Governments passing the buck for the housing crisis, blaming property investors, with Nicola...
Вставка
- Опубліковано 27 сер 2024
- For years, the dream of homeownership has seemed increasingly out of reach for many. But what of those who can't even afford to rent Social Housing? Waiting lists are overflowing and the number of available dwellings just needs to catch up.
Today Nicola McDougall, chair of the Property Investment Professionals of Australia (PIPA) joins me and passionately advocates for a fair and more effective approach to social housing. You see, despite the government raking in billions of dollars from property taxes each year, our social housing stock has remained stagnant, and the number of people in desperate need of housing continues to rise.
Now, I'm not talking about affordable housing. We’ll explain the differences, but unfortunately, private investors are often being blamed for this crisis. That's not the case. Nicola will help unpack the reasons behind the housing shortfall, discuss some of the impacts of government policies, and we're going to explore what needs to be done to provide adequate housing for all Australians.
Understanding Social Housing and Private Investment in Australia
In today’s conversation with Nicola McDougall, we dive into the intricacies of Australia's social housing crisis and its impact on private investors. We discuss statistics, government policies, and strategic investment opportunities in a challenging market.
● The differences between social housing (government-provided for the most vulnerable) and affordable housing (making renting and purchasing more accessible)
● 175,000 households on social housing waiting lists, stagnant social housing stock despite 33% population growth
● Decline in social housing stock in New South Wales, Victoria, Queensland, and Western Australia
● The role of private investors in providing rental housing
● Critique of government policies, including ineffective housing initiatives and the financial burdens placed on private investors
o Anti-investor legislation, such as increased property taxes and rental reforms, and their exacerbating effects on the housing crisis
● Potential government incentives to encourage private investment in rental housing, including adjustments to capital gains tax
● Challenges faced by highly leveraged property investors in a high-interest-rate environment
● Opportunities in Melbourne's low vacancy rates and skyrocketing rents
● Importance of portfolio diversification across different states and working with wealth strategists to outperform the market
● Hidden taxes in the New South Wales budget, such as the shift of emergency service levies from insurance companies to property owners
Whether you're a seasoned property investor or you’re just concerned about Australia's housing future, this episode offers valuable perspectives and actionable advice.
Links and Resources:
Get the team at Metropole to help build your personal Strategic Property Plan Click here and have a chat with us
Get a bundle of eBooks and reports - www.PodcastBonus.com.au
Some of our favorite quotes from the show:
“Anyway, it’s the government’s job to help the disenfranchised people in Australia, and in general, it's not their fault, so this is not a judge of people.” -- Michael Yardney
“Clearly, the government has no idea what it costs to construct high-rise dwellings. And if they do offer discounted rents to essential workers, and I'm not against the idea, I'm just saying the numbers don't work - where's the profit going to come from?”-- Michael Yardney
“But here's the problem. Oftentimes, exploiting your own innate abilities requires an enormous investment of your time before the investment begins to pay dividends. And because the investment doesn't produce immediate rewards for many people, it ends up being a problem.”-- Michael Yardney
PLEASE LEAVE US A REVIEW
Reviews are hugely important to me because they help new people discover this podcast. If you enjoyed listening to this episode, please leave a review on iTunes - it's your way of passing the message forward to others and saying thank you to me. Here's how
![Unlocking Property Wealth - Your Questions Answered, with Ken Raiss and Brett Warren [PODCAST]](http://i.ytimg.com/vi/VgUiaZ7jIfM/mqdefault.jpg)
Great show Michael, I am one of your mom and pop investors and I only started when I was 50. I had a light bulb moment where I thought to myself "I can't rely on the government to help me in retirement" so my wife and I bought our first investment property 2 years ago and are building our 2nd investment property in SA. I am not doing this to be rich, my wife and I just don't want to rely on the government or our children when we retire. My goal is to have 4 investment properties before I turn 55 and re-evalute our goals after that.
@paycheck4550 thanks for listening to our podcast and congratulations on taking control of your financial future
I think the problem would be if investors were encouraged to hold for longer, the government would miss out on stamp duty and capital gains then there are other flow on effects for other industries such as agent commissions , writing bank loans , and the list goes on and on. The more transactions would circulate more money in the economy and more jobs ???
But why would the Gov want that tho??Are you suggesting the Gov wants what is best for the economy?
@@emp731 I'm not suggesting anything , other than its my observation that if there are less transactions there would be less demand for work in many other industries with less money flowing in the economy?
@theycallmebruce69 there is no doubt that the government wants to support the housing market, it's too big to fail and no government wants to oversee a housing recession. And yes, the government loves making money to property transactions.
Nah
@@robbieblackburn2880
G o o s e
I don't know why we don't take away the tax lurks we give to investors such as the capital gains discount and negative gearing and use that money to build social housing?
that way investors would not be incentivised to pay outlandish prices for property and thus keeping property prices at a reasonable level and the average Joe like you and me might be able to afford to buy one and get a roof over our heads
greed destroys lives
@vmura yes it can, however if you listened to this podcast you'd know we were saying that we believe the government is not providing sufficient social housing for those in need - is that really greed?
Great video Micheal 👍🤖
Thanks 👍 @peternorth3694
ai robot
@emp731 you're cynical little fellow aren't you?
@@emp731 Michael he’s little alright 🐜
@@emp731 g o o s e
Thanks Nicola and Michael. What a smart and beautiful woman. Thank you.
Our pleasure! @c.s2001
Hey stop brown nosing.. she is plain. we can all see that.
First cookie always first Michael 🍪🧱
@CookieMonster-wy4qb Thanks
sookie
@@emp731 k n o b
For years, the dream of homeownership has seemed increasingly out of reach for many. But what of those who can't even afford to rent Social Housing?
Waiting lists are overflowing and the number of available dwellings just needs to catch up.
Today Nicola McDougall, chair of the Property Investment Professionals of Australia (PIPA) joins me and passionately advocates for a fair and more effective approach to social housing.
You see, despite the government raking in billions of dollars from property taxes each year, our social housing stock has remained stagnant, and the number of people in desperate need of housing continues to rise.
If Landlords cared abput Australia, they'd sell ogf everything bar say 2 dwellings....so FHBs and Seniors downsizing can find a anything. But hey, I don"t mind waiting for any future Govt to strip landlords of them by replicating Victoria via National Cabinet.
@leonie563, interestingly, there's nothing new about the fact that around a third of Australians "want to' rent, and that's very different from "having to" rent. Many are doing so because of their stage of life, and property investors are not the reason why Australians can't buy a home. Remember that there were 1 million new first-homebuyers in the market over the last decade. They managed to have the financial discipline to buy a home.
Have another world for “investors”- “speculators”. Who the hell bases their investment plan on having low interest rates. Cry me a river.
@PaddyAU you are right -most beginning investors are naive and don't understand the principles of successful Real Estate investing. That's why 50% sell up in the first five years and those who stay in the market 92% never get past the first or second property.
Come on michael tell the truth
Why have investors raised rents so high when you all have owned them for decades and got them cheap. So why did you put rents up so high Michael ?. And get capital gains
Hopefully all states go the same as Victoria like Qld mentioned a couple weeks ago.
@vincewant6325 the cost of owning properties has increased considerably including insurance, compliance cost, and of course mortgages. Now and seem to complain when rents under performed in inflation for almost a decade- did they?
@@MichaelYardney Michael come on now many of us know the prices you paid for home’s 20 years ago and own mostly outright so please dont make excuses of putting your renters up to extreme levels. Please put some of your price data and yield info up if you’re credible. Michael costs have not gone up that much be realistic.
Micheal, the TRUTH is that you and yours promote the strategy ( encouraged by Governments of all persuasions) of using capital growth (equity) to FUND the NEXT property and the NEXT....!!!!!! What about talking about that $$$$$$$$$$$$$$$ paradigm that continues UNTIL.... the next person in the PONZI line can't get a loan????? We are closer to this each and every day!!!!!
@@MichaelYardney I agree Michael , I've been doing this for over 25 years now and its not easy you make huge sacrifices to get ahead with property investing with big risks and there have been times when the market is slow and our tenants have dictated price where we get desperate and take less money to keep the banks away and we would always try to keep the rent lower than market value to help our tenant in the first place. Rising interest rates , Insurance etc etc in this current climate is tough. I empathise with both the tenant and the landlord in this current market.
@@theycallmebruce69lol no way, i investors such as Michael dont have Mortgages or very small if any, yet putting rents sky high from buying it extremely cheap. There is no justification on raising rents so high when you bought so low, i call it greed its disgraceful doing this to families and children.
aww.. poor michael and nicola. complaining about all the taxes but not saying anything about all the capital gains they're sitting on. Did you think the government was actually gonna give investors a free pass?
@danodco it's hard to pay for your mortgage with capital gains, but if you took a trouble to listen we were not complaining. We were suggesting the government is not doing its job with social housing.
@@MichaelYardney What's that Michael??The Government not doing their job???Hey Michael!!!!!!We all know that..
@emp731 I love it when every now and then we agree on something
@@MichaelYardney Don't lie..You just stated that and i quote ''the government wants to support the housing market''...News flash NO THEY DON'T...
@@emp731 g o o s e
Trump the best property investor/developer of all time. Even better than buffet...Fantastic, isn't it??
Dip stick
Sookie
@@emp731 chook
@@CookieMonster-wy4qb
Accurate assessment cookie 🍪
Dip sticks are useful, you are not