Thanks Greg for pointing out starting under LNP Howard. I will go further by saying Imagration dressed as Education like Subsidisation dressed as Privatisation. This all played into the rise of Labour Hire companies where Uni students get their jobs from. Unfortunately my recent visit to Sydney showed how reliant we are on immigration now.
We need to reform our financial system if we want to make houses affordable again. How our financial sector is regulated is a very important but poorly understood topic. Changes to the way our financial sector was regulated had very serious and detrimental impacts to our country, albeit it has taken a number of decades for these impacts to be felt. Clearly this topic is a question of degree. You don’t too much regulation but at the same time you don’t want reckless behaviour that ends up in markets crashing or an uneven playing field. Three areas where financial deregulation failed in the 1980’s are: 1) The complete lifting of capital controls. In 1985, the major banks had $8 billion in foreign debt. By 2008 the major banks had $800 billion in foreign debt. Most of this money was lent against housing causing house prices to rise to 12/13 times average earnings up from 4/5 times earnings. This meant two parents had to go back to work which created the institutionalised child care sector. This is turn lead to a decline in education levels. 2) Derivatives no longer had to be hedged. This meant that financial speculators (using your superannuation) sitting in their inner city ivory palaces could control the price of commodities and metals rather than producers and consumers. This caused greater volatility in the markets and drove smaller players out of the market allowing big players to get a larger share of the market and ultimately profits. Many of these players were foreigners who displaced Australian producers. 3) State banks were allowed to engage in merchant banking. This was reckless to say the least. As a result, both the State Bank of Victoria and SA collapsed because they were allowed to engage in high risk lending that a decade before was not allowed. In summary, we need to restrict how much foreign capital banks can borrow and stop speculative derivative trading. If a public bank is created it should never be allowed to engage in high risk lending.
We should end the overseas student farce and just directly sell Australian work visas to foreigners and use the funds to subsidise education for Australians. Let's be honest Australian students do degrees online but no foreign student would do that, because it was never about the education.
Guys it might be interesting to see the number of students that stay in Australia after they graduate and then the number that then bring their parents family etc. To live permanently in Australia and become citizens. Also the bulk of these students will be from extremely wealthy families that are exploiting the system to attain citizenship. Your average chinese or Indian factory worker can't afford to send their kids to Australia and pay four years of tuition living expenses etc. Your average Aussie couldn't afford that. These are very wealthy people, what effect does their buying power have on the Australian market. Especially after the family repatriation clause I our immigration policy are taken into account. I would rather see asylum seekers in our country. The last thing we need is wealthy foreigners. One is grateful for the opportunity the other is here to further exploit and profit. I'll let you figure out which it is. As academics you may have a slight bias on this matter. I would rather see our universities increase their standards and educate our existing population. This whole howard generated fiasco is yet another example of the worst politician in Australia's history. Trickle down disaster, the destruction of our culture and values. Any way fortunately for me I'm a boomer and I remember when one wage could raise a large family, buy a house, go on holidays and still have one parent stay at home. And yes I went to university for free. I do remember when they bought in the eighty dollar a year admin fee and we thought it was the end of the world. To quote Winston, it was "the beginning of the end"
@@magiccarpet3.5 Agreed. I have plenty of sympathy for refugees but none for wealthy immigrants and students. We should increase our refugee intake, especially because Australia bears responsibility for many of the conflicts that create refugees. However, we should significantly cut immigration of non-refugees.
Thanks Greg and Elinor. Major party politicians are in the majority unapologetic rent seekers and they act as a protection racket for donor rent seekers in property, banking and resources sectors, the very opposite of serving the public interest.
When you put all the pressure on increasing supply, you end up with higher land and construction costs, which leads to new supply itself being unaffordable. We have to tackle the demand side of the problem. Change tax policies to reduce investor demand for existing properties and reign in immigration to sustainable levels. Sure, a technical recession will likely follow, but let's be realistic, we are already in a per capita recession and what our government is doing now is delaying a technical recession by treating the symptoms instead of curing a worsening disease. Eventually the technical recession will come, and it will hit us harder than it should due to this negligence.
I agree the unis shouldn't have to rely on a system largely dependent on wealthy international students, set up by Howard who de funded them. However this massive increase in international students comming in after covide which graphs show, definitely would put more pressure on rentals around university area's especially, it has to, its just extra demand . Now property prices not so much as you say ,but i hate to say place's like Canada , New Zealand and Britain who don't have the generous negative gearing concessions have still had huge rises in property prices and think there is definitely a correlation of wealthy immigrants from China and Indian parking there funds in property as save haven investment. There is a reason many Asian countries limit investment or ownership for foreigners into there residential real estate market, especially on land
Shouldn’t we be focusing on attracting fewer but higher quality students? The dumbing down of our universities is a problem. With policy makers calling out the desirability of at least half of Australians holding degrees, this implies that many students will have IQs around 100 or even lower. Someone with a 100 IQ is not going to benefit from a university education and would be better off going down a vocational pathway where there are big shortages and often good economic rewards.
What about labours plan to invite Black Rock to become landlords of the houseless Australians, kinda like all the aged retirement villages are owned by foreigner investors
The software used to do valuations has algorithms and that determines what price you will put on your home? How did we get there? We are not to own anything for next generation WEF and other oligarchs decided and used their technology system to make it real
International students should be no more than 20% of the student population. Clever countries like Germany fund education. Stop allowing international students to buy property here when in receipt of a visa. Tax our resources properly and we could fund heaps. Immigration over the last 2 years has been ridiculous and it does impact housing availability. Stop foreigners from buying Australian property as well.
Renting is hard. Modt people opt fot a motgage because they want to be out of the rental market. Even if there were enough homes it is still not your home. The market determines how much rent you will pay. You always feel unsafe and unsure of future. Home improvements need permission and often go unanswered or rent raised to cover costs. Cannot grow a garden. Today these seem like minor issues because there is literally know where for a low income or single person to affordably rent. From these experiences you grow a firm view that anyone with a second dwelling is blind to the crisis or doesn't care. I'm sure people do but if government won't grow a pair and look after the lower class like it did during covid then there will be more people struggling and community dysfunction due to the ever growing wealth divide.
Australia has created one of the biggest real estate bubbles in history of mankind! The consequences of this could be disastrous. Nonetheless, there’s a shift happening where pension funds are moving from stock market investments, like the ASX, into real estate. In the next few years, we might see superannuation funds buying up Australian houses on a massive scale. This is likely in preparation for what’s coming. Don’t believe that superannuation funds will immediately buy properties worth millions; what they want now is government approval to do so. When the housing market crashes and property prices plummet, like Wile E. Coyote without a parachute, all the foreclosed properties will be snapped up by superannuation funds and rented out as they disengage from a non-performing stock market
How can so you say that record immigration (of which student visas are a part) is not one the leading factors in the rental price increase. It absolutely is. There is a grpah floating around that show a very strong correlation between the two.
I am inclined to agree. I don't know if property prices can be attributed to students, however, I do think rental prices can be, it is so competitive to find a rental right now, and I assume rents have gone up because of it. I had to move in march and went to several rental viewings, easily over a dozen, maybe close to two. It was nuts, 30-50 people were showing up to the viewings, one place was easily over 100! Many of which I know were students. Granted I moved in March, so there was deffinately a wave of students arriving. Word of advice, do not move in those first few months of a year, it's an fn nightmare.
Switched off when the first sentence said slashed, 7% is not 'slashing' anything using that term is misleading. I don't drive at 100km/h and claim I've slashed my speed by driving at 93km/h. This sort of dishonest propaganda has got us here.
@@origanami Thats a simplistic take. You havent taken into account the shift in govt policy in the 90s under Howard that fueled investor demand for housing. When housing is considered an investment rather than a positive right, you have a situation where investors land bank and accumulate properties, many keeping houses vacant, at the expense of renters and those trying to buy into the market.
@@AK-np4rp The Howard changes are neither necessary or sufficient to create a housing bubble. They only accelerate the problem. Every bubble is predicated on a sustained mismatch between fundamental supply and demand. Then, as a secondary effect, greed creates additional demand. The fundamental demand is coming from immigration.
@@AK-np4rpyes land banking, negative gearing, capital gains are big factors but since Howard and Costello annual nett overseas migration has increased from 70,000 to 200,000 per year. Since that time the cost of housing annually has shot up over and over again. Population increase and competition for housing has had the cumulative effect to create this housing cost crisis. All of our economists, media, politicians and the wealthy didn't ignore it, they actively fuelled this crisis for their personal wealth. Why wouldn't they? The public has been too apathetic and busy to take any notice until it's a disaster.
Lots of ordinary wage earners only chance to get ahead in life is to buy an investment property. To whack them with extra tax doesn’t seem fair. Taxes are often sold on only affecting the rich. Ordinary people won’t be affected. Usually taxes for the rich end up being paid by ordinary people and the rich keep on minimising the taxes they pay.
Thanks Greg for pointing out starting under LNP Howard. I will go further by saying Imagration dressed as Education like Subsidisation dressed as Privatisation. This all played into the rise of Labour Hire companies where Uni students get their jobs from. Unfortunately my recent visit to Sydney showed how reliant we are on immigration now.
We need to reform our financial system if we want to make houses affordable again.
How our financial sector is regulated is a very important but poorly understood topic.
Changes to the way our financial sector was regulated had very serious and detrimental impacts to our country, albeit it has taken a number of decades for these impacts to be felt.
Clearly this topic is a question of degree. You don’t too much regulation but at the same time you don’t want reckless behaviour that ends up in markets crashing or an uneven playing field.
Three areas where financial deregulation failed in the 1980’s are:
1) The complete lifting of capital controls. In 1985, the major banks had $8 billion in foreign debt. By 2008 the major banks had $800 billion in foreign debt. Most of this money was lent against housing causing house prices to rise to 12/13 times average earnings up from 4/5 times earnings. This meant two parents had to go back to work which created the institutionalised child care sector. This is turn lead to a decline in education levels.
2) Derivatives no longer had to be hedged. This meant that financial speculators (using your superannuation) sitting in their inner city ivory palaces could control the price of commodities and metals rather than producers and consumers. This caused greater volatility in the markets and drove smaller players out of the market allowing big players to get a larger share of the market and ultimately profits. Many of these players were foreigners who displaced Australian producers.
3) State banks were allowed to engage in merchant banking. This was reckless to say the least. As a result, both the State Bank of Victoria and SA collapsed because they were allowed to engage in high risk lending that a decade before was not allowed.
In summary, we need to restrict how much foreign capital banks can borrow and stop speculative derivative trading.
If a public bank is created it should never be allowed to engage in high risk lending.
We should end the overseas student farce and just directly sell Australian work visas to foreigners and use the funds to subsidise education for Australians. Let's be honest Australian students do degrees online but no foreign student would do that, because it was never about the education.
Guys it might be interesting to see the number of students that stay in Australia after they graduate and then the number that then bring their parents family etc. To live permanently in Australia and become citizens. Also the bulk of these students will be from extremely wealthy families that are exploiting the system to attain citizenship. Your average chinese or Indian factory worker can't afford to send their kids to Australia and pay four years of tuition living expenses etc. Your average Aussie couldn't afford that. These are very wealthy people, what effect does their buying power have on the Australian market. Especially after the family repatriation clause I our immigration policy are taken into account. I would rather see asylum seekers in our country. The last thing we need is wealthy foreigners. One is grateful for the opportunity the other is here to further exploit and profit. I'll let you figure out which it is. As academics you may have a slight bias on this matter. I would rather see our universities increase their standards and educate our existing population. This whole howard generated fiasco is yet another example of the worst politician in Australia's history. Trickle down disaster, the destruction of our culture and values. Any way fortunately for me I'm a boomer and I remember when one wage could raise a large family, buy a house, go on holidays and still have one parent stay at home. And yes I went to university for free. I do remember when they bought in the eighty dollar a year admin fee and we thought it was the end of the world. To quote Winston, it was "the beginning of the end"
@@magiccarpet3.5 Agreed. I have plenty of sympathy for refugees but none for wealthy immigrants and students. We should increase our refugee intake, especially because Australia bears responsibility for many of the conflicts that create refugees. However, we should significantly cut immigration of non-refugees.
Thanks Greg and Elinor. Major party politicians are in the majority unapologetic rent seekers and they act as a protection racket for donor rent seekers in property, banking and resources sectors, the very opposite of serving the public interest.
When you put all the pressure on increasing supply, you end up with higher land and construction costs, which leads to new supply itself being unaffordable. We have to tackle the demand side of the problem. Change tax policies to reduce investor demand for existing properties and reign in immigration to sustainable levels. Sure, a technical recession will likely follow, but let's be realistic, we are already in a per capita recession and what our government is doing now is delaying a technical recession by treating the symptoms instead of curing a worsening disease. Eventually the technical recession will come, and it will hit us harder than it should due to this negligence.
I agree the unis shouldn't have to rely on a system largely dependent on wealthy international students, set up by Howard who de funded them. However this massive increase in international students comming in after covide which graphs show, definitely would put more pressure on rentals around university area's especially, it has to, its just extra demand .
Now property prices not so much as you say ,but i hate to say place's like Canada , New Zealand and Britain who don't have the generous negative gearing concessions have still had huge rises in property prices and think there is definitely a correlation of wealthy immigrants from China and Indian parking there funds in property as save haven investment.
There is a reason many Asian countries limit investment or ownership for foreigners into there residential real estate market, especially on land
Shouldn’t we be focusing on attracting fewer but higher quality students? The dumbing down of our universities is a problem. With policy makers calling out the desirability of at least half of Australians holding degrees, this implies that many students will have IQs around 100 or even lower. Someone with a 100 IQ is not going to benefit from a university education and would be better off going down a vocational pathway where there are big shortages and often good economic rewards.
Start by paying chancellors and vice chancellors less. That would save millions.
The rot may have started with Howard and the Liberals, but Labor seems to amplify the problem the most.
What about labours plan to invite Black Rock to become landlords of the houseless Australians, kinda like all the aged retirement villages are owned by foreigner investors
The software used to do valuations has algorithms and that determines what price you will put on your home? How did we get there? We are not to own anything for next generation WEF and other oligarchs decided and used their technology system to make it real
International students should be no more than 20% of the student population. Clever countries like Germany fund education. Stop allowing international students to buy property here when in receipt of a visa. Tax our resources properly and we could fund heaps. Immigration over the last 2 years has been ridiculous and it does impact housing availability. Stop foreigners from buying Australian property as well.
Detective of money politics is following this very informative content cheers from VK3GFS and 73s from Frank
Renting is hard. Modt people opt fot a motgage because they want to be out of the rental market.
Even if there were enough homes it is still not your home. The market determines how much rent you will pay.
You always feel unsafe and unsure of future. Home improvements need permission and often go unanswered or rent raised to cover costs.
Cannot grow a garden.
Today these seem like minor issues because there is literally know where for a low income or single person to affordably rent. From these experiences you grow a firm view that anyone with a second dwelling is blind to the crisis or doesn't care. I'm sure people do but if government won't grow a pair and look after the lower class like it did during covid then there will be more people struggling and community dysfunction due to the ever growing wealth divide.
The have-nots, and the yachts.
Australia has created one of the biggest real estate bubbles in history of mankind! The consequences of this could be disastrous. Nonetheless, there’s a shift happening where pension funds are moving from stock market investments, like the ASX, into real estate. In the next few years, we might see superannuation funds buying up Australian houses on a massive scale. This is likely in preparation for what’s coming. Don’t believe that superannuation funds will immediately buy properties worth millions; what they want now is government approval to do so. When the housing market crashes and property prices plummet, like Wile E. Coyote without a parachute, all the foreclosed properties will be snapped up by superannuation funds and rented out as they disengage from a non-performing stock market
We need less demand and more supply.
How can so you say that record immigration (of which student visas are a part) is not one the leading factors in the rental price increase. It absolutely is. There is a grpah floating around that show a very strong correlation between the two.
^ genius over here needs a graph to figure out more people equals more demand.
I am inclined to agree. I don't know if property prices can be attributed to students, however, I do think rental prices can be, it is so competitive to find a rental right now, and I assume rents have gone up because of it.
I had to move in march and went to several rental viewings, easily over a dozen, maybe close to two. It was nuts, 30-50 people were showing up to the viewings, one place was easily over 100! Many of which I know were students. Granted I moved in March, so there was deffinately a wave of students arriving.
Word of advice, do not move in those first few months of a year, it's an fn nightmare.
The rents went down during covid. Definitely shows if we pause immigration rents will go down
Team, want to see why so many and younger are piling into SMSFs. Everything else in the economy needs to be in 2-3% band....yet....
Switched off when the first sentence said slashed, 7% is not 'slashing' anything using that term is misleading. I don't drive at 100km/h and claim I've slashed my speed by driving at 93km/h. This sort of dishonest propaganda has got us here.
High immigration clearly is a factor but not the only factor. The problem has been bubbling away long before immigration peaked.
It's the only source of aggregate housing demand. The existing population is below replacement rate.
You take away mass immigration you solve housing crisis immediately
@@origanami Thats a simplistic take. You havent taken into account the shift in govt policy in the 90s under Howard that fueled investor demand for housing. When housing is considered an investment rather than a positive right, you have a situation where investors land bank and accumulate properties, many keeping houses vacant, at the expense of renters and those trying to buy into the market.
@@AK-np4rp The Howard changes are neither necessary or sufficient to create a housing bubble. They only accelerate the problem.
Every bubble is predicated on a sustained mismatch between fundamental supply and demand. Then, as a secondary effect, greed creates additional demand.
The fundamental demand is coming from immigration.
@@AK-np4rpyes land banking, negative gearing, capital gains are big factors but since Howard and Costello annual nett overseas migration has increased from 70,000 to 200,000 per year. Since that time the cost of housing annually has shot up over and over again. Population increase and competition for housing has had the cumulative effect to create this housing cost crisis. All of our economists, media, politicians and the wealthy didn't ignore it, they actively fuelled this crisis for their personal wealth. Why wouldn't they? The public has been too apathetic and busy to take any notice until it's a disaster.
Lots of ordinary wage earners only chance to get ahead in life is to buy an investment property. To whack them with extra tax doesn’t seem fair. Taxes are often sold on only affecting the rich. Ordinary people won’t be affected. Usually taxes for the rich end up being paid by ordinary people and the rich keep on minimising the taxes they pay.
Listening to this was 🤮
Surely nobody could take these wannabes seriously sad sad people