What do you think is the cause of the current Australian Housing Affordability Crisis? 💰 Get $125 bonus and earn high interest of 5.5% on ING savings account: campaigns.ing.com.au/refer?code=Ifk710&p=d
There is a lack of affordability in lots of countries post Covid, not only Australia. Money has lost alot of its value but real estate has maintained its value.
There are a number of issues, each of which has a varied impact on housing, those being: - Debasement of currency due to increased supply of M2 (Money supply). It's not enough to say prices are increasing, but value of the dollar has diluted. - Government (Federal & State) mechanisms / policies to artificially prop up house prices (including but not limited to home grants, negative gearing, reduced deposit%, taxes, red / green tape for development, foreign investment etc... - lack of government planning of regional areas. Gov't focused on cities only (this includes regional investment of transport / utilities etc) - Housing supply issues / lack of building as well as many developers becoming bankrupt simultaneously due to high costs - Increased supply of migrants equivalent to needing a city the size of Canberra each year.. unsustainable and unachievable - Private equity overleveraged money supply - monies at 10-12x leveraged upon debt, largely financial derivatives
Net importation of people into the country. Massive donations by property developers to BOTH parties, so both parties are quite happy to keep the bubble going. I guarantee you'll find most politicians are also landlords.
biggest difference between Aus an USA is that in USA they still have affordable cities in Aus we use to have Adelaide and Perth, now we have none. also politicians in Aus own too many investment properties so they wont change the status quo.
This report is way out of date, 2024 report will probably show all 5 capital cities being impossibly unaffordable. Perth prices have increased 30%+ in the last 12 months.
Supply and demand is not only about the houses themselves but also the materials and labour to build them. If houses cost more to build then they need to sell at a higher price to justify the investment and risk in building, if they dont then investors will build less houses until the price justifies the risk. Its a vicious circle, higher pay = materials cost more = houses cost more = people demand higher pay to they can afford the house.
We recently saw how labor bent over for the gambling industry. So they certainly wont do anything about real estate. The population is also booming so I think the real este ponzi will continue.
Negative gearing & discounted capital gains. Solution: Put a dollar limit cap on the amount of negative gearing available to a taxpayer. Same for discounted capital gains.
Look at the bigger picture, the negative gearing dollar amount is not that big issue compare to the gaps that AUS tax payer paying for capital gain. Lets check the capital gains tax in other developed countries. US.....15%... Canada based on income tax (similar to AUS) but 50% of the capital gain value (auto 50% off the so-called "discounted" in AUS) UK 24% Do you know how much is the AUS taxpayer paying? 100% of the value and depends on personal tax rate. Which means at least 30%-37%. If you are a property investor, look at the depreciating schedule, the Negative gearing is a small amount comparing how the other developed world tax To be honest, there is no simple solution. Regardsless whether there is a harsh tax or not, there will be always people crying. ie: kicking all the investors out with harsh tax, renters crying no rental property available. Incentive to encourage investors, buyers crying can't get in to the market. The problem not only sits with supply/demand/tax/investors/renters, also with demographic, look at the east of Sydney/Brisbane, South of Melbourne, all full of Ocean, compare to other countries, the AUS do not have enough "suitable" land/cities to built and live. Also self managed super fund to purchase housing also fuelling the market.
It is Australian government policy to not let house prices drop. They do this by allowing an annual Canberra size population immigration, and know there will not enough housing supply to allow for this thus an increase in demand and higher housing prices. I'm not against immigration but it needs to be lowered because of the housing supply problem Also inflation is not calculated high enough as house prices are purposely not given the required weight on inflation, and if it was, inflation would be much higher as it should be, and thus increasing interest rates, and that would have a downward effect on housing prices, but the government purposely downgrade the weight with housing prices from inflation data. In summation the Australian government do not care about the next generation,. It's all about increasing revenue from higher house prices.
The thing with Singapore is that the government housing isn't very nice. Also Sydney is a dump as is Melbourne if you do move to aus all the other major cities are way better and cheaper.
Thanks for the perfect update. I really appreciate the dedication in each video you post.The first step to successful investing is determining your goals and risk tolerance, Most people you see as wealth at a glance, a great career, purpose is the result of hard work and remains over time. There are no shortcuts to getting rich but there are smart ways to go about it. Now I can say that thanks to Ms. Clara Burn I am improving my understanding of this whole world and making new big profits every week.
Productivity is never accidental; it is always the result of careful planning, dedication, and consistency. I am grateful to God for my advisor, MRS Clara Burn
Contrary to conventional wisdom, you don't need to have a hefty fund or ultra deep pockets like mutual fund to start investing. I initially invested $8k I was making return of the investment plus interests.
What do you think is the cause of the current Australian Housing Affordability Crisis? 💰 Get $125 bonus and earn high interest of 5.5% on ING savings account: campaigns.ing.com.au/refer?code=Ifk710&p=d
There is a lack of affordability in lots of countries post Covid, not only Australia.
Money has lost alot of its value but real estate has maintained its value.
There are a number of issues, each of which has a varied impact on housing, those being:
- Debasement of currency due to increased supply of M2 (Money supply). It's not enough to say prices are increasing, but value of the dollar has diluted.
- Government (Federal & State) mechanisms / policies to artificially prop up house prices (including but not limited to home grants, negative gearing, reduced deposit%, taxes, red / green tape for development, foreign investment etc...
- lack of government planning of regional areas. Gov't focused on cities only (this includes regional investment of transport / utilities etc)
- Housing supply issues / lack of building as well as many developers becoming bankrupt simultaneously due to high costs
- Increased supply of migrants equivalent to needing a city the size of Canberra each year.. unsustainable and unachievable
- Private equity overleveraged money supply - monies at 10-12x leveraged upon debt, largely financial derivatives
Net importation of people into the country. Massive donations by property developers to BOTH parties, so both parties are quite happy to keep the bubble going. I guarantee you'll find most politicians are also landlords.
biggest difference between Aus an USA is that in USA they still have affordable cities in Aus we use to have Adelaide and Perth, now we have none. also politicians in Aus own too many investment properties so they wont change the status quo.
This report is way out of date, 2024 report will probably show all 5 capital cities being impossibly unaffordable. Perth prices have increased 30%+ in the last 12 months.
Yeah and boy can I feel it
Supply and demand is not only about the houses themselves but also the materials and labour to build them. If houses cost more to build then they need to sell at a higher price to justify the investment and risk in building, if they dont then investors will build less houses until the price justifies the risk. Its a vicious circle, higher pay = materials cost more = houses cost more = people demand higher pay to they can afford the house.
We recently saw how labor bent over for the gambling industry. So they certainly wont do anything about real estate. The population is also booming so I think the real este ponzi will continue.
Negative gearing & discounted capital gains. Solution: Put a dollar limit cap on the amount of negative gearing available to a taxpayer. Same for discounted capital gains.
Look at the bigger picture, the negative gearing dollar amount is not that big issue compare to the gaps that AUS tax payer paying for capital gain.
Lets check the capital gains tax in other developed countries.
US.....15%...
Canada based on income tax (similar to AUS) but 50% of the capital gain value (auto 50% off the so-called "discounted" in AUS)
UK 24%
Do you know how much is the AUS taxpayer paying? 100% of the value and depends on personal tax rate. Which means at least 30%-37%.
If you are a property investor, look at the depreciating schedule, the Negative gearing is a small amount comparing how the other developed world tax
To be honest, there is no simple solution. Regardsless whether there is a harsh tax or not, there will be always people crying.
ie: kicking all the investors out with harsh tax, renters crying no rental property available.
Incentive to encourage investors, buyers crying can't get in to the market.
The problem not only sits with supply/demand/tax/investors/renters, also with demographic, look at the east of Sydney/Brisbane, South of Melbourne, all full of Ocean, compare to other countries, the AUS do not have enough "suitable" land/cities to built and live.
Also self managed super fund to purchase housing also fuelling the market.
It is Australian government policy to not let house prices drop. They do this by allowing an annual Canberra size population immigration, and know there will not enough housing supply to allow for this thus an increase in demand and higher housing prices. I'm not against immigration but it needs to be lowered because of the housing supply problem
Also inflation is not calculated high enough as house prices are purposely not given the required weight on inflation, and if it was, inflation would be much higher as it should be, and thus increasing interest rates, and that would have a downward effect on housing prices, but the government purposely downgrade the weight with housing prices from inflation data.
In summation the Australian government do not care about the next generation,. It's all about increasing revenue from higher house prices.
The thing with Singapore is that the government housing isn't very nice. Also Sydney is a dump as is Melbourne if you do move to aus all the other major cities are way better and cheaper.
Thanka eeuuu ❤️❤️
GFC 2.0 Aus housing bubble!
Could you please make a video on how minimum wage earners can retire without depending on Centrelink? Thank you.
Out of date data
Immigration obviously
Same in Ireland
Indian imports
Thanks for the perfect update. I really appreciate the dedication in each video you post.The first step to successful investing is determining your goals and risk tolerance, Most people you see as wealth at a glance, a great career, purpose is the result of hard work and remains over time. There are no shortcuts to getting rich but there are smart ways to go about it. Now I can say that thanks to Ms. Clara Burn I am improving my understanding of this whole world and making new big profits every week.
Productivity is never accidental; it is always the result of careful planning, dedication, and consistency. I am grateful to God for my advisor, MRS Clara Burn
Two other of my colleagues and I tried it immediately, we testified. MRS Clara Burn is doing wonders.
She is the best, honestly, I benefit from it too. This inflation has taught people the importance of multiple incomes. Investments help a lot.
I am impressed by the way expert Clara Burn conducts business and makes statements. And I really like her quick answer
Contrary to conventional wisdom, you don't need to have a hefty fund or ultra deep pockets like mutual fund to start investing. I initially invested $8k I was making return of the investment plus interests.