Hi all, this clip was taking from the Equity Mates Investing Podcast episode 'Expert: Matt Barrie - Why house prices are the cause of today’s cost of living crisis'. Spotify: open.spotify.com/episode/4gVY8mvJ9NKVKNOYh4heE2?si=a203abb173fd4904 Apple: podcasts.apple.com/au/podcast/expert-matt-barrie-why-house-prices-are-the-cause/id1212097275?i=1000617043903
@@silentwitness536 I agree with you. A large swathe of the planet was populated by people who were living a life in the stone age and were content to do so. Left to their own devices they would never have invented the steam engine, electricity or the wheel. If Europeans had not ventured out into the world, then there would not have been deforestation and pollution, but also no massive growth of the human population. The white man enabled the population to explode due to the industrial and farming revolution. The question is. Is it better to live in the stone age or the 21st century... There is really no answer except that the stone age, which was prior to the 18th century in Australia, was a life of simplicity laced with brutality, totally at the mercy of the elements..
@@silentwitness536 Experience Meaningless: Experience and prejudice. To accept sight and illusion in the same relativity and not be a slave. Slavery: To be free from the growth of intellect. Experience free from understanding and memory as triviality. Memory: reduced down to recollection without review, in a universe of consistent physics; a triviality of organic invincibility. Experience rendered down to self-sensual recall without existential considerations; meaningless. Prejudice: to accept the delusion that no human can consider and choose. For experience to outweigh sense and sensible prudence and suggest in definite physicality that humanity is as inorganic as the constructs we purpose. Triviality to the concept of Slave, is Mass to Gravity, either one hypothetical without the physics of Trivialization or Mass. One requiring the circumstance of genesis, the other requiring absence of necessity; Nativitus Ancillae. Relativity: the universe revolves around you, but only if you watch with others; relativity born of tripartite geometry; self (observing), other (conferring), objective (occurring): co-intimate experience and co-context. Relativity: all things can happen to you, most didn't, you only know what you think, you only think what you can hypothesize, all understanding revolves around perception and interaction. Understanding and position; relative. Hypothesis: a proposition of a form unsensed in the physical, in the definition "scientific" it is the Fructus Ventris Physica Quantitatis; the guessable, potent in measurability, invisibilia ad carnalis, observationis codificationem. Hypothesis: a concept just beyond sensible observation but within sensory or facultative relativity to intimate comprehension; the space an observer feels safe to coniectura didicit doctrina. A cerebrum exercitium. Meaningless: the words of any personal exposition without the person. Interpretation of intended and intimate communication removed from its physical occurrence. To hypothesize in the spirit of Freud, all are I. Meaningless: a description of a building behind it's façade to a man on the street. Definition without sensible example; invisibility bestowed by the suggestibility of the potent potentiality of descriptionem alienum. Reference without experience, definition without context, experience without definition, definition without reference; to theorize on fancy, the possibilities of cause bereft of "scientific" prejudice towards provable. A description of the unseen to the comfortable in sense, and sensibility; hypothesis delivered socially by the perfecte mediocris to their perfecte mediocris aetatis. Interest and applause humilis, the sermo aequalis. Contemporary communication, external warehouse for internal deliberation. Deliberatio externa by contrast is built on extra-contemporary, the functional in sense and nerve unwilling to mal-hypothesize popularis prudentia. By definition a contemporary is both naturally occurring and actively intersecting, or it is a generational (illusory), built of temporal coincidence. Meaningless in contemporations intimate, capable of saying they share an age. Exogeny In an era of fear, humanity is tested. The exodus of existential loneliness is a heavy burden. Self-indulgent contemporary values, the pitiful death of the faithful gregarious martyr. Silenced in the passion of virtue, in the fury of desire as necessity, the ideal dies for the joy of man as the ideal devotee of nothing. Endogenous evidence of exogenous truth, derived from noble prejudiced purposes, refutes the pathologies of nature as the folly of prosaic and sensible sustainability. Euphoria at any cost, at any cost. The Addict Kind Lonliness is a myth spread by the ill, unwelled by popular delusion (self accepted). The sickly, pulsing out their (self) comforting radiance, the marking of a predators territory. A light to shine on all slow enough to not revile it for it's false and reason less eviction of self from capability. The prey; uninitiated youth, vulnerable innocence. Argue not with the aged (or experienced) self-convinced. The miracle of emotional conformation of physical fact convincing to the unknowing, under steady application, overly sweetened (for the self) ideals of pleasure and comfort, the prey forget they knew a peace that didn't requiring feeding or explanation. The virtue of falsely buoyed stability grinding the ignorant, young, and uncatered, all taken in by the sin of kindness as apex. To gift the sickness that tells a human "human emotion in the negative is unnecessary and beyond comprehension or tolerance". To know that there are those in the world of humanity, who in their generationally refined adherence to parasite coddling, will continue to teach the youth "drugs are a healthy and functional right of aware and intelligent people" is a mark of shame in this age of our collective development. The truth of human being betrayed by the proposed necessity of stimulation beyond the natural state, it's supposed normality vouchsafed; sobriety (health) ignored as a greater insanity than parasitism. Salve the wounded pride of the vulgar addict, crucify the outspoken advocate of reassessment. This is not a statement of conflict, rather a portrait of the true and natural order in it's biased equality (comfort belonging to those who crave it most).
Because a lot of other countries are shitholes in bigger messes obviously and our government is only too happy to give our money away to foreign migrants
the reality is that while we live in a capitalist society of the one with the most stuff wins, and yet we can not escape the fact that this model is our doom and that we need to look after eachother, for if we dont, the results are a broken society that effects everyone!
I do that because of our governments inability to manage money or anything for that matter in the best interest of Australians.... the pension has disappeared, our super will..... I need to depend on myself
Our money is so tied up in trying to house ourselves, that there's no money left for us to start businesses, innovate, explore, skill up, etc. Our exports are average, because we aren't on the forefront of modern innovation, like we should be. I make more than the median, with no debt, no credit cards, no kids, very low spending, and I'm still not seeing where this starts getting good for me regarding just buying a house. I can't see myself buying in Sydney, ever. So I definitely can't see myself taking a leap to start a business, app, etc. Got no money for that. My friend sold his house recently. Newly-immigrated Indian family bought it. Paid 2m with like 7 loan guarantors. So in some cases, Aussies are losing to the buying power of entire families who don't care how much they pay. No surprise the average single or couple can't get in. The pollies do not give a shite, because they are all in the market too. They don't want to nerf their own properties. Our immigration is way too high. Houses are not being built fast enough to match local demand, letalone immigrant demand. The gov is also doing nothing to expand other coastal cities. If you want a modern career, it's Syd or Melb. You can't even take Brisbane that seriously, because most STEM jobs are Syd or Melb. No one moves to Coffs or Cairns for an IT career. Everywhere else in Aus is considered as being outside the rat race. Bruh, Canberra isn't even on the map, and that's the freaking capital. Companies are also taking back the remote opportunity that covid gave us. So you can't even move outside the capitals anymore, to get more house for your money, or to even just get a place at all. You need to go in every day, to do a job you could do from home. Brilliant modern thinking right there. The gov has really messed this place up, economically. We should be pumping out modern tech and improvements. But we're still stuck on step 1: get a house. This is so neanderthal.
Well said. I would say that most IT professionals do have the ability to WFH though. It's the minority I would say who are required to go in any more than 1 or 2 days per week.
We literally produce nothing of competitive value in the world market (such as technology) and people seriously wonder how we’re in this mess 😂 this is exactly what happens when you predicate your entire economy/GDP on something that shouldn’t be seen as a commodity (housing).
I'm glad you see it the same. If people can't build their foundations and have basic security of shelter and family how are we supposed to progress technologically and take risks? We can't even get the basics done. For all our progress we have retrogressed considerably over the last 70 years.
@@Pat315 Going in once or twice a week isn't WFH. We have the ability to work remotely from anywhere and fix many of the congestion/high price/environmental issues that come with all living in one place. As long as you're being forced to come in once a week you're forced to live in a city and the problem can't be fixed. Let people move to less populated areas and live more fulfilling lives and actually afford a family. I make 150k a year and it will take me 10 years at current prices to buy a modest home in Perth while living like a monk.
Young couple marries, moves out of area to afford to raise kids, far away from their support network. Father works 2 jobs as its still expensive to service the loan. Kids grow up with an absent, tired, disengaged father. Marriage nears breakdown, alcohol and drugs to numb the pain. Family breakdown and all the knock-on effects that come with it. Depression, despair, violence, social decay. Its a good thing guns are not readily available here, there would be mass shootings frequently
Not to mention the kids spending their whole lives in childcare, after school care and school holiday programs. Then home alone on ipads and video games once they are old enough to stay home alone. And then society wonders why teenagers are anxious and depressed 😔
Exactly what we did. Moved 8 hours away from home to the country for cheap rent and a better childhood for our kids. What we didn't account for was the lack of jobs and decent paying jobs at that. Add into it the nepotism that comes with a small town and what an influx of people from cities buying all the houses and driving prices through the roof, we can barely afford the rent let alone to buy
we live in a country with a nanny state government with all their laws, rules, fines, fees, permits, licences and still society is crumbling down around us. yet people continue to vote, asleep to the fact that it is the government that is allowing all this to happen. no one cares for each other in a world where everyone is focused on money and yet we forget we are all in this together.
@@infinite8382 NAILED it! They have coralled the majority of the population onto the house slave treadmill - all willing to take a kickback wth strings from the slave master (the ruling class) just to get one up on the Joneses (a better house and car) not realizing that when everyone plays that game it's just a race to the bottom for everyone, except the ruling class masters who are the only ones that benefit. The MORONS are going to sink the ship and take us all down with them.
Whenever I hear them thank them for the land we are gathering on, whether it's a sports event, or school assembly or whatever, I think, ok give it back to them then. It's like stealing someone's car but thanking them every time you use it, really rubbing it in 😄
Why would anyone want to move to Australia and into this mess? Anyone landing in Sydney airport risks becoming homeless once their hotel money runs out.
News flash. Only two groups of immigrants are staying. The first group includes desperate workers who come here on student visas and never intend on leaving. Because Unis have lowered their standards so much, most don't end up finding skilled work with their qualifications and end up stuck in the gig economy. The second grpup includes those who have already made significant capital overseas and brought it here. They are usually >45 years of age. The group we should be attracting to stay, young highly skilled workers end up coming for a couple of years and then leave to greener pastures due to the cost of living.
Good. We need to make housing so expensive that only professionals and tradies with highly paid skills that are in short supply here choose to immigrate on a permanent basis. Foreign students paying full university fees are welcome, provided they either go home on graduation or get a high paying job here. Family reunion immigration should be stopped for 10 years.
Amend the law to stop foreign nationals from being able to buy residential properties in Australia. This should also include people on any temporary Australian visas.
Yeah, but. Howard turned it into a speculative endeavour. Wealthy people buying houses in their children's names. OK, for balance, Superannuation, a Labor initiative, also means there is more wealth and savings, which puts pressure on housing availability.
My house in Adelaide has gone up $130,000 in 8 months. That's more than most people's annual wage and it hasn't even been a year yet. If I sell it, I'll just have to pay that money to get something else to live in, so it isn't even a real gain. Meanwhile people who don't have that first house fall further and further behind.
FYI. In 1983 to 88 I couldn't save enough to match the price increases. Eventually paid 30% as deposit. Around the same time, negative gearing wasn't allowed for a brief time, and rents sky-rocketed when I was renting.
Same with my house in Perth. Me and my wife's wage has gone up significantly since then and we're looking to buy another house. We're looking at half the land size and looking to pay double what we did for this house - and we're gonna struggle to pull that off. I have no idea how people earning more medium level incomes are able to afford anything within an hour's drive of the city these days. Really sad.
The grand irony is that the lazy government has been using easy money they get, from foreign investments and migrants' money from their "migration" scheme to cook up their books.
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
She goes by ‘Melissa Terri Swayne’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Melissa’s profile appears to be fairly knowledgeable, therefore I must say that I value the advice. After locating her online, I thoroughly read through her resume, educational background, and qualifications, and I must say that they were quite impressive. We have set up a meeting after she replied to my message.
When I started one years salary bought a quarter acre allotment , two years salary bought you a basic house, one living space, one kitchen one bathroom two or three bedroom and a laundry space. Try that today! Has sweet f all to do with hard work, absolutely zero, it is 100% pure greed!
@@Sub0x-x40Wishful thinking. After seeing how people responded during the pandemic I have no faith in the average western person . May as well be livestock.
If anyone feels stressed out because of the housing situation, you should seriously consider moving abroad if possible. I went to Asia - having secure housing and not stressing about the ridiculous housing situation has been a serious quality of life upgrade for me. When I looked for rentals, an agent spent half the day personally showing me around a dozen properties all available to rent at different budgets, areas, etc. Renters hold the power and agents actually work for their commission. Compared to Australia where you're competing with 50 other people bootlicking the agent trying to beg for the privilege to pay 20% above asking price and 6 months rent in advance. And then you get evicted after a year because the landlord wants to sell, but actually they just wanted to increase rent another 30%...
I think people would… if they had any way of actually making money in Asia. As it is, you can’t live there unless you already have money or your job isn’t geography dependent. It’s great for single people that have non geography dependent ways of making money but what do you do for your family? Will they take the same job as you? Probably not, so they will make those small Asian denominations of wage or have to move back to a western country.
@@dimex3362 Entrepreneurship is the only way. You could start a pretty ordinary online business that only makes a third as much as your salary in Australia and still be better off, it's the only true path to freedom. You're right that not everyone is capable of that though.
Yeah it blows my mind that real estate agents earn so much money here 🙄 as if they actually have to work for any properties they sell or get rented. They are pushing paper, that’s it.
Problem there is that many Asian countries, particularly in SE Asia, forbid foreign ownership of housing i.e Vietnam.Yet we don't. We've been sold out.
We need to face the fact that the Australian housing market is grossly inflated. You can buy a Huysman classic townhouse in central Paris for the price of a cream brick venereal in Box Hill.
Sadly, my mother, who is 80, sold her house in Brisbane recently and moved back to England. For the price of the the house in Brisbane plus another £200,000 she bought a flat in Chelmsford... £480,000 for a flat... Well, that's my inheritance spent... And yes. this stupid game of monopoly, which is what it is, needs resetting so that ordinary people can live without massive servitude to the people who have created the debt by printing money...
Move to south east Asia! I took my life savings and retired to a much cheaper country in my thirties! Own a 3bed flat, a 2bed investment flat and have savings to fund a modest lifestyle. You won't regret it!
@@Humble_abode-k2h Yes, disability pension can be ported if one wants to leave Australia. The pension amount is paid in full, just rent assistance is not paid if living outside of Australia. Can you imagine the life in say Thailand, on an Aussie 💰 pension?...heaven!!
Yeah slavery. When you have no obligation to take out a mortgage, its entirely choice and the interest rates are driven by the global economy. Such slavery, much wisdom.
@slickstrings Yeah pay your inflated rents you ungrateful plebs! I bought those houses 35 years ago for 1/10th of the price they go for now and I worked real hard after completing my free university degree to get them! Such a lazy generation tut tut.
I’m glad the guest mentioned Australia not doing much or anything at all to diversify its economy. This has long been one of my pet peeves and something that keeps the country overly reliant on a handful of industries - and more vulnerable to global economic shocks.
Unfortunately, most australians, and even government are very aware of that. But then election time rolls around and no one wants to be the party to make a big spend. Not when the iron and coal train is still chugging strong. :p
@@HantaleMedia its because ALL politicians are sitting on nice properties, investments, holiday homes etc and don't want the value to drop an inch hell even my own family have 4+ properties between them that they do not need... all the people in power are for the short term gains over anything long term for this country. It wont get better unless the Greens get in.
australia was dead on its feet decades ago, but were only just feeling it now. if the past and the present are anything to go by, the future of this cuntry is not looking good. people are going to have to reinvent modern living cause who will be able to afford a house as house prices rise, leaving the floundering weekly wage amount for dead.
I cracked it at someone at work for talking about 18% internet rates in the 70's. So my response was to what proportion of income and what were wages increasing by at that time.
Why don't you retort with what the average interest rates on a savings deposit account was at the same time? What would people give now for 13%+ interest rates for their savings? It's all relative.
It's the underpinning of so many other issues in Australia. Also, think about all the other businesses or ventures we could be investing in if we weren't so obsessed with property
@@markwick7898 😂😂. How could you possibly make such a comment from what I wrote? I work my ass off, self employed in demolition and earthmoving and my development property just valued at $2.4 mil. I’m just stating facts.
@hesh2892 spot on in our regional large town housing is priced quite sensibly and the scammers that are buying houses for their property portfolios aren't interested because they can't skrew any suckers
It’s simply not sustainable and needs to change! My kids, your kids have no chance of entering the market and can you imagine what that does to their mental health! Only those new Australians pouring in with $$ will be looked after! Shame!
My kids already bought their houses and are comfortably living in them. Reason? Hard work, education and family support. Yes, we have a housing crisis but work ethics here sucks big time especially in the building sectors, roofing and plumbing.
@@vish2553 that’s all well and good but not everyone is an academic that earns a good income. Others can have an exemplary work ethic and work their asses off for little return. And not all families are in a position to offer support.
It is criminal that in a country with so many resources andavailableland a block to build a house is so expensive and there's no attempt to create materials that are modular so that housing is simple and cost effective.
That is the English Lords vs peasants system. Its been good for economy and increasing house values. The rich get their money back on the mortgages. A 4% mortgage for 1 M would mean, you pay 2 M over 20 years. So house price has to increase for owners to recoup their money 😮
@user-qm8sc1jr9u may be due to foreign buyers in cities. But it's mainly due to huge manipulation by government Done by zoning laws and restriction of subdivision . Hence prices even in rural areas are kept high
It all comes down to the complex tax structure and the fact you don’t have many other options to save money in Australia as everything else is taxed 5 to 6 times before you get it .
That is deliberately so. Australia has aaa rating due to house prices being so high. If a countries house values are high a country gets aaa rating. Australia has SOLD OFF all mineral rights of this country to china so all they have is housing
Serious question could you tell me a few for an article I'm writing. For instance I'm saying the 40 cent levy on every dollar of petrol is a tax and a completely unjustifiable one. It's literally stealing.@@coopsnz1
Don't think that new apartment you buy from High Rise Harry is untaxed. Aside from over $50k of stamp duty you pay, his average 2-bedroom apartment that sells new for $1.1m has $300k of various government charges built into it. So, you are really paying $1.1m for an $800k apartment that cost Harry around $650k to create before government charges.
That's a tax issue. Unless you use the 6 year exemption, the moment they rent the place out it's open to capital gains tax. Which means if they rent it out they probably LOSE more money in tax when they sell the place than they get from renting. Why rent when your house goes up 10%+ a year, right? ;p
That is fair enough to many hassles ,also he pays no capital gain tax as he is not making an income on it . Capital gains tax can be more than rental income.
If you spend 5 mil in Australia you instantly get a visa for the whole family regardless of any qualifications. So the easiest way to spend that amount is on property. However if we sold our Gas at the same price the Arab countries sell it Australia would be so rich we wouldn’t need to pay taxes. Our Gas is sold at the lowest price in the world and yet we have the highest reserve then anywhere else. This is the real evil. I watched a doco the other night that said 60% of over 60’s women are now homeless. The political parties don’t care about Australian people all they care about is what is in their pocket. Vote them all out.
60 percent of women over sixty are homeless? Where on earth did you get that ridiculous statistic? Are you telling me that if I go down the street and speak to 10 women over sixty, six of them will be homeless?
we exist in a real life game of monopoly. we could change the rules tomorrow.....but we wont. the whole wretched system is made up. we seriously need to change it.....but we wont
I only make about $550 pw. I rent in Mandurah, south of Perth. In the middle of last year my rent was $300pw. New owners bought the house and the rent went up in November to $350pw. Next week it's going up again to $450pw ( May 2024 ) That means my rent is about 80% of my income 😮🤕
There is a great divide in Australia which has an age cutoff for the majority of home owners. The younger working people are left out housing market. The political parties are avoiding doing anything to solve the problem. Gutless leadership.
Foriegn owner ownership is a big problem. If only Australian citizens can buy homes and property the supply and demand will level out and and force prices to drop. Banks charging interest on mortgages is the biggest factor to making ownership/repayments too expensive.
Foreign demand is only a very tiny part of the problem, especially now the CCP has cracked down on its citizens taking money abroad. The issue always was, and always will be, supply and demand and the current Federal Government has done more to fuel demand than pretty much any government in history. Levels of immigration this high was always going to end in tears. Couple that with decades (yes decades, not years) of restricted supply by state governments that simply didn't want to pay for infrastructure in green field developments and you end up with the ludicrous scenario. And there is no quick fix available now. Its going to take at least a decade to sort this mess out simply due to the time it takes to build the infrastructure and homes required to balance the supply/demand equation.
@@andyg9991Immigration is a large part of the problem. We're importing people in a housing crisis ffs. Where do you think they are going to go? The vast majority of them will funnel into the rental market. Shock horror that rental demand is sky high and prices go up..
Housing affordability also effects business in that if you're trying to sell your business banks only lend to home owners not renters. For people who try and sell their franchise, their is no one to buy it , anyone with money just buys another house . Nothing will be done because most of the politicians in Canberra are landlords
Housing is enslaving Australia there will be no more small businesses or holidays or freedom to leave your job. People will spend there entire life paying the mortgage off without a cent in savings to show for it. We are still lucky biggest the biggest employer in Australia can print AUD.
Be nice to have a mortgage. stuck paying off someone else's dream and place of retirement. Then us renters will just drop dead at work if we make it to old age.
@@wombathead87 I understand that, it's even harder for people who rent. If government policy to make housing more affordable had done a dam thing we could all work and own a house. But retirement for most is now just a dream in Australia the government has supported policy for the rich and that's because they are the rich. Even in some countries the boomers are coming out of retirement due to inflation eroding their savings. I really don't see many people being able to retire at this point as economic output per capita is going down and wealth is shifting to the one percent. Automation and AI will be the final nail in the coffin for the working class. All I can say is try and find a job you enjoy if possible so at least your time working for someone else's dreams won't be so miserable.
We are in the biggest bubble of ALL time. There are dozens upon dozens of bubbles in one giant bubble. When it bursts, we're going straight into depression, imo
Australia also has VERY lax investing laws & therefore international people interested in hiding their wealth can park their money in our housing market & the home either remains vacant or saved for the kids & balloons the prices as money is no object & they offer ridiculous prices & outbid the serious people needing a home now.
Australians had a chance to remove negative gearing and CGT in 2016 and 2019 with the Labour Party but of course they voted no. Labour in 2021 decided to give up on tackling it. You can thank the boomers for the hot mess we’re in right now.
Haven't you realized that we live amongst morons? I am a boomer with more than one property and i voted for the Labour Party to abolish negative gearing. So get your facts right buddy.
How on earth could any company be competitive in Australia when they need to pay a wage allowing workers to buy a million dollar home and in asia they just need to pay a wage for 150,000 dollar homes? Americans have no idea how good they have it. I believe housing prices won’t go down in australia in nominal terms ever but they will in real terms i.e houses stay the same price but bread is 20 dollars and the AUD is worth 30 US cents
I think it’s actually worse than that the average income is $90,000 but the median income in NSW is 55,000(I thought it was 60,000 but ABS data says lower) the top earners drag that average up alot
IMHO. It’s interest rates being too low, for too long, for too many. It’s a real shame that we have pumped so much capital into something that produces (for principal places of residence) absolutely nothing. Crazy stuff.
@@johndwyer2486 So everyone should be aspire to nothing more than eating lentils twice a day and listening to Che Guevara speeches for entertainment? Civilization arose because some people craved more than living in caves wearing mammoth skins. Thank god some of our ancestors had ambition.
@@Zxcvbueisn444 I think the bank’s decision is very strategic. Keep dwelling prices high by buying huge numbers of them. Stave off a collapse in dwelling prices in order to protect their own mortgage assets on their balance sheet. The same can be said for the joint government/banking collaboration on excessive immigration numbers. Wisdom also says that the Government and banks may know something we don’t know. I think what they know is if they don’t manipulate demand and growth with the money supply, asset purchases and immigration, many Western economies will collapse. But I can’t see how such a strategy is sustainable. There are limits on affordability, both for aspiring entrants of, and existing occupiers, in the dwelling ownership market. All of this Government and banking manipulation distorts the market. There are literally millions of losers. But I don’t believe that first home buyers’ grants or negative gearing are significant aspects of the market manipulation. It is interest rates and immigration predominantly.
@@johndwyer2486 In my view, the obsession is a REACTION to the market seeing the asset valuation escalation perpetrated by interest rates being too low. Too much new currency coming in to the economy. There is, in my view, an obvious fix. Raise interest rates, maybe even significantly. Collapse prices. Collapse, also, the obsession you speak of. Too many of are operating under the FOMO (fear of missing out syndrome) and paying high prices on the back of the obsession you mention. In the end, at its most basic level, dwelling asset prices and other asset prices have risen on the back of too much money being created, and the primary method of flooding the economy with cash has been lending on dwellings. This has been going on for well over a decade. The economy’s wheels have been slipping, but they finally have traction, and away inflation races. The injustice perpetrated on young adults, especially, is disgraceful. But I don’t blame Goverment as much as simply blame the Reserve Bank and commercial banks, which to me are one and the same.
This situation will cause a severe drop in the birthrate if my adult children are any sample of this horrible reality. I think successive governments have encouirage insane house price growth to make people feel wealthy without the need for higher wages. People are funding their lifestyles, not with wages but with the inflationary house price growth. It is a disaster of the highest order and it is creating a huge social division
And if your children are same as me (25 years old), we have had to go through University that costs money to attend, using petroleum that is more expensive, living in black mould accomodation that is decrepit, getting sick and diseased, attending hospitals that are overcrowded, all so that a Gen X”we can negative gear another house. Whilst we studied medicine and engineering to get paid the same as a delivery driver, while we get slaves from overseas (750k) of them to get trapped in the Australian housing loop and become life long tax payers, whilst we wait for our parents who we love to die just so we can start life. Incredible. Well done Liberal government.
@@CarbonTaxLOLwell said..well done upper class elite Liberals. Enslaving everyone else to ensure the Aristocrats increase their wealth at the expense of the lower classes. They've gamed the whole economic system; spun it to their advantage ...
Australia has enough minerals and mining to be as wealthy as Dubai. We pay companies to mine and sell our commodities. And we pay the same people for our commodities.
Yes, and we don't tax those industries anywhere near enough! Qatar gets $30 Bn a year for its gas, world's second biggest exporter. No citizen pays tax there. We are the biggest gas exporter, we get $1.5Bn...we are heavily taxed! WTF ????!!!!!
Australians are more worried about boating, camping and fishing. In my personal level I am getting out of the rat race. But I know not everybody can’t do it. I hope you guys wake up .
All of the people in charge (left or right) are property investors who benefit from maintaining or accelerating down the current path. There is no way out of this. Future generations are screwed.
@@mattl1250 great, so when the greens make it apart of their policies and campaign to ban politician ownership of investment properties, and a pathway to reduce politician pay and benefits over a 4 year period, I'll vote for them. Spoiler, none of that will ever happen, ever.
Correction …..the video states the median wage is $94k …….wrong , that’s the s Average wage …..the Median is $65. The median income guy is the guy in the middle between the top earner & the bottom earner. ….which is where most people are. The billionaires “skew” the Average income figure , but not many of them,
It's STILL wrong, as it is the average wage for FULL TIME workers. Not part time or casuals. I was spending morning until night at work on weekdays as a casual, plus working weekends and was only taking home a bit over 50k annually. You would think from the 25% loading it would be way more than the average for a full timer but no. Don't get paid enough compared to a lot of full timers in different industries.
What you’re missing with “medians” is that the median land size has shrunk and the median distance to work is 2.7 times longer commute. Median household income is now generated by 2 FTE incomes rather than the 1980s 1.4 FTE incomes. The entire distribution has fallen off the right side and medians hide the real story.
The people responsible for this is government and their policies, allowing overseas investors to buy in, tripling the influx so more competition and not limiting property investors. And real estates, because of supply and demand are taking advantage of this and using everything trick in the book to get the best price possible. We have them to thank for high house and rent prices and it will remain high.
And who voted for those governments? Yeah, we have no one to blame but ourselves. We deserve this. What's going on now is just simply the consequences of our actions.
I remember seeing a home sold for 900k about 13 years ago, it was resold with only a new coat of paint 2 years later & doubled their money. That was expensive paint!.
Indeed, I agree. My workplace largely cant get staff these days, because they don't pay a wage commensurate with the cost of housing. Been an internationally competitive sort of work (aircraft maintenance), opportunity to lift wages is limited. Basically this could be yet another industry that needs to leave Australia shores.
20 years ago the ads started on Aussie TV - That Queenslander telling people to use leverage to buy investment properties.. Well.. Australians.. with their FOMO sure listened. Now we allow foreign purchases through buyers advocates and proxies. Government loves the cash injection and stamp duty. On Q and A they listed the investment propety assets of senators and I believe the very person responsible for overseeing housing was the lady of Indian appearance who had SIX investment properties on her books. When challenged.. she tried to say "its a very complicated issue"
A huge factor in house prices going up that was not mentioned is intergenerational wealth transfer. The people buying these huge prices are typically not using wealth they generated themselves rather they are using inherited wealth or alternatively using their parents/wealth
@@TheCanolaoilattitudes like yours, are why this ship is sinking. Perhaps people want a front & back yard, a shed, a garden, some space to be human & not live shoulder to shoulder in a pokey little unit.
Ok. I am all for units. We need more high and medium density housing. You can have a unit with a shed, backyard, front yard and a garage I two car spaces. I should know I live in such a space. My backyard is about 6 x 9 square meters my front yard, excluding driveway and shed is 5 by 6 square meters. But anything over $300 is too much for a unit if it’s 20 km away from the cbd.
@bennysmith2007 well too bad you can't have it , you need to deal with it, this is the new Australia where units are probably all you can afford in a decent location
What happens without competition? PRICES SURGE. Comm Bank was privatised then public were reamed by the banks. 10% of OZ housing was Public Housing. Only 1% today. After it was privatized the Public are REAMED.
Stockland and Mirvac and others that buy up development land and land bank it instead of building on the land. No problem because they are only interested in their balance sheet the longer they hold the land the higher the prices they can get for it when selling. No proper laws to prevent land banking in Australia
Research as well the inability for a farmer to get a residential planning permit to get a higher sale value on his land. He is forced to sell at a lower agricultural rate to a developer...who will easily get the residential permit due to corruption and hence make massive profits
While we have a two party system and both are owned, lock, stock, and barrel by overseas interests, it will never change until that “ mother of all bubbles”, bursts! This will lead to “the mother of all depressions”! It is all our fault because we accept the lowest of the low as politicians!
Australia is officially finished. On 200k a year now, but my wife and I cannot work out how we can afford a home or child... I am on the verge of starting a political party or militia. We are a point where this can nolonger continue. The upper middle class are already on the verge of being homeless and starving, god knows how everyone else is surviving. Every political party in this country has prioritised home prices and immigrants over all else! Enough is Enough. And if you are against what I have to say, then you should and will be targeted in the coming revolution.
@@davidwilliams7552 you are clearly very out of touch with current reality... you cannot afford a normal family home and family on 200k nowadays. The average mortgage in Australia currently will cost you $7600 a month and 200k after tax is $11200. So after food, fuel, insurances, school etc etc... you will not have any money left over. And before you yell send your kids to a public school, like f..k I am, I dont want my kids being taught that they can be any of the 149 genders...
@@davidwilliams7552 : To earn that kind of money you usually have to live in the city. City prices are too expensive. And you said "had" how long ago was that?
Median House Price where I am....$1.3M (bought for $1.2M...12 months ago) Median Wage.....not exactly sure, but our household is approx $200k pre tax. Ratio - 6.5x Now our house is nice and all, but its a standard 4bdrm....2 lounge.....2 bth.....3 car place on a 780m2 block. This is not what comes to mind when you think $1.2M - $1.3M.
I regret buying my house. I bought it at the end of Covid. My plan was to buy no more than 4.5 times my annual salary at a push. Affordable housing shouldn’t cost more than 3-4 times your annual salary. I had 3 investors wanting to buy it sight unseen. Every other house I looked at I was priced out. Or snapped up by investors. It’s an old Queenslander, old windows, no insulation, cold as an ice box in the winter falls way below the WHO standard of 17 degrees. The value for money is not there I feel I’m wasting my money. Australia has a lot of old stock overpriced housing. Give me brick, insulation and double, triple glazing anyday. The irony is that it has jumped in price since I bought it. If I won the lottery I’d give it away. Post a Reno and to a family in need to give them a fair go. I bought in a high yield area where properties have gone up 40%-60%. I can’t believe the dog boxes I looked at 3 years ago are now $500 plus. It’s a joke and I feel sorry for anyone at the lower end of the market. When lower end is now half million 😮 I don’t trust new builds as you see and hear so many stories of bad builds, plus the new stock homes are small blocks, dark roofs, no trees, new houses are not built for modern times, wooden frame (likely new timber not aged hard timber ) poor insulation, single pane windows etc. I realise now to get the home you want that is up to standard ie energy efficient, passive house you need to build it yourself. It’s not affordable for someone like myself in the $400-$600 range. I’m not a tradie and can’t afford or want to afford the inflated trade prices/quotes nowadays I’ll sell it soon and see what else is available in other areas maybe north QLD.
You now need to do a video about the state of Renters in Australia Rents are outrageously high People working full-time on average incomes can no longer find a place to rent Those on lower incomes are in tents or cars.Mass immigration has worsened this problem Huge lineups at the few rentals that come up.Rent bidding although illegal is still taking place The vacancy rate in some states is under .5% Housing is a serious crisis in Australia whether you're renting or looking to buy
A lot of people think buying a house far away from city will save them money but the fact is actually will cost them more in long run. I have a friend who bought a land >2 hours drive from city for cheap but he ended up have to build new house and it cost him a lot of money and poor quality and the total cost with land ended up around 850-900k. 1 year later he moved out because he need to work near city so he rent out his house for cheap and ended up buying a small unit 8Km from city
@@davidwilliams7552 the cost of labour and material has increase significantly and most of the builder tried to save some money to make some profit so the quality of houses are actually drop significantly and we have a lot of major defects issue in new houses especially in NSW and VIC. So they bought a cheap land that consider a cheap area but they spent a a lot of money for the cost of building which going to depreciate in value. This is why a global house market collapse and the first area that are affected are these type of area
Tax reform is a part of this entire equation as well. We derive more than 60% of all revenue in Australia from 'INDIVIDUAL", tax returns. that pool of individuals is diminishing...successive governments have not and do not tax our resources adequately. Norway Taxes there resources at approximately 80%, their sovereign wealth fund is massive (a country of around 5.5 million people) Qatar receives approximately 29 Billion dollars in tax a year from their Gas resources in Tax (they are the second largest producer of gas in the world, WE ARE THE FIRST) our tax on our gas exports bring in about 1.5 billion.....and leave us with little or no gas for domestic consumption to the point where we will begin to import gas!!!!!! WTF..........
This is true. Not much is ever said about our incredibly wasteful taxation system. We pay insane amounts of tax, and our money is TERRIBLY managed and spent by greedy and clueless policy makers who are out of touch with the average Australian.
That will literally never happened. In 2016 and 2019 Bill Shorten offered legislation about 20% as radical as you suggested and they were profoundly rejected. We deserve everything we're getting
@@mrsnrub282 No evidence that the Libs one due to those policies. The electorates with the highest numbers of investors actually had swings towards Labor.
Matt, one place to look for why housing is expensive is the CFMEU. It is involved in much of the apartment construction, where even the holder of the lollypop controlling vehicular site entrance and exit is on a base pay of over $130k p.a. plus penalty rates and overtime. That's comparable to the average deputy principal salary in Australia of $137,715 per year and they don't get overtime or penalty rates.
This is a load of garbage, having worked in construction for many years the wages are not really that high. The media jumps at an hourly rate and thinks that these people are working long hours and that every hour is a penalty rate. You will find most traffic controllers are earning under $80,000 per year. The media has overexagerated so many salaries. Apparently I was earning 220k according to the media. I was lucky to earn 110k in my trade as a business owner. Dont believe the garbage the media spouts. There is a reason I left construction. Even on the good high rise union jobs, a formworker would average about $100k a year, and to be fair it should be double for the effort and toll it takes on your body.
The migration scheme is also a huge money maker for the local economy, but at the cost of having to house them. Make no mistake, international students do not fatten our wallets, it enriches the government coffers.
What I find unique about Australia is how expensive the housing is outside the cities. Take Victoria for example: There are a lot of regional areas especially along the coast where people would live but the land is zoned agricultural. Yes you need land to grow food but the sheer magnitude of land devoted to farming right up to the crown land by the beach is just insane. It seems like a case of manufactured scarcity. You could decentralize some of the population but the government doesn't want to do that because they want everyone living on top of one another in the cities. This is intentional policy resulting in everyone fighting over a small area.
Same thing has been happening in Ireland for years now. The government themselves sell and allow big developers to sell huge blocks of housing to foreign investment funds to rent at exorbitant prices. To that add the synthetic inflation of buildings materials being put on the consumer and then some. Owning your own home is more of a dream than a goal these days.
So they can spend it. If they just spent without taxing we'd immediately get hyperinflation. We still are getting it a bit because they push it as hard they can, but that is the restraint. You're looking at it wrong though, if they could they'd take everything and just have you as a slave, all this stuff we're doing is to try to give us some space to live somewhat free of these psychopaths.
@@stevem815 If the government creates 5 billion dollars today, does the owner of convenience store around the corner increase prices ? Does he even get this news?
@@akj3388 it doesn't matter if he hears about it. More available money competing for the same resources will push up prices. The convenience store man will have his costs increase and will increase his prices to cover them. What did you think inflation was?
THE MONEY IS BROKEN. There is no store of value in the AUD. It’s debasing due to monetary inflation. House prices are just a symptom of the deeper disease.
The Australian Population from the Australian Bureau of Statistics. 2015: Approximately 23.8 million 2016: Approximately 24.1 million 2017: Approximately 24.6 million 2018: Approximately 25 million 2019: Approximately 25.4 million 2020: Approximately 25.6 million 2021: Approximately 25.7 million •2022: Approximately 25.7 million •2023: Approximately 26.8 million The average house price in Australia in 2015 was approximately $580,000 The average house price in Australia in 2023 was approximately $1,084,855 Did the increase of approximately 3 million in population effect housing prices by 100% 3 million is approximately 11.19% of 26.8 million
10% of the population, so agree you cannot contribute everything to immigration. It's just one of many factors. I suspect the amount of wealth they bring with them would be significantly more than 10%. Immigration policy also no longer focused on bring in the working poor like post WW2.
@user-qm8sc1jr9u nah I believe the actual high-rise property vacancies are fudged to prop up the market for some strategic hidden agenda. In my cities, a large majority of residential buildings at night are 3/4 lights out. Why I know this, because I live in high rise building looking at at least 20 others
Housing in Australia has been an expensive exercise since 1972 when inflation turned bricks and mortar into a tradable commodity. In 1984, an 800sq m block in an outer urban subdivision with underground power could be purchased at resale for $20K + $1.5K legal fees. The average cost of building was at a multiplier of 3 for a total of $80K. The prevailing interest rate was 17% but government legislation put a ceiling on it at 13.5%. The banks cynically limited the housing loan to $50K and offered secured personal loans to cover any shortfall at an extortionate rate of 22%!!!!! The building industry effectively stalled, so the panicked government introduced the much abused ‘First Home Owners Grant’, which merely pushed prices up. Nowadays, an outer urban block of only 400sq m is at least $500K and the build cost starts at $300K with interest rates which were for some time at an all time low of 2%, now at around 7%, close to the long term average. So, it was never easy to put a worthwhile roof over one’s head and well nigh impossible for single income families. We simply had to tighten our belts and suck it up.
If you interested in why this is the case look into the sale of the state banks. In the case of Victoria the state bank was sold to CBA after the tricontinental scandal. Before the retail banks ever handled mortgage lending ... Thanks Joan Kerner. Did people need to borrow more because house prices went up, or did house prices go up because people we able to borrow more...
Politicians own on average 2.5 homes, why the heck would they do anything to bring property prices down. We have 7 governments to govern 27,000,000 people, what an absolute Rort that is. Each retiring on 200K a year for the rest of their life. It’s criminal.
We need to change the basis of our tax system. We currently tax productivity through income tax, company tax, and GST. We punish productivity. We need to tax natural resource use be it land value tax or increased resource royalties.
How is it such a big surprise when you’re paying over $1m for a small 3 bed 1 bath cica1910 red brick house in Sydney. Can nobody see the issue in this
Tax free capital gains is a huge driver. Tax capital gains made or realised by releasing equity to leverage up and buy more property. But lower income tax to offset the extra revenue. That way workers/ contributors will be rewarded as opposed to debt peddlers/ asset owners
Honestly housing isn’t what it used to be, the way I look at my life whether it’s right or wrong is that I’d rather live in the moment and not be tied down to a mortgage and be free and enjoy life for all its riches, not everyone lives to 60 but we are sold the idea that we will live until we are old.
Glad you guys are having the real conversations! Bravo! Please continue to have them and call out the perpetrators. As we know the amount of people who understand money is low. We need all of them to have a full understanding of what has gone wrong. The corrupt printing of money and mis management
Get rid of NEGATIVE GEARING or at least limit it to 2 or 3 properties FFS! Seriously considering leaving this rip off country i was born/raised in for 45 years
Negative gearing is not the problem, and getting rid of it won't be the solution. Do people really think that the reason there is a lack of housing is because an investor can claim a loss on an investment property when the costs of ownership are greater than the income , on their personal income tax bill? Don't forget that as interest rates rise, more properties will go from being positively geared to negatively geared and vice versa as rates drop. That does not change the underlying cause. The reason is that governments of all persuasions for decades have restricted the development of green-field sites and NIMBY's have restricted the re-development of inner city and affluent suburbs causing a lack of supply and our high (and now astronomical) immigration rates increases demand further.
@@andyg9991 if negative gearing isn’t a contributing problem then WHY is the house 3 doors up from me gone from being a humble 3 bedroom FAMILY home to being a rebuilt 6 bedroom home Air bnb - now owned by old couple who own 5 other houses that they rent out to rich pricks?! Young families are forced out for the rich negative gearing greedy parasites. Australia is now a housing disaster.
@@andyg9991 then why is the newly built 6 bedroom house up my street becoming an airbnb, which is owned by rich couple with 5 other houses in their name?! They obviously negative gear like greedy parasites. The 6 bedroom house block used to be a modest family 3 bedroom home- the young family were forced to move to even worse home cos of greedy bastards like this.
@@andyg9991 WHY should taxpayers have to refund wealthy property investors that are too incompetent to manage to produce a profit from their private investments?!!! It is absolute daylight robbery at federal government level that this is allowed. No wonder first home buyers have no chance in Australia- too many rich pricks outbidding them. Home ownership for wealthy only. Disgusting beyond belief.
All politicians are multiple property owners. They own at least one property in their electorates and one property nearer to parliament either in Canberra or in one of the state capitals. Politicians have personal and vested interests in keeping housing prices high (and wages low)
I’m saving $1000 a month at the moment to build up a deposit…… at this rate I would need to save up for 10 years. Even though the $1800 I spend on rent a month would cover my repayments easily and if I chipped in that extra $1000 I would have it paid down in 10 years
My family left Sydney in 2000 because even then it was ridiculous - was last there in 2019 and it took 30 mins to drive from Wahroonga train station to my Aunts' house less than 5km away on a Fri afternoon. It will always hold a place in my heart and is arguably the best looking city in the world, but Sydney peaked in the 00's and died in 2014.
It's a tad sensationalist to claim that house prices have risen by 86 times in the last 60 years. The houses we build now are nothing like they were 60 years ago. They are much bigger and more elaborate, built on scarcer land, with many amenities not even invented 60 years ago. Houses have a lifetime of 40 years according to the tax office's 2.5% linear depreciation allowance for investment properties, so most would have been replaced or renovated over that 60 years. 86 times would be a compound growth rate of 7.6%, which aligns exactly with my experience owning our previous Sydney home for 24 years from brand new without renovation and close to the average stock price appreciation over that period. Long may that continue, as CGT-free house price growth and concessionally taxed stock price appreciation via superannuation is how I could afford to retire.
The cost of land in the outer suburbs of Melbourne , 300k for 250sqm lol , can't even grow a tree , no back yard . Flood the market with cheap land and the price of housing will come down .
![ละลาย (LALALYE) - DAOU PITTAYA ต้าห์อู๋ พิทยา [OFFICIAL MV]](http://i.ytimg.com/vi/wo6r9TgausI/mqdefault.jpg)
Hi all, this clip was taking from the Equity Mates Investing Podcast episode 'Expert: Matt Barrie - Why house prices are the cause of today’s cost of living crisis'.
Spotify: open.spotify.com/episode/4gVY8mvJ9NKVKNOYh4heE2?si=a203abb173fd4904
Apple: podcasts.apple.com/au/podcast/expert-matt-barrie-why-house-prices-are-the-cause/id1212097275?i=1000617043903
It's a financial based religion
No. The root of all evil is the money hungry evil exploitative culture, whit men brought to Australia in 1788.
@@silentwitness536 I agree with you. A large swathe of the planet was populated by people who were living a life in the stone age and were content to do so. Left to their own devices they would never have invented the steam engine, electricity or the wheel. If Europeans had not ventured out into the world, then there would not have been deforestation and pollution, but also no massive growth of the human population. The white man enabled the population to explode due to the industrial and farming revolution. The question is. Is it better to live in the stone age or the 21st century... There is really no answer except that the stone age, which was prior to the 18th century in Australia, was a life of simplicity laced with brutality, totally at the mercy of the elements..
@@silentwitness536
Experience
Meaningless: Experience and prejudice. To accept sight and illusion in the same relativity and not be a slave.
Slavery: To be free from the growth of intellect. Experience free from understanding and memory as triviality.
Memory: reduced down to recollection without review, in a universe of consistent physics; a triviality of organic invincibility. Experience rendered down to self-sensual recall without existential considerations; meaningless.
Prejudice: to accept the delusion that no human can consider and choose. For experience to outweigh sense and sensible prudence and suggest in definite physicality that humanity is as inorganic as the constructs we purpose.
Triviality to the concept of Slave, is Mass to Gravity, either one hypothetical without the physics of Trivialization or Mass. One requiring the circumstance of genesis, the other requiring absence of necessity; Nativitus Ancillae.
Relativity: the universe revolves around you, but only if you watch with others; relativity born of tripartite geometry; self (observing), other (conferring), objective (occurring): co-intimate experience and co-context.
Relativity: all things can happen to you, most didn't, you only know what you think, you only think what you can hypothesize, all understanding revolves around perception and interaction. Understanding and position; relative.
Hypothesis: a proposition of a form unsensed in the physical, in the definition "scientific" it is the Fructus Ventris Physica Quantitatis; the guessable, potent in measurability, invisibilia ad carnalis, observationis codificationem.
Hypothesis: a concept just beyond sensible observation but within sensory or facultative relativity to intimate comprehension; the space an observer feels safe to coniectura didicit doctrina. A cerebrum exercitium.
Meaningless: the words of any personal exposition without the person. Interpretation of intended and intimate communication removed from its physical occurrence. To hypothesize in the spirit of Freud, all are I.
Meaningless: a description of a building behind it's façade to a man on the street. Definition without sensible example; invisibility bestowed by the suggestibility of the potent potentiality of descriptionem alienum.
Reference without experience, definition without context, experience without definition, definition without reference; to theorize on fancy, the possibilities of cause bereft of "scientific" prejudice towards provable.
A description of the unseen to the comfortable in sense, and sensibility; hypothesis delivered socially by the
perfecte mediocris to their perfecte mediocris aetatis. Interest and applause humilis, the sermo aequalis.
Contemporary communication, external warehouse for internal deliberation. Deliberatio externa by contrast is built on extra-contemporary, the functional in sense and nerve unwilling to mal-hypothesize popularis prudentia.
By definition a contemporary is both naturally occurring and actively intersecting, or it is a generational (illusory), built of temporal coincidence. Meaningless in contemporations intimate, capable of saying they share an age.
Exogeny
In an era of fear, humanity is tested. The exodus of existential loneliness is a heavy burden. Self-indulgent contemporary values, the pitiful death of the faithful gregarious martyr. Silenced in the passion of virtue, in the fury of desire as necessity, the ideal dies for the joy of man as the ideal devotee of nothing. Endogenous evidence of exogenous truth, derived from noble prejudiced purposes, refutes the pathologies of nature as the folly of prosaic and sensible sustainability. Euphoria at any cost, at any cost.
The Addict Kind
Lonliness is a myth spread by the ill, unwelled by popular delusion (self accepted).
The sickly, pulsing out their (self) comforting radiance, the marking of a predators territory. A light to shine on all slow enough to not revile it for it's false and reason less eviction of self from capability.
The prey; uninitiated youth, vulnerable innocence. Argue not with the aged (or experienced) self-convinced. The miracle of emotional conformation of physical fact convincing to the unknowing, under steady application, overly sweetened (for the self) ideals of pleasure and comfort, the prey forget they knew a peace that didn't requiring feeding or explanation.
The virtue of falsely buoyed stability grinding the ignorant, young, and uncatered, all taken in by the sin of kindness as apex. To gift the sickness that tells a human "human emotion in the negative is unnecessary and beyond comprehension or tolerance".
To know that there are those in the world of humanity, who in their generationally refined adherence to parasite coddling, will continue to teach the youth "drugs are a healthy and functional right of aware and intelligent people" is a mark of shame in this age of our collective development.
The truth of human being betrayed by the proposed necessity of stimulation beyond the natural state, it's supposed normality vouchsafed; sobriety (health) ignored as a greater insanity than parasitism.
Salve the wounded pride of the vulgar addict, crucify the outspoken advocate of reassessment. This is not a statement of conflict, rather a portrait of the true and natural order in it's biased equality (comfort belonging to those who crave it most).
Because a lot of other countries are shitholes in bigger messes obviously and our government is only too happy to give our money away to foreign migrants
What is unique about Australia is that we view housing as a site for wealth creation rather than places to live.
Whit european way of living vs Aboriginal way of living right there.
We have the same situation in the UK. Those with good incomes or help from families can make it. Those who do not have those struggle.
the reality is that while we live in a capitalist society of the one with the most stuff wins, and yet we can not escape the fact that this model is our doom and that we need to look after eachother, for if we dont, the results are a broken society that effects everyone!
I do that because of our governments inability to manage money or anything for that matter in the best interest of Australians.... the pension has disappeared, our super will..... I need to depend on myself
That's what happens when negative gearing can be applied to property
Our money is so tied up in trying to house ourselves, that there's no money left for us to start businesses, innovate, explore, skill up, etc. Our exports are average, because we aren't on the forefront of modern innovation, like we should be. I make more than the median, with no debt, no credit cards, no kids, very low spending, and I'm still not seeing where this starts getting good for me regarding just buying a house. I can't see myself buying in Sydney, ever. So I definitely can't see myself taking a leap to start a business, app, etc. Got no money for that.
My friend sold his house recently. Newly-immigrated Indian family bought it. Paid 2m with like 7 loan guarantors. So in some cases, Aussies are losing to the buying power of entire families who don't care how much they pay. No surprise the average single or couple can't get in. The pollies do not give a shite, because they are all in the market too. They don't want to nerf their own properties. Our immigration is way too high. Houses are not being built fast enough to match local demand, letalone immigrant demand.
The gov is also doing nothing to expand other coastal cities. If you want a modern career, it's Syd or Melb. You can't even take Brisbane that seriously, because most STEM jobs are Syd or Melb. No one moves to Coffs or Cairns for an IT career. Everywhere else in Aus is considered as being outside the rat race. Bruh, Canberra isn't even on the map, and that's the freaking capital. Companies are also taking back the remote opportunity that covid gave us. So you can't even move outside the capitals anymore, to get more house for your money, or to even just get a place at all. You need to go in every day, to do a job you could do from home. Brilliant modern thinking right there.
The gov has really messed this place up, economically. We should be pumping out modern tech and improvements. But we're still stuck on step 1: get a house. This is so neanderthal.
Wow Australians are starting see that they are still just slaves to the banks ..
Well said. I would say that most IT professionals do have the ability to WFH though. It's the minority I would say who are required to go in any more than 1 or 2 days per week.
We literally produce nothing of competitive value in the world market (such as technology) and people seriously wonder how we’re in this mess 😂 this is exactly what happens when you predicate your entire economy/GDP on something that shouldn’t be seen as a commodity (housing).
I'm glad you see it the same. If people can't build their foundations and have basic security of shelter and family how are we supposed to progress technologically and take risks? We can't even get the basics done. For all our progress we have retrogressed considerably over the last 70 years.
@@Pat315 Going in once or twice a week isn't WFH. We have the ability to work remotely from anywhere and fix many of the congestion/high price/environmental issues that come with all living in one place. As long as you're being forced to come in once a week you're forced to live in a city and the problem can't be fixed. Let people move to less populated areas and live more fulfilling lives and actually afford a family. I make 150k a year and it will take me 10 years at current prices to buy a modest home in Perth while living like a monk.
Young couple marries, moves out of area to afford to raise kids, far away from their support network.
Father works 2 jobs as its still expensive to service the loan.
Kids grow up with an absent, tired, disengaged father.
Marriage nears breakdown, alcohol and drugs to numb the pain.
Family breakdown and all the knock-on effects that come with it. Depression, despair, violence, social decay.
Its a good thing guns are not readily available here, there would be mass shootings frequently
Not to mention the kids spending their whole lives in childcare, after school care and school holiday programs. Then home alone on ipads and video games once they are old enough to stay home alone. And then society wonders why teenagers are anxious and depressed 😔
You guys need to cheer up!
@@myday2704that’s why I’m not having kids
Exactly what we did. Moved 8 hours away from home to the country for cheap rent and a better childhood for our kids. What we didn't account for was the lack of jobs and decent paying jobs at that. Add into it the nepotism that comes with a small town and what an influx of people from cities buying all the houses and driving prices through the roof, we can barely afford the rent let alone to buy
Speak for yourself bro 😂Jesus Christ
Housing insecurity and affordability is destroying our society from the inside out.
It really is. Crime is so rampant now too. Everything is going downhill
Correction " it has allready destroyed".
Inequality is here ....Even with massive policy change it is going to take over 15 years to fix this mess
It ALREADY has destroyed the country - it's FARKED, TOTALED, RUINED!
we live in a country with a nanny state government with all their laws, rules, fines, fees, permits, licences and still society is crumbling down around us. yet people continue to vote, asleep to the fact that it is the government that is allowing all this to happen. no one cares for each other in a world where everyone is focused on money and yet we forget we are all in this together.
@@infinite8382 NAILED it! They have coralled the majority of the population onto the house slave treadmill - all willing to take a kickback wth strings from the slave master (the ruling class) just to get one up on the Joneses (a better house and car) not realizing that when everyone plays that game it's just a race to the bottom for everyone, except the ruling class masters who are the only ones that benefit. The MORONS are going to sink the ship and take us all down with them.
The fact that Aussies are paying over $600,000 for a basic block of land is completely absurd.
I brought a house last year for under 100k because I have more than 5 brain cells and can live outside of an overcrowded metropolitan area.
and the Indigenous owners, the real owners of said stolen land dont get any of it..
@@robertwalker7924 but at least we thank them for the land at every opportunity we get 😆
@@timsimon8995 of course, but at least
Whenever I hear them thank them for the land we are gathering on, whether it's a sports event, or school assembly or whatever, I think, ok give it back to them then. It's like stealing someone's car but thanking them every time you use it, really rubbing it in 😄
Why would anyone want to move to Australia and into this mess? Anyone landing in Sydney airport risks becoming homeless once their hotel money runs out.
Million and millons 👽 heading our way.
kiwis move because nz housing is more expensive especially to income ratio... aussie isnt yet as bad as nz. were all exit liquidity for boomers
News flash. Only two groups of immigrants are staying. The first group includes desperate workers who come here on student visas and never intend on leaving. Because Unis have lowered their standards so much, most don't end up finding skilled work with their qualifications and end up stuck in the gig economy. The second grpup includes those who have already made significant capital overseas and brought it here. They are usually >45 years of age. The group we should be attracting to stay, young highly skilled workers end up coming for a couple of years and then leave to greener pastures due to the cost of living.
Good. We need to make housing so expensive that only professionals and tradies with highly paid skills that are in short supply here choose to immigrate on a permanent basis. Foreign students paying full university fees are welcome, provided they either go home on graduation or get a high paying job here. Family reunion immigration should be stopped for 10 years.
@@CryptoKiwi no it not taxes much less in n z
Amend the law to stop foreign nationals from being able to buy residential properties in Australia. This should also include people on any temporary Australian visas.
Student visas and university fees are the wool our government is pulling over our eyes 😢
Agree, but it will never happen, doesn't matter who's elected
Its not rocket science hey.. always thought this
Yeah, but. Howard turned it into a speculative endeavour. Wealthy people buying houses in their children's names. OK, for balance, Superannuation, a Labor initiative, also means there is more wealth and savings, which puts pressure on housing availability.
Foreign buyers are a drop in the ocean. New Zealand tried it and it did nothing.
My house in Adelaide has gone up $130,000 in 8 months. That's more than most people's annual wage and it hasn't even been a year yet. If I sell it, I'll just have to pay that money to get something else to live in, so it isn't even a real gain. Meanwhile people who don't have that first house fall further and further behind.
good feeling to have positive geared property, if something ever happens god forbid you can cash out and you’ll have a nice little kitty in the bank
You can draw on the additional equity, so that's a gain. It's a potential gain, but it's pretty easy to realize and many ppl do.
FYI. In 1983 to 88 I couldn't save enough to match the price increases. Eventually paid 30% as deposit.
Around the same time, negative gearing wasn't allowed for a brief time, and rents sky-rocketed when I was renting.
Exactly. Rising tide lifts all boats. It’s stupid.
Same with my house in Perth. Me and my wife's wage has gone up significantly since then and we're looking to buy another house. We're looking at half the land size and looking to pay double what we did for this house - and we're gonna struggle to pull that off. I have no idea how people earning more medium level incomes are able to afford anything within an hour's drive of the city these days. Really sad.
Ban foreign investment ffs
And foreign people!!!!!!
The grand irony is that the lazy government has been using easy money they get, from foreign investments and migrants' money from their "migration" scheme to cook up their books.
Chinese buyers
Haha cry more,, not our problem you are poor
@@danielanders4773cry
The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.
You're not doing anything wrong; the problem is that you don't have the knowledge needed to succeed in a challenging market. Only highly qualified professionals who had to experience the 2008 financial crisis could hope to earn a high salary in these challenging conditions.
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
She goes by ‘Melissa Terri Swayne’ I suggest you look her up. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Melissa’s profile appears to be fairly knowledgeable, therefore I must say that I value the advice. After locating her online, I thoroughly read through her resume, educational background, and qualifications, and I must say that they were quite impressive. We have set up a meeting after she replied to my message.
Think about the demand for bread during hyperinflation, you think that is a supply problem?
It all can be summed up in one big word: GREED.
Ignorance.
Do you mean government greed?
It's all by design, it's happening all over the western world
When I started one years salary bought a quarter acre allotment , two years salary bought you a basic house, one living space, one kitchen one bathroom two or three bedroom and a laundry space.
Try that today! Has sweet f all to do with hard work, absolutely zero, it is 100% pure greed!
Capitalism actually. Which yeah, brings about greed
Why would the politicians help to get housing affordable? It makes them rich.
Just like gambling.
It’s a big club, and you’re not in it.
because if they dont, they will be on the menu
Agreed
@@Sub0x-x40Wishful thinking. After seeing how people responded during the pandemic I have no faith in the average western person . May as well be livestock.
If anyone feels stressed out because of the housing situation, you should seriously consider moving abroad if possible. I went to Asia - having secure housing and not stressing about the ridiculous housing situation has been a serious quality of life upgrade for me. When I looked for rentals, an agent spent half the day personally showing me around a dozen properties all available to rent at different budgets, areas, etc. Renters hold the power and agents actually work for their commission.
Compared to Australia where you're competing with 50 other people bootlicking the agent trying to beg for the privilege to pay 20% above asking price and 6 months rent in advance. And then you get evicted after a year because the landlord wants to sell, but actually they just wanted to increase rent another 30%...
I think people would… if they had any way of actually making money in Asia. As it is, you can’t live there unless you already have money or your job isn’t geography dependent. It’s great for single people that have non geography dependent ways of making money but what do you do for your family? Will they take the same job as you? Probably not, so they will make those small Asian denominations of wage or have to move back to a western country.
@@dimex3362 Entrepreneurship is the only way. You could start a pretty ordinary online business that only makes a third as much as your salary in Australia and still be better off, it's the only true path to freedom. You're right that not everyone is capable of that though.
I would if I could
Yeah it blows my mind that real estate agents earn so much money here 🙄 as if they actually have to work for any properties they sell or get rented. They are pushing paper, that’s it.
Problem there is that many Asian countries, particularly in SE Asia, forbid foreign ownership of housing i.e Vietnam.Yet we don't. We've been sold out.
We need to face the fact that the Australian housing market is grossly inflated. You can buy a Huysman classic townhouse in central Paris for the price of a cream brick venereal in Box Hill.
Sadly, my mother, who is 80, sold her house in Brisbane recently and moved back to England. For the price of the the house in Brisbane plus another £200,000 she bought a flat in Chelmsford... £480,000 for a flat... Well, that's my inheritance spent... And yes. this stupid game of monopoly, which is what it is, needs resetting so that ordinary people can live without massive servitude to the people who have created the debt by printing money...
Have you been in Paris? Maybe in part of Paris where all the illegals taken over .
@@louisebb4183 Yes, I've been in Paris. Naturally I avoided the housing projects.
I'm 63 and living in my van and can't afford a home on a disability pension.
That harsh 😪
Move to south east Asia!
I took my life savings and retired to a much cheaper country in my thirties!
Own a 3bed flat, a 2bed investment flat and have savings to fund a modest lifestyle.
You won't regret it!
@@Nav_Mthey said they are a disability pensioner
@@Humble_abode-k2h
Yes, disability pension can be ported if one wants to leave Australia.
The pension amount is paid in full, just rent assistance is not paid if living outside of Australia.
Can you imagine the life in say Thailand, on an Aussie 💰 pension?...heaven!!
Ren
You're lucky living in a van
Australian debt system is a big slavery
Worse in New Zealand
Yeah slavery. When you have no obligation to take out a mortgage, its entirely choice and the interest rates are driven by the global economy. Such slavery, much wisdom.
@@slickstringsignorance is bliss
@slickstrings Yeah pay your inflated rents you ungrateful plebs! I bought those houses 35 years ago for 1/10th of the price they go for now and I worked real hard after completing my free university degree to get them! Such a lazy generation tut tut.
Big usury
I’m glad the guest mentioned Australia not doing much or anything at all to diversify its economy. This has long been one of my pet peeves and something that keeps the country overly reliant on a handful of industries - and more vulnerable to global economic shocks.
The money invested in property would be better used being invested in startups, industry and r&d
Unfortunately, most australians, and even government are very aware of that.
But then election time rolls around and no one wants to be the party to make a big spend. Not when the iron and coal train is still chugging strong. :p
@@HantaleMedia its because ALL politicians are sitting on nice properties, investments, holiday homes etc and don't want the value to drop an inch hell even my own family have 4+ properties between them that they do not need... all the people in power are for the short term gains over anything long term for this country. It wont get better unless the Greens get in.
RIP AUSTRALIA
australia was dead on its feet decades ago, but were only just feeling it now. if the past and the present are anything to go by, the future of this cuntry is not looking good. people are going to have to reinvent modern living cause who will be able to afford a house as house prices rise, leaving the floundering weekly wage amount for dead.
I cracked it at someone at work for talking about 18% internet rates in the 70's. So my response was to what proportion of income and what were wages increasing by at that time.
In 1970 my mum & dad bought their house for $24,000. Sold it in 2021 for $3.6 Million.
18% internet rates in the 70's...😂
Didn't know internet was available to anyone besides the government back in the 70's🤣.
In the 70s youd get a decent 4 bedroom house on good land, for 50k or less.
Why don't you retort with what the average interest rates on a savings deposit account was at the same time? What would people give now for 13%+ interest rates for their savings? It's all relative.
@@jamesaustralian9829 in the early to mid 80's you could easily do that in Perth
It's the underpinning of so many other issues in Australia. Also, think about all the other businesses or ventures we could be investing in if we weren't so obsessed with property
This. The obsession with property kills entrepreneurialism and innovation.
Chinese buyers
Well there was mining and agriculture but we sold that off to China so yay.
Housing prices are the root of our economy. Get rid of those prices and you get rid of our dodgy economy.
You meen give you easy life pmsl …. You want to live lazy buy a tent no sympathy from me
It's manipulated by govt. Done by zoning laws and restriction on subdivision. Otherwise people build in small towns and move there😮
@@markwick7898 😂😂. How could you possibly make such a comment from what I wrote? I work my ass off, self employed in demolition and earthmoving and my development property just valued at $2.4 mil.
I’m just stating facts.
@@markwick7898pistols at dawn, survivor get the house! How much sympathy do you have now?
@hesh2892 spot on in our regional large town housing is priced quite sensibly and the scammers that are buying houses for their property portfolios aren't interested because they can't skrew any suckers
It’s simply not sustainable and needs to change! My kids, your kids have no chance of entering the market and can you imagine what that does to their mental health! Only those new Australians pouring in with $$ will be looked after! Shame!
they are not new australians, they are the enemy
That’s capitalism at work for you… isn’t that a good thing.
My kids already bought their houses and are comfortably living in them. Reason? Hard work, education and family support. Yes, we have a housing crisis but work ethics here sucks big time especially in the building sectors, roofing and plumbing.
@@vish2553 that’s all well and good but not everyone is an academic that earns a good income. Others can have an exemplary work ethic and work their asses off for little return. And not all families are in a position to offer support.
It is criminal that in a country with so many resources andavailableland a block to build a house is so expensive and there's no attempt to create materials that are modular so that housing is simple and cost effective.
That is the English Lords vs peasants system. Its been good for economy and increasing house values. The rich get their money back on the mortgages. A 4% mortgage for 1 M would mean, you pay 2 M over 20 years. So house price has to increase for owners to recoup their money 😮
Zoning laws, designed to protect the property portfolios of councilors
Chinese buyers
@user-qm8sc1jr9u may be due to foreign buyers in cities. But it's mainly due to huge manipulation by government
Done by zoning laws and restriction of subdivision . Hence prices even in rural areas are kept high
Plenty of vacant land, but not many want to build because the cost of construction went up by 50-100% in the last 3-4 years.
It all comes down to the complex tax structure and the fact you don’t have many other options to save money in Australia as everything else is taxed 5 to 6 times before you get it .
more than 125 taxes in australia
That is deliberately so.
Australia has aaa rating due to house prices being so high.
If a countries house values are high a country gets aaa rating.
Australia has SOLD OFF all mineral rights of this country to china so all they have is housing
Serious question could you tell me a few for an article I'm writing. For instance I'm saying the 40 cent levy on every dollar of petrol is a tax and a completely unjustifiable one. It's literally stealing.@@coopsnz1
Don't think that new apartment you buy from High Rise Harry is untaxed. Aside from over $50k of stamp duty you pay, his average 2-bedroom apartment that sells new for $1.1m has $300k of various government charges built into it. So, you are really paying $1.1m for an $800k apartment that cost Harry around $650k to create before government charges.
So true
Same over here in NZ, buying a house is becoming out of reach for most, even working couples, cost of rent too makes it diffucult to save!
house next door has been empty for 7 years. The owner lives overseas and can't be bothered renting it out.
Tell purplepingas
That's a tax issue. Unless you use the 6 year exemption, the moment they rent the place out it's open to capital gains tax. Which means if they rent it out they probably LOSE more money in tax when they sell the place than they get from renting.
Why rent when your house goes up 10%+ a year, right? ;p
So? Continue being a victim..
That is fair enough to many hassles ,also he pays no capital gain tax as he is not making an income on it . Capital gains tax can be more than rental income.
If you spend 5 mil in Australia you instantly get a visa for the whole family regardless of any qualifications. So the easiest way to spend that amount is on property.
However if we sold our Gas at the same price the Arab countries sell it Australia would be so rich we wouldn’t need to pay taxes. Our Gas is sold at the lowest price in the world and yet we have the highest reserve then anywhere else. This is the real evil.
I watched a doco the other night that said 60% of over 60’s women are now homeless. The political parties don’t care about Australian people all they care about is what is in their pocket. Vote them all out.
60 percent of women over sixty are homeless? Where on earth did you get that ridiculous statistic? Are you telling me that if I go down the street and speak to 10 women over sixty, six of them will be homeless?
What bullshit are you on about my god
@knyght27 its so obviously bullshit, they are more likely to be the ones with 3 million plus net worth and 150k cars
Yeahhh about 9 years ago, i was going to buy in Werribee for 375k 3 bedroom. The same house is 800k now. Forget about it.
we exist in a real life game of monopoly. we could change the rules tomorrow.....but we wont. the whole wretched system is made up. we seriously need to change it.....but we wont
The building industry is sickening too
Great money laundering venture for criminals, both the ones that wear leathers & the ones in suits
only affordable option left... in perth at least
I despise those grubs. Developers just need to sleep with one eye open
I only make about $550 pw. I rent in Mandurah, south of Perth.
In the middle of last year my rent was $300pw. New owners bought the house and the rent went up in November to $350pw.
Next week it's going up again to $450pw ( May 2024 )
That means my rent is about 80% of my income 😮🤕
There is a great divide in Australia which has an age cutoff for the majority of home owners. The younger working people are left out housing market. The political parties are avoiding doing anything to solve the problem. Gutless leadership.
Foriegn owner ownership is a big problem. If only Australian citizens can buy homes and property the supply and demand will level out and and force prices to drop. Banks charging interest on mortgages is the biggest factor to making ownership/repayments too expensive.
Foreign demand is only a very tiny part of the problem, especially now the CCP has cracked down on its citizens taking money abroad. The issue always was, and always will be, supply and demand and the current Federal Government has done more to fuel demand than pretty much any government in history.
Levels of immigration this high was always going to end in tears. Couple that with decades (yes decades, not years) of restricted supply by state governments that simply didn't want to pay for infrastructure in green field developments and you end up with the ludicrous scenario.
And there is no quick fix available now. Its going to take at least a decade to sort this mess out simply due to the time it takes to build the infrastructure and homes required to balance the supply/demand equation.
@@andyg9991Immigration is a large part of the problem. We're importing people in a housing crisis ffs. Where do you think they are going to go? The vast majority of them will funnel into the rental market. Shock horror that rental demand is sky high and prices go up..
@@andyg9991 plus decades of local government with their weird zoning laws, and other powers restricting new builds greatly.
Cheaper loans available overseas
Housing affordability also effects business in that if you're trying to sell your business banks only lend to home owners not renters. For people who try and sell their franchise, their is no one to buy it , anyone with money just buys another house . Nothing will be done because most of the politicians in Canberra are landlords
Affects, not 'effects'
We are in this situation because houses sell to the highest bidder. You should have to be a resident or citizen to buy land here.
It is not foreign investors driving prices.
They are such a small percentage of the market.
It is simply supply is well under demand.
Perhaps people need to stop saying “enter the house market “ . When you drink water, do you “enter the water market “ ?
What term would u use.
@@Eric-kn4yn He is simply saying that housing should be a right NOT an investment.
Housing is enslaving Australia there will be no more small businesses or holidays or freedom to leave your job. People will spend there entire life paying the mortgage off without a cent in savings to show for it. We are still lucky biggest the biggest employer in Australia can print AUD.
Correction - the capitalist banking system enslaves us. Which is run by a collective of Zionists, as we know but people are F dumb.
Be nice to have a mortgage. stuck paying off someone else's dream and place of retirement. Then us renters will just drop dead at work if we make it to old age.
@@wombathead87 I understand that, it's even harder for people who rent. If government policy to make housing more affordable had done a dam thing we could all work and own a house. But retirement for most is now just a dream in Australia the government has supported policy for the rich and that's because they are the rich. Even in some countries the boomers are coming out of retirement due to inflation eroding their savings. I really don't see many people being able to retire at this point as economic output per capita is going down and wealth is shifting to the one percent. Automation and AI will be the final nail in the coffin for the working class. All I can say is try and find a job you enjoy if possible so at least your time working for someone else's dreams won't be so miserable.
@justindressler5992 appreciate the reply mate well put.
We are in the biggest bubble of ALL time. There are dozens upon dozens of bubbles in one giant bubble. When it bursts, we're going straight into depression, imo
Australia also has VERY lax investing laws & therefore international people interested in hiding their wealth can park their money in our housing market & the home either remains vacant or saved for the kids & balloons the prices as money is no object & they offer ridiculous prices & outbid the serious people needing a home now.
Australians had a chance to remove negative gearing and CGT in 2016 and 2019 with the Labour Party but of course they voted no. Labour in 2021 decided to give up on tackling it. You can thank the boomers for the hot mess we’re in right now.
Haven't you realized that we live amongst morons? I am a boomer with more than one property and i voted for the Labour Party to abolish negative gearing. So get your facts right buddy.
just look at the clown show!
@@libatalklieb5793 You aren’t representative of the majority of your age group though.
@@vladbereza4550 I am sure that not all that voted for slowmo were boomers
@@libatalklieb5793 We’ve already established that.
How on earth could any company be competitive in Australia when they need to pay a wage allowing workers to buy a million dollar home and in asia they just need to pay a wage for 150,000 dollar homes? Americans have no idea how good they have it. I believe housing prices won’t go down in australia in nominal terms ever but they will in real terms i.e houses stay the same price but bread is 20 dollars and the AUD is worth 30 US cents
Hold on. That don't make any sense at all. "... won't go down in nominal terms but will go down in nominal terms..."? What does that mean?
@@kestertroy I mean won’t go down in nominal terms but will go down in real terms
Au = 67 cents US currently, just saying.
I think it’s actually worse than that the average income is $90,000 but the median income in NSW is 55,000(I thought it was 60,000 but ABS data says lower) the top earners drag that average up alot
So wait... what? most people earn 55k a year in australia over there?
Most = "mode"...median is mid point (more accurate than "mean" with outliers.
@@djdanzy median means half the people earn less than that, half the people earn more.
And 55k AUD is only about 38k in USD
IMHO. It’s interest rates being too low, for too long, for too many. It’s a real shame that we have pumped so much capital into something that produces (for principal places of residence) absolutely nothing. Crazy stuff.
That and first home buyer grants and schemes.
@@johndwyer2486 So everyone should be aspire to nothing more than eating lentils twice a day and listening to Che Guevara speeches for entertainment? Civilization arose because some people craved more than living in caves wearing mammoth skins. Thank god some of our ancestors had ambition.
@sandponics : Unfortunately for most people they don't have a wayback machine to take them to 1988 when houses were more affordable.
@@Zxcvbueisn444 I think the bank’s decision is very strategic. Keep dwelling prices high by buying huge numbers of them. Stave off a collapse in dwelling prices in order to protect their own mortgage assets on their balance sheet. The same can be said for the joint government/banking collaboration on excessive immigration numbers. Wisdom also says that the Government and banks may know something we don’t know. I think what they know is if they don’t manipulate demand and growth with the money supply, asset purchases and immigration, many Western economies will collapse. But I can’t see how such a strategy is sustainable. There are limits on affordability, both for aspiring entrants of, and existing occupiers, in the dwelling ownership market. All of this Government and banking manipulation distorts the market. There are literally millions of losers. But I don’t believe that first home buyers’ grants or negative gearing are significant aspects of the market manipulation. It is interest rates and immigration predominantly.
@@johndwyer2486 In my view, the obsession is a REACTION to the market seeing the asset valuation escalation perpetrated by interest rates being too low. Too much new currency coming in to the economy. There is, in my view, an obvious fix. Raise interest rates, maybe even significantly. Collapse prices. Collapse, also, the obsession you speak of. Too many of are operating under the FOMO (fear of missing out syndrome) and paying high prices on the back of the obsession you mention. In the end, at its most basic level, dwelling asset prices and other asset prices have risen on the back of too much money being created, and the primary method of flooding the economy with cash has been lending on dwellings. This has been going on for well over a decade. The economy’s wheels have been slipping, but they finally have traction, and away inflation races. The injustice perpetrated on young adults, especially, is disgraceful. But I don’t blame Goverment as much as simply blame the Reserve Bank and commercial banks, which to me are one and the same.
Totally
The prices dont make sense and people really cant afford to live in even a rental place let alone in a purchased property
@sandponics yeah. When I was - 36 years old
They can afford to but will.not move from the same three big cities.
@@davidwilliams7552 there is not much work in rural towns
@sandponicsyou mean people can buy a house before they are born??? Tell me more ,want to know the secret to rhat
This situation will cause a severe drop in the birthrate if my adult children are any sample of this horrible reality. I think successive governments have encouirage insane house price growth to make people feel wealthy without the need for higher wages. People are funding their lifestyles, not with wages but with the inflationary house price growth. It is a disaster of the highest order and it is creating a huge social division
And if your children are same as me (25 years old), we have had to go through University that costs money to attend, using petroleum that is more expensive, living in black mould accomodation that is decrepit, getting sick and diseased, attending hospitals that are overcrowded, all so that a Gen X”we can negative gear another house. Whilst we studied medicine and engineering to get paid the same as a delivery driver, while we get slaves from overseas (750k) of them to get trapped in the Australian housing loop and become life long tax payers, whilst we wait for our parents who we love to die just so we can start life. Incredible. Well done Liberal government.
@@CarbonTaxLOLwell said..well done upper class elite Liberals. Enslaving everyone else to ensure the Aristocrats increase their wealth at the expense of the lower classes. They've gamed the whole economic system; spun it to their advantage ...
@@CarbonTaxLOL.The Labor.govt post Keating have been just as bad.
Australia has enough minerals and mining to be as wealthy as Dubai. We pay companies to mine and sell our commodities. And we pay the same people for our commodities.
Yes, and we don't tax those industries anywhere near enough! Qatar gets $30 Bn a year for its gas, world's second biggest exporter. No citizen pays tax there. We are the biggest gas exporter, we get $1.5Bn...we are heavily taxed! WTF ????!!!!!
Australians are more worried about boating, camping and fishing. In my personal level I am getting out of the rat race. But I know not everybody can’t do it. I hope you guys wake up .
Mining also benefits the breast implant industry
We are being fleeced simple as that
All of the people in charge (left or right) are property investors who benefit from maintaining or accelerating down the current path. There is no way out of this. Future generations are screwed.
Vote greens, most of them don't even own investment properties
dont vote greens... please
@@mattl1250 great, so when the greens make it apart of their policies and campaign to ban politician ownership of investment properties, and a pathway to reduce politician pay and benefits over a 4 year period, I'll vote for them. Spoiler, none of that will ever happen, ever.
Correction …..the video states the median wage is $94k …….wrong , that’s the s Average wage …..the Median is $65. The median income guy is the guy in the middle between the top earner & the bottom earner. ….which is where most people are. The billionaires “skew” the Average income figure , but not many of them,
It's STILL wrong, as it is the average wage for FULL TIME workers. Not part time or casuals. I was spending morning until night at work on weekdays as a casual, plus working weekends and was only taking home a bit over 50k annually. You would think from the 25% loading it would be way more than the average for a full timer but no. Don't get paid enough compared to a lot of full timers in different industries.
Brings me to tears when I see the price of housing, what has happened to my country
Immigration off the charts to prop up this ponzi scheme.
What you’re missing with “medians” is that the median land size has shrunk and the median distance to work is 2.7 times longer commute. Median household income is now generated by 2 FTE incomes rather than the 1980s 1.4 FTE incomes. The entire distribution has fallen off the right side and medians hide the real story.
The people responsible for this is government and their policies, allowing overseas investors to buy in, tripling the influx so more competition and not limiting property investors. And real estates, because of supply and demand are taking advantage of this and using everything trick in the book to get the best price possible. We have them to thank for high house and rent prices and it will remain high.
And who voted for those governments?
Yeah, we have no one to blame but ourselves. We deserve this. What's going on now is just simply the consequences of our actions.
I remember seeing a home sold for 900k about 13 years ago, it was resold with only a new coat of paint 2 years later & doubled their money. That was expensive paint!.
Indeed, I agree. My workplace largely cant get staff these days, because they don't pay a wage commensurate with the cost of housing.
Been an internationally competitive sort of work (aircraft maintenance), opportunity to lift wages is limited.
Basically this could be yet another industry that needs to leave Australia shores.
20 years ago the ads started on Aussie TV - That Queenslander telling people to use leverage to buy investment properties.. Well.. Australians.. with their FOMO sure listened. Now we allow foreign purchases through buyers advocates and proxies. Government loves the cash injection and stamp duty.
On Q and A they listed the investment propety assets of senators and I believe the very person responsible for overseeing housing was the lady of Indian appearance who had SIX investment properties on her books. When challenged.. she tried to say "its a very complicated issue"
A huge factor in house prices going up that was not mentioned is intergenerational wealth transfer. The people buying these huge prices are typically not using wealth they generated themselves rather they are using inherited wealth or alternatively using their parents/wealth
Captain Obvious strikes again!
Eventually that runs out... Wanna bet when?
One word = vanity, why are people eager to pay highest prices in the world for lowest standards of houses?
Get out of Oz before it is too late! The place is officially rooted!
Just buy a unit for 350k to 450k what's the big deal?
@@TheCanolaoilattitudes like yours, are why this ship is sinking.
Perhaps people want a front & back yard, a shed, a garden, some space to be human & not live shoulder to shoulder in a pokey little unit.
Ok. I am all for units. We need more high and medium density housing.
You can have a unit with a shed, backyard, front yard and a garage I two car spaces.
I should know I live in such a space. My backyard is about 6 x 9 square meters my front yard, excluding driveway and shed is 5 by 6 square meters. But anything over $300 is too much for a unit if it’s 20 km away from the cbd.
@bennysmith2007 well too bad you can't have it , you need to deal with it, this is the new Australia where units are probably all you can afford in a decent location
@@TheCanolaoil not even worth my time on a hateful little hand puppet.
This housing situation will destroy this country if nothing changes
What? The country was destroyed long ago.
It already has - i left in 2013 because it was already long gone.
It was cheap back then tho@@emelle1283
@@emelle1283 i lived in sydney 5 years ago is was amazing, so much better than where i am from
Typical privileged aussies haha
@@emelle1283 where did you go
13.3times is calculated based on wage before tax… if you use the wage actually received after tax..
It’s more like 20 times
What happens without competition? PRICES SURGE. Comm Bank was privatised then public were reamed by the banks.
10% of OZ housing was Public Housing. Only 1% today. After it was privatized the Public are REAMED.
the root of it is fractional reserve lending by banks, unregulated property ownership - the insane price of housing is the shit fruit of that
Stockland and Mirvac and others that buy up development land and land bank it instead of building on the land. No problem because they are only interested in their balance sheet the longer they hold the land the higher the prices they can get for it when selling. No proper laws to prevent land banking in Australia
Research as well the inability for a farmer to get a residential planning permit to get a higher sale value on his land.
He is forced to sell at a lower agricultural rate to a developer...who will easily get the residential permit due to corruption and hence make massive profits
The government too busy setting up laws to ban Elon Musk and can't afford the room to give farmers a fairer chance!
Should speak to your elected members
While we have a two party system and both are owned, lock, stock, and barrel by overseas interests, it will never change until that “ mother of all bubbles”, bursts!
This will lead to “the mother of all depressions”!
It is all our fault because we accept the lowest of the low as politicians!
They're just a reflection of our society. Until society, fundamentally changes. Just expect more of the same.
It’s a simple supply and demand equation. 700k plus net migration per year with no means to build enough new dwellings to house them.
No shit Sherlock. But we’re trying to name and shame and find a solution not point out the obvious!
Chinese buyers
@@ClaudioCarrera-j6o and who allows people from China to purchase Australian property?
Spot on, was just about to post this comment, then I saw yours, so no need :)
It's called unwanted mass-immigration.
Australia is officially finished. On 200k a year now, but my wife and I cannot work out how we can afford a home or child...
I am on the verge of starting a political party or militia. We are a point where this can nolonger continue. The upper middle class are already on the verge of being homeless and starving, god knows how everyone else is surviving. Every political party in this country has prioritised home prices and immigrants over all else! Enough is Enough. And if you are against what I have to say, then you should and will be targeted in the coming revolution.
Vote or help one nation.
That is ridiculous if you can't live on that then something is seriously wrong. I had three kids on half that salary.
@@Eric-kn4yn If voting worked, we wouldn't be in this situation.
@@davidwilliams7552 you are clearly very out of touch with current reality... you cannot afford a normal family home and family on 200k nowadays. The average mortgage in Australia currently will cost you $7600 a month and 200k after tax is $11200. So after food, fuel, insurances, school etc etc... you will not have any money left over. And before you yell send your kids to a public school, like f..k I am, I dont want my kids being taught that they can be any of the 149 genders...
@@davidwilliams7552 : To earn that kind of money you usually have to live in the city. City prices are too expensive. And you said "had" how long ago was that?
Median House Price where I am....$1.3M (bought for $1.2M...12 months ago)
Median Wage.....not exactly sure, but our household is approx $200k pre tax.
Ratio - 6.5x
Now our house is nice and all, but its a standard 4bdrm....2 lounge.....2 bth.....3 car place on a 780m2 block.
This is not what comes to mind when you think $1.2M - $1.3M.
I regret buying my house. I bought it at the end of Covid. My plan was to buy no more than 4.5 times my annual salary at a push. Affordable housing shouldn’t cost more than 3-4 times your annual salary. I had 3 investors wanting to buy it sight unseen. Every other house I looked at I was priced out. Or snapped up by investors. It’s an old Queenslander, old windows, no insulation, cold as an ice box in the winter falls way below the WHO standard of 17 degrees. The value for money is not there I feel I’m wasting my money. Australia has a lot of old stock overpriced housing. Give me brick, insulation and double, triple glazing anyday.
The irony is that it has jumped in price since I bought it. If I won the lottery I’d give it away. Post a Reno and to a family in need to give them a fair go. I bought in a high yield area where properties have gone up 40%-60%. I can’t believe the dog boxes I looked at 3 years ago are now $500 plus. It’s a joke and I feel sorry for anyone at the lower end of the market. When lower end is now half million 😮
I don’t trust new builds as you see and hear so many stories of bad builds, plus the new stock homes are small blocks, dark roofs, no trees, new houses are not built for modern times, wooden frame (likely new timber not aged hard timber ) poor insulation, single pane windows etc.
I realise now to get the home you want that is up to standard ie energy efficient, passive house you need to build it yourself. It’s not affordable for someone like myself in the $400-$600 range. I’m not a tradie and can’t afford or want to afford the inflated trade prices/quotes nowadays
I’ll sell it soon and see what else is available in other areas maybe north QLD.
90%people regret buying
Ispwich?
So sell it.
Many will lose their homes during this pump and dump exercise.
@@twisterli9177 He's most likely under water and stuck with it. Unfortunate.
Nation of renters 🇦🇺
You now need to do a video about the state of Renters in Australia
Rents are outrageously high
People working full-time on average incomes can no longer find a place to rent
Those on lower incomes are in tents or cars.Mass immigration has worsened this problem
Huge lineups at the few rentals that come up.Rent bidding although illegal is still taking place
The vacancy rate in some states is under .5%
Housing is a serious crisis in Australia whether you're renting or looking to buy
@@heatherwatson9564 33% of Australia’s population are renting.
WEF
A lot of people think buying a house far away from city will save them money but the fact is actually will cost them more in long run.
I have a friend who bought a land >2 hours drive from city for cheap but he ended up have to build new house and it cost him a lot of money and poor quality and the total cost with land ended up around 850-900k.
1 year later he moved out because he need to work near city so he rent out his house for cheap and ended up buying a small unit 8Km from city
That makes no sense at all.
@@davidwilliams7552 the cost of labour and material has increase significantly and most of the builder tried to save some money to make some profit so the quality of houses are actually drop significantly and we have a lot of major defects issue in new houses especially in NSW and VIC.
So they bought a cheap land that consider a cheap area but they spent a a lot of money for the cost of building which going to depreciate in value.
This is why a global house market collapse and the first area that are affected are these type of area
Poor grammar
@@tanthaman sorry English it’s not my main language.
Unlike you who is very smart :)
Tax reform is a part of this entire equation as well. We derive more than 60% of all revenue in Australia from 'INDIVIDUAL", tax returns. that pool of individuals is diminishing...successive governments have not and do not tax our resources adequately. Norway Taxes there resources at approximately 80%, their sovereign wealth fund is massive (a country of around 5.5 million people) Qatar receives approximately 29 Billion dollars in tax a year from their Gas resources in Tax (they are the second largest producer of gas in the world, WE ARE THE FIRST) our tax on our gas exports bring in about 1.5 billion.....and leave us with little or no gas for domestic consumption to the point where we will begin to import gas!!!!!! WTF..........
The root of all evil in Australia unproductive taxation.Too many unproductive costs in housing that's why it is so high.
This is true. Not much is ever said about our incredibly wasteful taxation system. We pay insane amounts of tax, and our money is TERRIBLY managed and spent by greedy and clueless policy makers who are out of touch with the average Australian.
Chinese buyers
We can't go backwards now, which is horrible, so can we cap it? No negative gearing, 1 house per person, no investment properties. From now, do it.
It'll go backwards along with the dollar, EVERYTHING is going to get expensive once the chickens come home to roost.
That will literally never happened. In 2016 and 2019 Bill Shorten offered legislation about 20% as radical as you suggested and they were profoundly rejected. We deserve everything we're getting
@@mrsnrub282 No evidence that the Libs one due to those policies. The electorates with the highest numbers of investors actually had swings towards Labor.
Matt, one place to look for why housing is expensive is the CFMEU. It is involved in much of the apartment construction, where even the holder of the lollypop controlling vehicular site entrance and exit is on a base pay of over $130k p.a. plus penalty rates and overtime. That's comparable to the average deputy principal salary in Australia of $137,715 per year and they don't get overtime or penalty rates.
Bollocks
This! When the basic/dumb jobs pay ridiculous $$ how do we expect to encourage innovation and smarts.
@@DeepseaSteve it not it true they push up cost 30% on a build
This is a load of garbage, having worked in construction for many years the wages are not really that high. The media jumps at an hourly rate and thinks that these people are working long hours and that every hour is a penalty rate. You will find most traffic controllers are earning under $80,000 per year.
The media has overexagerated so many salaries. Apparently I was earning 220k according to the media. I was lucky to earn 110k in my trade as a business owner. Dont believe the garbage the media spouts. There is a reason I left construction. Even on the good high rise union jobs, a formworker would average about $100k a year, and to be fair it should be double for the effort and toll it takes on your body.
Thuggery has its benefits.
International students are also a huge money maker for us, but at the cost of having to house them.
The migration scheme is also a huge money maker for the local economy, but at the cost of having to house them.
Make no mistake, international students do not fatten our wallets, it enriches the government coffers.
Us? Us? Where is my cut?
What I find unique about Australia is how expensive the housing is outside the cities. Take Victoria for example: There are a lot of regional areas especially along the coast where people would live but the land is zoned agricultural. Yes you need land to grow food but the sheer magnitude of land devoted to farming right up to the crown land by the beach is just insane. It seems like a case of manufactured scarcity. You could decentralize some of the population but the government doesn't want to do that because they want everyone living on top of one another in the cities. This is intentional policy resulting in everyone fighting over a small area.
Same thing has been happening in Ireland for years now. The government themselves sell and allow big developers to sell huge blocks of housing to foreign investment funds to rent at exorbitant prices. To that add the synthetic inflation of buildings materials being put on the consumer and then some. Owning your own home is more of a dream than a goal these days.
People easily say that reserve banks print money but then don't ask the question - why does government collect taxes?
Ignorance.
So they can spend it. If they just spent without taxing we'd immediately get hyperinflation. We still are getting it a bit because they push it as hard they can, but that is the restraint.
You're looking at it wrong though, if they could they'd take everything and just have you as a slave, all this stuff we're doing is to try to give us some space to live somewhat free of these psychopaths.
So they can spend. They can't just keep adding money to the system without destroying the value of money.
@@stevem815 If the government creates 5 billion dollars today, does the owner of convenience store around the corner increase prices ? Does he even get this news?
@@akj3388 it doesn't matter if he hears about it. More available money competing for the same resources will push up prices. The convenience store man will have his costs increase and will increase his prices to cover them.
What did you think inflation was?
THE MONEY IS BROKEN. There is no store of value in the AUD. It’s debasing due to monetary inflation. House prices are just a symptom of the deeper disease.
The Australian Population from the Australian Bureau of Statistics.
2015: Approximately 23.8 million
2016: Approximately 24.1 million
2017: Approximately 24.6 million
2018: Approximately 25 million
2019: Approximately 25.4 million
2020: Approximately 25.6 million
2021: Approximately 25.7 million
•2022: Approximately 25.7 million
•2023: Approximately 26.8 million
The average house price in Australia in 2015 was approximately $580,000
The average house price in Australia in 2023 was approximately $1,084,855
Did the increase of approximately 3 million in population effect housing prices by 100%
3 million is approximately 11.19% of 26.8 million
10% of the population, so agree you cannot contribute everything to immigration. It's just one of many factors. I suspect the amount of wealth they bring with them would be significantly more than 10%.
Immigration policy also no longer focused on bring in the working poor like post WW2.
Chinese buyers
@user-qm8sc1jr9u nah I believe the actual high-rise property vacancies are fudged to prop up the market for some strategic hidden agenda.
In my cities, a large majority of residential buildings at night are 3/4 lights out. Why I know this, because I live in high rise building looking at at least 20 others
Housing in Australia has been an expensive exercise since 1972 when inflation turned bricks and mortar into a tradable commodity.
In 1984, an 800sq m block in an outer urban subdivision with underground power could be purchased at resale for $20K + $1.5K legal fees. The average cost of building was at a multiplier of 3 for a total of $80K.
The prevailing interest rate was 17% but government legislation put a ceiling on it at 13.5%. The banks cynically limited the housing loan to $50K and offered secured personal loans to cover any shortfall at an extortionate rate of 22%!!!!! The building industry effectively stalled, so the panicked government introduced the much abused ‘First Home Owners Grant’, which merely pushed prices up.
Nowadays, an outer urban block of only 400sq m is at least $500K and the build cost starts at $300K with interest rates which were for some time at an all time low of 2%, now at around 7%, close to the long term average.
So, it was never easy to put a worthwhile roof over one’s head and well nigh impossible for single income families.
We simply had to tighten our belts and suck it up.
A house in Sydney Penrith in the year 2000 was around 150-180k. Very affordable.
If you interested in why this is the case look into the sale of the state banks. In the case of Victoria the state bank was sold to CBA after the tricontinental scandal. Before the retail banks ever handled mortgage lending ... Thanks Joan Kerner.
Did people need to borrow more because house prices went up, or did house prices go up because people we able to borrow more...
Immigration is one of the reasons for house prices but it is not the only reason.
He describes the problems with such clarity. Watching the big TV news channels has taught me nothing about any of this. Almost seems by design.
Watch The Duran to understand what its about! Censorship in Aust is over the top! No more wars for the US!
that’s because it is….
All by design...
"You will own nothing and be happy"
10/10 Clip
Politicians own on average 2.5 homes, why the heck would they do anything to bring property prices down.
We have 7 governments to govern 27,000,000 people, what an absolute Rort that is.
Each retiring on 200K a year for the rest of their life.
It’s criminal.
We need to change the basis of our tax system. We currently tax productivity through income tax, company tax, and GST. We punish productivity.
We need to tax natural resource use be it land value tax or increased resource royalties.
We bought our house for 189k in 1990 now valued at 2.3mil it's still the same house
How is it such a big surprise when you’re paying over $1m for a small 3 bed 1 bath cica1910 red brick house in Sydney. Can nobody see the issue in this
Tax free capital gains is a huge driver.
Tax capital gains made or realised by releasing equity to leverage up and buy more property.
But lower income tax to offset the extra revenue.
That way workers/ contributors will be rewarded as opposed to debt peddlers/ asset owners
Capital gains is already taxed, sounds like you don't know our tax system.
@@WalterSamuelsIt is taxed at a concessional rate. You are being disingenuous.
Honestly housing isn’t what it used to be, the way I look at my life whether it’s right or wrong is that I’d rather live in the moment and not be tied down to a mortgage and be free and enjoy life for all its riches, not everyone lives to 60 but we are sold the idea that we will live until we are old.
Glad you guys are having the real conversations! Bravo! Please continue to have them and call out the perpetrators. As we know the amount of people who understand money is low. We need all of them to have a full understanding of what has gone wrong. The corrupt printing of money and mis management
About time someone talked about this.
Stop Negative Gearing immediately!!!!!
Bill Shorten tried to introduce this reform in 2019 but it came with big backlash from the mainstream media
@@Voyagerthe2nd And the pollies themselves I bet who are fully geared.
Get rid of NEGATIVE GEARING or at least limit it to 2 or 3 properties FFS! Seriously considering leaving this rip off country i was born/raised in for 45 years
Negative gearing is not the problem, and getting rid of it won't be the solution. Do people really think that the reason there is a lack of housing is because an investor can claim a loss on an investment property when the costs of ownership are greater than the income , on their personal income tax bill?
Don't forget that as interest rates rise, more properties will go from being positively geared to negatively geared and vice versa as rates drop. That does not change the underlying cause.
The reason is that governments of all persuasions for decades have restricted the development of green-field sites and NIMBY's have restricted the re-development of inner city and affluent suburbs causing a lack of supply and our high (and now astronomical) immigration rates increases demand further.
@@andyg9991 if negative gearing isn’t a contributing problem then WHY is the house 3 doors up from me gone from being a humble 3 bedroom FAMILY home to being a rebuilt 6 bedroom home Air bnb - now owned by old couple who own 5 other houses that they rent out to rich pricks?! Young families are forced out for the rich negative gearing greedy parasites. Australia is now a housing disaster.
@@andyg9991 then why is the newly built 6 bedroom house up my street becoming an airbnb, which is owned by rich couple with 5 other houses in their name?! They obviously negative gear like greedy parasites. The 6 bedroom house block used to be a modest family 3 bedroom home- the young family were forced to move to even worse home cos of greedy bastards like this.
@@andyg9991Negative gearing is *part* of the problem. Economic analysis has shown this. Google it.
@@andyg9991 WHY should taxpayers have to refund wealthy property investors that are too incompetent to manage to produce a profit from their private investments?!!! It is absolute daylight robbery at federal government level that this is allowed. No wonder first home buyers have no chance in Australia- too many rich pricks outbidding them. Home ownership for wealthy only. Disgusting beyond belief.
All politicians are multiple property owners. They own at least one property in their electorates and one property nearer to parliament either in Canberra or in one of the state capitals. Politicians have personal and vested interests in keeping housing prices high (and wages low)
I’m saving $1000 a month at the moment to build up a deposit…… at this rate I would need to save up for 10 years. Even though the $1800 I spend on rent a month would cover my repayments easily and if I chipped in that extra $1000 I would have it paid down in 10 years
I lived in Sydney for 20 years.. it became a joke tbh.. overpriced and too busy.
My family left Sydney in 2000 because even then it was ridiculous - was last there in 2019 and it took 30 mins to drive from Wahroonga train station to my Aunts' house less than 5km away on a Fri afternoon. It will always hold a place in my heart and is arguably the best looking city in the world, but Sydney peaked in the 00's and died in 2014.
Chinese buyers
Chinese buyers
It's a tad sensationalist to claim that house prices have risen by 86 times in the last 60 years. The houses we build now are nothing like they were 60 years ago. They are much bigger and more elaborate, built on scarcer land, with many amenities not even invented 60 years ago. Houses have a lifetime of 40 years according to the tax office's 2.5% linear depreciation allowance for investment properties, so most would have been replaced or renovated over that 60 years. 86 times would be a compound growth rate of 7.6%, which aligns exactly with my experience owning our previous Sydney home for 24 years from brand new without renovation and close to the average stock price appreciation over that period. Long may that continue, as CGT-free house price growth and concessionally taxed stock price appreciation via superannuation is how I could afford to retire.
The cost of land in the outer suburbs of Melbourne , 300k for 250sqm lol , can't even grow a tree , no back yard . Flood the market with cheap land and the price of housing will come down .
As of June 24 prices set to rise in Perth by 15% this year. All other capital cities by at least 10%.