this conversation and reflect that when you had a chance to challenge the banks and their politician puppets you chose the Bank.
Government crooks Gouging you add all all taxes 50% going to government that socalism
They should incentivise new building by only allowing negative gearing on new builds. But while the people making the decisions own 1, if not multiple houses, nothing of any significance will change. Just 2 cents from a 43yo non home owner who has almost given up buying a house.
Too many politicians use negative gearing on established properties with public transport and access to schools and jobs to change that.
Interest rates being high back in the day didn’t matter as much due to the way lower prices, do the math and you’ll see it’s a lot worse now
"You will own nothing and you'll be happy". WEF
My rental increased to $80 dollars per week. Owner is always the winner , no negotiation.
They want us to rent and subscribe for everything...not own anything.
Everything is going that way.
Permanent ongoing costs for everything.
They don't sell you anything...just temporary access to their product for an on going fee.
For real estate, that means rent.
I am amazed by how comfortable politics, professionals and "subject matter experts" can all put their heads in the sand in order to keep their treasure (assets) alive. Yes these people are most likely multi property owners so because they think of their own selves, pushing for the cut of tax incentives for multi property owners is the last thing they would do... it is a no brainer that this measure would have an immediate effect on affordability (thousands of homes would be released on the market driving the prices lower).
Instead they offer medium/long term solutions such as increasing the supply which does not fix the present situation.
Home ownership is a right, not a way to create wealth. There are many ways for that purpose...
This is exactly right. If you cannot offset the costs through negative gearing you'll ditch it quickly. Further these are lower value properties so they open up these to early home owners.
Biggest problem is the default option of auctioning properties, which only maximising the benefits of sellers and all buyers are losers betting against each other. It’s not that common in many other countries to see such auctions
Should be forced to sell to the highest bidder if they take the auction option.
As opposed to having the option not to sell even if the reserve is met and then negotiate a higher price afterwards
That's how wages are kept low too.
Same with non-auctions you put offers in and you find you are bidding against others who inflate the price more than they are asking
No, my dream is to live a fulfilling, good life yarda yarda yarda…owning a “thing” may possibly help me get there but owning my own home isn’t the end in itself. If my life is good and I don’t own my home then I’m diminishing my life for want of the possession of a commodity - and that’s crazy.
you don't want stability so you can get set up an raise a family then?
The type of house you can build today is part of the problem. Try to find a builder that will construct a three bedroom one bathroom house with no carport or driveway no Alfresco area or built in wardrobes A simple house on a small block in a cheap suburb..? Then try to find a council that will approve the plans. They will claim the simple house would drive down the value of the area.
Exactly right. Your not even allowed to live modestly now even if you wanted to because local councils,banks etc forbid it.
There are thousands of homes in new estates that meet this criteria. I have never seen any council building codes that included built in wardrobes.
@@M.-.D A lot of it isn’t council criteria, it’s developer covenants on estates that force you to build XYZ to comply with the look they want for the area. I’ve heard of plenty of people who wanted to build modest houses and extend them later to keep the mortgage cost down but the developer demands a house of a specific size to meet their covenants. Same deal with the house construction, most estates demand you build say a brick home with a tile roof and no deviations are allowed. That BS came back to bite a lot of people in Springfield here in south east Queensland a few years ago when a hailstorm came through the area and dropped large hailstones. Because everyone was forced to have tile roofs due to developer covenant the damage was massive and absolute. If I lived there I’d be getting a class action together to sue the developer for forcing tiled roofs onto everyone’s houses.
@@David-lr2vi yeh, hot market. Give it time and work will be in short supply. Markets need to be left alone.
@@M.-.D Council and property regulations aren’t a market, they are extortion. I just had a double carport built at my house and the council fees just for them to rubber stamp it was about $2500. That’s just extortion because they can get away with it. They should have zero say in what you can build on your own property. Red tape and excessive regulation is stopping the market from actually building the houses that people want. The houses either don’t get build because the council won’t allow it or the house is a lot more expensive than it needs to be because your forced to jump through hoops that tell you what you can and can’t build.
What so when woman entered the work force and therefore many households had more cash the government decided that people can’t be having all this cash amd raise the prices? Sounds like it’s all greed to me is the real reason why pricing is so high.
Governments had nothing to do with it. Supply and demand. It's that simple.
So if we return to good old family values and the woman focuses on raising the children and making a home then all the one-income families would be able to force house prices down and have time to play with the kids on the lawn and take holidays again.
@@davidbrayshaw3529 There's plenty of land available. Government doesn't release it to jack up prices.
The Liberals have hated the idea of paying tax on income you've received (i.e. Capital Gains) as opposed to income you've worked for. That's why in 1999, John Howard introduced the Capital Gains Tax Discount. As a result the "conservatives" turned the property market from being about one of home ownership to a Monopoly Boardgame.
Not just capitol gains concessions but they were also the first to introduce the first home buyers grant. All designed to mask a faltering economy and shift employment from manufacturing and into housing. An added bonus was stimulus created by homeowners borrowing against equity. Well done, John, your legacy lives on.
I purchased my first home at 27 in Airlie beach in 2000. The house was a modest 3 bedroom spec home, 9 months old and I paid $145k. Lived in it for a year, went traveling for 2 years, came back to Australia and sold it for $320k. Moved to Innisfail purchased a beautiful home on 117 acres of rainforest for $305 sold it 8 years later for $550k. I rode the capital gain boom, moved to the USA where I enjoy modest house prices in Michigan. Own my principle residence plus 3 rentals. I could not imagine returning to Australia and re entering the over inflated property market and having one property let alone several. Australias property boom benefited me greatly, though I truly feel for young Australians who are unable to enter the Australian property market. I hear of first home buyers having interest only $800k and higher loans that’s insane……
Good on you, If a get a chance, I'll settle somewhere in the US too, I hate it here, bad government run by idiots, stupid govt agencies and policies, and you're right, over inflated properties, some priced around 300k when it should only be around 150k, 2 bedroom dilapidated units, crazy.
With Federal politicians owning on average 2.25 houses and I suspect it may be similar among state pollies there is a clear conflict of interest as those people hold the levers that could see more affordable house prices. Combine that with fear of electoral and party donation backlash at any policies that make houses more affordable it's no wonder that they prefer policies to enable people to survive with ever increasing mortgages instead.
I was an immigrant who moved to Australia in 2002 to escape an abusive paternal home and the fallout of a long term relationship. For as long as I remember I had dreamed of having a family of my own in a house of my own. Due to some circumstancal sabotage by my parents for 4 years, I had to postpone purchasing something in 2011-12. I kept deferring starting a family until I had a modest home. It was during Covid I realised how pointless it was, that after 16 years in Australia overcoming racist experiences and bias socially, professionally etc, I was still isolated and uncared for. I moved out for good and honestly the best thing I ever did. No more realty anxiety, spiritually crushing loneliness and finally can confort my traumas head on. Good luck former homies, hope you guys get a deal when it all comes down
All the best to you as well :)
Nearly $4 trillion in Australia's Superannuation pool, yet we can't invest in buying up everythung with a 5km ring around shopping centres, train/bus station's or retirement villages? We can't invest in Australia apparently (but where happy to take all the taxpayer incentives), so why are we surprised when private landlords go insane with all the taxpayer incentives and salary tax holidays and pool cash inside their super account for tax free when they turn 60. Politics of envy no. Residents paying tax yes. Look it up, Fair Tax Act legislation US Congress.
The Australian dream died in the 90s. I pity the youth of today.
we went from renting to home ownership in one move 8 months ago by moving out to a rural location and the ABC knows the location as they just did a story about our town
Loving life living in paradise
I bought a house in the Byron shire in 2002 for 220k. Now worth 1.5 million. Old house with asbestos in the fibro walls. Sydney buyers don’t care about that. All the houses in my street are the same
Well done
If you accept the fact that you may never own a house then just re engineer your lifestyle, rent as cheap a property as you can and then divert your savings to alternative investments. Something like an ETF etc, over time you will have the same "money on the table" amount as if you bought a house but maybe not the same feeling of "mineness" when it comes to sharing the ownership with your bank. It's still just discipline either way.
It’s a hard job putting bread on my landlord’s families table.
Philanthropist. Benefactor. Altruist.
I should be canonised 👌
( every renter in Australia currently )
It’s hard to save aggressively for a deposit when you’re crippled with rental prices.
Poorer Aussies get squeezed out of the rental market altogether because wealthier renters occupy the worst houses trying to save that mirage in the desert style deposit.
It’s set up this way because the people who benefit from it set it up this way.
They played the long game effectively.
I was the boss of the world a lot of people would get sent to their rooms to think about what they done 🙃
* IF * I was the boss of the world
Very strange viewing this video after fleeing a monumentally worse situation in the UK housing market. I suppose struggle is relative
At least you guys get almost double the amount of money when you come over hear
My parents migrated to Australia in 1954 and 1955 ( my mum). They got married, worked hard, saved and bought their house in Albert Park......now it seems that following generations have been cheated out of this dream.....WHERE has the " lucky country" gone.....
Its a myth that Australia is a lucky country
lucky country? more like island of prisoners...
What changed in the early 2000s? The CGT discount. How about just axing that discount, at least for residential property, and then see what happens!
What will happen? Landlords will not sell because they will have to pay CGT. Better still allow landlords a window where they can sell tax free and watch how many more properties come on the market
Yep, here i am 41, and still renting. Still feeling like I'm hoping to do what i was hoping to do 15 years ago.
You are not alone.
@@garethjd78 thanks mate.
Come to Maryborough if you want a chilled life and lots of cheap homes
@@paulfri1569 where is that?
@@chrisvanbuggenum871 Fraser coast in Qld. Perfect winters and cool breezes in summer
It's not a dream, it's a Nightmare...
When you are locked down by government.
Only public servants can work from home.
Not bricklayers...
What about a bricklayer building their home?
Why the hell are we all forced to borrow money to buy a piece of land that already belongs to us ??! It's because our birth right estates (right to live on the land) was stolen from us when we were born. This fact has very cunningly been hidden from all Australians. Governments do not own land (they think they do), they are only meant to administrate it !! I don't mind having to pay for the roads, utilities etc to be built and connected but the land component should be free. We have all been brainwashed into believing we have no right to live on the land unless we buy the rights to it. This is escheatment of our estates on a grand scal !!
That socialism policy devalues your savings
Over taxed country why you can't save, not under paid
There is so much wrong with the system its not funny. One thing
for example. When it's time to renew rent contracts they want you to sign asap, however come eviction time you can't just move out asap if you find something suitable because it is not economical to do so unless you can afford to burn extra rent money. They still expect you to pay up until contact ends and this needs to change asap! If renters choose to leave then it's reasonable to pay until end of contract but not if they have just had their life disrupted with an eviction notice. They need the flexibility to leave as soon as they successfully find something in order to stay secure and productive. Business's also suffer a serious fall in productivity when staff are in this situation because it is highly likely staff will be not only reserching availability but also going off to inspect properties withing business hours. Staff suddenly needing somewhere to live may lack care for the needs of customers at that point. It is absolutely a social and moral responsibility for employers to allow time for renters in these situations.
What is the purpose of ABC incorporating old clips into this survey?
They should also compare average house size changes. Used to be all 3bed 1 bath now surely 3+ bed and 2+ bath. Plus new joinery, aircon, pool, garage, and most important council start to taking a cut for their own good too.
It was a dream when a Boomer could buy a house in any suburb they wanted on the wage of a Paperboy or Milkman...
Exactly! In the 80s and back, a cleaner could buy a modest house and raise a family on his one income. Sure it was not easy but it was not a huge struggle. These days a dual income, both professional, struggle to keep up with mortgage repayments for a modest house.
@@mike4802 But the Boomer will tell you it's easier now because interest rates were higher.
The thing is, 12% on 120,000 is far more appealing than 0% interest on 700,000+
Especially when their annual wage was 30% of their entire Mortgage.
@@MiggsMultiple Damn right!
Back in the late 80's the price of a property West of Sydney was around $140,000 and the salary of a young professional was around $35,000, a factor of 4.
These days the price of a property West of Sydney, same area, is around $1,800,000 and the salary of a young professional is around $100,000, a factor of 18.
@@mike4802
There was also a quarter of people and Sydney wasn't as appealing as it is today.
Good times , free education, free healthcare.
What’s a nightmare is renting your whole life
Price rises are due to money creation. More money has been created in the last ten years than in the previous fifty years. The answer to every economic crisis has been for the central and commercial banks to create more money.
No. It's because there's a war a thousand kilometres away. Didn't you read in every economic text book that wars in Ukraine raise house, food and petrol prices
@@Ramadog ?
Debt causes money to be created to pay the debt
@@evilspiritchild I was trying to be funny
@@Ramadog ?
The reason for the nightmare and the inflation is that the government always throws the home buyers to the banks like throwing food to the sharks. The Australian government does not have control over the interest rates or housing. The government does not provide fixed rate loans to the borrowers and does not provide government built houses.
What about population growth and
Wage growth supply and demand
Age 35 to 40 nicely get a loan offer
Age 41 to 45 still can make it by big down payments, age 46 to 50 a bit difficult maybe just 20% allow, age 51 to 55 you got to pay cash
As it should be. Writing a loan where the written term exceeds the expected working term of the borrower is simply negligent.
Everyone is talking but NOBODY is actually "doing" anything about the Housing Crisis!
I've been "homeless" since January - due to excessive rent increase >20% which out of principle I refused to
pay. So I guess it's a partly "voluntary homelessness" but have saved $10,000 in cash (through working as a truck driver). Surely with One Million houses vacant and Thirteen Million rooms vacant, homelessness should not happen in this country.
It used to be a dream and now its a nightmare.This is because of the RBA , the banks and the government.
Scrap negative gearing, it's a ridiculous gravy train that offers general society virtually no benefit.
I bought land and built a house at prospect nsw in 1979....both my husb and i had good trades and 1 child....cost $36,000 we needed to take out a 2nd mortgage....we sold 6 yrs later for $40,000....we then that year we bought land at toongabbie and built another house...by then we had 4 children...cost was $86,000 and money was tight.....were are you getting your figures from ??.... the least you could do is wait till my generations dead before lying !!!
At least we don't have big corporations buying up housing and renting it out like Canada and US. That corporate owned dystopia is slowly becoming a reality.
look up BTR built to rent
It'd already here
Meriton? 🤣
Also they need to change the superannuation rules what's the point of having a nestegg if you can't touch it in a emergency and you need money
Read the history of Australia, particularly during the Gold Rush period. Employers could not retain labour as any fool who could afford a tent and some tools would be gone to the Victorian goldfields. They earned more there in a month than in their jobs for a year. Housing was an instrument to keep a labour force and keep population stable.
The value of the Aussie property went down even with the inflation adjustment because the value of the Aussie dollar went down. If it takes more Aussie dollars then it did yesterday for the same thing ???? Well
Will we be allowed to own our houses in 2030?
World Economic Forum says no.
Tax the blokes who own more than 2-283 properties (you read that right), then make sure NOTHING goes offshore to tax havens -- I'm looking at all the large corporations here,
Not the small guy who's struggling to pay the next insurance, superfund, wages, tax bill or the accountant, the bloke who needs to pay through the nose for Import taxes when we literally make nothing here, or the mum and pop who both spend thousands a year on income tax while defaulting on Mortgage in the next 2 years.
We are feeding immigrants into the meat grinder of the property market, and then when that stops the government no longer gets the bribes and benefits it takes under the table from large lobbying developers. No cheap free labor for the Australian market that creates poor quality real estate with or without licenses, and drives down average wages across the board. The government gets high everyday on this very thing, and it's slowly killing all of us, turning this country into a factory farm.
Don't forget that the RBA is not a government owned entity, and it's still rising interest rates make it impossible for the working class owners and even tenants to survive the high mortgage rates. Watch them prop up and bail out construction companies and banks a second -- nay -- an ad infinitum time since the start of bailouts when the fed was created in the 1930's -- and drive the small citizen into oblivion for want of higher property prices.
The prices in Victoria are a joke
I lived from 2006 for a few years in Brisbane and Melbourne and was even back than surprised about the housing prices, the poor quality and the tennant competition. Amazing it that obviously got worse....
ha! "Supply side"! How quaint.
I'm with treehouse guy.
It’s a nightmare if you lack financial IQ to manage the house , and you lack maturity , most people don’t have houses largely a lot due to them not being mature enough to manage their own finances
The policy that will not drive up housing prices, and make more land available, is to tax land values.
I spent a year living with my parents. I did literally nothing but work in my bedroom for 52k salary for a whole year. I saved 80% of my income, ate only the food mum bought (and I cooked for both of us), and didn’t go out. In a year I saved up a deposit and then got a loan to build a house. Best move I ever made, 3 years down the road I love living on my own in my own place. It’s cheaper than renting and my property value has gone up $140k from what I built it for.
I’ll add that I was 23 working remotely as a junior programmer. I started building at 24.
And there's the problem, everyone is concerned about how much their house is worth.
Not about having a home.
When everyone has that attitude housing becomes a investment not a necessity.
@@Robert-cu9bm well sorry to break it to you, but housing _is_ an investment. You don’t spend that kind of money on something that isn’t.
@@Zei33
You don't buy a landcruiser as a investment, not a caravan.
We're talking hundreds of k there.
And that's the difference, when it's seen as a investment people aren't willing to lose money on houses or even sell it for the same as they bought it for.
You only hear people talking about how much their house is worth and how much they're going to make.
And everyone with that attitude drivers prices up.
@@Robert-cu9bm I 100% disagree. My best mate literally bought a land cruiser as an investment so you’re so wrong. Terrible example.
The problem in tha ACT is that the local government is addicted to the revenue generated by land sales and rates, so they overcharge for land.
@Uncle Joe None of the states or territories have proper revenues because under the rules of federation, they aren't allowed to charge state taxes on goods, like they do in the US.
States and territories rely on GST doled out by the Feds, rates, stamp duties, fine revenue, federal grants, land sales, vehicl rego, etc for their funding.
When a villa lucky to be 100sqm costs upwards of 700-750k (no yard) we have a big problem. Utterly crazy times. Im 41 and have saved over 100k, i'm on 80k a year atm and cant even borrow 500k. Now tell me how this is affordable. I dont have mummy or daddy to bail me out. Anyone can relate?
Blah blah Boomers who own houses not mentioning negative gearing bla bla.
Mystery property price rises bla bla.
We need to incentivize downsizing.
Bank savings need to have interest applied, to cut down foreign ownership including farming land, government subsidies should be resurrected and definitely allow a lot more land to be released to the public for housing!
you know what would make housing magically easier to obtain? reducing income tax
Australia, please take care your own people and stop following the orders if the USA government......
This is what ecconomic deregulation of the bank and finace sector did
I think it's great that there's this "housing crisis". I live in a car and have done for years, park up in several favourite spots and never been hassled. The Police know it's tough out there so now I pay nothing for accommodation and get along great. cheers 🍻
Buy yourself a little pop up caravan
I'm single and I have around $150k for a deposit on a 2 bedroom unit somewhere in QLD, but I"m sadly having second thoughts as this country has nothing to offer, I might just move to Denver...
Don't bother with QLD Gov - just across the border into NSW and you get a much better State Gov
@@joebloggs6131 NSW's govt seems much better than QLD, but the flooding is quite scary out there...
@@UA-cam_IS_WOKE
Floods happen. Can't ever say you won't try a state because it has flooded... but they are offering no cost demolition and compensation amount to anyone who wants out
Colorado Springs is better.
bit of a lie.
house prices have increased by near 400-700% while wages haven't even doubled.
current young people these days are incredibly overwhelmed in comparison to the prior generations.
How does that make it a lie, they litteraly compare historic prices against combined wages and % of income
@@gjhkhjlo they're inferring the comparison is the same from back then to now in trying to misrepresent that it's similar.
the difference is actually massive.
issue is viewership from older generations, older people will become upset with the channel if they try to state that younger people have it harder.
@@thesc0tsm4n9 the video states the combined income needed has moved as a ratio from 2.61 to 8.54 I don't see how this is implying something else?
OMG we can't go back to that cost of living now and huge population growth I'm trying to be frugal,how much more frugal??
I'm gonna to have a coup against parliament if I can't buy a house
Eh, just accept being in debt for the rest of your life, just like everyone else.
Changed your banking system.was Post office .
Affordable suburbs are not in high demand so cry me a river
Just tax land (lol)
Like the old people sold us real estate, well, data now rules....so now the youth has the oppurtunity to own you.
Old footage, what's up? Owning a home is the best way to acquire wealth. Down payment assistance can be had; look.
I'm gonna get a tiny $200k unit through shared equity with the govt. Just to put a roof over my kids head.
We don't have ownership there in Australia what we do have is leasehold hiden behind the curtain of " Fee Simple " now what is it you dont get, I'll give you a clue your given a " Certificate" what a piss take. Have a wonderful day or should that be g' day 🤗
Get rid of negative gearing. Simple. All this other blah blah is a waste of oxygen.
Need two people to pay off home if alone get in housemates if buying three bedroom house
> "The Lucky Country"
People should really pay more attention to the lyrics.
“We’ve got the highest percentage of renters since the 50s, what effect is that having on the market?”. Is the target audience for these clips year 2 students? My 6yo can understand that if lots of people want to buy something the price goes up.
Definitely a nightmare we are going to go back to pioneering times grab a block of land and pitch a tent
End communism that where Australia heading with green with more power
16:06 I’d bet that guy has 14 residential properties and 2 commercial properties.
Long term normalised interest rates are around 6-7% OCR (emergency levels were 3%).
Anyone that cannot repay their mortgage as interest rates go back up to normal levels, is part of the problem, and should not be saved.
They won't die, they will just have to start again from zero and hopefully learn a lesson.
I've got to say, I feel sorry for those that got sucked into the marketing hype. Banks, Bunnings, House Rules etc. have spawned an environment in which susceptible people have been all too happy to part with "hard earned cash" that they don't have. Where are their parents? I don't know. Rising interest rates are not a new phenomenon. Retail rates were 8% when I took out my first and ONLY! mortgage. My son has been made very aware of those figures.
Pleased I don't owe a cent.
Basically then.. it's women's fault for entering the workforce on mass, and now they're in there is no option to not work :(
peak will be 12.45 %