What’s driving the boom in Australian property prices? | Four Corners
ฝัง
- เผยแพร่เมื่อ 31 ต.ค. 2021
- Owning your own home has long been seen as the ‘Australian dream’, but for many people it’s become a nightmare.
Subscribe: / abcnewsindepth
When the pandemic hit in 2020, there were fears the property market would collapse. Instead, house prices have risen at their fastest pace in at least three decades.
Some are taking on eye-watering amounts of debt to just get in, while others are priced out altogether. The property price boom is creating a financial divide between those who own property, and those who never will.
It is a generational divide too. Home ownership among Australians aged under 45 has plunged to levels not seen since the 1950s.
Four Corners investigates what’s driving Australia’s property frenzy.
_________
Watch more Four Corners investigations here: bit.ly/2JbpMkf
You can also like us on Facebook: /
Follow us on Twitter: / 4corners
And sign up for our newsletter: www.abc.net.au/4corners/newsl...
__________
![🔴 [TRỰC TIẾP] U20 VIỆT NAM - U20 THÁI LAN | Cúp VTV9 - Bình Điền 2024 | JET STUDIO](http://i.ytimg.com/vi/HxN2G6YpB-U/mqdefault.jpg)
Why are houses now so costly and unaffordable?
Because the world economy is bad.. See the Stocks and crypto markets.
@@DBAnalyst1 True the markets are being manipulated by the whales, why many Investors are now switching to NFTs. Even experts on I.G are Switching too.
@@sonyablack2015 Don't be lured by the incredibly high gains on NFTs. Be careful the NFTs bubble won't last long if you must do NFTs, make it Short term.
@@p.kmccain6297 Last Tuesday, I saw a live telecast on the NFT bubble by "Sandra .Y. Webster Financial services" there were lots of testimonies from other clients on how the firm's NFTs trading strategies turned them into millionaires overnight. The testimonies were so impressive and sounded too good. I was tempted to try them out but still skeptical I thought the testimonies were made up, and I had earlier refused the firm including NFTs to my portfolio are NFTs truly that profitable?
@frederick higson So true! The NFTs inclusion has helped grow my portfolio too.
Our biggest problem in Australia is that wealth creation is concentrated in the property market and not anywhere else. Our manufacturing, productivity, businesses and real economy has been decimated over the decades, and the spirit of enterprise has been suffocated in favour of speculation. When you turn to your house to make the money for you, you are in effect locking up energy and value in only the idea of a home, and not in producing goods and services for the community. It is therefore imperative that we restore actual wealth creation to restore parity between our contributions to community and the real value of our homes.
Wealth creation in the property market has occurred because the overall size of the economy has expanded - one large driver is education which is one of our biggest exports.
Property is intrinsically worth next to nothing without an economy.
Well said.
Australia has a huge mining industry with large exporting market. This is big wealth creation.
There needs to be a tribunal to limit price increases. Without it the market could go for another crash. I think realest ate people are averaging 20 percent income increase each year.
over the youtube viewer paygrades... on youtube they want fantasia
The LNP MP said it's a failure on housing affordability.
But he is in government. What is he doing to alleviate the issue? It is all lip service.
LNP the very same fellas that supported the Housing Market by using Negative Gearing as their political point during the election.
Wrong party to be in.
That's all the LNP ever offer
Incredibly predictable. A liberal party member using this crisis to promote de-regulation of the housing sector, increase supply and therefore profits of the housing industry.
@@ozlicious9902 The reason he tried to focus on increasing supply is to deflect the responsibility to the state governments.
Yep, as victorian government was fast to overcame new legislations with offering help for deposit, keep going higher and higher and promoting themselves as good guys.
I am glad that never had government help and not in the s*** , but hey, what a manipulating game
why do all real estate agents have such punch-able faces
Because they are akin to a used car salesman.
Sold their souls
Because they’re part of a shitty industry.
Same thing for all middlemen who are looking after neither client apart from themselves.
Because they’re arseholes. I’ve dealt with them numerous times on both buyer and seller spectrums and they’re just greedy MF’s who think they’re rockstars. Knobs
Housing is a business in Australia. The banks, govt, media, real estate agents, developers are all doing their best to inflate prices. There is no such thing as free market.
yes it is like a big mafia 😬😛
The RBA is the engine behind the overvaluation of assets and the devaluation of earnings, Reserve Banking is a failed paradigm.
"Old houses are full of stories". And leaks and rot. Buying without inspections is a horrific risk.
Yeah, if you resell the leaking rotting house in 6 months , you made $500,000 profit. How scary
In my country, a building inspector has to go through the house prior to the sale. A condition's report.
Btw, we've seen the same increase in prices on the other side of the planet.
I guess people found out they can't stand to be around their family all day ;)
Buy a new house and expect it to start having problems in a few years whether it was inspected or not.
Even with an inspection it's dicey. Paint and plaster can cover a multitude of sins.
And real estate agents and owners aren't obligated to disclose faults. It's all buyer beware. Should be a law about selling lemon properties with major faults.
You know the counties in a mess, when young people start praying its markets collapse.
haha i was hoping for a slight correction due to COVID but of course Government intervention dictated otherwise.. and now houses are up by 50% in my area
Exactly! When the pandemic first hit, the RBA freaked out about a 30% correction and where contemplating putting a blanket pause on selling homes. As in, telling our citizens, nope you can’t sell your home! As it turned out they didn’t need to go down this path, instead drop interest rates to the floor, create a facility and money (TFF) and give free money to the banks to lend to mortgages. Not only did This achieve their goal of stopping the 30% crash from happening, but stoked prices 30% the other way. IT IS A RIGGED GAME! If you don’t own a home, don’t bother, go live somewhere cheap and grow your own food!
But the market does need to collapse, but it is being held up and exacerbated by the RBA. Reserve banking is a failed paradigm and needs to be eradicated worldwide.
How did this not end with a link to a suicide support line after you spend 45 minutes telling young people they will never achieve their dreams and will always be a disappointment to the parents they still live with?
Most people either have themselves or had parents that came from other countries, and came here for better opportunity, they left their family behind and came to Australia, They contacted family with written letters. now we can talk to family from the other side of the world by facebook, pretty neat.
No reason why we shouldn't just leave and go somewhere with more opportunity, there's no opportunity here anymore.
They probably assume you have it on speed dial at this point.
@@newlife8318 you're not helping the suicide rates with that fact...
Totally
@@newlife8318 are there jobs?
"Cant believe younger people arent angrier"...
We are angry! What are we going to do though? String up our parents and molitov the parliament?...the young generation are just giving up because the carrot isnt even in view anymore.
Pretty rich to seeing an LNP MP talking about price rises...considering his party took it upon themselves to lie to the older generations about negative gearing...
What's young I suppose? I mean, under 20-39 y.o. are by far the biggest voter block in the country. The millennials and Gen z. Will they start to make it count?
The prices are going up faster than what I can save a year. I am angry, but I’m actually more heart broken for myself and Australia.
What goes up ..
We are very angry!!! Also what angers me is the level of money (millions, billions) and corruption thrown around by the LNP. It’s getting super Dumpf style obvious now.
@@ilikemorestuff Everyone keeps saying that and I agree but what if it takes another 15 to 20 years? People need somewhere affordable now!
As a Canadian, some of our cities are experiencing the same problem. The solution is an end to foreign ownership (just the ones who live overseas), and a cap on how many homes a person can have as “investments,” and more state capital put into building low-income and cooperative housing. Also, tax corporations and the ultra wealthy sufficiently.
Agreed. We also need a cap on how many stocks people own, how much crypto they can hold and how many cars they can drive
You are right! So many wealthy are extremely greedy and invest in multiple properties! Crazy.
@@thegraciefighter102 Ok Boomer
Statewide ownership too people from richer locations buying up all the poor districts driving the prices up
Just need to have 10 year leases and have high capital gains on property sold in a short time span to stop property being speculated on. Countries in Europe do this so ordinary hard working people can get a home or at least a very long lease and be secure.
The Chinese had the one child policy. Its probably time Australia introduced the one house policy.
An Australian one child policy would also be wise.
@@Blackheathenly 😂😆😂
No thanks , just because you can’t afford one doesn’t mean I have to suffer
Well said. The property prices are a scam. Bloody speculators
Would never happened the entire system is rigged by the RBA, the big 4 banks, the LNP property investors etc. You can't win.
Many people cannot afford a home, because some investors own dozens or even hundreds investment properties, and they receive tax incentives to own more investment properties. Our tax policies encourage people to speculate in the property market, that is the root cause of the issue. Investor should really pay more and more tax for each additional investment property they buy.
Correct. Make it an election issue. Surely there are more have nots than there are haves in this scenario.
You forgot the large amount of properties that are owned by cashed up Chinese investors, and many of those properties then sit empty.
@@Blackheathenly yes, should also increase the stamp duty on foreign investment, as well as the tax on vacant properties
The government has been happy to let mum and dad investors to buy a rental property because they have not been supplying social housing. It is cheaper for the government.
@@michaelw7769 Why are we even allowing foreign investors to own property here? Several countries don't
Rural northern California here.
About 10 years ago, here in California and many other popular U.S. states, the housing market crashed really bad. Lots of people lost their homes. They had big mortgages, and their house values were diving big time. Lots of people could not sell their homes. Foreclosures and bank repossessions were happening left and right.
The mentality PRIOR to this was, 'how can you go wrong buying a house?' Because next month, it would be worth more! Getting loans was crazy easy. Buyers and lenders were manipulating the numbers. Lots of buyers were speculating, and many were making a killing. People were just buying houses to make money, not to live in.
And then "IT" happened. I started seeing notices (legal documents attached to the front doors and windows of homes) that homes were being repossessed, or were in foreclosure, or were being sold by the bank) on every street. Houses were becoming very affordable, fast. Foreclosure news was in the news every day. "Upside down" became the common term for people who could not sell their home because they owed the bank more than their house was worth, and the interest rate they were NOW paying (because those BAD variable interest rates were "killing" people) was more than they could afford. It was common for home owners?(you don't really own it until you finish paying for it!) to simply stop paying on their loans for months, some more than a year. Some people, lots of people actually, just walked away from their homes, just left them. Some just gave their keys to the bank.
I'm 67, and have lived my whole life in California. I never imagined that "day" would come when home prices would drop, and drop big time. I saw it on my street, in my neighborhood, even in my quaint, rural little town where I thought we would be spared. Lots of people lost, and some people gained from the housing bubble bursting.
I seriously doubt that the housing situation in Australia can continue on it's current path. It's like musical chairs. Eventually the music stops.
You are so right. Look at the USA in the Global Finanacial Crisis. Mass foreclosures
Thanks for sharing but I think the rules are different in the US compared to Australia. You can not simply "hand your keys over" here.
I dont know how people are finding the money for these huge deposits and mortgages....its insane, and if there's a rate rise...and inflation, i dont know they must have huge incomes.
@@kyms9390 They most probably not on huge incomes. They are getting money from seling down other properties and borrowing money from the banks.
An excellent analogy.
In the US here. My dad's parents helped him buy his first house in his twenties in the early 70's. A little 900sq ft home for a single man. He met my mother and they stayed there for another 5 years after marrying before moving into their forever home of 2500sq ft in the 80's. That's generational wealth. He was griping to me about silly youths not buying houses nowadays, and i asked him why he didn't help me with an extra $100K to buy a starter home for myself in my twenties. He piped down because they were dealing with the 2008 crises and had to file bankruptcy and lost most of their savings. That's how generational wealth gets eliminated.
Canadian here. Both my grandfather and my single-parent mother were able to buy houses on their own incomes in the early 50s and late 70s. By the time I was an adult in the 1990s, houses were still relatively affordable, BUT with the early 90s recession and the growing precarity of jobs and stagnating wages, taking on a mortgage wasn't an option for many. And people didn't know that a housing bubble would come along in the next decade. It's a mess.
@@pinkpearl1967 I live just south of the border and was in Canada this weekend . Jesus Christ our prices down south have gone up hugely but you guys are on another planet ! You don’t earn even close enough to get a mortgage . Foreign investment has really screwed you and now they are coming south and buying everything here too .
@@samoday2992 so jobs are outsourced to "lower priced countries" and money flows back, making everything expensive... how beautiful.
@@effexon going to become the peasants of our own country .
@@samoday2992 same problem in Australia
Governor Bligh said no-one should own more than 1 home. I would would be happy with keeping that at 2. This country has been mollycoddling house prices for a long time at the expense of everyday people. Homes and land should not be treated like the stock market.
I live in Cyprus. My apartment building has only 35% occupation. The rest are investments
This is going on in every western country. Investors are sky rocketing the market and those who just want a home are being pushed out.
@@MzlauraM just to make the super rich even richer
I bet Politicians own multiple homes...bet against me?
@@martytruelove5026 I won't get against you because I would loose
The look of guilt on the faces of these realestate agents is telling, they are making stacks and even they know it is unethical.
@Meg Meggee basic economics dictates these houses aren't allowed to lose value. If housing crashes, the government will bail out as hedge funds, pensions etc are all tied to the housing price increasing. The excuse that the increase is a reward for the risk is ridiculous when there is a small to none mitigated risk. Such are the contradictions of treating property as a commodity, when unlike every other commodity is has no spatial ability. When you get beyond "basic economics" you realise the structures of free market property economics is fundamentally flawed.
@@simplypodly The mistake people make is to think the economy is fair and just. Its not - it is pushed, pulled and manipulated at every angle to suite the powerful interests. Politics is owned. The money supply and creation is owned. The energy is owned. The Court of Law and its enforcement is owned. The only power an individual has is to walk away and create and participate in a better system (this is happening to some degree with blockchain and the decentralised finance systems of crypto). Until people get that through their thick heads nothing will change
What’s unethical about it
@@packageism One agent said it in the video.
They ALL know this is crazy and the ACTUAL fair market value is nowhere near what people are paying.
Sure eventually they might actually be worth it and paying a bit more for something in demand is normal.
But houses selling sight unseen within a day, for 20% more than a year ago, with no inspections, no pest reports, and zero due diligence is utterly insane and frankly it's unethical to be even allowed at all.
When young home buyers are up against 50-65 year old investors who started investing in the 90s and early 00s and are now miles ahead coupled with pressure from overseas investors the artificial inflation is out of this world! I hope you have no children so you can sleep soundly at night.
My blood boils watching this. I am paying taxes to subsidise investors ! I am almost 40 with 2 kids and cannot afford a house.
Property investors are scum who think they’re doing good by making people pay them for their own asset. Spit at them when you see them at auctions.
@@Spacemonkeymojo Typical tall poppy syndrome. Criticising others and inciting harassment onto others because they have something you don't. lmao
Hah yeah ☺ 😊 😤
Can't even imagine affordability of a new bed.
When need
Crash😴 on a thin layer mattress on top of a second cheapest price mattress.
Base on the original tough mattress.
Let alone a crib 🏡
@@eric5901 Found the Property investor
@@eric5901 Divide and conquer this is the strategy of those at the top to keep then obtain more power.
Negative gearing needs to STOP ! It old out of date political policy that’s killing Australians home ownership dreams
Only around 1 million people use it. Its not the root cause of what's happening.
@@DoubtingThomas333 yeah, it is
@@DoubtingThomas333 well it would help if they didn't
@@DoubtingThomas333 That's the issue: only a million people use it, but they might each own multiple properties. For a country with a population of ~ 28mil, that's a problem...
@@shaunsocha421 no, its not. Its cheap credit and the changes in the professional work environment due to covid. Lending laws also been relaxed (again) after the RBA and the government were paranoid covid would cause property value losses (so most peoples personal wealth, because near 70% of Australians own) and that would cause a long term depression in spending in the economy
Easy solutions no one mentioned:
1) only citizens (individuals) can own residential property (meaning no REITs or other 'non-person' company structures can own residential property).
2) no individual can own more than 3 homes (primary, holiday & 'city flat'); this could be reduced to two homes if things don't improve significantly.
If we agree, as a nation, that residential property exists for people to have homes, not as an investment vehicle, we will get where we need to go.
I would lower the ownership rate to only one property.
@@ambrashaderach3907 that doesn’t work. Lots of people need and want to rent for their situation. A balance is key. Everyone who wants to own their home should have a fair chance to do it
im not australian, but i strongly agree with you here.
its ridiculous how people are using properties to take advantage of "negative gearing"
@@missjazzytan you know why Labor gave up its cancellation idea of negative gearing! Because they would be voted against by the other half of Australians who are house owners. This house crisis is basically a pure home affairs between different interest groups in Australians it has little to do with migrants. Not many foreigners can came in the pandemic.
@@CarolineOverseas2023 what are then some solutions to this? the whole country is leveraged to their eyeballs, they need negative gearing!
At 14:35 when he said "why aren't younger people mad about the system being rigged against them".... maybe we aren't so vocal because we've been told were ungrateful, spoiled, lazy and entitled children that just don't work hard enough? It's because we've been shamed for "not trying hard enough"
@Super Roo You mean like the housing bubble in the early 2000's that burst in 2008? I don't recall much marching in the streets - just people being dumped on the streets. Edited to add: I'm an American btw, now living in Portugal.
@Super Roo Yes there were protests, but nothing changed in the US at all. And because of that Trump should get back in in 2024.
“It was so hard for me growing up and I was earning peanuts blah blah” every boomer I am sick to death of listening too
Exactly. Everytime were vocal about it the news papers just tell us to shit up and stop eating Avocado on toast. Then they release articles about some 20year old buying their home with a gift of a million from their parents
Young westerners ARE lazy and entitled though, that is just facts...theres a reason why young immigrants who are given a chance in a western country thrive and are extremely successful. Some of them couldn't even speak the language and they succeed and buy their own homes. Western youths grew up with coddling and never exposed to the hardships of the real world. so they get shocked when life hits them hard at a young age. this is probably due to parenting differences between white people and say...african parents.
I studied in Hobart about 25 years ago.
A guy on my course from Interstate bought 2 Inner City Terrace Houses sight unseen for $80 K each with the intention of renovating, live in one and rent out the other.
As it has turned out it was a very smart move.
Kinda hoping for a better investigation. Every thing that was said in the 40 mins has been said for the last 10 years. I was hoping if your going to do a journalist piece on housing affordability in Australia why didn't you interview Philip Lowe of the Chairman of APRA.
Agree this topic is of much interest to many Austrlaians.
Yet it was simply a series of interviews with agents that will talk to anyone.
No real issues raised, no real solutions put forward. 4 Corners could do a lot better here.
@@MrA8888888888888888 The piece would have been way better if they actually got to the root of the problem and spoke to a senior official at the RBA or the Chair of APRA. They are the ones that control monetary policies and interest rates. Also they make sound like this house price affordability issue is just an Australia issue when there are countless reports from global news sources that this is happening around the world. If you compare Australia to global housing prices we are actually cheaper if you compare major cities to aus cities.
Also what annoyed me is that they never ask the core question of "do we even want house prices to go down?" or "Do we even want interest rates to go up?" They also ignored the fact that with 30 years of housing price increases it was parallel to the Australia economy where we had uninterrupted economic growth for the last 30 years before Covid.
Of course they dont investigate the root of the problem because they dont want to upset their advertisers.Making stories like this is all about making money and these stories can be milked over and over.Makes no sense to kill the golden goose.
The Problem is simple, but the Government has backed itself into a corner. They can't fix one problem without creating many more.
ANY solution they come up with have drastic long term consequences and as long as home owners outnumbers non home owners who vote, this is here to stay.
In 10 years when non home owners outnumber home owners....THEN you will see change.
The only people winning are investors and agents. Anyone selling and moving hasnt gained as the cost of the property they are moving to will also have increased.
Not if the property they move into has raised by a similar proportion.
If the original price of the two hypothetical properties are say: 450,000 and 150,000, the higher being the one they live in, and then both property prices double and a halved over 15 years. Instead of making 300,000 moving house, this hypothetical family will have now made 750,000 profit moving, adjusted for inflation that would be about 256,000 more than if they moved 15 years earlier.
@@Zappyguy111 what on earth are you talking about. LightningAussie was correct, end of story
@@CovidConQuitTheCensorship
I am saying:
450k-150k < 2.5*(450k-150k)
People moving to rural areas are winning, and they're winning more than what they would have even if it was the first thing they did.
@@Zappyguy111 Everything is bad, and if you try to use logic or math to prove otherwise, then you're a white supremacist. Didn't you know what channel you're watching?
@@Zappyguy111 and a half the
27:14 The part when he said of the house had kept up with inflation it would be worth $37,000 dollars today, that blew my mind wow at that price there wouldn't be any need for anyone to be homeless everyone could own their own home no matter what your job
Of course. It’s just bricks and mortar on a tiny arse piece of land. People are stupid.
And better still the extra investment money can be used in other more productive parts of the economy rather then in speculative asset that housing sadly now has become
Except people compete on price.... And location is finite since we don't build hi rise where we should.
That disingenuously removes the intrinsic value that houses have when in their suburbs. The location of the suburb and the land they are on is worth more than the house of course. I suspect there is a bit of a problem with the calculations.
That house is ugly af and its worth over $2M wtf lol
60% of all properties in the inner city in Sydney and Melbourne are rental properties. That means they are owned by PROPERTY INVESTORS.
43
Own nothing and you will be happy! Slavery the NWO
Yes spot on
Some of them might not be able to afford to live in their own house.
I hope pitching tents won’t be the new way of living for most.
such a useless report. they spend the so much time reiterating the same point; "the market is expensive and inaccessible". we know that mate, thanks for clearing it up. why dont you really dive in and tell us why its like this. i.e. negative gearing, foreign investment, over commodification, historically low interest rates. why dont we implement a policy to stop some bloke living in dubai from buying 5 investment properties, pricing out every day aussies.
Well said. It would be quite easy. Only Australian residents or citizens can buy. Limit number to say 5-10 properties per person. No corporations may own residential real estate. Job done.
Agreed. They really didn't say anything other than "this sucks" and "everybody's panicking". I was really hoping to hear and see real answers to why housing prices here are so insane. Four Corners has lost its edge.
@@soulsphere9242 Just wait. Crypto defi wave will crush the push for low rates. The high yield bond spread drags "risk free" treasury yields, and when there are %20+ high yield funds in crypto, the risk free bonds can't withstand forever. Funds will be drained from treasuries into crypto markets, which is already happening at a phenomenal rate. Rates creep higher and eventually something breaks.
Your sentiment is right but you don’t understand economics and what you’ve been to,d is lies. It’s not i Teresa rates being close but higher than norms. You like everyone else have normalised insanely high interest and inflation
@@GrimTTL repeating right wing nut talking points doesn’t make it true
No wonder Australian population is shrinking. If you can't afford a basic need, how can you afford to have children. The stress of chasing house price is the best Contraception.
Its the reason I haven't been able to have kids yet, actually. All my time and effort goes into working overtime to save for that deposit while I'm childless.
29, been with my girlfriend for 3 years, we can’t afford children because we chose a house, something we NEED to live.
Have you seen the inter generational report for 2021? People aren’t having children and the government wonders why there’s no future tax payers hahaha… they bandaid this with immigration btw.
It's not shrinking.
@@williamcrossan9333 yes it is. Our fertility rate is 1.66. We aren't having enough children to replace the current population... So it's shrinking
@@BeccyBum Prior to the pandemic, Australia's population was growing at 1.1 million people every 3 years. Mainly due to immigration of course.
I am still convinced that this madness will end in tears for all of us.
In the words of Warren Buffet "Be scared when others are greedy". Everything that goes up, comes down eventually, one day it will fall and it will be a disaster.
@@massimoconcimedia612 you are right
I was chatting to a gentleman who owns a cafe at the south coast. He said he knows someone high up in finacial area in sydney and this guy told him there is going to be a big financial collapse and to start storing food. Weird
Ban on foreign ownership of residential property.
End negative gearing.
Tighten regulation on lending...
.. max 3 times income
... minimum 20% deposits for all but first time buyers
More like end negative gearing for those with wealth over 5M or something.. No point in punishing any first home buyers who then pivot into having an investment property. It's too hard to climb up the wealth ladder as is
@@chrinarai
I totally agree - a lot of young people can only get a foot on the ladder with an investment property while they stay with parents until they can afford to live in their own house
Let’s not discourage that - people have to be creative these days
@2LegHumanist....... absolutely agree 10,000%
This all began when our treasonous politicians opened up our residential property market to foreign investors and the Chinese flooded in here and wiped out a huge portion of the market. Driving the prices through the roof and causing the mammoth ripple effect.
@@chrinarai
Negative gearing in most of the world was either ended or restricted. It's bad policy that directly inflates the market by encouraging people to buy even in cases where the investment isn't profitable in the short term.
It's just wrong.
You can protect people who are already invested simply by saying it doesn't apply to new purchases after a certain date. Lots of taxation measures work like that.
@@mobee7171
Yep. And it's happening all over the world. Canada just banned foreign ownershio of residential property. We need to do the same.
I've completely given up on housing. My folks migrated to Australia with absolutely nothing and were able to buy a property. Me on the other hand being Australian born, raised and educated, I still can't buy a house. And you know what Australia why would I? Why would I give up my life and nearly all my working income just to have brick and mortar when I can simply just leave your country and take the skills I've developed and just go to a completely different country with the 20% deposit that will probably cover 50% of a property in another country.
I'm in medical school, I've given up too, I might see if Alabama want me.
Which country are you off to champ ?
@Thorhall Completely agree with you. Good luck with your journey. I hope it works out well for you. Don't even have children for the same reason, that continuous fear of being on edge. I have no issues with being on edge, but that close to the edge where the slightest percent shift can cause a downfall is just not worth it.
@Jon Y. enjoy your first world living, while you sleep under bridge. Haha
@@Muesto123 terrible come back. All you have is insults, cause you certainly haven’t got any factual argument! 😂
I got the $21K first home buyers grant, helped for the deposit. The builder said the prices just went up $21K though in response. So not really helpful. My parents paid far less for so much more.
the thing is for a lot of young people, the price of houses and the value of a safe deposit has been going up faster than they can save money.
its not being selfish recognising that for most of your adult life you have only been getting further away from getting a house and wanting to jump early, its not a good idea getting too much debt , but there no good options for the young adults in Australia currently
Exactly 💯
My advice would be wait. Worst time for first home buyers to purchase the house.
It's artificial hysteria, be patient
The cost of rent is more than home loan repayments. As house prices go up, cost of rent goes up. When 60% of earnings or more goes on rent for a lot of people, bo one is ever going to get a deposit together.
Thank the RBA and LNP, the system is rigged.
@@sbuble People have been saying the housing market is over valued for 20 years, thats why people will still buy, if you have waited for the crash that never came, you'd be worse off.
Sad there wasn't more focus on how the real estate agencies themselves reap so much benefit and only wish to fuel the fire.
The epitomy of corruption.
Gosh I feel this. I’ve been trying to buy a home in Brisbane (where I have lived my whole life) for the last 20 months. I’ve been completely pushed out of the market and I’ve lost out to boomer aged investors buying their second, third or fourth house every weekend. It is awful. Please someone so something about it.
I really don't think this is the case. I think this is a big demographic issue similar to the 1970s when the boomers entered the market. Huge inflation if asset prices.
When the boomers die, houses WILL go down. Or at least they should. The question is, what is your country doing with immigration.
In Brisbane also. House prices are only set to rise with the coming olympics as a factor adding on to the massive FOMO already. In my job I go inside a lot of high end houses here, and trust me, they are definitely not worth their price tag.
Too easy to be ageist and blame the ‘boomers’
Even in Adelaide (go on, laugh it up) we're being priced out of the market. A 1960's home in mediocre area, that you would likely have to heavily renovate or demolish and start again is creeping into the 700 to 800k mark. More and more suburbs are breaking the 1mil mark. Friends of mine have been making offers in excess of 300K on asking price and still losing out. There doesn't seem to be an end in sight.
Just bought one in Brissy, my budget was $500k, ended up buying an IP in Loganlea for much less than that. Mate, start small like all of us did. I came to Australia when I was 32 y.o…. with not much in my pockets and no family.
I did everything right. Graduated, went to college. Got a real degree. Have a decent paying job, but a series of unfortunate events have led me to living in my Jeep, showering at the gym. How did this happen? 😳
This is not just an Australian problem. It seems to me that the same problems are displayed in many countries that have been enveloped by the American neo-liberal concept of financial capitalism. Banks have usurped their social licence and profit from the hardships of the many. It is time for people to say "Enough". Politicians need to grow a couple and lead us to a future that will benefit our children and if that means changing the fringe benefit rules and the capital gains concessions and regulating the shit out of the banks, then so be it. On the other hand, house prices are just numbers. The other side of this discussion is perhaps that government should support wage and salary increases commensurate with the increase in basics (food, shelter, clothing) and by increasing transparency by reflecting them properly in the CPI basket. After all, who the hell are they representing?
Mostly the banking and investment sector.
Yeah you forget that the government does care what me and you want so why would they change it
System built on debt will eventually collapse. It's why there is all this talk about the 'great reset.' I don't know the ins and outs of it but it seems like an admission by some part of the elite that the game might soon be over.
It’s not Capitalism it is Government intervention that is driving the inequality, specifically the Reserve Banking paradigm which constantly inflates asset values and devalues earned income.
I would say this is a western world issue. It’s happening in Ireland too where I live and Britain. People are moving back to costal towns and rural villages as in Oz and out pricing locals in lower paid jobs. It’s just terrible and disheartening.
It's happening in Africa too. The lockdowns are forcing people out of cities to the regions that are less policed and enjoy greater freedoms + have significantly cheaper housing.
Australia is catching up, the world is becoming one.
All part of the nwo plan
And the tree/sea changers are doing it because they have been priced out of the market where they live.
I live in a rural costal town in Australia. I bought my house here 6 years ago for $360k it’s now valued around 1.2 -1.5m
It’s ridiculous
The older generation kinda screwed themselves over, they may have all the property but now they've got the kids staying at home till they are 50 in order to save a deposit, sucked in.
Intergenerational wealth transfer is another big thing that's happening
@Leigh lol. Like that's going to happen!
It’s not all the older generations fault there are many factors involved
@@margaretcampbell2681 Yeah like they also had a nice little normal society to grow up in, they will go down in history as the "Gordon Geko" generation.
It’s the politicians fault over all these years for not reining it in, but instead making it even worse.
1. The creation of housing market as investment rather than security.
2. Record low interest rates
3. Accumulated wealth dividing the haves from the have nots.
4. No one already in the property game really wants to see house prices fall, especially if you've just paid big bucks now. Which circles back to point 1...
Top point. Straight to the facts. I can see taxes on property inheritance coming and hopefully fazing out some of the crazy tax breaks for investors/ rentals etc.
Hard to change straight away without the risk of blowing the bubble quickly. Well unless the world economy takes a massive hit then it's inevitable you'd think.
You missed the massive amount of stimulus and money printing, more extreme form of low interest rates.
Dig deeper. All you are doing is stating the bleeding obvious.
1. Money printing is slowly leading the west into hyperinflation
2. The Cantilion affect is evident; those who have first access to the new money that has been printed will be the ones who benefit; who are they ? Those who already have collateral to borrow every more money to buy more assets.
You forget "greed". Unquenchable greed.
If we go to war why the hell would the younger generation fight for something they can’t afford to even own themselves!
Indeed! I will be sure to usher in all the folk who Australia has made rich. These are the people who should protect the country, as it is their wealth in jeopardy. Problem is, it is those born pre 1970 who have enjoyed the opportunity to build wealth, so our army will be made up of 50+ year olds. In addition, if We go off and fight a war, by the time we come back, we could be competing at auctions with an additional 1 million new migrants who were brought in to help with “labour shortages” Geez, I better run out and buy now, before the immigration flood gates open again!
Don't panic if we go to war we can seize all the assets of those we are at war with! That should free up more than enough properties and land.
The keyword word here is the 'Howard Government' pricing first time homeowners out against people who are buying their fourth Time investment. PS I feel for the girl who is a nurse looking after her mum as well as the couple in Hobart who can't get in on the property ladder, Such shameful times we live in.
Then again I know a nurse that just bought a third investment property and shes under 30.
Housing needs to be de-commodified. There are other avenues for investing your money that doesn't result in owning several properties.
Japan had a housing affordability crisis in the 80s and it didn't end well
but but but ............... thats socialism!!!!!!!!!!!!!
@@icysaracen3054 he said “de-COMMODIfied” not “de-COMMIEfied”!
a big factor is negative gearing , where you rent it say even with the morgue payments, but then on a say 1 million dollar house that say has a 20 year lifespan from when you buy it , you can reduce your tax liability every year by $50 000 , it's completely insane. but the property moguls have too much power and the average jo doesn't know what the law actually allows.
The capital gains tax discount from the Howard era also has a LOT to do with it. It was after that tax change that house prices first doubled within a few months.
The introduction of the GST instantly made building homes more expensive, and to limit the damage to the building sector, they introduced a "first home buyers grant", which just made homes even more unaffordable.
Surprised there isn't more anger from young people? Who would listen to them? Half of them are too young to understand how badly they will have it yet.
Is the plan to end up like Japan, where mortgages are passed to children, for apartments?
Completely Absurd.
Who can offer a fix?
More community housing, less concessions for investors, caps on how many investment properties individuals and corporations can buy. A house must be a home and not a 'property'. Our economy is a sham shame on our government and all the profits =loss
It’s actually not that complex. What you suggest would work. But who’s going to do it?
"You need to be earning $100k per annum to even think of buying a house!"
*me working in my min wage casual job* 🙊🙊🙊
100K wont cut it in Sydney, unless you have inherited wealth.
@Thorhall Very much agree. 170K before tax for a family is most definitely middle class at best. And potentially lower-middle in Sydney.
@Thorhall Very good points!
when you have politicians and wealthy people complaining that newly thought of policies could force landlords to sell their excess properties and lower the price of home-ownership for everyone, thus allowing people to purchase their own homes rather than renting...you have a major problem.
if the wealthy are complaining that people would be able to purchase their own home rather than renting there's an issue.
renting should be significantly cheaper that home-ownership, yet it's not. at times it's even higher.
Exactly. That's why my partner and I opted to buy. Especially looking for a rental during the initial Covid outbreak, there was just nothing around, and what was available was massively overpriced.
100%!!!!
No renting is cheaper. To rent that house in Earlwood would be approx $900 a week. That is high end, U can get cheaper. A mortgage on 1.8 million is so much more.
@@rebeccamorris3677 I think you're comparing apples to gold plated oranges there. Of course there are going to be cheaper rentals if you're comparing to a $1.8m mortgage ? The place we bought worked out cheaper to pay off per week than the overpriced rentals that were available at the time.
R U looking at Earlwood? I am comparing the price to rent a house that would sell for 1.8 million in Earlwood. Renting is cheaper. If U bought in Earlwood ten yrs ago, yeah $900 would cover the cost of the mortgage. I know this because we bought in the suburb next to Earlwood 10 yrs ago, and I been keeping my eye on things. A 1.8 million mortgage is exceptionally hard for first time buyers. I know alot of people who are local who are priced out. Teachers , doctors, IT professionals etc. People who have great careers. They are stuck renting because it's cheaper.
Oh trust me, there's plenty of anger on my part.
Did you vote for Labor last election?
@@zzyplza what difference would it make when the majority are brainwashed anyway
Obviously, Australians are now living in a real estate bubble. The market will crash in the near future, as it did in the USA a few years ago when we were in a bubble too. When people stop buying in a frenzy, market will be flooded with houses for sale. The bubble will burst and many people will pay the price. Wait a few more months and see.
Yesh Prabhu, Bushkill, Pennsylvania
I think you underestimate the vested interests here. Aussie property to the Aussie politicians and wealthy is like the S&P500 to the USA. The most protected market. The aussie dollar, immigration quotas, tax policy will all be adjusted before the property market crashes.
The us market crashed because of bad lending practice. The housing market in aus is a calculated business. It might crash if legislation comes in like the last Labor gov wanted to introduce...but I doubt it. Not likely.
Big financial crash on the way ...your right ✅
hah!
AJOB means Just Over Broke. The notion of going to school, getting good grades, going to uni and getting a good job so you can save up and own your own home is an outdated way of thinking.
It amazes me when I hear people say a JOB offers them security. They take a mortgage on a property where the price is artificially inflated. Their monthly repayments are based on a salary which can be stopped at anytime during the mortgage term. If you live in your property it becomes a liability. If you rent it out it becomes an asset.
Haven't worked a day in my life and Currently own 1 mil + of my own assets (no inheritance or help). Something is very wrong..
Spot on! There is absolutely no point in studying your ass off to get into a good uni course to then study hard for another 4-6 years, to then finally get a job with a low wage for the first few years in order to get the experience necessary. By this time you are approaching 30 and if been successful and lucky you will earn similar to a tradie, who left school at 15 and has been running their own business for the last 5 years. My advice to my kids will be leave school early and learn a trade.
@@SwellRider get a licensed trade with a commercial Company that has an EBA agreement (plumbing, electrical, mechanical services or sprinkler fitting) and learn to invest. Best path forward that’s what I have done and it’s by far the best path. You can be earning 200k + a year by 20 if you leave school at 16. Save, invest, get on the property ladder by 20 you are laughing. Jokes on anyone going to uni
@@SwellRider also to make a passive income and start a business from your trade. If they are a sparkie they can go to the mines for experience, save a tonne of money and start their own business.
Tasmania has 68 times the land area of Singapore. How the hell did we allow it to become so expensive?
Greed, bad politics and corrupt politicians
I'm a young person in Tasmania. Rental prices are through the roof, Hobart being one of the most unaffordable rental markets in the country. My generation is really shaping up to be one of life long renters, especially with mainland buyers constantly getting investment properties here and just renting it out on Airbnb. It sucks, and I hate it.
I lived in Hobart 20 years ago, it was CHEAP ...I looked recently and my jaw hit the floor. My God. Why??
@@Candlewick14 Because BUBBLE
Same here, it's absolutely criminal. People are well within their rights to start squatting or seizing homes, refuse to pay rent or mortgages until the government gets its act into gear. Avoid paying tax wherever you can as well, starve this pig system until it starts to work for us.
I reckon Airbnb’s needs to be limited too…they are contributing to the problem. Maybe make a certain number available and when they are sold then that’s it no more.
I don't get why every day Aussies have to subsidize a few negative gearing billions worth of property
A similar thing happened in Japan in the 1980s - 90s. Prices of real estate went up because it was being pushed into the national economy externally. Then it stopped and loans were called in and the economy went bust. The government there had no idea this was happening. The end result was that Japan had to sell a lot of crashed cheap real estate after the crack to pay its excesses. To stop the increased prices is to stop the cheap external money. The prices are being driven up here by external banks - not local banks, foreign to Australia. They are funding what is happening.
This is a scandalous situation and is a result of appalling government mismanagement throughout the last 3 decades!
Time to put limits on how much one person can negative gear. There are even organizations who own hundreds of properties! The LNP don’t care.
Negative gearing... "I'm making a loss on my property to save a couple of bucks on tax, Im so clever", people who are making actual money are postive geared.
I bought unit 250,000 the next day I change my mind I got lawyer get it back my deposit and 3 weeks later they sold 235 ,000 $ and 3 months later they sold 370,000 just couple months ago what is shit happening in Australia now??
What is happening is that you fu-ked up ! You could have made $120K in three months, and you didn't !
If you don't understand what happens in an environment with low interest rates, I'm puzzled why you are potentially investing so much in units.
we need a reform on policy and look to amsterdams. ban scummy investment property builders.
And over priced agents
@@man.i.literally.failed6772 and overpriced stamp duty.
@@markalan1two $26000 of fees based on a $500,000 home..you goto sell it add another $26000 + in fees..this is in adelaide
With the fees on a $650000 home in adelaide, let alone else where, you can buy a nice caravan or motor home..
I get amazed looking at those auctions, couples in their early 30's paying 1.3 million? Fark me, where did I go wrong in life?
It's likely you had the wrong parents, wrong or not enough education, and partnered up sub-optimally.
Not being born in the 50s.
“Just ferocious bidding at the moment…it’s crazy” - auctioneer. Mate…you’re part of the problem.
What if no one has a $1mil loan capacity during the bidding? Try find the root of the problem.
He's just doing his job. What's you're point?
Remove all the concessions for investors and watch the reality kick in. There's no reason you should be feeding the rich even more.
“I’m surprised there isn’t more anger among younger people” … bro, we are mad as hell, we are just censored
Exactly. This guy clearly hasn't spoken to anyone under 35 recently.
What do you mean you get censored? On what public platforms have you put forth your complaint?
I'll start building a guillotine if it isn't sorted out soon, we will fix our problems the old fashioned way, off with their heads.
And gaslighted immediately.
If you’re so angry why are the 35s still voting in the liberal governments who continue to nothing to help first home buyer and everything to protect and financially support property investors.
I felt the program was quite shallow - talking about the structural issues only a little at the end. The problem is the financialization of housing, treating housing as a investment for wealth generation and the tax incentives that investors get. FOMO is all together secondary.
It's funny how a perishable item increases in value. But in reality it's just the dirt that increases in value.
@@2partiesnotpreferred226 the laughable thing is at the same time that item can be used for a tax concession due to 'depreciation'
@@mathewtoll6780 When you sell, depreciation claimed during ownership increases the CGT, albeit 50% discounted.
Surely people understand what's going on.On our way to hyperinflation.
Yeah, I don't think that's what happening. But it will be kinda funny when interest rates double triple 10x and the whole econ crashes. But this what happens when politicians work for the wealthy not the people, but it's never really been any different.
@@joshsmyth130 Watch Rafi Farber's todays post. Australia central bank failure. Then go buy some gold.
All TOGETHER NOW!!!!!
“ Old mate Snotty had a rort!
Ee i ee i o!
With a rort-rort here!
And a rort-rort there!
Here a rort, there a rort
Everywhere a rort-rort!
Old mate Snotty had a rort!
Ee i ee i o!!!”
When interest rates rise then things will get entertaining.
Well done for resisting saying 'interesting'
Buckle in ! It’s coming now January 2022
@@OmgAuntySuzanne16 RBA said it won't happen for another 2 years.
Interest rates rises would be dependent upon people being able to afford it...won't happen. Wages aren't going anywhere either.
When we can’t pay for our greedy needs
Curious as to what jobs people do that allow them to borrow $2m+ for these houses.
Did you see that s**thole in Bondi? 2.7million? LOL
Probably just average middle class jobs LNP voters fully leveraged by the big 4 banks whom are making billions and billions in profits.
@@EatMyShortsAU you think your 'average middle class' earner is paying back a 2.7m loan?! I would suggest a middle class couple might be on 200 maybe 300k a year between them pre tax? That's around what... $3000 a week repayments and a deposit of 250k upfront...
Or even the investors that are buying their fourth property. You can only deduct so much in expenses (not more than you make), you still have to pay *something* to the bank, and from what I have seen, the rental returns are way below what an investor would usually be looking for. As someone who has had investment properties in the past (never more than one at a time), I can't see how this adds up.
It's not there first property that is how. They make money while they sleep on all investments, property or other. It's a sick sad world.
UK and US are set for interest rate rises… hold on, it’s coming and it’s going to be entertaining! Remain cash positive!
they are set but i'm still waiting for them to kick in. Still not looking good for Australia
I think it's worth trying to set a law for limiting 3 properties to a person/family. I know it may not work.
They can always create a corporation as an entity to own it. Perhaps a speculators tax might help.
@lisajason its a good idea but in a family a four two parents and two kids each owning 3 properties thats 12 houses in one family
Just tax more for each property you own. Like exponentially more.
Then the LNP will run a scare campaign about a battler who only has $2million in assets struggling for a fair go..
People would fake a divorce and end up with 6 properties.
It's monetary policy. The effect of monetary policy is assymetrical. We lower the interest rate to boost inflation and "smooth the business cycle" but if we raise them back up again it'll trigger a feedback loop that the government can't afford to fix as the housing market collapses. So what do we do? We raise it a tiny bit then drop it even further next time. Leverage grows, the cost of debt falls, investors leverage up more. Neoliberal monetary policy is dumb af.
Makes too much sense, politicians wouldn't understand!
@@paulhaze228 They've been kicking the can down the road for decades now and it looks like we're near the end of the road 😕
The road is pretty long, so plenty more room to kick the can, you only have to kick the can for 3 years at a time, the election cycle is like a game of hot potato.
@@paulhaze228 I mean interest rates are near zero now. They've trended down from 17.5% in the 90s to the around the zero lower bound today. That's why I say we're near the end of the road.
Hard to drop interest rates below 0.1% What next negative mortgage rates? I guess it is not too far-fetched considering next rates in Europe and we had negative oil prices not long ago.
We need hefty taxes on multiple home owners. If you own 2+ there should be an annual tax that disincentives pooling more money into housing assets.
The sad reality is that all the money is being invested in property rather than innovative businesses. It doesn’t make us competitive internationally
Exactly. So much money going into bricks and mortar. It’s not just hurting business innovation but also quality of life and it will hurt population growth so we need to rely on more immigrants. It’s pathetic and stupid.
It already exists, it’s called land tax.
Not just that, the wages required to service these mega-mortgages means our labor force can't compete with Europeans. You could build it cheaper in Germany.
@@castorchua Then the taxes will be passed down to the renters via rent increases...and it would increase the price of everything again and we will be exactly where we started
@@sew_gal7340 Who are you replying to?
"I'm surprised there isn't more anger among younger people"
We are angry, but what can we do?
We're angry and defeated
Invest elsewhere first, save money, get a better job, have a plan and stick to it. Not that hard
@@philinit6476 LOL that is such a boomer take... against such huge price developments one cannot realistically fight against as a young-ish person. The annual price increases often go way beyond what one is able to save.
Being a young boomer buying a house, with high interest rates, banks reluctant to lend and low wages, was also a nightmare. 72 hour weeks chasing overtime was one of the prices.
@@soulsphere9242 The CBD is always expensive. There are jobs elsewhere.I moved to where I could buy a house. Getting a qualification such as registered nurse helps too. Free tertiary education and qualifications earned on the job, were a definite bonus. On the education front a lot has been done to put lead in the saddle bags of people from working class parents. Importing pre qualified people and making property developers happy, has been the Howard/Costellonomics approach followed since. Being happy to buy a working class house in a working class suburb helps too.
The lucky country no more, impossible to buy a house in this crazy frenzy, the desperation and fomo of the buyers coupled with the insane greed of the sellers have created this insane boom. Ive been trying to buy in cairns for 2 years, houses have tripled in price, supply is low and demmand from cashed up Melbournians happy to pay anything has caused this insanity, it has to stop!
One apartment went to auction in Carnegie, 550-600 advertised range. Auction passed in because vender wanted 640!! How is this not a greed? Auction system also heating up the property market.
This makes me sad. The first property I bought (in 2002) on my own, as a first home buyer & a retail worker. It was a basic 2 bedroom unit (no balcony or courtyard), but close to the city. Multiple people actually questioned why I'd buy a unit when I could rent a nicer & bigger house. Within 5 yrs my property & ones like it were being bought for 3-4 times the price I saw multiple people in my age group scramble to purchase a place. Some have never been able to.
20 yrs later it's even worse. There's been a few lulls & drops in the market over the last 10 years, where opportunities existed, but I fear for those who've bought at the top end of their budget and haven't wiggle room to cope with an increase in interest rates, illness, job loss or having children.
In the UK we've helped with affordable housing by making 25% of housing in any new residential development to be affordable class. This still hasn't stopped housing prices rocketing in price but not at the level of Austraila. My first house that I bought in 1989 for £62k is in 2021 selling for £360k which is a 580% rise. Predictions until 2025 are a further 29% rise but 2021 house prices have outstripped their forcast of 8% and in Oct 2021 already stand at 9% so maybe around 13% for the year. Thankfully after a divorce and my first house given to my wife and family after 2000 I invested in housing rather than going full tilt on a pension for my future, I'm retired from work at 52.
They should talk about the rental crisis too. I know a couple that are leaving to India for a few years because they're going backwards working and paying rent.
Imagine going on holidays for 2-3 years leaves you in a better financial situation than working and renting here!
RBA and APRA are to blame for poor policies..
Surely the voters are to blame? This is a democracy.
What’s causing this is a desire not to miss out and historically low interest rates of around 2%.
There’s going to be one almighty crash when interest rates go up.
It will then be a buyers market when people can’t afford to service their loan.
It's just a ploy... Both my parents worked as bankers for close to three decades. The one big lesson they taught me is, never deal with banks. What I have learnt from my life is, that there is no institution that will put your benefit over their benefit. Whoever is buying house now is taking a big gamble with incredibly low interest rates, increased demand, halted supply and slow construction... People are staking 30 years of their life on mortgages... Its stupid... People who have money know there is a crash coming, so they're making the safest bet, on real estate.
Any drastic increase in interest rates would not only be catastrophic for those who will not afford the increase in mortgage payments, but for the country's financial sector as well.
And guess what,,, governments do not like to see their financial sectors fail.
@@Sophie-go3ql A country's financial sector cannot survive a long duration of low interest rates as well... Or else everyone would be in debt with no spending power and economy will be dragged down... On top of that, a lot of people would be unable to pay their mortgages for a number of reasons and banks will fail... 2008-09, not so long ago...
I’m just wondering if a lot of the properties are just from cashed up investors buying up more and making money off rentals and Airbnb’s?If that’s the case it might not mean it will burst?
@@milld9345
That is part of it. Some people make do much from air b n b they don't even bother with the regular rental market.
Corrupt politicians getting in bed with shady property developers.
And common citizens are getting ….🤔
Federal ICAC in to the LNP and RBA is needed right now!
@@EatMyShortsAU Not just LNP. Every member of every party state and federal. From The PM right down to the mayor of bumfuck nowhere. Let's do it right, FULL political audit.
@@Zasek2112 There would be no politicians left lol
@@EatMyShortsAU Shakespear almost got it right when he said "Kill all the lawyers". If there were politicians back then instead of monarchs that quote might have been slightly different.
I had to stop watching bcz they fail to acknowledge home auctions should be illegal. The auction is the spawn of the spike in home prices, due to desperation. didn't AUS learn anything from USA? The desperation and bad practices force the market up, creates a bubble, all the while privatizing land, a natural resource.
So, what's to stop people, who work full -time, unable to buy a house, unable to rent a place to live to cause anarchy??? Housing is your survival, if society can't guarantee your survival when you work full-time, there is no other reason not to cause anarchy.
Those at the top will never change the system as they have too much to loose,
Feel so sorry for the younger generations.
Look at how happy the real estate agents are, I think a lot of problems will come in the next few years as inflation hits and interest rates rise. Be careful what you wish for. Oh and while we are at it lets end negative gearing. Low interest rates have also compounded these problems as if interest rates were 8% people would just park their money in banks and not homes
When interest rates rise there will be many defaults
They'll just put the rents up on all their investments...they're doing it already and the interest rates haven't moved.
@@debbimor8003 yep
Real estate agents are happy because people are too stupid to find one that doesn't charge 2% of 1 million dollars to do a bit of paperwork and a walk around. There are plenty of other options. People are literally feeding the sharks then complaining.
Why is there such negative gearing to give even more wealth to rich people, to begin with?
Same problem here in the UK. Housing out of London went completely bananas during the lockdowns.
Anyone who buys at these prices is anticipating high inflation. But if most people are maxxed out we should expect deflation. If Interest rates increase this current boom will evaporate in days.
Immigration can increase demand indefinitely.
i dont need a memoire written about my life, this video has captured everything that has happened to me, i've stretched myself to unthinkable limits to finally own something.
now i worry on how to pay it off.
i miss those days of jet black hair.
Australia is not only the victim of house price, the entire world is… thanks to JP, US, EU and AU ourselves thinking that decreasing interest rate to zero is a quick fix of problem.
Japan actually improved it's housing affordability. Only because their market is different. Population decline.
It is the only country during this time where it improved.
@@PostFormitable Excuse me, are you Korean? S.Korea is also one of the countries where so many people are suffering from the ongoing property market bubble
Not even a mention of apartments or vacancy rates, 10% of dwellings in Melbourne are empty! Supply isn't the problem, we are subsidising the portfolios of investors with negative gearing and barely taxing the enormous capital gains.
It's very convenient for some people to blame this on overseas / foreign buyers or property investors, especially given that there are plenty of people already living in Australia who have multiple properties as part of their property portfolio. And then there is negative gearing AND low interest rates.
The best thing our government can do is limit the number of properties that can be owned by a person or family to 2, so that these property investors either put their money on more expensive properties or invest somewhere else e.g. stocks.
There's also the old pension trick. put all your money into an expensive dwelling before you hit pension age and then collect the government pension. PPOR is exempt from pension calculations
Won't happened and I doubt ScoMo would do that and piss of his LNP voters and property investing mates.
@@DoubtingThomas333 but only the property you call home is counted
@@drsiigabb9935 which is exactly what I said. This is just for the pension assets test though. If you have other investments yeah they likely won't give you the pension until you lose them
Unfortunately politicians are on the gravy train in property so they don't want to cut off their own nose, but it does need to happen. In the USA rental corporation's simmply outbid the public that are renting from the rental corporation's.
It’s not a “shortage of stock”, it’s too much demand. There is no moral justification for anyone who owns a house in which to shelter their own family, to own a home that could be sheltering a family that does not - let alone to have the gall to charge the otherwise-homeless to shelter in that ill-gotten home. Protecting the community from the greed of the few is supposed to be the purpose of government, not promoting that greed. How residential real estate investors, and the real estate leeches who profit off it, sleep at night is beyond the understanding of anyone with the slightest social conscience.
Owning a home is not free- ever. You will always have taxes which will rise, without fail. You also have to factor in maintenance (not upgrades, just maintenance) which will cost you on average, 1-5% of the total home value. a regular house, even paid off with no mortgage will still cost you quite a bit to own. Go ahead and buy something (keep it easily affordable). Just please get out of the mindset of "I won't have anything to worry about if I have a house." You definitely will.
One of the things which annoys me: Who would have thought a pandemic would have caused real estate to do this? Not me that's for sure. How did a deadly virus become such a wealth creation event?
THE RBA AND FRIED LIE BERG
Whats driving it? The global realization that no government seems to want to stop land and property being used as vessels of investment, so now property has just become the playthings of the rich instead of the original purpose of just being housing. Need to start limiting the amount of property an individual can own at any one time, and find a way to replace the current rental system that funnels cash from the poor and allows property hoarders to become leeches on the economy!
Houses should not be bought up as investments by foreign buyers and hedge funds, investigation into the BC real estate showed much of the money was proceeds of crime.
I’m 25 and I’ve been renting by myself for 3 years and I’ve managed to save enough to buy a home and did so this year.
Working 80hrs a week for years!
It can be done if you want it enough
Exactly!! Well done!
And where exactly are these jobs to work 80hours a week? Not much of a life either working that much.
@@Ful-OGold Hes 25. The hard works done. When the property increases in value he can use the equity to buy an investment property (with no down payment). Hes in a great position to build a property portfolio and/or pay off his house before hes 35-40.
@Doreen Murphy yep might as well give up on life
I lived in a sharehouse in the 90s and as we all watched housing float up and away from us we thought people would end up living in communal homes to split bills. Three married couples all working might have been able to afford a decent living arrangement.
But no, everyone decided to commit to punishing debt or just despair of ever owning a home. The pressure never forced anyone to organize or co-operate, we'd all rather shiver alone than huddle together. Banks and agents have made obscene profits.
I have a list of grievances with Australia, and its government.
But this issue alone, in itself is why we are moving to another country.
What is your list of grievances with Australia or Australians?
@@rhinojohn6688 .
Failing education, R and D, health care.
The housing market. Corporate greed ruling the political system. Lack of leadership, the foolishness of the 2 party system. The multicultural nature, leading to no unified culture. The cost of living. Australians voting for political parties like a sports team. The she be right attitude. The laziness, the selfish nature of our society. The insane Idiocracy that has infiltrated ever single aspect of important roles.
@@chimosh agree with everything except the multiculturism and two party system..
Australia blends cultures and ethnicities from around the world better than almost anywhere else.
The two party system is an alliance of many parties working together and against each other to represent the people and implement the best possible policies.. like a bunch of hyenas yes.. but that's just what grown up nerds do unfortunately. Lucky it's a democracy and the people vote regularly.. if only the voters were smarter haha.. we could chat for hours mate thanks for the reply
@@rhinojohn6688 I wouldn't insult hyenas. They are smarter and more organized than the unintelligent, waste of space scum we have in politics.
The same thing is happening in America. It's all about corporate, and real estate greedy investors.
America issue on lending money
And Ireland 😥
I'm cheering, got 3 properties in Sydney and going to make a killing when I sell 2 of them! :)
"Low income earners can only afford 1.9% of properties". It is extra scary when you consider the current mortgage repayment is lower than rent on same property.
Living in Sydney - love it here but can't afford anything... had to look in other markets like Brisbane which are still going up at a ridiculous rate. Truly a massive problem for Australia.
As a Single male in his Thirties, I don't see myself EVER owning ANY sort of Property in my lifetime at all. Not a House, Apartment, Flat, Studio, NOTHING. I'm permanently priced out of the market.
House Prices are absolutely insane, and the thought of spending over a Million Dollars for a House is gut-wrenching. I would be much better off buying some Land, and getting a Tiny House on it instead.
The only hope I have of owning any Property is if there is a dramatic, and wide-spread Crash of the Market where property values plummet to affordable levels.
There needs to be a serious re-think on Housing not as an Investment, but as as House that someone can live in.
Also, the possibility of un-occupied properties being heavily Taxed toward their owners unless someone occupies them.
That way, someone is able to have a roof over their head.
@@romanasa6653 Water is rising anyway might as well at this stage plus easy to keep cool on a boat. Waterworld.
How much money did/do/have you spent on alcohol, gambling and drugs through out the years? I bought my 1st house at 21 what’s your excuse?
@@romanasa6653 no working 80hrs a week every week and not going on stupid holidays or buying stupid things
@@romanasa6653 the devil hides inside everyone
Buy crypto, sell before crash, buy home and do the drugs and relax.