Don't underestimate mental gymnastics at the top of a bull market. Telling someone they did exactly the wrong thing with their life savings is just too much for a Normie to consider let alone swallow
100% But unfortunately many rich Chinese wankers can come in flash their cash around and buy all our property Rent it out to a ridiculously large sum Go back home to China and reap the rewards Meanwhile true aussies are being fucked over
The foreigners always pay more tho, it's this case World Wide as in Latin America there's certain Suburbs that do better is cause the foreigners buy within them and then when you go to sell you hope to also sell to a foreigner so you can also profit on having the house for those years, however there's a blatant and very obvious situation of money laundering and its happening through real estate and I'd say that's an international situation.
@@oscarellis2563 If the wealthiest 1% of Chinas 1.411 billion people decided to buy a house in Australia and the wealthiest 1% of Indias 1.429 billion also did no Australians could compete.
@@1serasera Let's dive into the numbers to get a better understanding of Australia's precarious financial situation. As of March 31, 2024, the Australian government debt stood at a staggering A1.067 trillion. This represents a significant increase of A273 billion from the previous year. Key points to consider: Interest Accrual: Even without factoring in the annual interest rate of approximately A$26 billion, the debt is already a monumental burden. Debt-to-GDP Ratio: The debt-to-GDP ratio at 30.6% is alarming, indicating a substantial portion of the nation's economic output is dedicated to servicing debt. Repayment Timeline: If the government were to repay the debt in full at a rate of A$1 million per hour with a 0% interest rate, it would take an astonishing 122 years. Government Insolvency: This lengthy repayment period suggests that the government is effectively insolvent. Potential Consequences: To address this crisis, the government may resort to: Real Estate Market Collapse: Destroying the real estate market to release trapped capital. Superannuation Fund Raid: Accessing funds held in superannuation accounts. The Ticking Time Bomb: While these options may provide temporary relief, they carry significant risks. A real estate or stock market crash could lead to substantial losses, exacerbating the financial crisis. Conclusion: Australia is facing a looming debt crisis that could have severe economic consequences. The government's ability to navigate this situation successfully will determine the nation's future prosperity.
Everyone is so leveraged that people can't handle a 4% interest rate when the historical average is between 5-7%. If we had even a 5% rate for an extended period of time you will see household collapse. Don't think this will lower the price of housing. The government won't let it go down because of gdp. Line must go up no matter what.
There's something you're not taking about... the ponzi is also being held up by the capital gains tax discount, far too generous negative gearing welfare handouts and low interest rates. 'Everyone is in on the ponzi'... No. Only couples with multiple wages and people who have their parents to help are in on it. Some of us are locked out, even at higher than median wage...
I argued similarly about the NZ market but no one believed me. That was years ago and it hasn’t crashed. Somehow everyone believes we will be buying $3m homes despite no wage increases. It doesn’t make sense.
Dead right. The only buyers would be existing investors, or private equity firms which definitely should be outlawed. I think people are far too complacent. We should already be protesting this or changing government to get results. It's tragic
But people have no alternative to the "market". Investors are too financially comfortable which means they can just keep raising rents. The only way prices come down is if people have a way "out" of the market.
Australians have had an "obsession" with property since the end of WW2: that "obsession" was the desire to own their own property. Fast forward to the late 1990's and we find Howard and Costello changing home ownership from a purchase to an investment, while importing huge numbers of people to fuel that investment.
It goes much deeper than that. Everything has been centralized bc of government. Therefore the only cities growing are capital cities. We need major structural reform to fix this. But I think the easier option is to create more states.
It isn't Albo's, it was Morrison who threw open the doors post covid, and don't forget the homebuilder subsidy, which drove up prices and created a construction labour shortage.
I know right. Fuck my 250 thousand year genetic lineage. My house prices need to go up. Why should I give a fuck about my Daughter's ability to purchase a home? She won't want children because they won't be affordable as when she's old enough, her partner won't be able to afford to buy a home for her to start a family in.
It's really bad, but I THINK that's quantifiably false - at the peak of the Japanese housing bubble, there was a 3.4 square kilometer piece of land in Ginza that was worth more than all the real estate in California combined. In particular it was $220,000/sqm - though that wasn't the norm even at the time, just the most valuable piece of land during the bubble.
@@bopsap.gammazape That was a one off. You need to look at the totals. The best measure to compare is total residential land value as a percentage of GDP. Last estimate I saw was that Australian residential land value to GDP exceeds 370%. In Japan in 1990 it topped at 325%, Australia's residential property bubble makes Japan look not so bad.
Alan Kolher reported on the ABC news a while back "As a percentage of GDP, all residential land in Australia is now worth more than all Japanese land was in 1989 - and that was one of the great bubbles of all time, followed by one of the great crashes of all time. But this time will be different, of course."
@@craigpeacock5211 Absolutely. Taking one example is not a great measure. There is no doubt that Australia will be looked back upon as being the greatest property bubble in history. Valuations are absurd and there is an oversupply, not as we are told an undersupply. Wait until, the Airbnb market collapses and watch many of those investors panic and art dumping and see how rapidly supply changes. Not that long ago China's real estate market was the biggest asset class in the world at USD68 Trillion, with Australia at the time being USD9 Trillion. The oil virus difference being population. Since then China RE prices have been in recession and Australia has continued to grow. The collapse is going to be horrific and I am scared for the future of this country.
I’m closing in on my retirement and I’d like to move from Collinsville to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
When, when will it end? They’ve been saying so for decades. I don’t buy it, because it will be too disastrous when it happens. And that’s why it perpetuates.
When does it end? I draw your attention go Argentina. Big country, a lot of natural resources but ..... shit management running the country. That my friend will be the fate of Australia.
it wont end in the way you're thinking, the currency will collapse - the price of housing wont go down, the currency will just suffer from further debasement
Well the biggest thing missing is that money printing is what makes the prices go up. Property prices have not gone up in the last 30 years, there is just more dollars in the market. You can cross M2 moneys supply with housing prices and it’s a flat line.
Fact: Government, whether Labor or LNP are aligned with the WEF. so too are World Bank, BIS, WHO and the UN. Statement from WEF: 2030 You will own nothing and you will be happy Theyre not playing games or having fun with theoretical. They are serious. Question: How will the WEF decouple you from home ownership?
Make prices too high for younger generation. Then increase the tax burden to hold property to force those in the system to sell. Unrealized Capital gains Taxes. Tax on perceived gains that need to be paid before a sale of the property. Owing the ATO insane amounts of Tax which will then force a seizure and sale of the property, if you can't pay. Income is the key to surviving the madness to come. Equity won't save you. Superannuation is now being attacked with unrealized gains laws submitted to parliament "Division 296 Tax". Currently only for large super accounts but not indexed for inflation so over time it will affect a larger slice of the population. Property and Equities will follow the same route over time.
They are manufacturing a market collapse so people need government bailout. Its obvious when all the countries are the same you know its a top down push
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.
Good summary. Yes the action and regulation of the financial sector has had a huge impact on real estate prices. I tend to liken it to fuel on the fire. Cheap and easily available credit has fueled price rises. Many other factors have increased real estate prices with the finance sector being a major factor.
39% of lending is currently investor led not owner occupier driven. Go look at the chart of property price growth when our borders were shut. The demand is driven by Australian's own unsatiable demand for property owing to the ability to lever up plus the generous CGT discount.
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
The housing market is not going to collapse. It may go through some adjustments from time to time, perhaps around 10 percent. More than 60 percent of the households have their homes. Therefore, it won’t be politically acceptable for the housing market to completely collapse 😊
@@taeyoonsong2039 are you sure about that? Okay, Let's dive into the numbers to get a better understanding of Australia's precarious financial situation. As of March 31, 2024, the Australian government debt stood at a staggering A1.067 trillion. This represents a significant increase of A273 billion from the previous year. Key points to consider: Interest Accrual: Even without factoring in the annual interest rate of approximately A$26 billion, the debt is already a monumental burden. Debt-to-GDP Ratio: The debt-to-GDP ratio at 30.6% is alarming, indicating a substantial portion of the nation's economic output is dedicated to servicing debt. Repayment Timeline: If the government were to repay the debt in full at a rate of A$1 million per hour with a 0% interest rate, it would take an astonishing 122 YEARS!!!... Government Insolvency: This lengthy repayment period suggests that the government is effectively insolvent. Potential Consequences: To address this crisis, the government may resort to: Real Estate Market Collapse: Destroying the real estate market to release trapped capital. Superannuation Fund Raid: Accessing funds held in superannuation accounts. The Ticking Time Bomb: While these options may provide temporary relief, they carry significant risks. A real estate or stock market crash could lead to substantial losses, exacerbating the financial crisis. Conclusion: Australia is facing a looming debt crisis that could have severe economic consequences. The government's ability to navigate this situation successfully will determine the nation's future prosperity... So good luck with that!! 😁😎
@@taeyoonsong2039 Are you sure? . Let's dive into the numbers to get a better understanding of Australia's precarious financial situation. As of March 31, 2024, the Australian government debt stood at a staggering A1.067 trillion. This represents a significant increase of A273 billion from the previous year. Key points to consider: Interest Accrual: Even without factoring in the annual interest rate of approximately A$26 billion, the debt is already a monumental burden. Debt-to-GDP Ratio: The debt-to-GDP ratio at 30.6% is alarming, indicating a substantial portion of the nation's economic output is dedicated to servicing debt. Repayment Timeline: If the government were to repay the debt in full at a rate of A$1 million per hour with a 0% interest rate, it would take an astonishing 122 years. Government Insolvency: This lengthy repayment period suggests that the government is effectively insolvent. Potential Consequences: To address this crisis, the government may resort to: Real Estate Market Collapse: Destroying the real estate market to release trapped capital. Superannuation Fund Raid: Accessing funds held in superannuation accounts. The Ticking Time Bomb: While these options may provide temporary relief, they carry significant risks. A real estate or stock market crash could lead to substantial losses, exacerbating the financial crisis. Conclusion: Australia is facing a looming debt crisis that could have severe economic consequences. The government's ability to navigate this situation successfully will determine the nation's future prosperity.
They have been buying since COVID. The IMF has said Australia needs to reduce Capital gains concessions by $19 billion, Which should allow the 30% of Australia’s properties to be put up for sale on the cheap so the super funds can buy.
Mate! Hit the nail on the head . We have shut down every industry, manufacturing and agriculture etc. so now we import shit.well said, "We are going to hell in a hand basket!". Australia is rooted.
$11 billion in Investor mortgages September 2024. So spooked are they, ABS has switched from monthly to 3 monthly releases. So all eyes on $4bn each month in that scenario.
I'd like to leave australia it's stuffed have u seen what it cost to work half the wage is gon just in costs for work u have to have a smart phone u have to pay for tickets for work only that have to be in some cases redone every year I have to have a car or they won't hire u we haven't even got to housing and ur stuffed
The government should introduce more attractive savings products to encourage investment beyond negative gearing. For example, infrastructure bonds could offer incentives such as a 10% tax offset on investments of $10,000 (providing a $1,000 tax benefit), with the investment locked in for the first ten years and tradable thereafter. These bonds should also provide a competitive dividend yield to attract investors. Funds raised through these bonds could then be used to finance infrastructure development.
The actual problem with housing costs is land and house build costs and particularly GST (who's really making money out of housing between GST and stamp duty?). Existing house prices are set to replacement costs, between house 5 star ratings, state and council costs, GST massive increase in a basic tradie wage and materials, this is where the problem sits. Demand reducing from immigration would also help rebalance the supply issues. Cheers
Investors are still in denial about the fundamentals of the economy. They expect rares will soon be cut and believe the topline GDP numbers signal a strong economy. However, they dont. Credit card balences are maxed out, more credit is hard to come by for consumers, a ton of companies are about to beforced into refinancing their debs at far higher interest and the regional bank backstop program is out this month. There's also the fact that inflation ticks higher than expected every single time the markets believe a rate cut is around the corner and a rate cut would cause a surge in inflation. The fed sees this stuff, guys. The only wild card for us investors is to actively engage the market by trading, we always over complicate things when we speculate. It's not about guessing the market's next move; it's about playing it smart and steady during trading...managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Adriana Jensen whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
Mortgages to Australians for residential property investment were a minuscule share of lending in the early 1990s. Following banking deregulation and changes to taxation that share grew dramatically. Hell, even in the UK built-to-let mortgage products didn’t really exist until the mid 90s. Everyone pretending this is just “the free market” is ignoring the reality that these markets only exist within the legal frameworks we’ve established, there’s absolutely nothing inevitable about the outcomes, they’re a political choice.
I don't think once monetary inflation caused by adding to the money supply was cited as a root cause. Everyone thinking they're getting rich off property where in reality it's just a market of the devaluation of the dollar 🙄
Can some explain to me please, why I have a loan from years ago that I assume the bank has already paid the last own, why does the interest rate change based on what the RBA says? Shouldn't the rate be locked in for the time of the loan? The bank isn't borrowing money for my lian every month, so why is it charging me based on RBA rate changes? I tried looking this up and couldn't find anything
Don't forget the demand for "money parking" created by the tax and superannuation systems. There are far more empty residences than homeless people in this country.
If you want to get an idea of the amount of debt there is amongst Australians, the next time you go for a drive, count how many new Ford Rangers you see.
To my understanding, the main issue with high house prices in Australia is not due to immigration. Immigration has perhaps contributed, especially in recent years, but it is not the main reason why prices are so high. In fact, the root cause of the problem began back in the 1980s with financial banking deregulation. Banks went from being primarily public institutions to private ones, borrowing 800 billion dollars to lend at very convenient interest rates to Australians for purchasing homes. The problem started there, and today, it's just a continuation of the same issue.
it's always supply and demand. bank rates are one aspect of demand immigration is one aspect of demand wages are another aspect of demand international attention (olympics) is another aspect of demand improving infrastructure is another aspect of demand zoning is an aspect of supply construction capacity and costs are an aspect of supply government housing is an aspect of supply to say it's not one thing and is one other thing is very black and white thinking and won't help you understand what's going on
Agree to a point, but without turbo charged population growth that overseas immigration brings who's renting everyone else's real estate portfolio that is supported by a largely deregulated banking sector?
@@helpelaine3927 Steve Keen has already debunked the immigration debate stating that large cities like Sydney, Melbourne etc have been build vertical up to a level never seen before... By the way you forget to add the people who dies and people who is leaving this country... Maybe from there you can get a better figure.
Just because something worked to make money for past 50 years doesn't mean it will make money in the next 50 years.Supply & demand dictates price.With housing for example there could be technologies that make it much cheaper to build,government rule changes making it easier or harder to own property.Population rate & overseas population ability to buy will affect price too.Prime positioned land is usually in most demand.
Whilst I believe Australian (and most developed countries) have inflated housing prices, simply do the maths of income to house price ratios, what Matt describes here is the basis of economic growth generally. It points to an economy that is either resource driven or service driven but a big chunk of the services income that is exported by Australia generates is from 'exporting' education .. but the reality of this is >90% of this is from the students being here (vs studying online) .. Should Australia have less reliance on mining and education for export income, yes.. but I'd argue that we could retain the ~$30bn a year education export market and still have affordable housing by focusing on freeing up the supply side ... the real ponzi isn't in the demand side as much as the supply side where the owners of property (which is a good chunk of Australians) prefer property prices remain inflated as this is where their wealth is tied up .. ultimately the housing price inflation is the outcome of supply and demand side imbalances, some rooted in incentives, some in vested interests, some in bureaucracy and some in (poor) policy .. this doesn't mean we shouldn't look at all levers to address or reduce the issue, but suggesting its one thing and if we just stopped this one thing we'd be fine ignores the impact that changing or taking out that one thing would also create
But still a long process. I looked into building a new house in north Brisbane. You put down 5k deposit to hold the block you want. But that block won't be "registered" with the council until May or June 2025 at the earliest. Then if your lucky and have a builder that can start straight away you looking at a 30 week build timeframe. So you start the process now to build and you cant move in until 2026 at the earliest. Any legislative changes to that process will take years to flow through and resolve the issues.
Every time Labor is in, mass immigration and artificially buffing the housing market is their answer to "good GDP numbers" while they spend and tax like no tomorrow
You can blame whoever you want to but don't you dare to blame central bank for not regulating and obviously allowing commercial banking to invest in housing bubble, at the same time leaving businesses who create real value - without financing.
You are spot on mate! It very sad that because the local population cant afford to breed to replace itself, the government decides mass immigration is the answer and not tackling the poor economic conditions people live in that wont allow for breeding. Its actuality one of the saddest things ive ever seen humans do!
Our business community failed to expand beyond our borders. Banks were an absolute disaster with their overseas strategies. So we have to inflate our population to justify business growth.
Thanks to this man for spelling it out for the people. Housing pressure increases costs of living. People will lose their home. Foreign investment blackrock (china) will swoop in a buy the foreclosed homes.
This is far too simplistic. Running a country is not a binary system. You take from one area and it affects 10 others. Getting the balance right is key and you will never please everyone. What is conveniently not mentioned is caring for the ageing population. Immigration increases the tax base to afford the care that we expect. Without immigration, there are less doctors, nurses, childcare workers, aged care workers, construction workers, engineers etc. Currently these people are in high demand. The reason that property prices are so high is due to lack of supply.
Can barely afford one child! I’m saving as much as I can, not much, to eventually retire overseas, probably-unless the housing prices crash into the ocean
Ah right. Only those that had it explained to them or figured it out. TFB if you had zero idea on it and only figured it out 6 years ago. Worked all my life to get to the top of my career and can't buy a house now ffs! Its all screwed up now but only those that dont have 2+ houses care at all.
You say all this but I live in Richmond Vic and why is it every auction I've been to has been bought by rich white guys in suits for their next investment venture?
I don't agree entirely and the wording is where it gets tricky. He mentions new demand and blames it in immigration. What about existing homes which are owned by foreign investment, investors or older Australians who own multiple properties. There certainly are Australians who require a house, in an area they grew up in. Not necessarily a new houses.
Expensive property is another tax from poor people to... rich people on top of government tax. Which make groceries in the supermarket more expensive as the price of milk include the rent of the building and storage it was at. U need more than 3 properties to be on the side that benefit from expenssive properties... just think about your children.
How will things normalise for property to come down along with food and so. I don't think it's possible. Crime and violence will follow, or is that already here? Just look at the tobacco war.
You can have the highest per capita building it's meaningless if you run the highest per capita immigration. The rest of the developed world has the same problem it's just accentuated in Australia because of our population growth.
The reason we have such high prices relative to income is due to the tax incentives and availability of cheap credit. You could for example make maximum loan terms 15 years instead of 30 and require a 30% deposit by law. Investment properties could require a 50% deposit. That would bring things back down to reality.
From my understanding (loose at best), its a combination of factors, poor management of spending at the federal and local levels, corruption with international trade and investment, selling off land resources to the private sector (pretty sure citizens hold the rights to sovereignty under common law...?), population density rather then population, wwaaaayyyyy tooo many in middle management. A monopolisation of key industries forcing the whole system of capitalism to be bypassed, eg; Woolworths and Coles Myer. Young people looking at what the future may hold as they become adults and adding up student loans (an incentive from federal education since the mid/late 80's to push towards uni) wages, savings, cost of living and mortgages. Im a bit below the middle tax bracket, and if i bought a house now with %20 deposit (say 60k), im paying over %60 of my take home income until im nearly 90. I had to study the population density of Melbourne for a uni class, I found a pattern from the 1880's onwards, which detailed a spread of development further and further out. There comes a point where distance from work is an issue. Houses are cheaper else where, there just isnt the infrastructure. There more land in Australia un suitable to grow food, build small cities with a controlled yet vague options for growth. theres plenty of water (stop selling all to overseas private interests unless its a surplus and so on. Use our own resources for us first, then sell/ trade internationally. Profit Should not be motive but the result of trade and business. Market control should be in the pockets of the citizens, not giant corporate global interests who under cut local trade and force out competition (this only happens of course when local money goes to them). Its a simple solution i rekon just might be a bit late.
Don't mention the elephant in the room! Letting non citizens (persons or corporations) buy property in this country is the cause of the housing crisis!
Market crash = wealth transfer from poor or middle class to the elites. Every time market crash mass lose years of hard earned wealth and it goes to the wealthy. Accounting 101….book always remains balanced!
What about the intergenerational wealth tsunami happening right now. Or to put it another way baby boomers are estimated to be spending up to $6 trillion as they cash in for retirement. Last year 30% of homes bought were bought for cash. Only a small percentage were overseas investors As an example my wife's sister bought her son a $2.7 million terrace in Marrickville 2 years ago.
Hi all - for those interested, here is the link to the full episode: th-cam.com/video/EpdY-KrPltQ/w-d-xo.html
Im 34, born Australian.
Have never understood Australia, doesnt make sense to me. Its feels as though im living in a scam.
You are.
Get him onto Q&A or similar show. This will really challenge Canberra
No one in Canberra cares
@@rz9509 yeah but the other 99% does because they are looking at leaving for Asia or Europe
No chance. Q&A are a part of the problem not the solution
@@addictiveaussieQ&A is full of brainwashed uni students and Labor party supporters.
Don't underestimate mental gymnastics at the top of a bull market. Telling someone they did exactly the wrong thing with their life savings is just too much for a Normie to consider let alone swallow
Australian property should only be for Australian citizens
Totally agree!!!
100%
But unfortunately many rich Chinese wankers can come in flash their cash around and buy all our property
Rent it out to a ridiculously large sum
Go back home to China and reap the rewards
Meanwhile true aussies are being fucked over
Tell that to Aussies who keep selling their home to them
The foreigners always pay more tho, it's this case World Wide as in Latin America there's certain Suburbs that do better is cause the foreigners buy within them and then when you go to sell you hope to also sell to a foreigner so you can also profit on having the house for those years, however there's a blatant and very obvious situation of money laundering and its happening through real estate and I'd say that's an international situation.
@@oscarellis2563 If the wealthiest 1% of Chinas 1.411 billion people decided to buy a house in Australia and the wealthiest 1% of Indias 1.429 billion also did no Australians could compete.
Many immigrants are also doing the "laundry" here in Oz.
Yep, and that's why tranche 2 AML/CTF keeps getting pushed back. The ponzi needs them to keep their party going.
They aren't migrants, the people doing washing don't even live here.
Australia has enormous debt levels..
ENORMOUS
@@1serasera Let's dive into the numbers to get a better understanding of Australia's precarious financial situation.
As of March 31, 2024, the Australian government debt stood at a staggering A1.067 trillion. This represents a significant increase of A273 billion from the previous year.
Key points to consider:
Interest Accrual: Even without factoring in the annual interest rate of approximately A$26 billion, the debt is already a monumental burden.
Debt-to-GDP Ratio: The debt-to-GDP ratio at 30.6% is alarming, indicating a substantial portion of the nation's economic output is dedicated to servicing debt.
Repayment Timeline: If the government were to repay the debt in full at a rate of A$1 million per hour with a 0% interest rate, it would take an astonishing 122 years.
Government Insolvency: This lengthy repayment period suggests that the government is effectively insolvent.
Potential Consequences:
To address this crisis, the government may resort to:
Real Estate Market Collapse: Destroying the real estate market to release trapped capital.
Superannuation Fund Raid: Accessing funds held in superannuation accounts.
The Ticking Time Bomb:
While these options may provide temporary relief, they carry significant risks. A real estate or stock market crash could lead to substantial losses, exacerbating the financial crisis.
Conclusion:
Australia is facing a looming debt crisis that could have severe economic consequences. The government's ability to navigate this situation successfully will determine the nation's future prosperity.
Everyone is so leveraged that people can't handle a 4% interest rate when the historical average is between 5-7%. If we had even a 5% rate for an extended period of time you will see household collapse. Don't think this will lower the price of housing. The government won't let it go down because of gdp. Line must go up no matter what.
Absolutely,most people rent a mortgage these days,and hope for capital growth....sooner or later this ponzi willl run out of money....
A ponzi requires there to be nothing to support it, but we have something supporting house prices….
There's something you're not taking about... the ponzi is also being held up by the capital gains tax discount, far too generous negative gearing welfare handouts and low interest rates.
'Everyone is in on the ponzi'... No. Only couples with multiple wages and people who have their parents to help are in on it. Some of us are locked out, even at higher than median wage...
I very much enjoy the negative gearing benefits and the 50% discount on capital gains.
@@oggyoggy1299 Good for you...
And...all Politicians are heavily invested in property, so they have a vested interest in propping it up, which they do on a regular basis.
The biggest problem is, they only choose policies that raise prices.
I argued similarly about the NZ market but no one believed me. That was years ago and it hasn’t crashed. Somehow everyone believes we will be buying $3m homes despite no wage increases. It doesn’t make sense.
Hahahaha people won’t because who’s gonna pay that price lmfa… it’s already over inflated and you think there isn’t a ceiling to this madness 😂😂
Dead right. The only buyers would be existing investors, or private equity firms which definitely should be outlawed. I think people are far too complacent. We should already be protesting this or changing government to get results. It's tragic
But people have no alternative to the "market". Investors are too financially comfortable which means they can just keep raising rents. The only way prices come down is if people have a way "out" of the market.
Australians have had an "obsession" with property since the end of WW2: that "obsession" was the desire to own their own property. Fast forward to the late 1990's and we find Howard and Costello changing home ownership from a purchase to an investment, while importing huge numbers of people to fuel that investment.
It goes much deeper than that. Everything has been centralized bc of government. Therefore the only cities growing are capital cities. We need major structural reform to fix this. But I think the easier option is to create more states.
The huge number of migration is all Albanese and ALP.
@rogerveal1336 Be honest. It started under Howard & hasn't been scaled back since.
@@tingtong5898 It hasn't scaled back since because Albanese decided to open the door even wider.
@@uberboiz Covid correction. BE HONEST!
Australia = Propertalia
Great country Australia!
Albos mass migration disaster has done more damage to Australians security and financial well being then an external enemy would inflict
Liberals were going to open the floodgates also... to fill up the coffers after Covid19!
this has been going on for about 2 decades now. Not an albo problem. It’s a whole of government problem
It isn't Albo's, it was Morrison who threw open the doors post covid, and don't forget the homebuilder subsidy, which drove up prices and created a construction labour shortage.
Everyone, please stand up today and call for an Election, to stop destroying the standard of living for Australians
No, because the dumbarse population would replace Labor with the greens and teals and make it far worse.
I can’t be bothered.
And nor can you.
Gov:
Oh don't worry, we don't need babies, we have immigrants.
I know right.
Fuck my 250 thousand year genetic lineage. My house prices need to go up. Why should I give a fuck about my Daughter's ability to purchase a home? She won't want children because they won't be affordable as when she's old enough, her partner won't be able to afford to buy a home for her to start a family in.
Yes and millions and millions of them.
@@Eric-kn4ynand they pay for your grandparents pension. That’s why they’re allowed in.
I’m mad as hell!!!
I'd much prefer immigrants over uncontrollable feral boongs creating more feral uncontrollable boongs.
Australia not only exceeds Japan's property bubble of 1990, it has blown it clear out of the water.
It's really bad, but I THINK that's quantifiably false - at the peak of the Japanese housing bubble, there was a 3.4 square kilometer piece of land in Ginza that was worth more than all the real estate in California combined. In particular it was $220,000/sqm - though that wasn't the norm even at the time, just the most valuable piece of land during the bubble.
@@bopsap.gammazape That was a one off. You need to look at the totals.
The best measure to compare is total residential land value as a percentage of GDP. Last estimate I saw was that Australian residential land value to GDP exceeds 370%. In Japan in 1990 it topped at 325%, Australia's residential property bubble makes Japan look not so bad.
Alan Kolher reported on the ABC news a while back "As a percentage of GDP, all residential land in Australia is now worth more than all Japanese land was in 1989 - and that was one of the great bubbles of all time, followed by one of the great crashes of all time. But this time will be different, of course."
@@craigpeacock5211 Absolutely. Taking one example is not a great measure. There is no doubt that Australia will be looked back upon as being the greatest property bubble in history. Valuations are absurd and there is an oversupply, not as we are told an undersupply.
Wait until, the Airbnb market collapses and watch many of those investors panic and art dumping and see how rapidly supply changes.
Not that long ago China's real estate market was the biggest asset class in the world at USD68 Trillion, with Australia at the time being USD9 Trillion. The oil virus difference being population. Since then China RE prices have been in recession and Australia has continued to grow. The collapse is going to be horrific and I am scared for the future of this country.
As long as population keeps increasing the bubble will never burst. Japan's immigration has always been close to zero, it's apples and oranges
I’m closing in on my retirement and I’d like to move from Collinsville to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Marisa Michelle Litwinsky’’ for about two years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
When, when will it end? They’ve been saying so for decades. I don’t buy it, because it will be too disastrous when it happens. And that’s why it perpetuates.
When does it end? I draw your attention go Argentina. Big country, a lot of natural resources but ..... shit management running the country. That my friend will be the fate of Australia.
@@ArtVentriss don’t say that, honestly that scares the shi out of me and makes me wanna move to the USA, Texas to be more specific
@@ArtVentriss You didn't answer the "when" question.
it wont end in the way you're thinking, the currency will collapse - the price of housing wont go down, the currency will just suffer from further debasement
@@humble_frog Isn't a currency collapse good for exports?
Well the biggest thing missing is that money printing is what makes the prices go up. Property prices have not gone up in the last 30 years, there is just more dollars in the market. You can cross M2 moneys supply with housing prices and it’s a flat line.
Fact:
Government, whether Labor or LNP are aligned with the WEF. so too are World Bank, BIS, WHO and the UN.
Statement from WEF:
2030 You will own nothing and you will be happy
Theyre not playing games or having fun with theoretical. They are serious.
Question: How will the WEF decouple you from home ownership?
Neo-feudalism, that's how. Everything is owned by government-corporate partnerships. Toll roads are an excellent example of this.
Well this is a possible path in the US. Cloward -Piven strategy.. en.wikipedia.org/wiki/Cloward%E2%80%93Piven_strategy
Make prices too high for younger generation. Then increase the tax burden to hold property to force those in the system to sell. Unrealized Capital gains Taxes. Tax on perceived gains that need to be paid before a sale of the property. Owing the ATO insane amounts of Tax which will then force a seizure and sale of the property, if you can't pay. Income is the key to surviving the madness to come. Equity won't save you. Superannuation is now being attacked with unrealized gains laws submitted to parliament "Division 296 Tax". Currently only for large super accounts but not indexed for inflation so over time it will affect a larger slice of the population. Property and Equities will follow the same route over time.
They are manufacturing a market collapse so people need government bailout.
Its obvious when all the countries are the same you know its a top down push
A house in 2016/2017 cost 66 bitcoin. Today that same house is 6.6 bitcoin. Know your asset class.
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.
Good summary. Yes the action and regulation of the financial sector has had a huge impact on real estate prices. I tend to liken it to fuel on the fire. Cheap and easily available credit has fueled price rises.
Many other factors have increased real estate prices with the finance sector being a major factor.
Bank SA still going strong today.
SPOT ON!
39% of lending is currently investor led not owner occupier driven. Go look at the chart of property price growth when our borders were shut. The demand is driven by Australian's own unsatiable demand for property owing to the ability to lever up plus the generous CGT discount.
It’s also foreign investors. Which should be illegal.
Australia the property money laundering centre of the planet 😅
Yep, hundreds of millions are coming in every year from China and India. One "developer" I know in one year brought in $40 mill.
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
Investment funds are already buying and building build-to-rent apartment complexes
The housing market is not going to collapse. It may go through some adjustments from time to time, perhaps around 10 percent. More than 60 percent of the households have their homes. Therefore, it won’t be politically acceptable for the housing market to completely collapse 😊
@@taeyoonsong2039 are you sure about that?
Okay, Let's dive into the numbers to get a better understanding of Australia's precarious financial situation.
As of March 31, 2024, the Australian government debt stood at a staggering A1.067 trillion.
This represents a significant increase of A273 billion from the previous year.
Key points to consider:
Interest Accrual: Even without factoring in the annual interest rate of approximately A$26 billion, the debt is already a monumental burden.
Debt-to-GDP Ratio: The debt-to-GDP ratio at 30.6% is alarming, indicating a substantial portion of the nation's economic output is dedicated to servicing debt.
Repayment Timeline: If the government were to repay the debt in full at a rate of A$1 million per hour with a 0% interest rate, it would take an astonishing 122 YEARS!!!...
Government Insolvency: This lengthy repayment period suggests that the government is effectively insolvent.
Potential Consequences:
To address this crisis, the government may resort to:
Real Estate Market Collapse: Destroying the real estate market to release trapped capital.
Superannuation Fund Raid: Accessing funds held in superannuation accounts.
The Ticking Time Bomb:
While these options may provide temporary relief, they carry significant risks. A real estate or stock market crash could lead to substantial losses, exacerbating the financial crisis.
Conclusion:
Australia is facing a looming debt crisis that could have severe economic consequences. The government's ability to navigate this situation successfully will determine the nation's future prosperity... So good luck with that!! 😁😎
@@taeyoonsong2039 Are you sure? . Let's dive into the numbers to get a better understanding of Australia's precarious financial situation.
As of March 31, 2024, the Australian government debt stood at a staggering A1.067 trillion. This represents a significant increase of A273 billion from the previous year.
Key points to consider:
Interest Accrual: Even without factoring in the annual interest rate of approximately A$26 billion, the debt is already a monumental burden.
Debt-to-GDP Ratio: The debt-to-GDP ratio at 30.6% is alarming, indicating a substantial portion of the nation's economic output is dedicated to servicing debt.
Repayment Timeline: If the government were to repay the debt in full at a rate of A$1 million per hour with a 0% interest rate, it would take an astonishing 122 years.
Government Insolvency: This lengthy repayment period suggests that the government is effectively insolvent.
Potential Consequences:
To address this crisis, the government may resort to:
Real Estate Market Collapse: Destroying the real estate market to release trapped capital.
Superannuation Fund Raid: Accessing funds held in superannuation accounts.
The Ticking Time Bomb:
While these options may provide temporary relief, they carry significant risks. A real estate or stock market crash could lead to substantial losses, exacerbating the financial crisis.
Conclusion:
Australia is facing a looming debt crisis that could have severe economic consequences. The government's ability to navigate this situation successfully will determine the nation's future prosperity.
They have been buying since COVID.
The IMF has said Australia needs to reduce Capital gains concessions by $19 billion, Which should allow the 30% of Australia’s properties to be put up for sale on the cheap so the super funds can buy.
Mate! Hit the nail on the head . We have shut down every industry, manufacturing and agriculture etc. so now we import shit.well said, "We are going to hell in a hand basket!". Australia is rooted.
$11 billion in Investor mortgages September 2024. So spooked are they, ABS has switched from monthly to 3 monthly releases. So all eyes on $4bn each month in that scenario.
I'd like to leave australia it's stuffed have u seen what it cost to work half the wage is gon just in costs for work u have to have a smart phone u have to pay for tickets for work only that have to be in some cases redone every year I have to have a car or they won't hire u we haven't even got to housing and ur stuffed
The government should introduce more attractive savings products to encourage investment beyond negative gearing. For example, infrastructure bonds could offer incentives such as a 10% tax offset on investments of $10,000 (providing a $1,000 tax benefit), with the investment locked in for the first ten years and tradable thereafter. These bonds should also provide a competitive dividend yield to attract investors. Funds raised through these bonds could then be used to finance infrastructure development.
so hike the interest rates and bring down inflation so AUDx can bullish and spending can be affordable at home
Math can it be beaten 🤣 , you forgot to mention foreign investment in residential property as well as immigration
Yes foreign money is welcome, no matter what consequences
Domestic superannuation is a big part of the problem.
get rid of GST on new builds, have real estate agent fee's capped at 1% or less and lower stamp duty and stop immigration FFS
The actual problem with housing costs is land and house build costs and particularly GST (who's really making money out of housing between GST and stamp duty?). Existing house prices are set to replacement costs, between house 5 star ratings, state and council costs, GST massive increase in a basic tradie wage and materials, this is where the problem sits. Demand reducing from immigration would also help rebalance the supply issues. Cheers
Investors are still in denial about the fundamentals of the economy. They expect rares will soon be cut and believe the topline GDP numbers signal a strong economy. However, they dont. Credit card balences are maxed out, more credit is hard to come by for consumers, a ton of companies are about to beforced into refinancing their debs at far higher interest and the regional bank backstop program is out this month. There's also the fact that inflation ticks higher than expected every single time the markets believe a rate cut is around the corner and a rate cut would cause a surge in inflation. The fed sees this stuff, guys. The only wild card for us investors is to actively engage the market by trading, we always over complicate things when we speculate. It's not about guessing the market's next move; it's about playing it smart and steady during trading...managed to grow a nest egg of around 100k to a decent 732k in the space of a few months... I'm especially grateful to Adriana Jensen whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.
Access to good information is what we investors needs to progress financially and generally in life. this is a good one and I appreciate
This is why it is advisable to connect with a true market strategist in order to avoid missing such opportunity and maintain steady gains.
The internet is filled. with so many useful information. about Adriana Jensen.
Thanks for keeping it light and real at the same time. Much needed for us traders in times like these!
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
6% for 4 years 800k mortgage can crash 30% that banks will still break even
Yep very true.
@@antpoo 4% 10 years US bonds will fade away any rates cut for while.
How and when will the ponzi “pop” or be turned around
Mortgages to Australians for residential property investment were a minuscule share of lending in the early 1990s. Following banking deregulation and changes to taxation that share grew dramatically. Hell, even in the UK built-to-let mortgage products didn’t really exist until the mid 90s.
Everyone pretending this is just “the free market” is ignoring the reality that these markets only exist within the legal frameworks we’ve established, there’s absolutely nothing inevitable about the outcomes, they’re a political choice.
This guy is the real true blue Aussie he tells it as it is.
We need to start a revolution for Aussies as we are getting shafted
I can’t be bothered.
And nor can you. Just be honest - you aren’t going to do anything.
@@oggyoggy1299 And thats why Australia is in deep shit. Because no one wants to do anything. So when it gets worse no one can sit and say they tried
I don't think once monetary inflation caused by adding to the money supply was cited as a root cause.
Everyone thinking they're getting rich off property where in reality it's just a market of the devaluation of the dollar 🙄
Can some explain to me please, why I have a loan from years ago that I assume the bank has already paid the last own, why does the interest rate change based on what the RBA says? Shouldn't the rate be locked in for the time of the loan? The bank isn't borrowing money for my lian every month, so why is it charging me based on RBA rate changes? I tried looking this up and couldn't find anything
Because you borrowed money, the bank had to borrow money, so they’re passing on the rate to you.
Is this video being suppressed? This should be seen by every Australian. ABC should at least at hit piece calling him a xenophobe!
Don't forget the demand for "money parking" created by the tax and superannuation systems. There are far more empty residences than homeless people in this country.
It's the same in Ireland, Britain, USA, Canada, The Netherlands, New Zealand etc. It's all one big scam.
No comment about the modern monetary system? New money made every year? Cantillon Effect?
GREED
Same scenario in UK and Canada.
Agreed. And in Hong Kong as well.
In my experience, the past is not a great reference at the moment. But, this will let go as debt is sky high.
If you want to get an idea of the amount of debt there is amongst Australians, the next time you go for a drive, count how many new Ford Rangers you see.
Not everyone is broke
This guy's just realised a capitalist society requires constant growth aka a Ponzi scheme 👏😂
Some corporations are buying residential property.
This gentleman spitting hardcore facts!
To my understanding, the main issue with high house prices in Australia is not due to immigration. Immigration has perhaps contributed, especially in recent years, but it is not the main reason why prices are so high. In fact, the root cause of the problem began back in the 1980s with financial banking deregulation. Banks went from being primarily public institutions to private ones, borrowing 800 billion dollars to lend at very convenient interest rates to Australians for purchasing homes. The problem started there, and today, it's just a continuation of the same issue.
it's always supply and demand.
bank rates are one aspect of demand
immigration is one aspect of demand
wages are another aspect of demand
international attention (olympics) is another aspect of demand
improving infrastructure is another aspect of demand
zoning is an aspect of supply
construction capacity and costs are an aspect of supply
government housing is an aspect of supply
to say it's not one thing and is one other thing is very black and white thinking and won't help you understand what's going on
Agree to a point, but without turbo charged population growth that overseas immigration brings who's renting everyone else's real estate portfolio that is supported by a largely deregulated banking sector?
@@helpelaine3927 Steve Keen has already debunked the immigration debate stating that large cities like Sydney, Melbourne etc have been build vertical up to a level never seen before... By the way you forget to add the people who dies and people who is leaving this country... Maybe from there you can get a better figure.
Price increase is from Stpid Fn dummies over paying for crack houses that’s why
so then why is AUD called "The Lucky Economy"
Just because something worked to make money for past 50 years doesn't mean it will make money in the next 50 years.Supply & demand dictates price.With housing for example there could be technologies that make it much cheaper to build,government rule changes making it easier or harder to own property.Population rate & overseas population ability to buy will affect price too.Prime positioned land is usually in most demand.
Shoulld be a Sustainable Australia Party member same ideas...so true.
The biggest danger is that most combat age people don’t own a home.
China knows that
Whilst I believe Australian (and most developed countries) have inflated housing prices, simply do the maths of income to house price ratios, what Matt describes here is the basis of economic growth generally. It points to an economy that is either resource driven or service driven but a big chunk of the services income that is exported by Australia generates is from 'exporting' education .. but the reality of this is >90% of this is from the students being here (vs studying online) .. Should Australia have less reliance on mining and education for export income, yes.. but I'd argue that we could retain the ~$30bn a year education export market and still have affordable housing by focusing on freeing up the supply side ... the real ponzi isn't in the demand side as much as the supply side where the owners of property (which is a good chunk of Australians) prefer property prices remain inflated as this is where their wealth is tied up .. ultimately the housing price inflation is the outcome of supply and demand side imbalances, some rooted in incentives, some in vested interests, some in bureaucracy and some in (poor) policy .. this doesn't mean we shouldn't look at all levers to address or reduce the issue, but suggesting its one thing and if we just stopped this one thing we'd be fine ignores the impact that changing or taking out that one thing would also create
But still a long process. I looked into building a new house in north Brisbane. You put down 5k deposit to hold the block you want. But that block won't be "registered" with the council until May or June 2025 at the earliest. Then if your lucky and have a builder that can start straight away you looking at a 30 week build timeframe. So you start the process now to build and you cant move in until 2026 at the earliest. Any legislative changes to that process will take years to flow through and resolve the issues.
If housing wasn't so expensive there would be more demand from Australians in the market
Absolutely right
The only answer is public housing. Send someone to London to see how its done.
Every time Labor is in, mass immigration and artificially buffing the housing market is their answer to "good GDP numbers" while they spend and tax like no tomorrow
@@jamesaustralian9829 I just got a tax cut, hang on everyone got one. Yes imagration is too high but happens under the coalition too.
@@tingtong5898 lol don't forget they stopped the low and middle income tax offset before starting this 'tax cut' thing. Right before the election.
Real estate agents in Australia are a disgrace. Zero value add, they just drive prices up.
How do they drive prices up?
You can blame whoever you want to but don't you dare to blame central bank for not regulating and obviously allowing commercial banking to invest in housing bubble, at the same time leaving businesses who create real value - without financing.
_Me can't afford rent anywhere since rent has 2-3x in price in past few years alone!_
Why did my house cost 300BTC ten years ago but only 10BTC today. Yet in AUD it costs 3x more. AUD is inflationary. BTC is deflationary
Because the price of housing has gone up.
But the price of BTC has gone up even more.
It’s not zero. It’s negative.
You are spot on mate! It very sad that because the local population cant afford to breed to replace itself, the government decides mass immigration is the answer and not tackling the poor economic conditions people live in that wont allow for breeding. Its actuality one of the saddest things ive ever seen humans do!
Our business community failed to expand beyond our borders. Banks were an absolute disaster with their overseas strategies. So we have to inflate our population to justify business growth.
What's the deal with the relentless "WORK FROM HOME IS DEAD" articles across the media lately? Commercial Real Estate lobby?
So essentially everyone in Australia is living off immigration 🤣
Looking forward to ending up like the USA. NOT. Bubbles burst
When WWIII comes knocking at your door, the entire market will collapse for sure.
Thanks to this man for spelling it out for the people. Housing pressure increases costs of living. People will lose their home. Foreign investment blackrock (china) will swoop in a buy the foreclosed homes.
The smart money has sold Aussie Real Estate now. The dumb money is left holding the bag.
It’s the “Cantillon effect “
Being in the finance education space this mate infuriate you two so much, the facts about our shitty Australian economy.
What?
Maybe put down the crack pipe??
@@oggyoggy1299 we are fucked, pretty simple.
Loose money created this, property hasn't gone up, you're money has inflated.
This is far too simplistic. Running a country is not a binary system. You take from one area and it affects 10 others. Getting the balance right is key and you will never please everyone.
What is conveniently not mentioned is caring for the ageing population. Immigration increases the tax base to afford the care that we expect.
Without immigration, there are less doctors, nurses, childcare workers, aged care workers, construction workers, engineers etc. Currently these people are in high demand.
The reason that property prices are so high is due to lack of supply.
Can barely afford one child! I’m saving as much as I can, not much, to eventually retire overseas, probably-unless the housing prices crash into the ocean
What you call ‘Ponzi’ in this video sounds like ‘economic confidence’. Without the economic confidence, all asset prices will collapse. 😂
Except housing is highly leveraged, unlike other assets.
Ah right. Only those that had it explained to them or figured it out. TFB if you had zero idea on it and only figured it out 6 years ago. Worked all my life to get to the top of my career and can't buy a house now ffs! Its all screwed up now but only those that dont have 2+ houses care at all.
You say all this but I live in Richmond Vic and why is it every auction I've been to has been bought by rich white guys in suits for their next investment venture?
Could be representing a foreigner
I don't agree entirely and the wording is where it gets tricky. He mentions new demand and blames it in immigration. What about existing homes which are owned by foreign investment, investors or older Australians who own multiple properties. There certainly are Australians who require a house, in an area they grew up in. Not necessarily a new houses.
Expensive property is another tax from poor people to... rich people on top of government tax.
Which make groceries in the supermarket more expensive as the price of milk include the rent of the building and storage it was at.
U need more than 3 properties to be on the side that benefit from expenssive properties... just think about your children.
at what point is a developed nation reclassified as a developing nation?
How will things normalise for property to come down along with food and so. I don't think it's possible. Crime and violence will follow, or is that already here? Just look at the tobacco war.
This is all true but it would be good if the guys in the background would add something to the discussion
Why? Do you feel uneasy concentrating on only one person talking?
They don't seem very bright tbh ...
You can have the highest per capita building it's meaningless if you run the highest per capita immigration. The rest of the developed world has the same problem it's just accentuated in Australia because of our population growth.
Why the info is there for all to see biggest island no room no homes crap school hospital s no fast rail
End the negative gearing on old/existing homes
It’s a supply issue
The reason we have such high prices relative to income is due to the tax incentives and availability of cheap credit. You could for example make maximum loan terms 15 years instead of 30 and require a 30% deposit by law. Investment properties could require a 50% deposit. That would bring things back down to reality.
Old mate isn’t Tasmanian is he? 😂
Debt levels can easily unwound by the million people with investment properties. Is it 20% of those people who have more than 4 homes?
From my understanding (loose at best), its a combination of factors, poor management of spending at the federal and local levels, corruption with international trade and investment, selling off land resources to the private sector (pretty sure citizens hold the rights to sovereignty under common law...?), population density rather then population, wwaaaayyyyy tooo many in middle management. A monopolisation of key industries forcing the whole system of capitalism to be bypassed, eg; Woolworths and Coles Myer. Young people looking at what the future may hold as they become adults and adding up student loans (an incentive from federal education since the mid/late 80's to push towards uni) wages, savings, cost of living and mortgages. Im a bit below the middle tax bracket, and if i bought a house now with %20 deposit (say 60k), im paying over %60 of my take home income until im nearly 90. I had to study the population density of Melbourne for a uni class, I found a pattern from the 1880's onwards, which detailed a spread of development further and further out. There comes a point where distance from work is an issue. Houses are cheaper else where, there just isnt the infrastructure. There more land in Australia un suitable to grow food, build small cities with a controlled yet vague options for growth. theres plenty of water (stop selling all to overseas private interests unless its a surplus and so on. Use our own resources for us first, then sell/ trade internationally. Profit Should not be motive but the result of trade and business. Market control should be in the pockets of the citizens, not giant corporate global interests who under cut local trade and force out competition (this only happens of course when local money goes to them). Its a simple solution i rekon just might be a bit late.
Love this bloke would love to have a beer with him one day and pick his brain.
There is no political party to vote for to stop the Ponzi?
Don't mention the elephant in the room! Letting non citizens (persons or corporations) buy property in this country is the cause of the housing crisis!
Interesting
Market crash = wealth transfer from poor or middle class to the elites.
Every time market crash mass lose years of hard earned wealth and it goes to the wealthy.
Accounting 101….book always remains balanced!
Watch the mock-mentary IDIOCRACY ……..scarily true 😂😂
What about the intergenerational wealth tsunami happening right now. Or to put it another way baby boomers are estimated to be spending up to $6 trillion as they cash in for retirement. Last year 30% of homes bought were bought for cash. Only a small percentage were overseas investors As an example my wife's sister bought her son a $2.7 million terrace in Marrickville 2 years ago.
I am not...