Why is Australia's property market so out of control?

[@PremSteve-yg4de]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[@yolanderiche7476]

I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!

[@fresnaygermain8180]

Soon, cheap homes won't be cheap anymore because prices today will look like dips tomorrow. I think inflation will cause panic until the Fed tightens its grip even more. You can't just pull the band-aid Off half way. Booms and busts are the ups and downs of the economy, and they will affect any investments. If you are at a crossroads or need honest advice on the best steps to take right now, it is best to get counsel from a financial expert.

[@valeriepierre9778]

How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?

[@fresnaygermain8180]

Sharon Marissa Wolfe is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@belobelonce35]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@johncahalan1433]

Nice explanation of supply and demand 👌. What is life without money ? I think it's irrelevant. When you live, always try to invest for future moments like this to ensure profits and growth.

[@brendonrookes1151]

the issue is that boomers havnt re invested back into future generations they hoarded they changed policys to make there lifes cooshie and lived off the youth like a parasite

[@mx9917]

The path we traveled to get here over the last 25 years, - introduced negative gearing - deregulated bank lending practices(easy money) - foreign ownership up to 60% of developments - increased migration - government handouts to buy homes - painfully slow council planner's - and now material price increases all poorly managed by government.

[@funkafize]

Add: Realestate industry built on continued higher priced sales = continued higher commissions. AND state governments who love having large portions of their budgets made up by stamp duties.

[@Musti69]

negative gearing for building a house makes complete sense to increase supply. get rid of negative gearing for already built homes, it doesn't make sense, what is depreciating on an old home. It's a scam for the boomer's property to keep increasing, the crash will happen when they die and it won't be a problem for them.

[@robertkopp873]

Add: Local governments increasing Site Value of housing land so owners pay more each year for Rates, thus pushing up the bank valuation. Add: $188 billion the AU govt borrowed and pumped into our economy via cheap interest on bank mortgages. Add: The covid madness of recent years. It is a never-ending list of woes!

[@vahalla1982]

Well said. I'm a migrant and the whole concept of negative gearing just blew my mind off. Subsidizing the public taxes to fund the losses on rental properties. It's like you bought some stocks for speculation and any losses can be offset against your income tax. It is crazy if you apply that concept to stocks but it's okay for properties? If the rich wants to speculate, go speculate on shares, fancy cars, yacht etc. Leave the houses for someone else. I was quite upset when I saw a video about a retiree having 9 houses. Wtf do you need 9 houses for? All these old blokes who bought cheaply back in the days and making tons of money due to no skills of theirs (just being born in the right time) and eating up all the resources. Honestly, I see no future in this country and I'm making plans to go back.

[@Mazza666]

You forgot reducing 10% deposit to 5% then 3%. Waiting for 1% deposit and government owning 40%

[@krissyk9767]

Its very unfair. Baby Boomers were able to buy a house 30 yrs ago for $100,000 - and now that house is worth $2 million. But wages have not increased anywhere near that rate. Its very unfair for younger people who have to pay these high prices.

[@moparmadman1134]

What about generation x we are the forgotten ones

[@anonmouse15]

And yet they continue to do so, so as far as boomers are concerned, there is no problem. The only solution is a buyer's strike.

[@chriswatson1698]

That is the inevitable result of population increase. Get our migrant intake back to the level that it was 30 years ago. There is an belief that the larger our Australian population gets, the more immigrants we should take, even though our land and fresh water has not increased in line with the population increase.

[@andrewbroome7404]

That's because when interest rates are cut - it doesn't improve affordability at all. All it does is transfer future earnings of younger generations into their assets that they bought cheap (by allowing them to borrow more). FHB's would be waaaaay better off with interest rates at 17.5% than at 0.1%

[@gremics-gallery]

​@@andrewbroome7404 With the current price of housing, interest rates don't need to get anywhere near as high as 17.5%. Only a 5% - 7% increase would bring about the same effects as those interest rates back in the 1980's/1990's...

[@ReidCoffman1]

I sold a couple of homes in the canberra area for pretty good cash and I'm thinking to just leave it in stocks while waiting for a house crash to happen and as well avoid inflation, but is this really a good time to buy stocks? I hear it's a madhouse right now and I still hear folks are raking in huge 6figure profits by the weeks and I'd love to know how.

[@MariusNatt]

look at it this way while some folks are waiting to make minimal profits when stocks recover, some others folks already know where to look and what to do to make hefty gains in these times, so yea, it all boils down to knowledge to risk mitigation.

[@AshtonGrace]

@@MariusNatt >>True, I was in dilemma myself due to this chaotic mrkt, wasn't sure if to sell or just wait a little longer, 75% of my portfolo was tanking and in the red and the economy isn’t looking promising, but I began gaining clarity and have more confidence in my invt through an lnvt-adviser, I know most DlY-lnvestor like me would say advisors aren't essential, but come to think of it, they're better trained and equipped at this and if I have to give just a little amt in fees for me to be able to net $650K in less than 8months like I did this year, I truly don't mind...

[@AaronTucker-th2nn]

@@AshtonGrace Omg you made 650k this year? Who is this coach that guides you?

[@AshtonGrace]

@@AaronTucker-th2nn>> Yes i did, and "Autumn Lynzi Smith" is actually the one that guides me, she’s a highIy-sought out advlser, so I’m not certain she’s accepting new intakes but you can give it a shot. It wouldn’t be proper to just leave her number lying around, but she has a webpage you can look at if you google her name....

[@Rachelschneider03]

@@AshtonGrace This recommendation is coming at the right time because i am literally grasping for straws atm! I looked up Autumn Lynzi Smith online and scheduled a phone call with her

[@craigxxx7995]

Yes,yes,yes .....the bubble started in 2003,house prices doubled overnight, why? It actually occurred in a few countries, this supply and demand bs is meaningless...could it be govt allowing people from anywhere in the world to buy houses and speculate like a stock market also caused this? Anything for stamp duty taxes?

[@MrFastFarmer]

It’s called negative gearing and superannuation funds. Turning a home into an investment has F’d the average person, but been a godsend for people like my parents

[@leonardvillani6409]

Pricing most young people out of basic necessities (food, water, and affordable shelter) and by extension having children of their own always leads to horrible outcomes for society.

[@tanweerahmed6861]

Similar situation in Canada , how shameful is that Canada and Australia are one of the largest countries in the world by size and still have housing issues

[@brendonrookes1151]

a large portion of the problem is chinese investers buying large chunks of aust and not renting to australians

[@montezdiego9746]

Nice explanation of supply and demand. Unfortunately it is irrelevant for has the current boom where government property welfare and money printing inflated the market while the population was stagnent (or shrinking in Melbourne). These tax payer funded property market stimuli are also a major cause of the current inflation issue.

[@MrRez808]

This was awful reporting on a crisis that is way worse than reported. A House was never meant to be an asset it was always meant to be a place to live. Every government intervention so far has done nothing else but increase house prices. They way this will be fixed is get rid of all investor related tax breaks and force them out of buying up homes and turn them into ROI’s. I once told an investor that they are effectively stealing a home from the pool of properties and turning it into an ROI they didn’t have an answer to that one.

[@Alice_Walker]

Well said

[@charliepearce8767]

Exactly 💯 right !

[@caneburner007]

Behind every disaster stands a government. The loss of free markets saw an end to affordable living.

[@shaunharrison3581]

Yet everytime the government steps in to "help" it just drives the property prices up. Increase supply of you want lower prices.

[@charliepearce8767]

Im in my 60s and understood early in life that anything the government tries to achieve has the complete opposite outcome... Once you understand that you can act accordingly. Its worked for me !

[@dsinghr]

I have no interest in buying home, but this rental market won’t let me. It’s crazy difficult living in Australia at the moment

[@leonie563]

Try overseas whether under 35 or not. Many Economists have been predicting 10% unemployment and around the same as Bank interest rates. This probably has a 10 year tail.

[@wingedviking2706]

Surprised no-one touched on this: Investment properties should not be allowed. It should either be illegal to own more than one property or, the less direct alternative is to have laws that punish having investment properties and make it so unprofitable that no-one will do it (same outcome either way). Unfortunately, the opposite is what has happened; there have been laws made to make investment properties very lucrative because, surprise, surprise, most of the people responsible for passing those laws own one or more investment properties. A prime example of corruption.

[@xiaominglu9814]

very true.

[@errolfeistl1705]

There are more than enough homes in Australia (there are 1,000,000 empty homes currently), the problem is the tax incentives designed to help the rich while the "support programs" "designed" to help first home buyers simply push prices up even further. Its all fun and games now, but the Australian economy has transformed into selling rocks to China and selling houses to each other. While this is great when Chinese demand for resources is high and global interest rates have been dropping (allowing $3tn of "wealth" to be created in 12 months), in the even Chinese demand drops (EG their population is now decreasing while they have 80 million extra empty homes) and global interest rates rise, the Australian economy could be in for some difficult years. Our housing market is now more overvauled than the japanese market in 1989, which then suffered price drops of over 40% in the following decade and still haven't fully recovered. The major problem.... Government policies that raise housing prices is popular and wins you government, even if its the wrong long term decision for the country as a whole.

[@thingformob]

Well said

[@manbha549]

People had a choice in 2019 and squandered it. I am extremely worried about my kid's future. I just hope my kids don't question my decision to move to Australia when they are adults.

[@errolfeistl1705]

@@manbha549 to quote Alexander Fraser Tytler... "“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship." Australia is facing very serious long term issues (extreme levels of debt (public and private) relative to GDP, growing inequality, falling birth rate, climate change etc) and most critically voter dissatisfaction and poor leadership which is influenced by business. The outlook for the next 10 years is no where near as good as it was during the 90s, 00s and 2010s...

[@Daniel-cc6oy]

very well said, ahh the common misconception that we need more houses because "sUppLy vS DeManD", is so wrong.

[@trinitiusw6145]

The Labor gov should start imposing a temporary home hoarder’s tax for people who own more than 3 homes. Starting from an extra 20% land tax for every extra house rising to 100%. With the rising interest rates that should help to alleviate a little of the current supply problem

[@johnmanciameli9752]

And you just destroyed the supply of housing to renters. Labour did this in the 80s. They quickly repelled the law as it was hurting the working class.

[@HaruHaruman]

@@johnmanciameli9752 No you wouldn't. People will finally be able to afford to buy houses and the demand for the rent would decrease as the result.

[@johnmanciameli9752]

@@HaruHaruman a big part of the rental crisis are first home owners buying rental properties. (Good thing). No one is replacing these rental properties. Investors provide housing. If government doesn’t step in to replace this stock and investors wont because they have to now pay tax, who will then provide the housing? Please tell me.

[@aussiegreg9573]

A cap of 3 homes seems reasonable before a hoarders tax is implemented, I’m not sure how this would destroy the rental market. The people who have excessive properties should be taxed to help with the affordability and supply. They should also look at taxes and restrictions for Air BnB which is affecting the rental supply. I’m not a fan of new taxes but the wealthy always have a way of not paying their share. Home ownership and land purchases should also be limited to Australian citizens.

[@johncorlett3699]

@@johnmanciameli9752 make it so it is detrimental to own a house with less than say 90% occupancy, no holiday homes left empty ten months of the year. have a look around seaside town in the winter, rows of locked up houses, schools closing, other businesses closing, ban air b&b

[@canwelook]

Remove or reduce negative gearing and prices will drop immediately.

[@anonmouse15]

I agree, but anybody who even thinks that in parliament would be commiting certain political suicide.

[@canwelook]

@@anonmouse15 Agreed. And it is sad reflection on our society that power sits overwhelmingly with the wealthy and their greed overtakes their compassion.

[@gremics-gallery]

People also have self-managed super funds that are based on Negative Gearing. Remove it and we would need to have the government compensate those people.

[@canwelook]

@@gremics-gallery You're kidding right? Property prices and share prices go up and down. If people want certainty over risk, they can switch to bonds. The big picture is that young people are increasingly being trapped in a rent cycle, unable to break into the property market, excluded from wealth by the subsidisation of the existing wealthy that is negative gearing.

[@gremics-gallery]

@@canwelook A fair comment. However, it still remains the case that the government has a set of rules in place which people utilised to carry out retirement investing. Negative Gearing is one tool on offer. But the argument of abolishing Negative gearing has long since been laid to rest... LNP just WON'T remove it. The Labor party attempted to and was quickly forced to reverse their thoughts on the matter, facing a single term in the parliament if they touched it. If Kevin Rudd had his way IT WOULD have all been dealt with. I think the proposed 10-year sunset clause would have come to a conclusion just prior to the Pandemic, and the Australian economy would be the strongest in the world again - just as it was after the 2008 GFC. Hind sight is wonderful, but unfortunately, the time has well passed to deal with Aussie housing in any meaningful way.

[@andrewbroome7404]

It's because interest rates hit a record low of 0.1%.. Supply of CREDIT is the issue not supply of houses.. Houses are only worth what a bank is willing to lend people. History shows that the best time to buy when interest rates are at 17.5% and only going down for the next 30 years to 0.1% - the free ride is over

[@ChrisG-qv3on]

Yup, gonna be interesting watching the RBA thread this needle, the currency or the housing market. Grab some popcorn 🍿

[@sinkc9699]

This video tells the fact but not even gives a scratch on surface of the problem. They talk about economics, blah blah blah, supply and demand, etc, to make you believe there is a theory behind. However, there is none. It is just basic, GREED! what OZ misses now is a policy to oversee the rental market, not just the price but condition of rental property quality. Secondly, what really broken is the taxation let the wealth scheming sacred land resources and multiple homeownership. Why there is no special stamp duty for the 2nd investment property in this country to limit the competition to those who haven't owned a house. Think deeper guys and gals. POLICY POLICY POLICY!

[@bign1667]

Responsible lending failed and thus why we got mortgage stress and rental stress. Banks know their customers are about to fail their mortgage repayments so instead of chasing their customers they recently dropped their interest rates. Banks don't need to wait for the American federal reserve or the Australian RBA for the rate changes each month. The banks and the government made this property bubble and should have let it crash back during the GFC but didn't wanna let it happen.

[@mysty0]

This is why they are skipping tracks to a Digital Currency.. because hyper inflation will ruin the Banks and the Government. A digital currency backed by nothing will sidestep the hyper inflation and allow them to continue this charade

[@gremics-gallery]

REMEMBER - we have a real estate site giving us a point of view. So keep questioning what's been shown here. Possible biasing in what's being presented.

[@caveyful]

Yep. Supply and demand. Thing is due to RE being tax deductible for investors they are willing to pay more (artificial demand), so also owner-occupiers have to pay more. Politicians being wealthier have no interest in changing this cash-cow effectively. An attempt for show was made in September 1985 but only applies to those purchased after this date, so what happened was these investors did not sell for fear of ending their tax deduction (less supply). This means owners aren't so interested in tenants as they are their tax deductions, for which they get more when the house is vacant and earns a low income. It should be the governments shame to place investors in competition with those wishing to put a roof over their heads.

[@sasanestorovic9309]

Been in Australia for 28 years everything is so expensive No more stress and repayments Thank you

[@-xyz-012]

Times have changed, the great Aussie dream of homeownership is no longer a dream but a ball and chain liability. It’s not worth buying a house nowadays, it costs too much to maintain & its more of a liability nowadays. You pour all your hard earned money into it and are a slave to it most of your life. We’ve sold up and have no intention of ever buying again.

[@RL-cz2bk]

They didn't once address the impact of multiple property investments or multiple home ownership (holiday homes) as well as the market competition with international buyers/owners. Australia has enough supply of homes, and it has a good employment economy, what Australia lacks is a fairer tax system that supports social mobility & equal opportunity. There are too many investors using tax benefit schemes to minimise taxes on significant property portfolios (Significant = more than 5+ houses in a portfolio) such as under superannuation schemes. There is no problem generating portfolios & wealth, but the resulting wealth should be taxed fairly so as not to give an unfair advantage to those who can employ lawyers & accountants to siginificantly minimise their tax loss.

[@glennfolau6959]

It is exactly the same in NZ, for years property has been over valued, and many have suffered as a result. In my parents generation, 60's- 70's, the home ownership rate was at 70-75 per cent. In my generation, 80's - 90's to early 2000's, home ownership was achievable even for those on a modest or moderate income. Currently home ownership is beyond the reach of many. Property prices have risen, but wages have not increased in line with house prices. To give you an example, I purchased a 1930's two bedroom stucco home in an average, but well established suburb in Auckland, for $90,000.00 NZ, in 1990. I eventually on sold the property to move up the ladder. The price represented just over three times my yearly salary. The bank were undecided as to whether they would give me the mortgage, they agreed fortunately. That same house sold in 2018 for $810,000.00 NZ. My wages have definitely not increased at the same rate as the housing market, and I probably would struggle to qualify for a mortgage at todays prices, if I were starting out. Then we had this diabolical situation, where investors/speculators would buy property and on sell them at a profit, even before the original purchased had settled. This created a buying frenzy for those who could afford it, and it was like there were those who used the property market as a casino. Sadly, successive governments allowed this practice to continue, in fact encouraged it. Thankfully, governments have taken steps to reign in that behaviour. I also believe that if property prices decrease or stabalise, then we should celebrate it, as this may just allow those who are locked out of the property market an opportunity to purchase.

[@Battleneter]

The root cause of the problem in both NZ and Aus and other markets is loose banking regulations, that have allowed mom and dad investors to buy their 2nd and 10th investment property which drives up demand that become rentals and down home ownership. The media don't like to point the finger at banks and banking regulations as they are such huge advertisers $$, so you tend to find the media blaming overseas investors, China, housing shortages and Santa Clause but NEVER the banks!. So few people actually understand the root cause of this problem.

[@glennfolau6959]

@@Battleneter Loose banking regulations in the early to mid 2000's and 2010's. To a degree overseas investors, and "cashed up" migrants did drive up demand, but you're right the media don't like to blame the banks. Overseas investors, and governments are easy fodder for the media. In recent times, the horrendous cost of building materials, shortages, and council demands, have all played their part in driving up prices.

[@mandylovett7100]

Traditionally couples would both work to save a deposit to buy their first home before they had children. Once children come along it’s far more difficult to save money.

[@coopsnz1]

Taxes are higher blame left socialism

[@xyzxyz4575]

once you have children and renting, its hard to save for a house deposit!

[@aleksandrakustura6432]

And traditionally men mainly were sole providers and women were not so much in the workforce but looking after children (sans child care costs there). Factor in cheaper housing at the time etc. It was more manageable. 2 decent to high paying incomes these days on top of higher inflated expenses, you can’t even keep up at this rate.

[@coopsnz1]

@@aleksandrakustura6432 house costs $200000 a week to build × how many weeks to completion over a million dollars blame government greed

[@davidmarka712]

Hello Mandy, how are you doing?

[@AChannelFrom2006]

Australia has a big problem. Ways of fixing it: 1. Invest more and give tax incentives for businesses in growing good regional cities 2. More public housing 3. Cancel the Olympics 4. Charge double rates for vacant houses and units 5. Ban overseas investment in the property market 6. Only have immigration when it works for the majority of the population and then try to then build upon growing areas 7. For people to reject higher rents and work them down and if else fails get a roommate which will have downwards pressure on the rental system 8. Allow rents to only increase no more than once every 2 years, and where it can only be increased by the inflation over that period plus an extra 5% 9. Encourage remote jobs more (when it can be done) and allow workers to live anywhere in Australia 10. Invest in growth for cheaper building materials 11. Encourage more trade based jobs for those that are unemployed 12. Disallow any Citizen to own more than 2 houses (or resident to own more than 1 house) 13. Remove negative gearing If these measures were implemented it would have a massive downwards affect on land and housing prices. By this decree, many houses would then flood the market. So there would be a higher supply, and then there would also be a lower demand. The tradie and building materials measures should also help bring down the prices to more reasonable levels

[@au66621]

Public auctioning should be banned along with real estate agents who do not care about anything but their own pocket and commission therefore inflating the price by waiting at auctions as long as possible. There should be a fair price and dealt between the buyer and the seller. Ther is just too much bad psychology being put into this very sensitive market.

[@cc8530]

if you just banned the real estate agents that just care about their own pocket and commission, you’d have none left to use. finding a unicorn would be easier

[@au66621]

@@cc8530 there is no need for them. People ppl le should be dealing between each other no middle man.

[@Zilron38]

Not just unaffordable for young generation, also for older people who weren't able to by their first house 10-20 years ago.

[@Alice_Walker]

Absolutely! I'm single, in my early 40s and earn a good salary in a stable full time job, but saving the kind of deposit I need to buy something within a reasonable distance of my work (and still having the rainy day fund you need as a home owner) is extremely difficult. At the moment even though I'm still saving my borrowing power is going down more quickly than I can save so I'm going backwards even with the market cooling off. It's tricky.

[@Kelvin555s]

Australia got one of the highest housing prices in the world compared to income. Need a drastic correction on the market. Housing is a basic need of any citizen. This is just a disgrace that housing market in Australia designed to serve the rich only club.

[@changck007]

It "looks good on paper" until it goes so high that creates social problems like now. The issue is very very sticky and does not seem to have an easy solution.

[@chriswatson1698]

There is an easy solution. Just get our permanent migration back to the 70,000 per year that it was during the second half of the 20th century.

[@changck007]

@@chriswatson1698 indeed immigration has been propping up the market. Now open flood gate to more skill worker migration.

[@minaryeon9259]

Crazy how Australia has so much land yet the prices is unaffordable. Our population isn't crazy like China or America etc our property prices doesn't make sense.

[@chriswatson1698]

"So much land" Go and learn some geography. Look at the weather maps on TV. Notice that really big yellow space in the middle of the map of Australia. It is desert. All of our arable land is already in use. And the rest is wildlife habitat. Do you want to send our precious and rare native animals and plants extinct by covering over more of their habitat with roads and roofs?

[@australiaprisonisland9156]

Because the bankers and the State engineer it that way. It's deliberate and the sooner you become comfortable with such a notion the easier it gets.

[@Trollolling]

It does actually. Let’s just say it costs $500k for a new build. 25% margin goes to the builder, they need that to cover any potential hiccups. 35% goes to labour costs, 40% goes to material. A builder standard house costs around $450k just to build. That’s the low range stuff. Used to be $300k just a decade ago. This doesn’t include the land and amenities etc. The land price is determined by the location. You can get a nice package for $600k-$700k in the new development areas.

[@chriswatson1698]

@@Trollolling New development areas are agricultural land. Just grazing, but we need all the agricultural land that we have. Covering over productive land in order to import migrants is absurd.. Bringing in migrants so that local builders and real estate agents can sell houses to them, is unsustainable.

[@Umtree]

AirBNB. Lack of housing is not the problem. Affordable housing is being bought up and taken off the long term rental market for airBNB profits. AirBNB is the problem.

[@R_Alexander029]

Question to young Australians? Are you willing to work 40+ hours per week if you have no hope of buying a house near where you work?

[@joebloggs4362]

I'm willing to work 40+ hours per week but no hope of buying a house near where I work, which is why I live in my car, wake up at 3am, shower at a 24hr truck stop, then drive to work, starting at 5am. Not many would do this even if they had a house to live in, let alone as a homeless guy sleeping in a car.

[@R_Alexander029]

@@joebloggs4362 I'd rather live in my car than paying a slave debt for 30 years.

[@sbutte1127]

We won’t have a choice because the proceeds will need to go to rent.

[@SL-up5qh]

Leaving this country

[@user-xi8dw7rm7v]

Because criminals are able to launder money by buying Australian real estate. Lawyers, Accountants and Real Estate agents are able to process huge amounts of cash without having to declare it as the banks have to.

[@JJ-mc8lu]

You know the country is in trouble when the average Australian person can not buy the average home. The key word here is "Australian". Obviously allowing overseas money to come here has caused this!

[@gremics-gallery]

I would also include the Australian pass time of GAMBLING. A side issue that needs to be addressed with the same focus and intensity as housing in Australia. Another political HOT Potato

[@小坡]

To bring the housing prices down is the answer to solve affordability for home buyers

[@mandylovett7100]

Good idea .. but costs have gone up and materials are not available so it’s tough.

[@小坡]

Only people's power forcing Govt to chance policies cando.

[@TheLolz1988]

To eat food is to solve the problem of a tummy grumbling.. yaay you are now 3 years old

[@peaceleader7315]

I am an Asian refugee.. I never understand about assets and liabilities.. At church ⛪ time every Sunday I hate it so much and sitting outside near a property boundary of an old man rose 🌹 garden near riverside drive.. and one day on Sunday, the Oldman somehow talked to me and ask me to buy his block and explain to me about houses and cars and what is the difference when you buy them.. and yeah I have a nice flash 📸 Holden at that time and this is almost thirty years ago... and naturally I was thinking yeah right old dude..😅 And later in life my memory and reality kinda clicked and I remember his advice and yeah I bought a house 🏡 in the 90th and bought another one later when the mortgage of the first home relived.. hmmmm.. thanks you old man.. I may not bought your luxurious huge block of land near the Swan River but I remember you and took your advice.. 🙂.. hmmmm

[@richacoll1]

This doesn’t scratch the surface of the black market in money laundering through property. Michael west media did an excellent investigation report into that areas negative contribution to this problem.

[@SenorTucano]

Chinese money laundering has had a gigantic effect on Australian and Canadian housing prices. Prices have also been driven up by insane taxation in Australia and councils & developers deliberately limiting release of land in order to drive up prices. Add to that, sky immigration rates all mean an increasing number of people competing for less properties.

[@NinaStarostina]

I'm surprised that the densification of a city isn't discussed in this video. Not everyone can live in a house it's a fact. Building new houses is environmentally expensive. Houses need much more energy and water. Millions of people live in appartement. In any case the western lifestyle it's sustainable and we can't continue this way with our shrinking ressources. Recently, the french mister made a speech about the necessity of giving up the french dream of life in a big house in a country side. Even though she was criticized a lot (for a reason: she herself lives in a huge expensive house) I think it's a good direction. I think we western should calm down and check our privileges.

[@bobmarshall3700]

Australia's lifestyle was extremely sustainable in the 1950's 1960's and 1970's. Then greed set in and the rich saw housing as just a tax deductable rort to fleece the only people in Australia who were actually working instead of getting a free ride! At the same time politicians from both sides destroyed our manufacturing industry, to look after their multinational mates and gave themselves the first of never-ending wage rises and it's been downhill since then.

[@mikfax]

While you check your privileges don't get mad if the East pollutes as much as they can to try and get a taste of how the West has lived for a few hundred years. Millions will be pushed back in to starvation while you can feel good about yourself for saving the planet by following corporatism and shielding billionaires from accountability.

[@chriswatson1698]

Australia's lifestyle of single family homes was sustainable. It is the population increase, which is all migrants, that is unsustainable.

[@samk.9972]

@@chriswatson1698 Population increase! I doubt. It's the corrupt politicians giving free land to developers to control demand/supply. Australia is massive and only 25m population. Can easily fit 100m+ in coastal areas.

[@chriswatson1698]

@@samk.9972 You want to fit 100 million people onto our coastal areas? To what purpose and for whose benefit? Property developers? You want our wildlife habitat and arable land covered over with roofs and roads. Why? Newsflash! the area of land within an easy commute of a CBD is fixed, so to increase the number of dwellings you have to build up, or build out, (covering over grazing land), or cover over all your urban green spaces and public land. All three options are a drop in living standard. We need to get immigration back to the 70,000 per year that was the average during the second half of the 20th century. That was only 22 years ago. Population growth is ruining Australia.

[@Daniel-cc6oy]

so correct me if I'm wrong, first home guarantee is a scheme to prop up the market even more than it already is, buying getting first home buyers into an already very sketchy market by making it appealing with only a 5% deposit required???? anyone who buys a house with this scheme is going to be repaying that for a long time and may even send them bankrupt when interest rates come up.

[@mateofernando5066]

Why does Australia still have this problem if they have restricted property ownership to foreiginers? Who is bidding up the real estate?

[@cc8530]

GREED!

[@merlingeikie]

The best thing you can give folks is a decent economy and the knowledge to keep it running smoothly. Australia's property market is only as relatively expensive as it is because wages have not kept up with the cheque Australian governments wrote on the backs of working Australians and their children. Governments thought they saw something which, in reality, was not there, and they funded it with taxpayer's money. Incompetence is a monstrous understatement. 🙏🇦🇺🕯️

[@samDLBJAusMelb]

Govs, banks, property investors, etc., who have money or make money from properties don't want the house price to drop. They will find a way to boost the price up again, not only by lowering the rate after increasing it, but also by govornment-shared ownership, building incentives, and vast immigration (like Canada). As long as the population keeps growing and money keeps flowing, the price of houses in sought-after areas will be up there. Canada gets 450k immigrants this year. Suppose Australia gets 225k people a year, pouring to those few big cities. For Australia to keep growing, immigration is necessary, yet the rate of house construction will never be quick enough. Young Australians are competing with people who bring money from overseas and inherit wealths from their family. So just keep expanding and buying suburbs farther and farther away from the city.

[@chriswatson1698]

Why must Australia keep growing? We live on a finite planet. Perpetual growth is not possible. It leads to a lowering of living standards for most of the population while the rich get richer. A child died in our local children's hospital recently, due to a staff shortage that wasn't just caused by Covid. The staff shortage was caused by population increase which is all immigration. That child died of immigration.

[@erikleypoldt8275]

Why do we need more immigration?

[@chriswatson1698]

@@erikleypoldt8275 To bump up the value of landowners' real estate investments. More people to compete for the opportunity to earn a living, to keep wages down and to buy houses and imported goods from Harvey Norman.

[@erikleypoldt8275]

@@chriswatson1698 Awesome Chris

[@chriswatson1698]

During the second half of the last century, the average annual permanent migrant intake was 70,000 per year. Since the Howard government that number has been tripled or quadrupled. The area of land within a reasonable distance of employment is fixed. So any increase in population makes every square metre of that land more valuable and more expensive. Great for people who own land, but younger people must pay more and more for less and less living space.

[@OrgangeJus]

Help people to climb the deposit hurdle by allowing them to take more loans? Then increase the interest rate and royally screw them again? For another 10 years we will not see any meaningful government scheme changes around housing market. You know why? Because that's not where their majority of votes are coming from.

[@chriswatson1698]

The more difficult you make it for young people to own their own homes, the more difficult you make it for them to have families. Business interests will be happy if the descendants of those people who built Australia's infrastructure and institutions die out. That will be the excuse to replace us with workers from low wage countries who don't have a history of unionism. In order to increase the number of dwellings in a city, you have to build up or out or more densely. All three options are a drop in living standard. You can prevent this by returning Australia's migrant intake to the 70,000 per year that was the average in the 20th century.

[@Pleiades-111]

Greed, fanned constantly by real estate companies? Not to mention property management fees for people renting. Complete waste of money for owner and renter that raises the cost of living. But as long as there's a buck in it, hey?

[@dustingoldsworthy7303]

So what happens when when renters default on the owners mortgage? If a ressesion and financial hardship actually occurs? This isn't ever hard times this is normal interest rates and normal inflation. It's only "high" due to the debt, i.e., fragility of Australia situation..

[@cognisant307]

The problem is wages, if people could afford to buy apartments developers would be in a mad rush to buy inner city real estate and build them, thus meeting that need. But most people can't even afford to buy an apartment and developers are crying that building materials are too expensive because they see the demand but can't afford to build apartments cheap enough to supply it.

[@joshsmyth130]

No mention of tax and investors, very convenient for a real estate website to push the solution of building more houses and more government subsidies. If the government invested in high quality, low cost socialised housing to push down rental prices that would give people a chance to save and discourage investors, pushing down prices. I've seen 375sq blocks selling for over $1 on outskirts of Brisbane, how can subdivision help.

[@mohammadsagar]

Its coz of social housing low supply. And sate govt not releasing land dedicated to first home buyer only. And the land forfirst home buyer from state should be zero $. Only tge construction cost should be counted.

[@upamaish]

Stop buying expensive furniture at rented property or decorative item … stop eating outside … stop buying expensive makeup and clothing its not that hard … gather money trust this will help u to buy a property. And go for the sale item everytime when u shopping. Easy peasy and work hard … cheers

[@davidmarka712]

Hello Becky, how are you doing?

[@jacklam6140]

It is incredibly dangerous for any market to rise 20% in just one year. Let alone real estate which normally rises 5% steadily in one year. The current property is probably a bubble and a -10% adjustment is needed to ensure market stability.

[@Majestros]

It was a bubble before the rise

[@minaryeon9259]

Whatever happens it will still be up there since that's what the government wants a anyways.

[@minaryeon9259]

If it does drop 10% you watch people will go crazy to buy in and the price will just go up even more. Because people will desperately jump in. The issue now is building and materials is too expensive to build affordable homes.

[@guzzis3]

You missed 2 important points. 1. Land appreciates buildings depreciate. An expensive house on a cheap block is a bad investment. 2. Negative gearing has skewed the real estate market. It should have been addressed decades ago but now politicians all have a cluster of rentals it will never happen. Oh, and people are stupid. They do what "everybody" is doing then complain when it goes pear shaped. "A fool and his money are soon parted"...

[@johnstirling6597]

Most people tend to want to live in only a few areas, mostly the major capitals in Australia, Sydney, Melbourne, Brisbane, Adelaide and Perth and of these probably 80% is in Sydney and Melbourne thus concentrating demand in a small number of areas.

[@Bobafe77a]

In this video they talk about wealth increasing because of house price growth. Do they mean wealth created from capital gain or do they mean apparent wealth created from owning a home that increases in valuation?

[@kaml.7341]

I don't think that the house prices have gone up that much; rather the prices have been steady if we take into account of real purchasing power of money. A dollar was worth a lot more 20 years ago than a dollar today. So, if we try to compare buying a house 20 years ago with buying a house today. Of course, it would seem that the house costs more.

[@frenchonion4595]

But wages have not kept up. The average annual income in Australia is like $70,000 and they are buying million-dollar homes. The problem is they made housing a get a rich quick scheme allowed by low interest rates etc

[@zomgoose]

Not even close. House prices have far outpaced wages. Most people could not afford their own house with their current earnings.

[@markitaywi8892]

Deregulation of financial industry is to blame. Not requiring a 20% deposit is bad. Social housing will not help as the problem is to big. Buy an apartment. I own two of them in Melbourne. I never had parental help I spent three years in W.A. I am against government grants of any type. I got nothing. We need more housing and less of the not in my backyard bullshit. Build a 4 storey complex in a rich area why not.

[@chriswatson1698]

I agree. Build the high rise blocks of flats only in the expensive areas of the city.

[@zomgoose]

It's a credit issue, not a supply issue. Central Bank policy is the single biggest contributor to the housing disaster.

[@Battleneter]

100% correct, loose banking regulations has allowed mum and dad investors to buy their 2nd and 10th investment property, driving up prices and down home ownership (as these house become rentals), its there in black and white statistics for all to see, and is 90% of the problem. Banks are huge advertisers and the local news media doesn't like to point the finger at their customers (banks) so end up blaming, housing shortages, China and Santa Clause.

[@engchoontan8483]

There had been several unsuccessful attempts to inflate property prices, across the world for the past ten to twenty years. The artificial cumulation of rise and falls created a big bubble. The interest rates versus income are now at a level that can burst this bubble. The higher end commercial in shopping malls and business districts are at a higher disadvantage than residential area retail shops. The middle class types of residential properties outside of cities should be more stable than other properties when it comes to property-(price)-crashes.

[@libatalklieb5793]

This country has gone to the dogs, we now live in shipping containers.

[@baits9301]

If only governments would watch this then maybe they would have a clue to what's going on . Australia is one big Country that isn't going to run out of land . More subdivisions . It's take 26 years to build a few streets where i live 25km out of Melbourne . It's slow really slow and the blocks are tiny lol . With 200k migrants are year , that housing can't seem to keep up with .

[@chriswatson1698]

"isn't going to run out of land"? Australia isn't getting any more land or fresh water, yet as the population has increased, the immigration rate has also increased. The result is arable land being covered over with roofs and roads, wildlife habitat being destroyed; forests cut down; children growing up in tiny rented flats with nowhere to play within earshot of their mothers except the driveways; old leafy suburbs being turned into heat sinks and new subdivisions with no room for trees.

[@coasteyscoasteys]

@@chriswatson1698 So what is the solution I'd say stop immigration People can live in the desert

[@chriswatson1698]

"Not running out of land". Nobody is making any more land. If you are going to build houses, then you must give up agricultural land, forest or wildlife habitat. Immigration benefits only those Australians who are already wealthy and the immigrants themselves. The very real costs of population increase are borne by the whole community, especially the younger and poorer members of it.

[@chriswatson1698]

@@coasteyscoasteys Agreed. we must stop immigration or at the very least, get it back to historical level: no more than 70,000 per year. Vote Sustainable Australia Party.

[@erikleypoldt8275]

Why are we taking more immigrants?

[@turningwheelsyangge2770]

There is no way to keep up the number of houses with the population growth, because you have to build further and further away from infrastructure. Infrastructure takes a long time and loads of money to build. The only way is to increase the density, that is apartments, but in this country, no one buys apartments. I believe the government needs to regulate the apartment industry, and demand builders to build more large space, more bedroom apartments, so families can live in them. Maybe the. It will attract more buyers into apartment and eventually resolve the house crisis.

[@qiliu4667]

And the strata cost is going higher and higher.

[@Daniel-cc6oy]

you are so far from the truth but nice try, Australia has more than enough houses for everyone

[@vbroder15]

Why no one want to say honestly, Chinese and other foreigners coming to Australia lead to increase the prices for housing.

[@joebloggs6131]

FOMO IS THE CAUSE. People thinking "this house is 800 grand, next year One Million", not "800 grand - tell him he's dreaming..."

[@robstone4537]

Why does Australia have such a housing affordability problem - because Australia has so many rules, regulations, red tape and compliance that it costs a fortune for a developer release land and build a house as well as maintain it if you want to rent or sell, yet the government keeps letting in hundreds of thousands of immigrants that keep increasing the demand and reducing the supply.

[@limlwl]

Solution is to lower house prices by 25% - back to pre-pandemic levels.

[@LittleRayofSunshine69750]

That won't help all the young people who have just entered the market, I'm happy to see the boomers lose money, not the young ones

[@Dan-xb6ui]

There is no crisis, homes are full and in high demand and tenants are bidding rents up. The only answer is to reduce taxes for builders and developers so more properties get built creating more supply. This will reduce the prices of rental properties and the prices of newly contracted homes

[@slamtilt01]

Reducing taxes will not have any affect on getting more houses 🏘 built.

[@Dan-xb6ui]

@@slamtilt01 wrong mate, one of the hardest parts of property development is finding a site that’s feasible to build on and make a profit. Land tax Rates GST Capital Gains Tax Council Contribution These all apply when developing a property and often are the reason a site is not profitable to build on. A reduction here would have a huge impact of housing supply

[@samcro8311]

Did some major Chinese property investor pay you to make this video? It’s the only reason I can think of that would explain why you’d leave out one of if not the largest cause of the inflated property prices,overseas investors

[@Zilron38]

You also need to consider, that current homeowners like to move houses, to upgrade or downgrade. So that automatically makes home owners 1-2 million dollars ahead of first home buyers. So a 100k deposit, just cannot compete with a $1-2 million deposit of asset ownership. Another issue is that the asset rich did not work for a large portion their wealth. The value of house price capital has been larger than salary earnings and saving. So effectively the wealth gain for home owners on equal salary with non home owners is 3 or more times that of non home owners over the past decade, that is not fair at all. Think about it, a non home owner will save 100k over 10 years, vs a home owner who will save 100k over 10 years + $500k capital gains(depends on the home that is owned, in some cases, it's in the Millions) NOT FAIR AT ALL IS IT. The only solution really to close the gap is to severely drop house prices. So the deposit competition between ownership to non ownership isn't in the Millions, and the wealth gap decreases.

[@NB-rf7qg]

Such good insight on the needs, but it's very outdated, and most things mentioned, have changed, like lower interest rates?

[@chuckmaddison2924]

Traditionally Mum stayed at home and looked after the kids , cook and maintain. Then mum wanted freedom and more so got a job. Business got a bone , 2 incomes more money for us . Price went up . And so it snowballed . People created the problem and trying to keep up with the neighbours. The fact Business doesn't want to pay workers doesn't help either. I have a couple of houses and paid cash. If the value drops I don't care because it will help my kids get a house. I hate pretenders getting high on value's going up. It doesn't help the young.

[@stevewiles7132]

Not enough homes, too many people. Supply and demand.

[@drpk6514]

Stop the stupid negative gearing. The system is made to serve the rich and screw the poor.

[@raymond19870510]

US, Canada, Australia and new Zealand. Have same housing problem. Something very strong link if you ask

[@SJ-ef4pv]

Rents friggin expensive for a home $450- $500 week average area it’s only worth between $380- 420 A week rent just cash grab. Specially for own at 10 years ago. The mortgage isn’t that much even though the interest rate went up wouldn’t change too much. ??? Heaps of rentals out there For a home 🏡

[@meredithisme3752]

Chinese buyer's allowed to buy and leave empty when they don't live here, government corruption

[@GoSamOGo]

So what he is saying is the drop of interest rates in a cause, allowing a lot of borrowing for purchases of houses, making it competitive.

[@mohammadsagar]

where are promised social housing projects. That's the kryptonite for to tame this mad mafia in housing sector, keeping Australians lives as hostage.

[@libatalklieb5793]

In Lebanon.

[@morganoox3838]

If the government would tax the empty holiday houses, thousands of houses would be put on the rental market, ane the rental crisis would be solved.

[@tonechowdhury3739]

Most places cost about 1m a 20% deposit is 200000 Who can afford to pay $4,000 a month on a mortgage

[@clipartinc]

$88,000 for a container home seems really high. The economies of the world are broken.

[@ChrisTaylor-wn4ps]

Foresure we need higher interest rates, tax air bnb abolish negative gearing, reintroduce capital gains tax on investment properties

[@mkkang5223]

And the quality of Australian houses is the worst among the developed countries. It is closer to tents - on top of this crazy house price, you need to spend another +100k to have insulation done due to the poor energy efficient standard in Australia.

[@Ssss-tl9kb]

Frankly I believe the issue of affordability for first time home lookers is that they are looking beyond their means. I saw a young couple on the news blaming and crying that houses are so expensive and they are missing out, but when asked about where they are looking, they were actually looking at 3m+ properties in the sydney beaches. 2 bedder 3 bedder apartments is not in many people's scope as their home because we are so spoilt with our choices compare to other countries.

[@sspacegghost]

if you got a divorce or broke up with your partner - hello renting - hello homelessness. Youre literally 6 weeks away from living in your car at all times in modern life. My dad used to sell alan bonds real estate and i remember over hearing them talk about putting their lawyer on local council to help get around planning laws. Its all about property developers. They are the ones getting rich off everyday people. 4 out of five homes sold arent to people who will live in them theyre to investment or second home tax break schemes. Australia needs to follow what Singapore did, create a massive amount of public housing. Singapore invested in its people it had no resources. We need to invest in people not bricks and mortar. Its a trap. It takes away everyones focus. All people care about is property prices. I got run out of my home by phobic neighbours worried about property prices and the cops helped them - every law is written to favour the rich. Its all wrong. All of it...stop pretending it will get better - so many people are living in their cars right now.

[@joebloggs4362]

I live in my car, seven months now and no issues with fines from Council or Police - I think they understand. If the investment in housing continues at this rate it'll make not living in a house more acceptable and perhaps even mainstream without stigma. Personally I would like my little patch to live on, but not paying six-figures in order to buy it.

[@HaruHaruman]

Negative gearing is probably the most ridiculous policy this gov has. Why further enrich the rich? Provide tax exemptions for the greedy twats? The policy is just an unfair tool that maintains the bubbles on the house prices.

[@jaredsherwood1983]

Investors take risk. They buy some dirt nobody else might have and build a house. Then provide that to rent for a family. Government only own 3 percent of properties in Australia and are a small player so they offer incentives for those who can afford it to build one to house people who can't afford it. Without incentives who will build the new houses. To put the blame on rising house prices for this incentive is not true vs all the other factors. Countries without negative gearing also struggling with house price increases in this time.

[@dsinghr]

Reduce the immigration! Albanese just started big immigration drive

[@leonie563]

I think you will find Frydenberg Budget Papers had that policy and visas were preapproved during covid lockdown

[@albs8899]

To be honest, property market in Australia is undervalued. Especially in Melbourne. Buyers complaining about houses are getting out of hand and too expensive, compare to what????? Melbourne is in the international radar being the MOST liveable city in the world, four times in a row!

[@lakeofbays1622]

Lost that crown this year. Gone down to 11th.

[@zomgoose]

LoL...

[@joebloggs6131]

I'm homeless and I like a worsening housing crisis, means I can camp anywhere - even in the city - and don't get hassled. Can't afford it, who cares, the space I'm in is the only space that is truly mine.

[@Alan-megan]

The ease of Banking credit, government handouts and stimulus and the popularity of Home renovation reality TV shows pretty much drove these house prices to insane levels. Easy money is perhaps the number one cause (Just like the American Housing bumble back in 2008/9).

[@ronbonora7872]

the same thing is true in Canada!

[@wenliangpan6306]

It’s always expensive which is normal. This is not an exclusive issue for Australian but for everyone around the world to earn money to purchase good quality properties

[@MrMeoow91]

To solve poverty is to build more houses and especially affordable apartments. It is that simple. It is ridiculous for a massive landmass nation with only 24 millions people to have unaffordable property market.

[@charliepearce8767]

Its not ridiculous if you're in the industry a investor working in with local ,state and federal government to cash on limiting land developments...gotta squeeze em in and collect them $$... Its not about whats right and moral.. Its all about the bucks $$... Like jewelers dimonds .. The industry has absolutely thousands of kgs in storage but only release a few carats on to the market each year to artificially keep the price at around ten thousand a carat.. Ha ! in reality each stone cost to mine and process about ten dollars in the big picture. I know you need a home to live in and you don't need dimond but both are only worth as much as people are willing to pay.

[@MrMeoow91]

@@charliepearce8767 Releasing more diamonds into the market doesn’t solve anything. Build more houses can solve poverty. But of course in a capitalist market, that’s not gonna happen.

[@reginamolloy3397]

There is so much land per head capita in Australia with great education and world leading skills and standards in building, it seems crazy that the nation can't build enough homes for its younger generation. More motivation and focus required.

[@chriswatson1698]

And where, in all this land, are there jobs where people can earn a living? In the Simpson desert? The land within a reasonable commute of employment is fixed. So any increase in population makes every square metre of that land more valuable and more expensive. Supply and demand.

[@coasteyscoasteys]

@@chriswatson1698 You need to get out a bit more Usa has people living in the desert The arab nations You're attitude is lazy

[@davidmarka712]

Hello Regina, how are you doing?

[@ajones8008]

SO THIS IS AN ADD FOR CONTAINER HOMES?

[@woodliceworm4565]

Supply and demand on the right we have mass immigrations and forced population growth on the left we have energy prices rises a shortage of real skilled labour and massive infrastructure costs - A bulk carrier of hammers and Australian population policy - which is dumber?

[@reallyskeptical]

Government. Making to many tax ofsets . It's a home not investment. Same house cost 35000$ back in the 80's

[@julesnagbunga1204]

It is the wealthy retirees who buy up several cheap properties in both urban and rural areas. They dress them up a bit then rent them out at outrageous prices. Not only have they denied the chance of first home buyers to purchase, they prevent them from renting a cheaper property. The government needs to cut back on the benefits for investors and deter them from purchasing several properties.

[@dgb5820]

I love one sided videos like this as it shows the intelligence of the real estate industry. If you can’t buy a house in Melbourne for around 600k then your not doing your research. If we were all so concerned about this issue, why not count how many homes are purchased via foreign ownership. Why does everyone need to live near the city ? The couple that moved from metro Melbourne to sale were the smartest

[@Shew0000]

There's one thing that nobody ever mentions,Greed!

[@jozefponty9489]

That’s the one!✅

[@laurence7426]

@@jozefponty9489 yes everyone blames banks an governments an it's all in the homeowners making , If you ova pay so does the next person an so on ' Then people complain about interest rates after borrowing money against equity an it's only equity not earned money your property has doubled in value while owning gives you the impression you are safe ' In nz it's daily you see houses sell for 20% less than 2021 valuation meaning most first home buyers in 2021 an 2022 have lost there deposit not really but they have if wanting to sell ' If a 2021 buyer sets an pays his mortgage 4 another 10 years he might recover his deposit while being a good tenant to the bank at there own chosen Future

[@anonmouse15]

You accept the state's aid, you accept the state's conditions.