When you work on something that only has the capacity to make you 5 dollars, it does not matter how much harder you work - the most you will make is 5 dollars.
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
I’m listening to this in my freezing cold rental. The rent just got put up to 500 per week and I’m pretty sure it’s because my landlord was stealing my recycling bin and returning it full of rubbish. I chained it up and in return copped a rent increase. Life is so good in Australia.
One rental I lived in, they didn't even have bins and told us to use the public bins on the street for pedestrians. I had to harass the council for weeks and weeks to get some and then he threatened to pass along any fines he got regarding the bins.
Thankyou so much for caring enough to do this discussion panel. I am shocked to hear rentals in 10% a year. There are 2 problems here which are dependent variables. We need to fix the root causes. 1st vacancy rates at 1%( 0.5% where i am atm), 2nd affordability of rentals and homes. Prices will never be wound back, the only way to fix this now is to increase wages by 10% a year for next 10 yrs. But also to put housing in the cpi basket. Because the real root cause cpi didn't include housing, our wages would have kept up if it had been. Ans also politicians would have been forced to fix the issue businesses would have complained. Cpi 13% imagine buts it's the truth. To address shortages we need to be honest about immigration, it needs to go back to a sustainable 100k and left there forever. We need to train our people , invest in our people. Having shortages drives priorities of work as a country, when wages go up people go into areas to earn more money. It also puts the brakes on overheated parts of the economy. The government should plan this properly. Like stopping major building projects so builders can go back to building houses etc.
The roots of the housing crisis is gov deliberately stoped building social housing to deliberately drive up the cost of a home. Then blow smoke so intelligent people can say all the problems with housing and not say the one real factor in there comments... Social housing
Renting is crazy.. home owners have no idea what the real Australia is.. 2 years flushing my toilet with a bucket as eolid. Waste would not go down otherwise.. 3 kids 2 parents 450 a week. Doors locked with sticks no working toilet..real Australia
So we are having 100s of discussions on this topic and we know the problem is govt taxes that are more for investors, as a voter who doesn't like what my govt is doing , where can you report it and how can we all sign it so we make sure the tax system around housing for investors is changed.Its time to take action as citizens, please let me know my rights
Find and contact your local state and federal reps. Tell them what you want and tell them what you will do if they don't push for it. Downside is that no politician is accountable to their word so they could say anything and do the opposite.
The more we write to our local, state and federal MPs the more it will become a national issue and the more likely that tax reform will become an election issue and one that wins the government the election. In 2019, Bill Shorten campaigned on reforming negative gearing and capital gains tax and he lost. This is because lobby groups, corporates, news media and opposing politicians banded together to scare the average Joe that the reforms would be bad for them. If Shorten had of won, we might not having this discussion right now and house prices and rental prices may not have become as unaffordable as they are.
If you cut imagration end negative gearing. Abolish capital gains tax what 10% drop in house prices? Is that your goal? Make hoseing 10% more affordable? Social housing on a massive scale like we did in the 40s 59s 60s 70s and into t e 80s. You know the highest point of our civilization
29:26 its explained how tax reform can reduce competition at auctions thus reducing prices... Ok labors help to by plan will put more ppl at actuions that were priced out.. but the gratin intatuis says it will not drive up price,,,, how can both be true
I am interested in how the government "solution" involves butchering zoning and forcing inner suburbs of Sydney,for example, to build UP - MORE STOREYS but no thought is given to the impact of building up on cars traffic and parking - given the terrible public transport system. No feasibility or environmental impact studies taken into account. Just profits and removal of obstacles for developers. I'd be interested to know what the **actual** vacancy rate is - how many homes hijacked by Air BnB etc
Sydney is working on the public transport and it's already pretty good anyway. Pretending that public transport is no good until you can be dropped off in your own bedroom at a moments notice is peak car brain.
@@Tasmantorspeak for yourself buddy. Pre-covid a train would arrive at Parramatta going to Central and you couldn't even get on the bloody thing because it was so packed out to the doors. Andrew Constance, the former NSW Liberal transport minister, ordered foreign trains that couldn't fit through tunnels, ferries that couldn't fit under bridges and trams with fractured chassis and different gauges. The trains barely run in the heat or in the wet either
I love the discussion only I would like to see people on different sides of the fence. Now it felt a bit like a one sided complain session without seeing the concequences of the ideas brought up.
As a single parent currently renting and struggling to find suitable work that actually covers bills and allows me to raise my child, I’m so glad this discussion is being had and wholeheartedly agree with the taking of land that is vacant is absolutely warranted, housing is a need as we humans will die without it and as such it should be incredibly hard to get a second property and near impossible to get anything more…….it’s absolutely shameful that as someone who has had to rebuild my life after the loss of a spouse that I cannot find secure housing or a job due to discrimination and the poor policies surrounding them, I voted labor cause I thought they cared, I can now say that I have wasted my vote and as I watch the current party tiptoe around applying bandaids to a serious problem my anger grows, I’m always stressed and every day is full of worry for my child’s future as mine has been taken from me to fuel others greed. Also can I just add that the word landlord shouldn’t apply, these people are scalpers.
@@InfinityIsland2203ever heard of the Streisand effect? This video has 900 views might not seem like much but thats 900 people who’ve watched it, that means there are people discussing the problem, thats means others will talk about it and it’ll snowball from there, I have done everything I can to improve my situation….there is nothing more I can do so don’t try to put it back on me and tell me to “take action” cause I’ve taken all the action I can. If we don’t have these talks we don’t make progress that’ll improve situations like mine, we simply need to have these discussions regardless of how pointless they seem, and if just one person who watches this talks to their local representative then thats more progress in 30yrs than has ever been done.
At the basic level people are wired to find shelter, water and food. If it isn't provided then they will do whatever they need to do to gain it for themselves. If we don't have some drastic solutions provided, the chaos that will ensue from the Australian Property Market will dwarf the pain of correcting housing prices and bringing rents back to affordable levels. Priority One - Rental Cap Implementation, Negative Gearing has to go. No more foreign investment in the Australian Housing Market.
easy fix to fill empty houses. deem them to be let and tax them accordingly eg. an empty house could get $800/ wk in the market, so the tax office says that the house is deemed to have earned $40000 for the year and taxes the owner for that income. Deeming has been used against pensioners for years. But of course it is politically dangerous.
To answer the first question about depreciating of houses and demolishing, if we consider the broad spectrum of issues confronting humanity, knocking down housing that has a much longer useful life ahead of it is an enormous waste of resources and is unsustainable given the pollution produced in manufacturing the goods needed to build a new dwelling. If it leads to significantly more denser housing so that the net environmental impact is positive over say a 10 year period, then that is different, but I see an awful lot of housing being demolished simply to build more single family homes (mind you, with smaller average sized families than would have lived in the demolished house). The example given is a car and that is true of that good when it is more about unsustainable overconsumption through demonstration of status above the necessity of travel to and from necessary tasks (work, shopping, education, etc). In both cases there should be government intervention to input appropriate price signals that accurately reflect the true impact on the environment of demolishing or onselling goods that still have much more useful life (i.e. huge imposts on demolition of single family homes replaced by single family homes). This area actually extends to all household goods - just take a look around at annual kerb collections - and this is an area of low hanging fruit that really needs more consideration and action...
Well @Tasmanator, if you place a very high tax on those who demolish a single family to replace it with another, that tax could be completely assigned to providing social housing... so potentially it could do a great deal
With the decline in manufacturing in Australia over the last 40 years, the housing industry has, in my view, become the de facto barometer of economic health in the country. But over that same period, state governments started to eviscerate their public housing sector, which had been a crucial component of lower income families being able to buy secure housing. I know, because I grew up in a house bought from the SA Housing Trust in a suburb of housing trust houses. My father drove a truck, the neighbour worked at Kilkenny for the SA Railways (another casualty of Neo-liberal policies). But despite being working class, they could put a roof over their families' heads, we had enough food on the table and we got a decent education - basic things that all radiated out from having a stable and affordable place to live. But because of the importance of the housing industry, government policies for decades have been focused on a simple premise - house prices rising is a good thing, if not the best of things and a fall in housing prices would be economic Armageddon. But along the way housing has morphed from a place where a family lives to an investment asset and has become a huge part of our obsession with our "personal brand" and the need for "a statement house". It is also a vital plank of bank profits. The factors that have led us to this crisis are numerous (including, but not limited to Howard's changes to the CGT discount, foreign buyers, [often using laundered money] first home grants, the death of large scale public housing, the growing power of developers and their influence at all levels of government, the main residence exemption that encourages flipping ......). Removing negative gearing and addressing serious flaws in the way the main residence exemption applies are not the total solution, but they will be a very, very good starting point. Sadly, the reality is governments of both sides are more focused on appearing to do "stuff "and saying they "get the stress people are under" and not genuinely addressing the structural issues of housing affordability. The focus shifts to "supply" instead of problems with demand when demand is the thing that has been artificially stimulated by poor or no policy framework (including very generous and costly tax incentives and subsidies) and supply is the message those who profit from high housing prices want the government to promote. It's the same when governments promote carbon capture and storage on behalf of a fossil fuel sector that already knows CCS is an expensive flop, but need something simple that sells the message we can live with high levels of fossil fuel consumption.
Im a millennial and was lucky enough to have couched surfed in 2007-2008 and since then I save and eventually made enough to put a big deposit down on a 400k house in a low SES area and pay it off in under 4 years (by end of year). i plan to build a granny flat in the back yard to help the rental situation. i would love to see the numbers of granny flats being sold as houses lag the objective targets, GFs seem to be a far quicker solution to the housing issue. i did consider buying an investment property, however I don't want to live on $350 to 400 a week for food, bills and leisure for ever. I've done that for 15 years..
At 52min - How are policies going to affect rich ppl other than make them profit? Maybe need to build a movement of renters and block of renter voters - w independent candidates if necessary.
John Howard's GST and CGT caused the rot. Inteoduction of CGT pushed up the cost of housing. Basic Human right was never meant to be a commodity. NG and it's associated participants - regulators, financial institutes, lawyers, accountants and landlords - have vacated duty of care. Conflict of Interest by Politicians, Executive level of Government and staff at Federal, State & Local Government is rampant. Self funded retirees 'bullshit' its all taxpayer funded in addition to other offsets that are tax deductible, so three bites of the cherry.
At the risk of being pedantic it is the capital gains tax discount (combined with negative gearing) that is the problem rather than introduction of a capital gains tax discount. I would say it is a big part of the problem but not the only one. Another one is net immigration levels. One is what the left blames. One is what some of the right blames (if they admit the obvious problem). Actually both are big factors.
Wow. An hour conversation about the government vs landloards but nothing on the banks who lend the money if people are overleveraged banks did it. Before you get a loan the bank values it. You can't independently value a home the bank does an each bank has there own valueing company. If borrowers can't pay the loan they still win!.
Banking is a problem no doubt but they aren't driving the market just serving it. The capital gains concession and negative gearing are what makes housing attract the money.
@Tasmantor don't just say key words explain your position. I own my home an I got pre approval for another. Cost me 25k +15 first home owners an 10k lmi built for 365. I get it revalued at todays price at 570k I can redraw back down to 20% of house value not pay lmi again. So 570 - 365 = 205k I keep 114k in the house I can use 91k to buy a house. If I buy in Toowoomba house price is about 600k I only need 12.5k that's 75k an 10lmi so 85k total. Give it a year an I could do it again I can leverage banks money at nearly no cost to myself! That's before you add capital gains or negative gearing. Why can I get more money from the bank? if you want real change that could be pushed for ALL people who buy ppor houses they should need 10%. If your buying investment or a second home the bank shouldn't lend to you unless you have 40% downpayment cash not equity. They keep leveraging debt an making more money of debt it's going to collapse the economy, and they don't care as long as they profit!
I despise the wealthy but i dont understand how investment demand is driving price's higher? If thats true would it not drive rents down? Also uour solution to reduce demand is tax? Not imagration? If you cannot have a political talk about imagration not an emotional one how are we to learn how to talk about it responsibility
When do the solutions start? Anyone got a timestamp? Im 10mins in and I cant just keep listening to how shit it all is. I know how shit it is, I've lived it.
Surely, a root cause of the crisis is the torrent of subsidies to higher house price speculators, such as the Negative Gearing Benefits (NGB) and the Capital Gains Tax Discount Benefits (CGT). The NGB is currently @ $24 billion annually, whilst the CGT is $1 billion annually. Total: $25 billion annually ($25,000,000,000.00 annually) or more than $2 billion monthly. To qualify for these benefits, no new dwellings need to be built. These are huge subsidies to price speculators speculating up prices of existing dwellings and hardly building new dwellings. Imagine if, instead of the NGB and CGT, $25 billion (annually) were applied to the supply side by way of building new public housing stock. That would be enough to build 25,000 one-million dollar homes or 50,000 half-million dollar homes yearly, every year! And it would cost the system no more than the current NGB and CGT. The numbers above suggest that the root cause of the housing crisis are the major subsidies to higher house price speculators without any requirement to build new homes. It also indicates that the necessary money is already in the system to solve the crises; it is just that government taxation policy applies the money *$25 billion annually* to aggravate the problem rather than solve it.
Our news media promote one sided issues so effectively that a conversation ends up like "ships passing in the night", after one of them has hit the iceberg. The heirachy of institutions of all sorts and type are infiltrated by natural born humanity of typical mono-dualistic, multi faceted adaptations to encountered circumstances. If you grow up in **it it's obviously not obvious. The use of religion for conquest and missionary conversion to cultural obedience, was always a standard topic of student inquiry once-upon-a-time in universal conscious awareness. Without the First Principle Observation and re-cognition of Actuality, holographic positioning presence nucleation, we live in the context of trivial zeros, fantasy, and likely seeming narratives are just unsubstantiated b-s. (Eg, taxing extraction industries will prevent eventual destruction of our human environment) Look for the real-time Absolute Zero-infinity reference-framing reason why the trivial denial of a solution to a problem is No-thing-defined half-witnessed deliberate ignorance of self educated responsibility, ie the kind of knowledge required to justify the expense of Democracy with paid Representatives of the fundamental issues of, by, for people.
Residential property should NOT be owned by overseas buyers. That has been one of the biggest causes of creating a shortage, driving up prices and taking property ownership out of the hands of Australians. This is an easy fix and could be done in a very short space of time. It is also a vote winner as those forced to sell up, are not Australian voters.
This is a bogus story, only a tiny fraction is owned by foreigners, they need to apply to Foreign Investment Review Board and be new dwellings. They also need to pay a tax on properties vacant over 6 mths that Australians don't have to pay. It's just dog-whistling to suggest that anyone not white enough buying houses is a foreigner and not a resident and citizen. It is overwhelmingly boomer and older Australians who have investment properties that receive massive tax concessions like CGT and NG, that profit from massive profits and treat other Australian's right to housing with contempt. Useless govts also abandoning building public and social housing
@@peter1448well said, they are highlighting things that are not the problem at all but the taxes are.people are buying homes and homes only to save taxes, that is swiped under the rug.
It’s more sound to give investors a little tax break rather than increase every tax payers contributions to build social housing. It’s really not the investors who are creating a housing crisis as they are a small part of the population. Economically speaking it is way more complex than what is being discussed.
@@LukeWinter-kr9vn This is ridiculous, giving tax breaks to older wealthier generations for investing in already existing real estate is non-productive crap that does nothing useful. The stupidity of the situation is in your answer, a small proportion of investors with multiple properties is holding younger generations to ransom and worsening social equity. Greed of the few should not be financed by the many mostly younger generations
Australia desperately needs a REAL DEMOCRATIC political party that is trusted and can defeat the combined efforts of LNP/Labour/Murdoch/Large Corporates from their planned corruption of Australian society and business.
Sell all public housing houses emerton and whalan and bidwill and airds to private and use the money to build apartments 200 000 metres in the air like every other country does for public housing
"Rich" people don't make Laws. Your anger is misplaced. Blame Government policies please. Infrastructure building is driving up labour costs and taking away workers for home builders. Blame the Government for 1.2m immigration over the past 2 years. Many invest in housing primarily to get a tax break. If personal tax rates were not as high, many investors wouldn't bother with housing. Blame Government policies. Investors can borrow at lower interest rates for housing. Rates are about 3%+ higher to invest in shares or commercial property. And the LVR is much higher for shares or commercial property investment.
![ไข้ขึ้นเลย! เมื่อแฝดโดนจัดเต็มวัคซีนครบ2เดือน🤒 [cc] แดนแพทตี้ SS2 | EP.54 |](http://i.ytimg.com/vi/z2VHItnyyvY/mqdefault.jpg)
When you work on something that only has the capacity to make you 5 dollars, it does not matter how much harder you work - the most you will make is 5 dollars.
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian C Nelson.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.
I’m listening to this in my freezing cold rental. The rent just got put up to 500 per week and I’m pretty sure it’s because my landlord was stealing my recycling bin and returning it full of rubbish. I chained it up and in return copped a rent increase.
Life is so good in Australia.
LOL GO TO CHINA
One rental I lived in, they didn't even have bins and told us to use the public bins on the street for pedestrians. I had to harass the council for weeks and weeks to get some and then he threatened to pass along any fines he got regarding the bins.
@@rmtsapphire0 NO CHINESE MONEY TO SAVE THIS RECESSION
@@lovechineseforever9434 wtf are you on about
3rd world free society wooo
Thankyou so much for caring enough to do this discussion panel. I am shocked to hear rentals in 10% a year. There are 2 problems here which are dependent variables. We need to fix the root causes. 1st vacancy rates at 1%( 0.5% where i am atm), 2nd affordability of rentals and homes. Prices will never be wound back, the only way to fix this now is to increase wages by 10% a year for next 10 yrs. But also to put housing in the cpi basket. Because the real root cause cpi didn't include housing, our wages would have kept up if it had been. Ans also politicians would have been forced to fix the issue businesses would have complained. Cpi 13% imagine buts it's the truth. To address shortages we need to be honest about immigration, it needs to go back to a sustainable 100k and left there forever. We need to train our people , invest in our people. Having shortages drives priorities of work as a country, when wages go up people go into areas to earn more money. It also puts the brakes on overheated parts of the economy. The government should plan this properly. Like stopping major building projects so builders can go back to building houses etc.
Absolutely agree
The roots of the housing crisis is gov deliberately stoped building social housing to deliberately drive up the cost of a home. Then blow smoke so intelligent people can say all the problems with housing and not say the one real factor in there comments... Social housing
I like that Young lawyer socialist very much. But i wish he explained why homes are empty? They can fet so much rent
If you're goal is to drop house prices by 10% talk tax reform... If your goal is 500% or 1000% talk social housing
Renting is crazy.. home owners have no idea what the real Australia is.. 2 years flushing my toilet with a bucket as eolid. Waste would not go down otherwise.. 3 kids 2 parents 450 a week. Doors locked with sticks no working toilet..real Australia
So we are having 100s of discussions on this topic and we know the problem is govt taxes that are more for investors, as a voter who doesn't like what my govt is doing , where can you report it and how can we all sign it so we make sure the tax system around housing for investors is changed.Its time to take action as citizens, please let me know my rights
Find and contact your local state and federal reps. Tell them what you want and tell them what you will do if they don't push for it.
Downside is that no politician is accountable to their word so they could say anything and do the opposite.
The more we write to our local, state and federal MPs the more it will become a national issue and the more likely that tax reform will become an election issue and one that wins the government the election. In 2019, Bill Shorten campaigned on reforming negative gearing and capital gains tax and he lost. This is because lobby groups, corporates, news media and opposing politicians banded together to scare the average Joe that the reforms would be bad for them. If Shorten had of won, we might not having this discussion right now and house prices and rental prices may not have become as unaffordable as they are.
If you cut imagration end negative gearing. Abolish capital gains tax what 10% drop in house prices? Is that your goal? Make hoseing 10% more affordable? Social housing on a massive scale like we did in the 40s 59s 60s 70s and into t e 80s. You know the highest point of our civilization
5 times cheeper homes more ok tem times cheeper
29:26 its explained how tax reform can reduce competition at auctions thus reducing prices... Ok labors help to by plan will put more ppl at actuions that were priced out.. but the gratin intatuis says it will not drive up price,,,, how can both be true
I am interested in how the government "solution" involves butchering zoning and forcing inner suburbs of Sydney,for example, to build UP - MORE STOREYS but no thought is given to the impact of building up on cars traffic and parking - given the terrible public transport system. No feasibility or environmental impact studies taken into account. Just profits and removal of obstacles for developers. I'd be interested to know what the **actual** vacancy rate is - how many homes hijacked by Air BnB etc
Sydney is working on the public transport and it's already pretty good anyway. Pretending that public transport is no good until you can be dropped off in your own bedroom at a moments notice is peak car brain.
@@Tasmantorspeak for yourself buddy. Pre-covid a train would arrive at Parramatta going to Central and you couldn't even get on the bloody thing because it was so packed out to the doors. Andrew Constance, the former NSW Liberal transport minister, ordered foreign trains that couldn't fit through tunnels, ferries that couldn't fit under bridges and trams with fractured chassis and different gauges. The trains barely run in the heat or in the wet either
I love the discussion only I would like to see people on different sides of the fence. Now it felt a bit like a one sided complain session without seeing the concequences of the ideas brought up.
As a single parent currently renting and struggling to find suitable work that actually covers bills and allows me to raise my child, I’m so glad this discussion is being had and wholeheartedly agree with the taking of land that is vacant is absolutely warranted, housing is a need as we humans will die without it and as such it should be incredibly hard to get a second property and near impossible to get anything more…….it’s absolutely shameful that as someone who has had to rebuild my life after the loss of a spouse that I cannot find secure housing or a job due to discrimination and the poor policies surrounding them, I voted labor cause I thought they cared, I can now say that I have wasted my vote and as I watch the current party tiptoe around applying bandaids to a serious problem my anger grows, I’m always stressed and every day is full of worry for my child’s future as mine has been taken from me to fuel others greed.
Also can I just add that the word landlord shouldn’t apply, these people are scalpers.
And they still ask you to pay taxes , how shameful is that
@@InfinityIsland2203ever heard of the Streisand effect?
This video has 900 views might not seem like much but thats 900 people who’ve watched it, that means there are people discussing the problem, thats means others will talk about it and it’ll snowball from there, I have done everything I can to improve my situation….there is nothing more I can do so don’t try to put it back on me and tell me to “take action” cause I’ve taken all the action I can.
If we don’t have these talks we don’t make progress that’ll improve situations like mine, we simply need to have these discussions regardless of how pointless they seem, and if just one person who watches this talks to their local representative then thats more progress in 30yrs than has ever been done.
At the basic level people are wired to find shelter, water and food. If it isn't provided then they will do whatever they need to do to gain it for themselves.
If we don't have some drastic solutions provided, the chaos that will ensue from the Australian Property Market will dwarf the pain of correcting housing prices and bringing rents back to affordable levels. Priority One - Rental Cap Implementation, Negative Gearing has to go. No more foreign investment in the Australian Housing Market.
easy fix to fill empty houses. deem them to be let and tax them accordingly eg. an empty house could get $800/ wk in the market, so the tax office says that the house is deemed to have earned $40000 for the year and taxes the owner for that income. Deeming has been used against pensioners for years. But of course it is politically dangerous.
Wealthy people just deduct losses against tax - $10k empty land tax will just be wiped out with a $10k fence for the property.
To answer the first question about depreciating of houses and demolishing, if we consider the broad spectrum of issues confronting humanity, knocking down housing that has a much longer useful life ahead of it is an enormous waste of resources and is unsustainable given the pollution produced in manufacturing the goods needed to build a new dwelling. If it leads to significantly more denser housing so that the net environmental impact is positive over say a 10 year period, then that is different, but I see an awful lot of housing being demolished simply to build more single family homes (mind you, with smaller average sized families than would have lived in the demolished house). The example given is a car and that is true of that good when it is more about unsustainable overconsumption through demonstration of status above the necessity of travel to and from necessary tasks (work, shopping, education, etc). In both cases there should be government intervention to input appropriate price signals that accurately reflect the true impact on the environment of demolishing or onselling goods that still have much more useful life (i.e. huge imposts on demolition of single family homes replaced by single family homes). This area actually extends to all household goods - just take a look around at annual kerb collections - and this is an area of low hanging fruit that really needs more consideration and action...
That's all good stuff but how many people won't have to be homeless because we tackled over consumption?
Well @Tasmanator, if you place a very high tax on those who demolish a single family to replace it with another, that tax could be completely assigned to providing social housing... so potentially it could do a great deal
With the decline in manufacturing in Australia over the last 40 years, the housing industry has, in my view, become the de facto barometer of economic health in the country. But over that same period, state governments started to eviscerate their public housing sector, which had been a crucial component of lower income families being able to buy secure housing. I know, because I grew up in a house bought from the SA Housing Trust in a suburb of housing trust houses. My father drove a truck, the neighbour worked at Kilkenny for the SA Railways (another casualty of Neo-liberal policies). But despite being working class, they could put a roof over their families' heads, we had enough food on the table and we got a decent education - basic things that all radiated out from having a stable and affordable place to live. But because of the importance of the housing industry, government policies for decades have been focused on a simple premise - house prices rising is a good thing, if not the best of things and a fall in housing prices would be economic Armageddon. But along the way housing has morphed from a place where a family lives to an investment asset and has become a huge part of our obsession with our "personal brand" and the need for "a statement house". It is also a vital plank of bank profits. The factors that have led us to this crisis are numerous (including, but not limited to Howard's changes to the CGT discount, foreign buyers, [often using laundered money] first home grants, the death of large scale public housing, the growing power of developers and their influence at all levels of government, the main residence exemption that encourages flipping ......). Removing negative gearing and addressing serious flaws in the way the main residence exemption applies are not the total solution, but they will be a very, very good starting point. Sadly, the reality is governments of both sides are more focused on appearing to do "stuff "and saying they "get the stress people are under" and not genuinely addressing the structural issues of housing affordability. The focus shifts to "supply" instead of problems with demand when demand is the thing that has been artificially stimulated by poor or no policy framework (including very generous and costly tax incentives and subsidies) and supply is the message those who profit from high housing prices want the government to promote. It's the same when governments promote carbon capture and storage on behalf of a fossil fuel sector that already knows CCS is an expensive flop, but need something simple that sells the message we can live with high levels of fossil fuel consumption.
Yep, great comment
Im a millennial and was lucky enough to have couched surfed in 2007-2008 and since then I save and eventually made enough to put a big deposit down on a 400k house in a low SES area and pay it off in under 4 years (by end of year). i plan to build a granny flat in the back yard to help the rental situation. i would love to see the numbers of granny flats being sold as houses lag the objective targets, GFs seem to be a far quicker solution to the housing issue.
i did consider buying an investment property, however I don't want to live on $350 to 400 a week for food, bills and leisure for ever. I've done that for 15 years..
Tiny Homes will boom soon. Container homes as well.
Economic investigator Frank G Melbourne Australia is following this very important issue cheers Frank 😊
You again? 😂😂😂
At 52min - How are policies going to affect rich ppl other than make them profit? Maybe need to build a movement of renters and block of renter voters - w independent candidates if necessary.
John Howard's GST and CGT caused the rot. Inteoduction of CGT pushed up the cost of housing.
Basic Human right was never meant to be a commodity.
NG and it's associated participants - regulators, financial institutes, lawyers, accountants and landlords - have vacated duty of care.
Conflict of Interest by Politicians, Executive level of Government and staff at Federal, State & Local Government is rampant.
Self funded retirees 'bullshit' its all taxpayer funded in addition to other offsets that are tax deductible, so three bites of the cherry.
At the risk of being pedantic it is the capital gains tax discount (combined with negative gearing) that is the problem rather than introduction of a capital gains tax discount. I would say it is a big part of the problem but not the only one. Another one is net immigration levels. One is what the left blames. One is what some of the right blames (if they admit the obvious problem). Actually both are big factors.
Wow. An hour conversation about the government vs landloards but nothing on the banks who lend the money if people are overleveraged banks did it. Before you get a loan the bank values it. You can't independently value a home the bank does an each bank has there own valueing company. If borrowers can't pay the loan they still win!.
When u can continue to pull equity from home the secure loans to buy more homes with rent bearly covering it. The bankers are the issue yet again
Banking is a problem no doubt but they aren't driving the market just serving it. The capital gains concession and negative gearing are what makes housing attract the money.
@Tasmantor don't just say key words explain your position. I own my home an I got pre approval for another. Cost me 25k +15 first home owners an 10k lmi built for 365. I get it revalued at todays price at 570k I can redraw back down to 20% of house value not pay lmi again. So 570 - 365 = 205k I keep 114k in the house I can use 91k to buy a house. If I buy in Toowoomba house price is about 600k I only need 12.5k that's 75k an 10lmi so 85k total. Give it a year an I could do it again I can leverage banks money at nearly no cost to myself! That's before you add capital gains or negative gearing. Why can I get more money from the bank? if you want real change that could be pushed for ALL people who buy ppor houses they should need 10%. If your buying investment or a second home the bank shouldn't lend to you unless you have 40% downpayment cash not equity. They keep leveraging debt an making more money of debt it's going to collapse the economy, and they don't care as long as they profit!
I despise the wealthy but i dont understand how investment demand is driving price's higher? If thats true would it not drive rents down? Also uour solution to reduce demand is tax? Not imagration? If you cannot have a political talk about imagration not an emotional one how are we to learn how to talk about it responsibility
If the rental are empty why ?
When do the solutions start?
Anyone got a timestamp?
Im 10mins in and I cant just keep listening to how shit it all is.
I know how shit it is, I've lived it.
Surely, a root cause of the crisis is the torrent of subsidies to higher house price speculators, such as the Negative Gearing Benefits (NGB) and the Capital Gains Tax Discount Benefits (CGT). The NGB is currently @ $24 billion annually, whilst the CGT is $1 billion annually. Total: $25 billion annually ($25,000,000,000.00 annually) or more than $2 billion monthly. To qualify for these benefits, no new dwellings need to be built. These are huge subsidies to price speculators speculating up prices of existing dwellings and hardly building new dwellings. Imagine if, instead of the NGB and CGT, $25 billion (annually) were applied to the supply side by way of building new public housing stock. That would be enough to build 25,000 one-million dollar homes or 50,000 half-million dollar homes yearly, every year! And it would cost the system no more than the current NGB and CGT. The numbers above suggest that the root cause of the housing crisis are the major subsidies to higher house price speculators without any requirement to build new homes. It also indicates that the necessary money is already in the system to solve the crises; it is just that government taxation policy applies the money *$25 billion annually* to aggravate the problem rather than solve it.
Our news media promote one sided issues so effectively that a conversation ends up like "ships passing in the night", after one of them has hit the iceberg.
The heirachy of institutions of all sorts and type are infiltrated by natural born humanity of typical mono-dualistic, multi faceted adaptations to encountered circumstances. If you grow up in **it it's obviously not obvious.
The use of religion for conquest and missionary conversion to cultural obedience, was always a standard topic of student inquiry once-upon-a-time in universal conscious awareness.
Without the First Principle Observation and re-cognition of Actuality, holographic positioning presence nucleation, we live in the context of trivial zeros, fantasy, and likely seeming narratives are just unsubstantiated b-s. (Eg, taxing extraction industries will prevent eventual destruction of our human environment)
Look for the real-time Absolute Zero-infinity reference-framing reason why the trivial denial of a solution to a problem is No-thing-defined half-witnessed deliberate ignorance of self educated responsibility, ie the kind of knowledge required to justify the expense of Democracy with paid Representatives of the fundamental issues of, by, for people.
The short term answer is simple - cut immigration.
Too many fingers in the pie,estate agents,state and federal Governments, conveyancers etc.
Residential property should NOT be owned by overseas buyers. That has been one of the biggest causes of creating a shortage, driving up prices and taking property ownership out of the hands of Australians. This is an easy fix and could be done in a very short space of time. It is also a vote winner as those forced to sell up, are not Australian voters.
This is a bogus story, only a tiny fraction is owned by foreigners, they need to apply to Foreign Investment Review Board and be new dwellings. They also need to pay a tax on properties vacant over 6 mths that Australians don't have to pay. It's just dog-whistling to suggest that anyone not white enough buying houses is a foreigner and not a resident and citizen.
It is overwhelmingly boomer and older Australians who have investment properties that receive massive tax concessions like CGT and NG, that profit from massive profits and treat other Australian's right to housing with contempt.
Useless govts also abandoning building public and social housing
@@peter1448well said, they are highlighting things that are not the problem at all but the taxes are.people are buying homes and homes only to save taxes, that is swiped under the rug.
It’s more sound to give investors a little tax break rather than increase every tax payers contributions to build social housing. It’s really not the investors who are creating a housing crisis as they are a small part of the population. Economically speaking it is way more complex than what is being discussed.
@@LukeWinter-kr9vn This is ridiculous, giving tax breaks to older wealthier generations for investing in already existing real estate is non-productive crap that does nothing useful.
The stupidity of the situation is in your answer, a small proportion of investors with multiple properties is holding younger generations to ransom and worsening social equity.
Greed of the few should not be financed by the many mostly younger generations
@@InfinityIsland2203 yes agree, that is a big issue that not many people recognise.
Australia desperately needs a REAL DEMOCRATIC political party that is trusted and can defeat the combined efforts of LNP/Labour/Murdoch/Large Corporates from their planned corruption of Australian society and business.
Sell all public housing houses emerton and whalan and bidwill and airds to private and use the money to build apartments 200 000 metres in the air like every other country does for public housing
👏👏👏👏👏👏👏👏
"Rich" people don't make Laws. Your anger is misplaced. Blame Government policies please.
Infrastructure building is driving up labour costs and taking away workers for home builders. Blame the Government for 1.2m immigration over the past 2 years.
Many invest in housing primarily to get a tax break. If personal tax rates were not as high, many investors wouldn't bother with housing. Blame Government policies.
Investors can borrow at lower interest rates for housing. Rates are about 3%+ higher to invest in shares or commercial property. And the LVR is much higher for shares or commercial property investment.
It wealth that Max's laws not leaders not income.. it's wealty
need to make it a crime for crap rentals
Only immigrants can improve Lithgow and penrith and whalan and mt druitt and airds and emerton