🏡📈😱Economics Vs Politics. The Escalating Australian Housing Crisis: What Are The Possible Solutions?

[@australianinvestmenteducation]

*Thanks for watching! Please leave a comment below sharing your thoughts on the issues within the Australian property market.*

[@DaneA-x3m]

It’s a shame that these new home builds will probably done by terrible builders, rather than quality build. New houses should be built to last, and not start falling apart 2 years later.

[@australianinvestmenteducation]

Thanks for the feedback. Seems like most things these days are built to last to warranty but not much beyond!

[@C783H]

It is so bad that I am considering leaving Australia. This government prioritises immigrants over citizens already living in this country. It is an absolute disgrace!

[@australianinvestmenteducation]

Thanks for the feedback. Indeed we are in quite the jam right now and sadly it really doesnt have to be this way.

[@ajb1963]

Absolutely spot on. You have summed up the lunacy perfectly. I’m paying a fortune in rent and tax. Can’t afford to accumulate a property deposit and then food and energy corporations using the inflation cover to hike up their prices - just plain greed. Something is gonna pop 😮

[@australianinvestmenteducation]

Thanks for the feedback - it really is truly shocking when the numbers are broken down.

[@aussiegirl7145]

Words of wisdom" That 10 billion is better spent on the Australian taxpayer rather than on one & a half million new migrants in an already over cooked market" The Albanese & Greens are killing Australia

[@gabrielpezzinigazzaneo3342]

As a first home buyer, it is very frustrating to go to an auction for a home that is already overpriced at 570k and find out you are between two investors fighting each other and getting the price way over the 600k and leaving us FHB out of the market. Right now we are thinking about searching a home waaaay below our budget, so we can make an offer way over the expected price so we can finally have a home and move out of the renting scenario

[@Hellbourne1994]

we only shop for housing under 500k, we actually just put an offer down on a house that was accepted. We are FHB, its possible we just need to drop expectations in terms of budget.

[@gabrielpezzinigazzaneo3342]

Update. We bought a house. Exactly how we said: going for a cheaper property and giving an offer Above sellers expectation. We are happy with how things turned out tbh. Hopefully all the other people out there trying to get into the market will be able to do so as we did.

[@DefiantCitizen-c6p]

High house prices in Australia are caused from a number of reasons but it must be said high prices are deliberately caused by government policy because it enriches banks, politicians, state governments through stamp duty and high prices is what they want. First its not so much the interest rate but the lowering of interest rates or the devaluing of the currency which occurs when the cpi says inflation is slowing .The RBA says lets get prices rising by lowering interest rates and house prices are the first to move higher but they are not measured in the cpi, as this happens it brings in the speculators as fear of missing out starts.Then eventually when interest rates move higher because of inflation rising everyone in debt freaks out so I would argue its better to have a stable currency than the deliberate boom bust economy caused by devaluing the currency and then increasing the value by increasing interest rates and all the pain it causes but this is by design. If interest rates stayed the same house prices would stabilise so people could build up savings but banks want to create the boom bust scenario and politicians love to get an artificial boom by encouraging people to take on more debt through fear of missing out when they see house prices start to move higher. The other thing is interest rates should never go below the real inflation rate as it causes speculation as people feel they must get rid of there money before it loses value. In Australia most of the money goes into houseing driving up prices aided by negative gearing and reduced capital gainstax laws. The RBA classes houseing as an asset so houses and land is not in the cpi which makes inflation appear lower so interest rates can be lower to make it easier to speculate in housing. If house and land was in the cpi it would be harder to lower interest rates because if interest rates went down house prices jump so fast then the cpi inflation rate would move up so interest rates would have to go up. What happens now most of the borrowed money goes into housing then flows into the rest of the economy and that is what the cpi measures but it takes time for inflation to pick up the way its measured in the real economy, and in the mean time houses have jumped 50% in price before the RBA says interest rates need to move up. The RBA inflation target is 2-3% mostly 3% in America its 2% so our inflation is 50% higher than America. Australia has weak foreign ownership laws and both governments have refused to stop money laundering into property. We also have massive immigration which creates a housing shortage. Government intervention in the markets with grants and APRA constantly changing the lending laws. also creates a boom bust in house prices. In 2019 house prices in Sydney and Melbourne were falling but Scott Morrison introduced massive stimulous and that was the beginning of the currnet nightmare. When you think about it why are Australian properties so expensive when most of the country is empty it doesnt make sense. Australia chose to go down the path of high inflation backing our currency with house mortgage debt as people enslave themselves with million dollar loans instead of manufacturing, you can't have both. Its by design if you don't like it don't vote Labour or Liberal there both in on the scheme.

[@australianinvestmenteducation]

Thanks for the feedback.

[@jessheppell750]

Love the idea of higher deposit requirements for investors to slow their competition against home owners. That’s a much softer fall than the “eat the rich” French Revolution direction we are currently heading towards…

[@australianinvestmenteducation]

Thanks for the feedback. Exactly - by embracing structural changes like this, an orderly market can be maintained and to an extent controlled, which enables a more directed tool for sustaining a healthy market for everyone.

[@Kathykatz27]

Great analysis. So so scary

[@callumwhite1501]

Also the other factor is, as a tradesman myself. There is not enough tradesman to build the amount of homes required. It is a massive problem across the board.

[@OzMadMan82]

Try having to pay $450/wk for rent in a rural town with no job prospects or growth on a $600/wk wage. I eat once per day because thats all I can afford now here in Australia.

[@australianinvestmenteducation]

Thanks for the feedback - it's very tough out there for many people. Feel free to check out our Podcast Money and Investing

[@joebloggs6131]

I'm just glad the First Home Buyer is being extended to modular housing. I'm a truck driver and capable of loading / driving my own truck with flat-pack modular building/s out of the factory to my own land somewhere and unpacking it... That potential saves me big money from having to buy a suburban house on a suburban block 😊

[@australianinvestmenteducation]

Thanks for the feedback.

[@davidk6264]

Spot on , Investors are looking for yield not affordability, The more investors enter the market they push more first home buyers out of the market, forcing more people to rent.

[@philliproberts7294]

Housing mate they need to make more tents you should really see how many are living in tents and cars the real numbers would shock the average Aussie

[@sbailey977]

I instinctively new that any scheme Labor and the greens come up with would be a load of economic nonsense. I just didn't realise how ludicrous it was until you guys pointed it out.

[@australianinvestmenteducation]

Thanks for the feedback. Indeed - the headline is admirable - EVERYONE wants to help the housing affordability issue - this policy however, seems to be more about votes than outcome. Make sure you check out our Podcast - Money and Investing for more content!

[@williamcrossan9333]

Great vid! Very pleased to see it's not another super spruiking property vid.

[@australianinvestmenteducation]

Thanks for the feedback. Feel free to check out our Podcast Money and Investing - there are a couple of hundred episodes in there.

[@vittorianesse]

Great discussion. Like to hear a deep dive into housing driving a myopic “wealth vehicle” narrative, has impacted broader investment in business & innovation, which generates far more shared wealth in our society. Thank you!

[@australianinvestmenteducation]

Thanks for the feedback - its a very confronting topic to lift the lid on.

[@carmelbarnes391]

Your comment is Spot On!! Would click “like” 100 times if I could!! It will take generation/s for this thinking to change.

[@clarencecrowcarter]

Accessing superannuation will inflate house prices. More money chasing a limited supply will inflate prices. Remove negative gearing, speed up construction approvals and let the market find its own level. Zoning laws and nimbyism are also problematic. How many people can we really support? Australia is big yes, but we have very little water. How many people can live here?

[@australianinvestmenteducation]

Thanks for the feedback - we probably need a major overhaul of our economic policy if we want a stable and better future. Feel free to check out our Podcast Money and Investing

[@samtannouri3665]

I sold my house in Sydney last march for 1.3 million. I have a budget for 1.8-1.9 and still can’t find a decent house looking very grim . What should I do wait till next year see what will happen prices don’t seem to be dropping

[@serena-yu]

I just couldn't understand it. Why do students buy so many houses, even those far away from university campuses? How did they get the proof of income for the home loan? What do they plan to do with the houses when their visas run out, or was it just an investment action?

[@australianinvestmenteducation]

We aren't saying that students will be buying houses, we are saying they will be renting them - causing further pain in the rental market, which is already struggling. Hope that clarifies things - feel free to check out our podcast Money and Investing.

[@Contemplator24]

Great talk guys. So refreshing and rare to hear anyone tell the truth when it comes to property unaffordability in Australia. Immigration is the major problem and needs to be scaled back drastically.

[@australianinvestmenteducation]

Thanks for the feedback - Feel free to check out our Podcast Money and Investing

[@lisagraham7072]

I don't know the details of the new affordable housing model that you are referring to but I am assuming from what you are saying is that only stand alone houses will be built. If half the immigrants coming in are students they will only need 1 or 2 bed units. My understanding was that commercial buildings in cities are going to be converted to residential apartments.

[@youtubevanced4900]

they should just ban foreigners purchasing property in Australia. Give them 3 years for any property already owned to be sold before the state takes the property back. Also close the borders to immigration. That would solve the two biggest contributors to the housing crisis.

[@McShakerMaker]

Excellent content!

[@australianinvestmenteducation]

Thanks for the feedback - very much appreciated. Check out our Podcast, Money and Investing - there are a couple of hundred episodes on there too!

[@MrMeoow91]

First is to put a pause on allowing foreigner to buy property as investment. How many apartment projects out there that are priced reasonable for average Aussie. Most of them are built “for” foreign buyers that ended up without anyone living in.

[@australianinvestmenteducation]

Thanks for the comment and yes having a more considered policy is crucial

[@coasteyscoasteys]

There's a shortage because its done on purpose. People need to start looking at living in caravans

[@yukisanderson6907]

The information was great.

[@novoca1n3]

If I was able to use my super I could buy a nice little house and the excessive rent I pay would well and truly cover mortgage repayments. I'd even have quite a lot left to support my retirement. This would also free up a rental for someone else.

[@DavidAKZ]

That's the problem with government. Like the NBN the Internal Rate of Return has to be around 5%. Thanks guys.

[@australianinvestmenteducation]

Thanks for the feedback. Not to mention cost over-runs and a lack of deliverable! This is likely to create another long terms tax payer funded legacy.

[@aulzhoefer]

Great dip into super and drive prices higher 👏

[@australianinvestmenteducation]

Thanks for the feedback - and yes such a policy would firstly require some broader changes in the property market to ease the heat out. Feel free to check out our Podcast Money and Investing

[@dale8957]

Australia Labor party is following the same housing policy that failed in New Zealand. I knew it was going to fail. I've lived through it before.

[@aus-reviews8462]

This guy is speaking facts ive been saying the same thing for the past two years, Coastal towns are being swarmed by europeans and south americans

[@RockyRooster1969]

Good insight

[@douglachman7330]

Change the tax system ie Negative Gearing and rebuild the engineering and construction industry. Sustainably increased training and apprenticeship standards is important. Refocus the University System for fit for purpose value and substance. Politicians and investors are on a gravy train created as an unintended consequence. Why would they change the system they rely on.

[@australianinvestmenteducation]

Thanks for the feedback - we probably need a major overhaul of our economic policy if we want a stable and better future. Feel free to check out our Podcast Money and Investing

[@sal78sal]

wow, government wants to build houses for $85,000. And only 30,000 of them when we need 800,000 just for the migrant intake. Drinking the Kool Aid.

[@australianinvestmenteducation]

Thanks for the feedback. Wise words! Make sure you check out our Podcast Money and Investing for more of our content!

[@hughmangus2324]

I couldn't agree more with the speaker. It was a very well collated interview and informative insight into this growing issue.

[@australianinvestmenteducation]

Thank you for the supportive comments. feel free to follow our other content through the Money and Investing Podcast.

[@Hangover-ry9bo]

When I hear 10 billion stimulus or package I hear that my working time get taxed higher, the unborn children get mortgaged, and the immigrants not here yet prepay, and the 65 year old work longer to pay for all this. When I hear, speak to the bank, we get you going, I hear we take your car and the house back, therefore you walking down the street. Almost like a country turning into a place.

[@theoskalt-rf1td]

The problem is all the government taxes and fees just to build. House prices could easily be 30% less. Include income tax, gst, cost of living and it become an uphill battle for someone to enter the market.

[@DaneA-x3m]

Great video, I think more chat about this to educate others is good.

[@australianinvestmenteducation]

Thanks for the feedback. Make sure you check out the hundreds of other episodes on our Podcast, Money and Investing. Great to be able to help people through promoting this kind of discussion.

[@Luke1985]

100% agree with matey about doin stuff for our people first. Not racist. Its common sense. We pay 30% tax for our country. For our government to help us out. Well they should be. But they aren’t.

[@australianinvestmenteducation]

Thanks for the comment - appreciate the support

[@samoondaxoy6872]

You are true Australian

[@australianinvestmenteducation]

Thanks for the feedback. Very kind and yes I am proud to be an Australian. Feel free to check out our Podcast Money and Investing for more of our content.

[@healthabundanceforever4222]

The piece around universities having to build accomodation is great. However, using super to buy properties is just throwing fuel on the demand side. That would be disastrous. As would lowering the LVR for investors. We need more mums and dads investing to provide accomodation. We have a rental crisis and need more dwellings. It should be the other way eg95% LVR

[@australianinvestmenteducation]

Thanks for the feedback - and yes such a policy would firstly require some broader changes in the property market to ease the heat out. Feel free to check out our Podcast Money and Investing

[@ozzyjohn1458]

Look at Thailand, don't let foreigners buy Aussie houses, parking overseas money in our country. NO

[@KevinSolway]

$85,000 per dwelling? That wouldn't include the land - at least $50,000 in the middle of nowhere - or any fees or insurance. Let's say it costs $400,000. That's not affordable housing.

[@australianinvestmenteducation]

Thanks for the feedback - and yes that is exactly our point! Feel free to check out our Podcast Money and Investing

There was a time when all investment loans be it commercial or domestic properties always commanded a 2% surplus over residential loans .......BECAUSE it was considered a higher risk coupled with all the benefits of Tax Deductable breaks ............NOT anymore!!!!!

[@australianinvestmenteducation]

Thanks for the feedback. Yes it's clear there needs to be a shift in lending policy to moderate the market. Sometimes, the old policies aren't actually out of date! Feel free to check out our podcast Money and Investing for more content!

[@mandyspacek1087]

There are plenty of housing around, problem is these houses are sold off to foreign investors, property investors and most sit empty; they have to park their $ somewhere to avoid taxes. My last landlord owned 65+ houses, there is the problem there. Laws need to change or we'll all be homeless Im in a caravan now because of this 'crisis'.....

[@australianinvestmenteducation]

Thanks for the feedback - feel free to check out our Podcast Money and Investing

[@andrewmackenzie325]

This is not a partisan political issue. Increasing house prices are critical to maintain political incumbency. John Howard said it best 20 years ago: “I’ve never had a constituent come to me and argue for lower house prices”.

[@jetnavigator]

We're stuffed. It's over.

[@stevenhamilton9790]

It’s a failure of government for the people

[@steph4922]

The government building... does it mean my build cost will go up again 😂😂. Already gone up 300k since covid "building handout". The build prices will increase so normal Aussies can't afford to build, so there will be less supply. How does this fix housing? We don't need so many housing. I used to be a student, we used to have 5-6 people in a house. So you only need about 200-300k housing for 1M students. Same with young professionals. Usually 4-5 to a home. Low skill overseas workers, usually 6-8 per home. My rental manager tells me usually it's 3 couples and sometimes a child or 2 sharing a 3 bed home. My son's friend is staying in a 2 bed apartment, and they are a family of 6 but when cousins first arrive in Australia, that's another 4-5 people in the house for a month or 2. When they go, there is another friend's family who's there until they find their home. They probably share their rent bills for a couple months. I don't know how they fit usually 10 people in a 2 bedder, but they do.

[@australianinvestmenteducation]

Thanks for the feedback - and yes a program like this will add more fire to the construction cost challenge. Feel free to check out our Podcast Money and Investing

[@1meanmaorimean1]

in new zealand rents are around 60-70% of ones income, shocking

[@berniestar1490]

To sum up, we need to send Albo a calculator and the instructions on how it works. We are paying dunces to run our country. 😢😢😢

[@HairyPixels]

34% of income for rent is the historical average for the US I think and much higher now in many cities.

[@australianinvestmenteducation]

Thanks for the feedback. Indeed - this time around, with the cost of living through the roof, it's a compounded effect for many people. Make sure you check out our Podcast Money and Investing for more content.

[@jamiehollamby5451]

Changing the Super laws and Tax around super would be good idea, like Andrew mentioned. then we would actually be adding money instead of the break even from the building of housing.

[@australianinvestmenteducation]

Thanks for the comment and yes it would. Major requirement for some legislation around this but could really make a difference.

[@tdgspare3639]

If i sell, i can't afford to buy anything else. Even though the house has doubled in value, by the time i pay off the mortgage, pay tax & buy something else, I'll owe more than i do now. The market is crazy! And then, there's adult kids staying longer at home as they can't afford their own place. No downsizing available here!

[@williamcrossan9333]

I'm wondering why we haven't seen a really aggressive wage push? Sure wage growth has lifted, but it's still quite modest. Brisbane houses are up 60%. Rents up 50% since 2018.

[@australianinvestmenteducation]

Thanks for the feedback. Indeed - unfortunately wage growth then fuels the next round of inflationary pressure which is why the handbrake is on. Something needs to shift as it's getting very tough out there. Make sure you check out our Podcast Money and Investing for more content like this.

[@tomwang4237]

What can be done?

[@australianinvestmenteducation]

Great question Tom - a major rethink on our economic policy with a substantially longer than 4 year mindset would be a good start! Adjustments to LVR's in a very orderly fashion on investment properties being one example. feel free to follow our podcast - Money and Investing with Andrew Baxter.

[@robc9136]

yeh.. its a big mess. Then throw in the government acting against the RBA, huge mess

[@australianinvestmenteducation]

Thanks for the feedback. Indeed - on one hand you have interest rates moving higher to curb spending from the public and on the other you have continued largesse on impractical schemes from the Government! Make sure you check out our podcast Money and Investing for over 200 episodes of content.

[@EddieGillies-lj8dp]

BCF is doing fantastic business selling gear to camp locally

[@PyjamaLlama]

Stop building out, start building up. We need large apartment complexes. It is the only long term solution.

[@fredw1422]

Portable housing placed on un-preductive farm land $85000

[@vittorianesse]

I have chosen to rent at $400/wk and build a business to give people jobs. I will have spent $624,000 on rent approx. (excl. expense claims as I WFH) That’s far more disposable cash over 30yrs to create other forms of wealth for myself and those around me.

[@australianinvestmenteducation]

Thanks for the feedback. No reason why you can't do both, as your business grows and kicks out more cashflow. feel free to check out our Podcast Money and Investing

[@Hellbourne1994]

2 things, record immigration and record low vacancies and housing supply = high demand, nothing will change unless supply and demand is fixed.

[@Ravioligreen180b]

What you saying makes so much economic sense. Do you speak to politicians? I thought labor was going to grandfather negative gearing?

[@tokyoknight6676]

In Japan they have different loan rates for different kinds of loans. Home buyers pay a much lower interest rate than the investor. We need this system.

[@australianinvestmenteducation]

This is a very good approach as it allows for very specific tools to influence the specific part of the market that needs managing.

[@adiintel1]

As a renter in a 2x1 duplex having my rent going up from 380$ - 600$ that's a hell of increase. I don't see a way out of this tbh. We need chinas over supply in oZ

[@australianinvestmenteducation]

Thanks for the feedback. Indeed it's a tough situation for so many out there. check out our podcast Money and Investing for more content.

[@nevmcc3884]

Housing "Future" fund?? Peter Costello's "Future" fund was created in the late 90's early 00's. Sold and promoted as a fund to serve Australians in times of crisis. The fund was built on the sale of Telecom (Telstra) a public company built by and owned by Australian people and to my knolege has never been dipped into despite various major floods and fires, gfc, covid19 etc etc.The "Future" fund has since been repackaged as a retirement fund for politicians and high end public servants.

[@pkd6369]

there were a lot of shonky private property certifiers around in2013. we live in a development the certifier got deregistered and after 10 years still no O.C but the council doesn't seem to worry I'm talking multiple dwellings. Go figure this out .and I'm talking a big current developer. And this government wants to fast track .ALLBLUFF AND WIND

[@mistersmacky]

You can get a nice new caravan for $85k

[@Narlee2226]

I don't think people should downsize ..people need to upsize so there children can move in to save there money ...we are cash buyer and can't afford a home after selling our first place and young first home buyer are so stupid they are pushing prices up !!! And stamp duty is such a joke

[@danieljee8670]

Sounds like a demand problem

[@australianinvestmenteducation]

Thanks for the feedback. Certainly will be with a big jump in our population. feel free to check out our Podcast Money and Investing

[@chrisdebeyer1108]

It’s a nightmare. Being stuffed by experts

[@RileyBeaky]

Why shouldn’t a bank loan 100% of the property value to people that can demonstrate that they’re able to pay it?

[@PaddyAU]

Cash rate isn’t even back to historical norms. We have a massive property bubble

[@UberMick]

84k per dwelling clearly shows they want to create ghettos, high density apartment complexes built on the cheap. Because they know high inflation will saturate the jobs market, this leads to over supply which will ultimately lead to lower wages, and then these people can only afford to live in the ghettos or simply can't so are reliant on gov handouts, this expands our already existing welfare class, and will increase government spending. Labor is driving us to the fiscal cliff at mach 1...

[@UberMick]

Sorry, high immigration, not inflation.

[@australianinvestmenteducation]

Thanks for the feedback - we probably need a major overhaul of our economic policy if we want a stable and better future. Feel free to check out our Podcast Money and Investing

[@vincentcacciola7161]

Straya is importing inflation rents and house prices will keep going up a donga in a caravan park twenty five ks outside Sydney is 500 dollars a week good luck Straya

[@australianinvestmenteducation]

Thanks for the feedback - Feel free to check out our Podcast Money and Investing

[@Denise-eb7vg]

My rent has only gone up $30. It’s not too bad. I only pay $26000 per year and live in a really good and relatively centric location. I guess those prices are for 3 rooms or more.

[@dazrox6084]

Infill is a possible solution but council red tape make it near impossible.

[@Michealfarmer]

This is the perfect example of what happens when people expect infinite growth from finite resources. It’s not rocket science.

[@nickyweav5820]

Let me know if you want to look into Hamilton New Zealand. Rapid growth currently and next 10 years.

[@neolion8150]

300-$320k to build. Sign me up.. Love to know who does it at that price in Qld. Prefab cheapie in Qld start at that.

[@justicebroker2271]

Isn’t it a sad world when you have to preface that, you’re not racist, before you say anything about immigration in regard to helping Australia from becoming a failed state. What’s the point of immigrating to Australia if the country is worse than where you’re coming from.

[@jetplane10]

👍

[@shuyuan901]

Irresponsible governance, disaster for the country.

[@coderedex]

What Are The Possible Solutions? I believe leave Australia ,because the house prices will not fall!

[@danieldunstan]

Who is getting the magic money?

[@Chris-by8eh]

IT'S OUR TAXES PAYING FOR THIS.

[@rickman2267]

House Australian people 1st, not migrants

[@ryanwoods6774]

Honestly, our political system is sad place. One day I hope we get CEO decide that he'd rather run the country than a company and take the job. Would love to see what this place would look like if we ran it with a fraction of commercial acumen, as opposed to a charity that uses our population as a endless money bank.

[@australianinvestmenteducation]

Indeed great comment and carries a lot of validity

[@randomvideos9767]

Government aren’t the only ones who create money. Most money is created by commercial banks through lending to business/individuals.

[@australianinvestmenteducation]

Thanks for the feedback. While banks can on lend, and accelerate/decelerate the economic growth, its the government/regulator that sets up the lending levels through Capital Adequacy Requirements. It's also only the government that can actually increase money supply through either printing/selling bonds etc. feel free to check out our Podcast Money and Investing.

[@coderedex]

I have been here since 2007 and will leave soon! It's out of control here!

[@Sunlife3]

Borrowed yep

[@xavier_lucas]

Recently my wife and I just sold two real estate properties for a total sum of $800k. We plan to purchase a new house next year, the cash is just sitting in our joint savings account. What do you recommend we do? I will appreciate any suggestions.

[@australianinvestmenteducation]

Hard to jump back into this market, that's for sure. Plenty of content through our Podcast Money and Investing with Andrew Baxter - also feel free to jump on one of our free training webinars and we can walk through some strategies for you.

[@stevenhamilton9790]

It’s a failure of government for the people

[@australianinvestmenteducation]

Thanks for the feedback. Indeed - it is very hard to deliver good outcomes when you are only focused on 4 years...