One question to RBA- you have increased the rates as ablanket to all.Which menas the struggling section are pushed further into hardship and making them go into arrears and making their credit ratings go bad. Why aren't the rates first increased for investors AMD may be later for owner occupier? Wouldn't that have solver housing problem to some extent?
Also, why is the government OT asking investors to invest in building rather than buying existing homes and competing with people who want to buy their first home
Hey Mark, When as a nation are we going to say enough’s enough, and it’s time to end speculation with a 5% land tax? Or go back to a leasehold system? As evidenced in your Podcast, if you’re not old money, mum and dad money, successful in business or high wage earning, you’ll stay on struggle street for your working life.
Hey Mark, really enjoy your content on RUclips. What are your thoughts on the Coalition's potential plans (if they win the next election) to allow first homebuyers to use significant amounts of their super to buy a home? Is this a helpful initiative for those young Aussies who don't have a bank of Mum/Dad to rely on or will it only make housing affordability worse?
Great point, So true, explaining things in plain English (lay terms) is something that needs to be brought into government, law, business, economic terms and banking.
As a father of 3 kids who have just entered the work force and would like to buy a home, my ability to assist them is limited. Rather than spend 20 years to save a deposit and then be paying off a home in retirement, might it be better to immigrate ourselves to a country where we could achieve ownership much earlier.
Yes it could be a way of doing it. Or finding ways of investing their money to maximize growth, rather than saving it in the bank. I wish you and your family the best of luck. Better times will come
I felt too under-resourced to invest early, so I relied on hot stock picks and bonds. I realized that this approach wouldn’t secure my future. At my age, depending on ETFs was impractical due to limited time for compounding. After thorough research, I chose an alternative strategy that led to a $1 million return in 3 years and allowed me to retire with $8 million. I'm confident that I'll leave enough for my kids to be secure. With rising home prices and stagnant wages, many people will struggle to ever own a home.
the housing market feels rigged against us. You mentioned returns, to be realistic luck plays a significant role more-so than the resources to thrive with investing. without it, it's very challenging to succeed
when its consistent, its not considered luck. I attribute this to research which was the challenging part before it led me to Emily Ava Milligan, a top fund manager, in turn she made 310k into this, and counting.
I pasted her name into safari, and her page popped right up. from our interaction It became clear she's in high demand. Your example is rare. I stumbled on a gem when i least expected to. Thanks
Cash rate is not low. Debt trap has been laid for a decade- bank, gov and media hyping a debt bubble. Interest rates need to go higher. We are looking at a stagflationary environment.
Wish we could see APRA Stress testing the banks etc in real time....the rocks they are turning over would be chilling. Liar loans and probably lots of them. Now they pay.
I plan to buy one of the sheeps distressed properties when they tap out finally. I don't feel bad for them, they screwed us all with their blind compliance.
Im 37 single no kids, have a small amount of savings, I have given up on the dream, also given up on the country. There is no prosperity, i think I am going to try it out in a SE Asian country.
@@jonathanmichaelsmith9012 hypothetical, say you have $100k saved , earn 80k pa, buy a 500k 2 bedroom dog-box in the suburbs, you are pretty much left with maybe 5-10k at the end of each year if you are good with your mortgage, paying insurances, rates, body corp, feed yourself, car rego etc. this is the middle income aussie. far from what our parents had opportunities for.
@@Al-jv2pn You said you are a single, why not consider renting out one of the bedrooms? It can pay off half the mortgage unless more. 80K by yourself is pretty good enough. 400K loan at current LVR 80% rate would charge you ~$2600/month in mortgage, and taking every house related expenses into account, it would be roughly $3500/month. 500k 2 bedrood dog-box being said, I'm assuming you live in urban suburbs. Renting a room in such areas can cover $1500~2500 every month depending on what state you live, so that will cut down your cost of ownership to maximim $2000 a month. That's pretty good deal with ur 5k monthly salary. Not a single, you've got a partner? Even better. More savings, more income!
@@Al-jv2pnEconomy's always on cycle. It is indeed a sad fact we are having less opportunities than what our parents had in the past, but if you compare space-wise, Australia is still a great place with full of opportunities.
@@scottcox8559 crash and then more growth. Look at market history and the market always recovers to newer highs. If a crash comes the government will intervene and on we go.
@redgatecrt if supply and demand were the only thing at play, I would agree with you. But there are so many other factors inflating all assets. it's not going to take much to pop the asset bubble.
This increase gst every time inflation comes up is actually more inflationary. They need property prices to come down, and this can only be done by increasing interest rates. They should enforce property owner by foreigners to be compulsory rented if they do not use the properties
Increase interest rate further will be detrimental to the building industry. So less homes will be built , it will be even worse for the potential home owners
@@vincentc7920 Its actually the building code and beauracatic red tape that was restrictive to supply and the inflation of building supplies. and the historicly low and prelonged levels of low intrest rates that has caused this. They should of allowed developers to build more when intrest rates were low and building supplies were cheap, but councils were very restrictive. also they said it themselves, as soon as the market realises interest rates are being cut the market goes stupid again and people over leverage. We cant undo the mistakes now, so we need to go through stagflation, like the 70's a peroid of higher levels of infaltion with stagnat wage growth. This usually takes a decade to pass and clear, maybe 8 years. the other option is cause a 50% property crash over a space of 1.5 years, flush out the unecessary debt and start a fresh. but my money is on stagflation
@@sparkie996 What happened in china is actually so retarded its not funny. They were building ghost cities to purley drive the economy and create job, not just a store wealth, they actually did the exact opposite of australia which didnt allow developers to build. the sweet spot is actualy somwhere in the middle and were equally as fucked but just in a different way.
Interest rates have absolutely nothing to do with property values. They can subdue activity or increase them but the underlying value is always replacement value. If your existing home is broken apart you look at land price and then cost to rebuild your house, then look at its condition and age. The simple fact is land and building is more expensive than its ever been. The collapse of the building industry and limited margins and land development clearly shows that land and housing prices do not have margins in them that can be reduced, hence existing house prices wont drop. Then you look at supply and demand and supply will never catch up to demand now. Only 35% of all houses have a mortgage. Interest rates will not impact prices long term
Brother ive read over a 100 books on economics in the last 3 years, ranging back to 1300. What is happening now is not a new phenomena. House prices are actually directly linked to banking regulations on how much leverage to collateral they are allowed to use and interest rates. Along with supply and demand dynamics of land release to developers. Option 1) The boat has sailed. we will now go through a decade long stagnate house prices with stagnat wages, but inflation on comodditied and utilities neccessities like rent, food, vehciles, electricity etc. So the REAL value of house price is declining in comparision to the cost of living and is a way to fool people that house prices are not actually depriciating wich is a slow and long process. Or option2) you do what the americans do, increase interest rates to really high levels, squeeze all the unprodcutive builders and home owners to defaulting, which dramatically dropes prices over a 2 year peoroid and forces banks to restructure debt and the debt/gdp ratio of the country drops to a health level. This method is however very painful in the short run and will create a really high spike in homlessness and unemployement, but the pain will be short. But our debt to GDP ratio is still realtively But because our debt/gdp ratio is realitively low, half of americas. so i think they will prefer option 1 - longer pain but less homlessness. becuase if you do option 2 - their is always about 70% of people that go into homlessness they never come out which is detrimental if you want to maintain a productive society. all these studies and information is available if your curious enough to actually learn. instead of shooting from the hip, on current life experinece. Economic cycles are 100 year cycles, based on changes of demographics so current societies havent seen this before, and why every generation complaines of the next generation as they are substantialy different.
Maybe, but the economy isn’t doing very well either. Just because a housing shortage is causing house prices to go up, doesn’t mean interest rates will go up. There is more to the CPI than house prices.
Politicians will do anything to protect their investment. They will give people cash, discount tax, stamp duty, buyer incentives, do anything to keep the property market hot and bring more buyers. They will never make a decision that will cause property prices to go down until the rest of the economy has crashed around them. Property will be the last thing standing.
Just a comment about sharing the omelette, for my husband and I, we’ve started sharing our cafe/pub foods because we simply don’t eat as much now and we’re making better food choices/portion sizes. We found we were wasting money buying two meals because we simply couldn’t eat it, not because we couldn’t afford it. I’d like to think we’re not wasteful either, so I guess responsibility for spending our hard earned money, hinges on the success of the everyday choices we make.
Perhaps check out the connection between Jim Chalmers and The World Economic Forum. It provides greater clarity as to where his priorities quite possibly are focused.
I have stopped spending on unnecessary things, I don’t eat out or go on holidays or buy fashion, and put extra payments on my mortgage to pay it down quicker.
I've been doing that since day 1 (10 years ago) and have basically paid off my mortgage in 8 years instead of 30, while others I know spent up big and are now under servere mortgage stress...silly silly.
Good idea yes but at the same Time you don’t live forever you wanna have a boring life just to pay for your home your gonna die in common wake Australians at brain washed to much by the system working life worried about paying a house off go enjoy your life it’s only once 🤦♂️
@@user-jimmyjimsta I enjoy life while paying double my mortgage repayments. Bali with the family last year, Perth and QLD holiday this year...just dont buy expensive cars, caravans, boats, bikes, dining out and takeaway coffee every day...if I didnt have kids I would probably would spend more on crap, but I want them to have a decent life so I also go without in xome areas of life...its called sacrifice.
Interesting commentary. I think the biggest thing around interest rate commentary is even if they go down it’s not going to be by much as these interest rates are more normal (what we had the last 10yrs is not normal). And until gov fixes supply nothing is going to change and generally property will continue to go up and the imbalance of rich and poor will increase. Unless there is a major event like 7/8% unemployment, war etc. but then we have bigger problems.
One Nation are the most genuine & for the people party we have in my opinion. 🙏 We need more One Nation power to keep the Ba**ards Accountable (Honest would be an impossibility 😂)
I don’t think people understand that even higher inflation and higher interest rates will be back within 12 months. As a result, financial repression will be introduced and those in debt for non income producing assets will be left holding the bag.
Government needs to connect the satellite cities like Newcastle, Bathurst Orange and Woollongong to Sydney via high speed rail. This will give more of a chance to young people to buy a house outside of Sydney but still be connected to the city whether this is work or play. Sydney is now a global city like New York, London or Paris (for example) where affordability is extremely low and only the wealthy can afford.
Great chat gents, thanking you. I love the increase/decrease of the GST idea from Mark. 100% behind that. Also, interesting to hear Mark say that people over 50 who have property low or no mortgages are the only ones spending/travelling. If spending is the issue with the RBA, that's the people the pollies need to target then. i.e. the super industry. It must be worth about $3.5 trillion now. Take just 1% of funds and you have fund of $35 billion. loan that to local councils to develop land estates and develop in small stages, say 50 to 100 lots at a time. Sell for cost + a small profit say $25k. reinvest all money back into the next stage of 50 to 100 lots. When the estate is sold out, the money is paid back to the super industry. That's the best way for older Australians to help younger Australians. Older Australians have more tied up in super. Forget the bank of mum and dad. It should be outlawed. Also, I think we need to open up more competition in this country for construction materials companies. Its the only way to reduce prices to build a home. If lending conditions were really tightened up for people who already own property or are using their mum and dad to help them purchase, than overall demand will drop off and cause a slow down in the market. Under no circumstances should they tighten lending conditions for people trying to get into the market.
29 mins, only fans to buy a house? God.. I managed it, I invested in stock market for 10 years and bought a house with a substantial deposit, 4 years ago. I'm now in a position where my house is almost paid off ($30k to go). If I saved using bank deposits I would have never been able to do it. You must invest in a share market index fund.
This was your best video, Mark. Please get a Melbournian equivalent of Tom on the show sometime soon. We've got plenty of Greek real estate agents down here. Surely you know some of them.
42:30: "Ok, so you've got people on 150 grand who have finished uni..." OK, yeah... This is the problem with Tom. He's too freaking rich to know what the average QLD'er is on!
The stats about it taking 20 years to save for unit are based on single people income, with a 20% deposit. If you are a couple and can get a 5% deposit you can do it a few years. But if you’re single, it’s extremely hard!
If they go down borrow, borrow, borrow. With immigration and rental rates the way they are you will double your money in 5-10 yrs with investment properties. I have 5 worth 4 million and it will be worth 8-10 in 5-10 yrs
My investment property expenses have increased by 140% and I have increased rents by 25%. I'm not ripping anyone off. Anyone that calls investors scum, stop bitching and take on the risk any buy.
Sometimes we invest and have to take a loss. Stockmarkets take losses, businesses take losses, why shouldn't property investors take losses too? There's no rule that says property always wins. PS. Im currently selling my investment property as it no longer makes financial sense to hold it. You get a better yield in cash or shares.
@@Yesbling1 What a stupid comment. I would if I could afford it but unfortunately those who have gone before me have driven prices to a beyond insane level at the cost of society as a whole.
Exactly. There is too much "commentary" around rate movement expectations. There are a lot of people hanging on waiting for interest rates to come down ("as promised") but property prices are going up, people are spending, new car regos are at record levels, interest rates are relatively higher if you look at the last 5 years, but if you look at 20 years they are not high at all. Where is the case to reduce rates in that context???
Australia.........too huge an administrative class. The rest have bugger all! When this changes, so will the price of housing. We are yet to discern that there are two groups in Australia. One with money, the other with nothing!
Thanks for a balanced and informative video guys. My wife and I are the ones at the airport as we never know how long any of us have. We've worked hard for what we have but, I do feel for our 2 kids with mortgages which have doubled. Surely the gov/reserve bank can come up with some new ideas to control inflation which isn't just punishing the crap out of mortgage holders young or older. Coincidentally I'm in mosman Sydney working and the money in real estate around here spins my head. Thank you.
but the basic premise of his arguement is increasing values is the norm and the solution..his argument is actually the problem..ever increasing house prices is a bad thing!!
As much as GST changes would be a good idea does anyone truly think a government will ever reduce the rate once it has been lifted? They would be drunk on the extra tax and come out with every reason under the sun to not reduce it.
@@M.-.D We should tax spending more, you buy more so pay more tax, this would also have the effect of reducing personal consumption. This should be balanced by reducing income tax, mostly by lifting the no tax threshold.
@@mangoman9290 tax on spending rapidly accelerates wealth differences as essential spending is fixed costs while discretionary is the cream on top. If we focus on consumption tax my household can cut back to the same basics as an average income earner’s household and save $100-150k a year, and the capital gains can be rolled into further investments as income tax is being spared for a spending tax…. Income through labour should be the lowest of taxes. Use of land should be taxed - penalising land banking and excessive land holdings that are held through generational luck or rezoning.
@@M.-.D You and I arnt normal, we can live frugally and bank the extra coin but average Jill and Joe will still spend spend spend. If a Kmart pair of jeans is $30 instead of $20 they will buy it, if a 60" tv is $2000 instead of $1000 they will still buy it. Most essential spending is exempt from GST so if someone like us want to FIRE or just get ahead in life then we could take advantage of higher GST and lower Income tax, but most wouldnt. If they had the saving mindset then they would have banked a huge amount in the last decade whilst interest rates were sub 5%. But no, they get used to the extra money in their pockets, get used to the spending and when rates come back to the long term average they cry poor. Tax the consumers and reward the frugal.
Bank portfolio analytics should always be treated carefully. You will find that many times the underlying data is mis-specified or downright wrong. Also, be very wary of paying down your mortgage too quickly, because if the market ever gets truly rattled and house prices start falling rapidly, the banks will reduce that available limit (the amount you could theoretically redraw because you are ahead) and tell you after its done it. If you are near your limit, then its a lot more work. Keep your payments up to date, but keep the extra cash in a 100% offset account. The added bonus, is that if you buy another property, and want to keep the current one as a rental, you have not boned yourself in terms of tax and interest deductability.
There needs to be better rules around investing into residential property. The issue isn’t the interest rates, the rates are only a current issue because of a bigger issue which is residential property has become such a huge investment platform that it has become out of hand. I’m a property investor myself (small time). It’s the big time investors those who have made epic money from residential property in the buy and hold(rent). Investing in residential property needs to be capped and only personal purchases not companies or businesses.
Blue chip suburbs like Glen Waverley and Mount Waverley in Melbourne south east have seen price rise in last three months. A townhouse with 300 sqm in decent condition now goes for 1.45 mils while just early next year, many of these sold around 1.35 mils. And the ones which are well built and less than 10 years old, they are going crazy between 1.5 to 1.65. That’s the house price !!
38 mins rich people spending more shouldn't cause inflation. CPI is a measured based on a basket of goods. It's the price of those items in the basket increasing ahead of wage inflation that's the issue.
I think the answer is to cut negative gearing and CGT discount coz a home has turned into a pure asset when it should be an essential. Can't run a small business with such crazy property costs and rent. It permeates through the whole economy. Can't afford to start a family and live in a shoe box. The last 30 years of property boom is a disgrace!
While currencies printing is tolerated and promoted by coercion and manipulation?... Stores of value, gold, real estate, Bitcoin, rare art, collectable wine, low stock to flow ratio commodities will seem to be increasing in price!! It's not the values rising! It's the currency devaluing! Nearly, nearly!, all analysis is an illusion beyond that.
I think people are paying off MORE as it is no longer easier to keep cash elsewhere. People who had equity loans and for example bought shares - now have a big incentive to sell the shares and put the money back in an offset account. Makes perfect sense.
GST increases hurt the poorest people the most. It would only ever go up, as the biggest lie about inflation is that it is caused by money printing and government spending, not consumer spending. It's a double hit as the expansion of money also reduces the value of the existing currency.
the pure bred expensive prestige dog markets completely gones no1 is buying dogs or has the money to buy 4000/5000$ dogs. most breeders have stopped doing litters or breeding
C'mon Mark... never earned so much interest? You're kidding right? We used to earn 17.5% when we were saving for a house. Some older people that are travelling might not have been on a holiday for years. Not everyone over 50 is ruch like you two. The problem is not the current interest rates, the problem waa the low interest rates allowing peoole to borrow so much. Stop the foreign demand and mass immigration to our country and prices would come down in relation to the increase. Any GST increase will hit the poorest Australians the most, and once increased will never get decreased, so please drop that idea. Inflation is not increased by consumer spending, but by money printing for government spending. It was obvious back in 2020 with the ridiculous money printing where we would be now.
Great job on how to destroy wealth Mark Bouris. I invested in your YBR years ago. Sold out at a loss thanks to your sales pitch. But I learned a valuable lesson?.
All these references to 'million' dollar houses used to be reserved for exclusive mansions. Now it's for just about anyone in Sydney / Melbourne. Whether prices go through the roof or collapse - this will end very badly for millions of people. Very sad. Also very avoidable if average citizens educated themselves more on these issues.
dont forget the small real estate agencies, farmers and property investors prior to 2010 that subdivided or bought like crazy, sold a small portion and held the rest. Despite them holding interest only debt they saw stupid amounts of equity and rental income generation particularly in smaller cities that can now perpetually buy.
I just realised I bumped into Tom Panos at a 2BR Burwood auction and he said the same thing lol units are a good property to buy. How important is pre-approval if your income hasn't changed?
Overpriced housing in crippling this country for the sake of benefiting those who own more than one property... oh and those in the real-estate transaction businesses. The next generation wont be able to buy.. millions of Australians! and AI impacts of incomes.. well who knows, the rules of the game are changing and also the game.
I would like Tom Panos to tell us if he has witnessed property prices ever crashing in his decades long career and some stories, I’m sure he has. Everyone seems to think property is bulletproof in Australia.
I was looking for a house, the prices are just ridiculous though. I can afford one, but it feels wrong to me to support the rip off prices. I just lost enthusiasm after seeing countless 2 bedroom cheaply-constructed tiny townhouses for 700k in really uninspiring areas.
Great content and expressed kind of realistic sense of what’s going on not what media says despite people got freaked following media’s predictions regard the interest and so on.
For housing we need to allow tiny homes, they are a great interim measure to get people off the streets. We need to invest and support prefab housing factory made and assembled on site in a day. There are some excellent solutions out there. However councils are very contrived around their permits. I am talking about solutions for rural areas. Granny flats in the cities need to be allowed for renters not just your elderly relative. Even if councils were flexible for a period of 10 years while the government is doing their traditional builds promised. Property in Australia is our gold. There is nothing like it to make money with. Young people can buy property out side of where they live that are positively geared or they can do the old lets buy with a group of mates with our names on the title and live in it and pay it down. Yes there are some excellent buys in other countries where it is so much more affordable. Just remember there is a deal out there for you the right size.
What happens when median house prices are say $3Mil, the divide between the haves and have nots will be huge. Will we then have a shortage of tents to live in.. This madness has to stop IMO..
There is only way to slow down house prices - balance the supply and demand. How to do that is where the complexity lies. Many options for this, and some of them will not be supportive of first home buyers in the short term. And because most of the solutions are unfair to certain demographics - that’s why the politicians don’t implement them. For example, ‘back in the day’ home buyers needed a huge deposit whereas now buyers only need 5% plus stamp duty. There was a period during the early 2000s (when prices when gangbusters) that buyers could borrow 105% home loans. Regulating a min 20% deposit and banning LMI would significantly reduce demand and therefore reduce prices, but would be wildly unpopular. On the Supply side, we desperately need more more medium density housing in existing neighbourhoods. But NIMBYs fight against this, so that most new housing is skyscrapers or on the outskirts. This is not sustainable but legislating medium density housing in the middle ring suburbs would be wildly unpopular. It’s ironic that the NIMBYs who fight medium density also love London, Paris, Barcelona and Copenhagen which are perfect examples of how 3-5 storey medium density housing creates great outcomes.
Treasury are going to the airports... the small airports for private jets. You can extrapolate this to all areas of life. Those elected to govern us do not live like us.
Thanks for your video Mark. The irony is nobody wants the new units anymore after dodgy builders and developers self certifying and building trash like at mascot and Olympic park. We need more red tape to ensure the quality of buildings. There's a glut of new units available nobody wants to buy but rents are sky rocketing on them more than it would cost to have a mortgage. There's a stigma now on new units thanks to Mascot and Opal towers. And only the old brick 6-12 unit buildings are selling. It sucks for those that bought new units 7-10 years ago before the debacle of structural defects coz they have hardly had any capital growth no equity to buy and upgrade after 10 years of ownership. Albanese and Labor have only made it worse too. Australia is such a lazy inefficient country compared to Japan.
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📌 What did you think of the podcast? Do you have any questions for Mark? Pop them below.
One question to RBA- you have increased the rates as ablanket to all.Which menas the struggling section are pushed further into hardship and making them go into arrears and making their credit ratings go bad. Why aren't the rates first increased for investors AMD may be later for owner occupier? Wouldn't that have solver housing problem to some extent?
Also, why is the government OT asking investors to invest in building rather than buying existing homes and competing with people who want to buy their first home
Hey Mark,
When as a nation are we going to say enough’s enough, and it’s time to end speculation with a 5% land tax? Or go back to a leasehold system?
As evidenced in your Podcast, if you’re not old money, mum and dad money, successful in business or high wage earning, you’ll stay on struggle street for your working life.
Hey Mark, really enjoy your content on RUclips. What are your thoughts on the Coalition's potential plans (if they win the next election) to allow first homebuyers to use significant amounts of their super to buy a home? Is this a helpful initiative for those young Aussies who don't have a bank of Mum/Dad to rely on or will it only make housing affordability worse?
What the Gold Coast conference??
Sounds like the place to be.
So good hearing older guys (with respect) acknowledging the difficulties for younger generations 🙏
Unfortunately giving all the wrong solutions though.
@user-gk7wg4rm4iwhat were yours?
Mark you have an amazing ability to speak in lay terms without bombarding us with unnecessary jargon. Appreciated!
Great point, So true, explaining things in plain English (lay terms) is something that needs to be brought into government, law, business, economic terms and banking.
I'm not A huge fan of Tom Panos..however he talks complete common sense.... and good to see how calm he is in conversation....well done
As a father of 3 kids who have just entered the work force and would like to buy a home, my ability to assist them is limited. Rather than spend 20 years to save a deposit and then be paying off a home in retirement, might it be better to immigrate ourselves to a country where we could achieve ownership much earlier.
Great idea. More opportunity and better nightlife
That's not the reason to leave. The reason to leave is that Australia is a poor imitation of what a Western country is
Yes it could be a way of doing it. Or finding ways of investing their money to maximize growth, rather than saving it in the bank. I wish you and your family the best of luck. Better times will come
#OneNation
TAX THE F OUT OF OVERSEA INVESTORS ON THERE PROPERTY'S THAT THEY DO NOT USE OR RENT OUT.!
Labor already did this
@@Alig3388 yeah but on a small percentage.
@@TheObSeRvErTheObSeRv won't make a huge difference. Negative gearing and capital gains discount is fundamental reform.
They already do and it’s tax deductible 😂 wake up
@@redgatecrt not enough.
I felt too under-resourced to invest early, so I relied on hot stock picks and bonds. I realized that this approach wouldn’t secure my future. At my age, depending on ETFs was impractical due to limited time for compounding. After thorough research, I chose an alternative strategy that led to a $1 million return in 3 years and allowed me to retire with $8 million. I'm confident that I'll leave enough for my kids to be secure. With rising home prices and stagnant wages, many people will struggle to ever own a home.
the housing market feels rigged against us. You mentioned returns, to be realistic luck plays a significant role more-so than the resources to thrive with investing. without it, it's very challenging to succeed
when its consistent, its not considered luck. I attribute this to research which was the challenging part before it led me to Emily Ava Milligan, a top fund manager, in turn she made 310k into this, and counting.
I pasted her name into safari, and her page popped right up. from our interaction It became clear she's in high demand. Your example is rare. I stumbled on a gem when i least expected to. Thanks
Good way to pump your books guys….Mark and Tom’s 🎉FOMO wealth recreation.
Cash rate is not low. Debt trap has been laid for a decade- bank, gov and media hyping a debt bubble. Interest rates need to go higher. We are looking at a stagflationary environment.
Wish we could see APRA Stress testing the banks etc in real time....the rocks they are turning over would be chilling. Liar loans and probably lots of them. Now they pay.
Totally agree. We have entered stagflation.
Harry Triguboff has the 'power' to make units more expensive by publicly saying he's not going to make so many.
harry is almost dead .... he will die rich ... big deal! I am sure he has spawn that will continue his useless legacy.
the sheep are jabbed and head high in debt. Easy to control now for whats coming
Good Luck 🙏 🚬
Perfectly summarized
I plan to buy one of the sheeps distressed properties when they tap out finally. I don't feel bad for them, they screwed us all with their blind compliance.
Im 37 single no kids, have a small amount of savings, I have given up on the dream, also given up on the country. There is no prosperity, i think I am going to try it out in a SE Asian country.
I'm the same age as you. Living part-time in Australia might be the plan for me.
@@jonathanmichaelsmith9012 hypothetical, say you have $100k saved , earn 80k pa, buy a 500k 2 bedroom dog-box in the suburbs, you are pretty much left with maybe 5-10k at the end of each year if you are good with your mortgage, paying insurances, rates, body corp, feed yourself, car rego etc. this is the middle income aussie. far from what our parents had opportunities for.
@@Al-jv2pn You said you are a single, why not consider renting out one of the bedrooms? It can pay off half the mortgage unless more.
80K by yourself is pretty good enough. 400K loan at current LVR 80% rate would charge you ~$2600/month in mortgage, and taking every house related expenses into account, it would be roughly $3500/month.
500k 2 bedrood dog-box being said, I'm assuming you live in urban suburbs. Renting a room in such areas can cover $1500~2500 every month depending on what state you live, so that will cut down your cost of ownership to maximim $2000 a month. That's pretty good deal with ur 5k monthly salary.
Not a single, you've got a partner? Even better. More savings, more income!
@@Al-jv2pnEconomy's always on cycle. It is indeed a sad fact we are having less opportunities than what our parents had in the past, but if you compare space-wise, Australia is still a great place with full of opportunities.
No kids, you should be fine. Easy life, much lower expenses / time for career
We need someone like you in government
The increase in gst is a great idea but when has the government ever reduced a tax after introducing it?
Houses are so far beyond fair value now it's not funny. Anyone who buys in now is buying into one of the largest property bubbles in history.
This has the line for so long yet the property market keeps moving up...
It’s not about to burst anytime soon, believe me 👍🏽
@juantokyo_ There's no such thing as infinite growth. Every market has a crash.
@@scottcox8559 crash and then more growth. Look at market history and the market always recovers to newer highs. If a crash comes the government will intervene and on we go.
@redgatecrt if supply and demand were the only thing at play, I would agree with you. But there are so many other factors inflating all assets. it's not going to take much to pop the asset bubble.
Rather plough $1m into a business that creates jobs for young people for 30yrs, than a single pile of bricks for me to die in.
Govt must do something to stop this artificial prices of houses.
This increase gst every time inflation comes up is actually more inflationary. They need property prices to come down, and this can only be done by increasing interest rates. They should enforce property owner by foreigners to be compulsory rented if they do not use the properties
Increase interest rate further will be detrimental to the building industry. So less homes will be built , it will be even worse for the potential home owners
@@vincentc7920 Its actually the building code and beauracatic red tape that was restrictive to supply and the inflation of building supplies. and the historicly low and prelonged levels of low intrest rates that has caused this. They should of allowed developers to build more when intrest rates were low and building supplies were cheap, but councils were very restrictive. also they said it themselves, as soon as the market realises interest rates are being cut the market goes stupid again and people over leverage. We cant undo the mistakes now, so we need to go through stagflation, like the 70's a peroid of higher levels of infaltion with stagnat wage growth. This usually takes a decade to pass and clear, maybe 8 years. the other option is cause a 50% property crash over a space of 1.5 years, flush out the unecessary debt and start a fresh. but my money is on stagflation
@@sparkie996 What happened in china is actually so retarded its not funny. They were building ghost cities to purley drive the economy and create job, not just a store wealth, they actually did the exact opposite of australia which didnt allow developers to build. the sweet spot is actualy somwhere in the middle and were equally as fucked but just in a different way.
Interest rates have absolutely nothing to do with property values. They can subdue activity or increase them but the underlying value is always replacement value. If your existing home is broken apart you look at land price and then cost to rebuild your house, then look at its condition and age. The simple fact is land and building is more expensive than its ever been. The collapse of the building industry and limited margins and land development clearly shows that land and housing prices do not have margins in them that can be reduced, hence existing house prices wont drop. Then you look at supply and demand and supply will never catch up to demand now. Only 35% of all houses have a mortgage. Interest rates will not impact prices long term
Brother ive read over a 100 books on economics in the last 3 years, ranging back to 1300. What is happening now is not a new phenomena. House prices are actually directly linked to banking regulations on how much leverage to collateral they are allowed to use and interest rates. Along with supply and demand dynamics of land release to developers.
Option 1) The boat has sailed. we will now go through a decade long stagnate house prices with stagnat wages, but inflation on comodditied and utilities neccessities like rent, food, vehciles, electricity etc. So the REAL value of house price is declining in comparision to the cost of living and is a way to fool people that house prices are not actually depriciating wich is a slow and long process.
Or option2) you do what the americans do, increase interest rates to really high levels, squeeze all the unprodcutive builders and home owners to defaulting, which dramatically dropes prices over a 2 year peoroid and forces banks to restructure debt and the debt/gdp ratio of the country drops to a health level. This method is however very painful in the short run and will create a really high spike in homlessness and unemployement, but the pain will be short. But our debt to GDP ratio is still realtively
But because our debt/gdp ratio is realitively low, half of americas. so i think they will prefer option 1 - longer pain but less homlessness. becuase if you do option 2 - their is always about 70% of people that go into homlessness they never come out which is detrimental if you want to maintain a productive society. all these studies and information is available if your curious enough to actually learn. instead of shooting from the hip, on current life experinece. Economic cycles are 100 year cycles, based on changes of demographics so current societies havent seen this before, and why every generation complaines of the next generation as they are substantialy different.
A Chinese resident, not a citizen of Australia has recently purchased 165 units. How the f..k is this allowed?
I guess money talks? The government is corrupted.
The only direction interest rate is going, is UP.
Maybe, but the economy isn’t doing very well either. Just because a housing shortage is causing house prices to go up, doesn’t mean interest rates will go up. There is more to the CPI than house prices.
@@InfinityIsland2203 Housing is the highest weighted group in the CPI, accounting for around one quarter of the basket.
@@AussieZeKieL The US will increase rates to sell bonds, RBA will follow US to avoid the Aud dropping and causing a foreign debt repayment problem.
Politicians will do anything to protect their investment. They will give people cash, discount tax, stamp duty, buyer incentives, do anything to keep the property market hot and bring more buyers. They will never make a decision that will cause property prices to go down until the rest of the economy has crashed around them.
Property will be the last thing standing.
Just a comment about sharing the omelette, for my husband and I, we’ve started sharing our cafe/pub foods because we simply don’t eat as much now and we’re making better food choices/portion sizes. We found we were wasting money buying two meals because we simply couldn’t eat it, not because we couldn’t afford it. I’d like to think we’re not wasteful either, so I guess responsibility for spending our hard earned money, hinges on the success of the everyday choices we make.
My wife and I have been doing the same thing for 6 years for the same reason
Agree. Meals are way too big at a lot of cafes and restaurants.
It blows my mind how much money gets allocated to bricks and mortar ,in my own experience the increase in house price is mostly land value
Unfortunately greed which motivated people in the good times has now come back to haunt them. People should take responsibility for their own actions!
what choice do most have? its the system and politicians and (their lobbyists) who have rigged the game.
Perhaps check out the connection between Jim Chalmers and The World Economic Forum. It provides greater clarity as to where his priorities quite possibly are focused.
I have stopped spending on unnecessary things, I don’t eat out or go on holidays or buy fashion, and put extra payments on my mortgage to pay it down quicker.
I've been doing that since day 1 (10 years ago) and have basically paid off my mortgage in 8 years instead of 30, while others I know spent up big and are now under servere mortgage stress...silly silly.
Good idea yes but at the same
Time you don’t live forever you wanna have a boring life just to pay for your home your gonna die in common wake Australians at brain washed to much by the system working life worried about paying a house off go enjoy your life it’s only once 🤦♂️
@@user-jimmyjimsta I enjoy life while paying double my mortgage repayments. Bali with the family last year, Perth and QLD holiday this year...just dont buy expensive cars, caravans, boats, bikes, dining out and takeaway coffee every day...if I didnt have kids I would probably would spend more on crap, but I want them to have a decent life so I also go without in xome areas of life...its called sacrifice.
@@user-jimmyjimsta what makes you think I’m not enjoying my life? Eating out and buying clothes and travelling are not enjoyable activities for me.
Inflation is also affected by the amount money printed that adds to the M2 Money supply . Starting in Jan 2020 it jumps .
A 50yr old fibro shack knock down property fetches 1.7 million. 20 years ago it fetched 70,000. Wow!
That pretty much sums up the insanity
And will double in 5 or 10yrs
The RBA doesn’t lend money, they exchange securities
Banknotes are RBA debt
And government borrowing and spending is what causes inflation, not consumers
Love these podcasts thanks for the insight the recordings are very easy to listen to
Interesting commentary. I think the biggest thing around interest rate commentary is even if they go down it’s not going to be by much as these interest rates are more normal (what we had the last 10yrs is not normal). And until gov fixes supply nothing is going to change and generally property will continue to go up and the imbalance of rich and poor will increase. Unless there is a major event like 7/8% unemployment, war etc. but then we have bigger problems.
You really should point out that this is a Sydney based view.It certainly isn't representing Australia as a whole.
Wow awesome podcast thanks Mark and Tom you guys are legends very informative
Time to bring in Pauline
Hanson? 😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂😂
And you believe she'll fix the corrupt system? Bless you...
@@harisdiz.5817 so keep voting for the UNI-PARTY?
One Nation are the most genuine & for the people party we have in my opinion.
🙏
We need more One Nation power
to keep the Ba**ards Accountable (Honest would be an impossibility 😂)
No nothing and no body is going to change what’s inevitable
Enjoyed the discussion thanks. Listening at 2335 hours.
The GST example is never going to happen. If GST is increased, it will never go down.
Love listening to your podcast. I always learn something
Awesome! Thank you!
Who would buy a unit for $7M? How about buy land & become self sufficient, they are going to need it.
💪
I don’t think people understand that even higher inflation and higher interest rates will be back within 12 months. As a result, financial repression will be introduced and those in debt for non income producing assets will be left holding the bag.
Government needs to connect the satellite cities like Newcastle, Bathurst Orange and Woollongong to Sydney via high speed rail. This will give more of a chance to young people to buy a house outside of Sydney but still be connected to the city whether this is work or play. Sydney is now a global city like New York, London or Paris (for example) where affordability is extremely low and only the wealthy can afford.
All the wealthy immigrants can afford it, just not locals. Stop the foreign demand, stop the problem.
No that's too smart an idea for our politicians, no no, keep that quiet to yourself mate it's too benficial
Really enjoyed this commentary.
interest rates come down, house prices go up and we are back to food sharing and mortgage stress, and high rents...
Anyone calling for rate cuts this year is quite delusional.
Two year federal funds rate usually leads fmoc rate cuts
Great chat gents, thanking you. I love the increase/decrease of the GST idea from Mark. 100% behind that. Also, interesting to hear Mark say that people over 50 who have property low or no mortgages are the only ones spending/travelling. If spending is the issue with the RBA, that's the people the pollies need to target then. i.e. the super industry. It must be worth about $3.5 trillion now. Take just 1% of funds and you have fund of $35 billion. loan that to local councils to develop land estates and develop in small stages, say 50 to 100 lots at a time. Sell for cost + a small profit say $25k. reinvest all money back into the next stage of 50 to 100 lots. When the estate is sold out, the money is paid back to the super industry. That's the best way for older Australians to help younger Australians. Older Australians have more tied up in super. Forget the bank of mum and dad. It should be outlawed. Also, I think we need to open up more competition in this country for construction materials companies. Its the only way to reduce prices to build a home. If lending conditions were really tightened up for people who already own property or are using their mum and dad to help them purchase, than overall demand will drop off and cause a slow down in the market. Under no circumstances should they tighten lending conditions for people trying to get into the market.
Council to State Governments are down to State policy and not Federal Policy.
Loving the Chat Guys.
Thnx for the Great Video.🙏
Well done mates - thanks a lot
Great show. Thank you
29 mins, only fans to buy a house? God.. I managed it, I invested in stock market for 10 years and bought a house with a substantial deposit, 4 years ago. I'm now in a position where my house is almost paid off ($30k to go). If I saved using bank deposits I would have never been able to do it. You must invest in a share market index fund.
💯
S&P 500
This was your best video, Mark. Please get a Melbournian equivalent of Tom on the show sometime soon. We've got plenty of Greek real estate agents down here. Surely you know some of them.
42:30: "Ok, so you've got people on 150 grand who have finished uni..."
OK, yeah...
This is the problem with Tom. He's too freaking rich to know what the average QLD'er is on!
The stats about it taking 20 years to save for unit are based on single people income, with a 20% deposit. If you are a couple and can get a 5% deposit you can do it a few years. But if you’re single, it’s extremely hard!
Agree with the guest , rate will stay the same. If rate goes down , i will chuck more into the mortgage to reduce debt 😕
If they go down borrow, borrow, borrow. With immigration and rental rates the way they are you will double your money in 5-10 yrs with investment properties. I have 5 worth 4 million and it will be worth 8-10 in 5-10 yrs
RBA too spooked to lower rates Inflation is too strong
great conversation
My investment property expenses have increased by 140% and I have increased rents by 25%. I'm not ripping anyone off. Anyone that calls investors scum, stop bitching and take on the risk any buy.
Sometimes we invest and have to take a loss. Stockmarkets take losses, businesses take losses, why shouldn't property investors take losses too? There's no rule that says property always wins. PS. Im currently selling my investment property as it no longer makes financial sense to hold it. You get a better yield in cash or shares.
Sell it and give a first home buyer a chance. There's no way you'll be selling it for less. Cry me a river.
What risk? You've been getting tax payer funded gains each year.
@@jezg084if it so easy why don’t you do it sunshine 😂
@@Yesbling1 What a stupid comment. I would if I could afford it but unfortunately those who have gone before me have driven prices to a beyond insane level at the cost of society as a whole.
Great conversation
Lol my wife grew up in as house in Kingsley St, Byron. Parents sold in 90s for 300k odd, last sold for 3m. Stupid prices for Airbnb street.
Exactly. There is too much "commentary" around rate movement expectations. There are a lot of people hanging on waiting for interest rates to come down ("as promised") but property prices are going up, people are spending, new car regos are at record levels, interest rates are relatively higher if you look at the last 5 years, but if you look at 20 years they are not high at all. Where is the case to reduce rates in that context???
Australia.........too huge an administrative class. The rest have bugger all! When this changes, so will the price of housing. We are yet to discern that there are two groups in Australia. One with money, the other with nothing!
Thanks for a balanced and informative video guys. My wife and I are the ones at the airport as we never know how long any of us have. We've worked hard for what we have but, I do feel for our 2 kids with mortgages which have doubled. Surely the gov/reserve bank can come up with some new ideas to control inflation which isn't just punishing the crap out of mortgage holders young or older. Coincidentally I'm in mosman Sydney working and the money in real estate around here spins my head. Thank you.
I think what surprised me the most was that Tom Panos didn't start yelling his argument at you Mark.
but the basic premise of his arguement is increasing values is the norm and the solution..his argument is actually the problem..ever increasing house prices is a bad thing!!
As much as GST changes would be a good idea does anyone truly think a government will ever reduce the rate once it has been lifted? They would be drunk on the extra tax and come out with every reason under the sun to not reduce it.
How about we stop taxing income/spending at the individual level and focus on leverage the massive resources industry we see little from.
@@M.-.D We should tax spending more, you buy more so pay more tax, this would also have the effect of reducing personal consumption. This should be balanced by reducing income tax, mostly by lifting the no tax threshold.
@@mangoman9290 tax on spending rapidly accelerates wealth differences as essential spending is fixed costs while discretionary is the cream on top.
If we focus on consumption tax my household can cut back to the same basics as an average income earner’s household and save $100-150k a year, and the capital gains can be rolled into further investments as income tax is being spared for a spending tax….
Income through labour should be the lowest of taxes. Use of land should be taxed - penalising land banking and excessive land holdings that are held through generational luck or rezoning.
@@M.-.D You and I arnt normal, we can live frugally and bank the extra coin but average Jill and Joe will still spend spend spend. If a Kmart pair of jeans is $30 instead of $20 they will buy it, if a 60" tv is $2000 instead of $1000 they will still buy it. Most essential spending is exempt from GST so if someone like us want to FIRE or just get ahead in life then we could take advantage of higher GST and lower Income tax, but most wouldnt.
If they had the saving mindset then they would have banked a huge amount in the last decade whilst interest rates were sub 5%. But no, they get used to the extra money in their pockets, get used to the spending and when rates come back to the long term average they cry poor.
Tax the consumers and reward the frugal.
@@M.-.Dwhy should someone be penalised by tax, therefore forced out due to rezoning that they don't even want?
Bank portfolio analytics should always be treated carefully. You will find that many times the underlying data is mis-specified or downright wrong.
Also, be very wary of paying down your mortgage too quickly, because if the market ever gets truly rattled and house prices start falling rapidly, the banks will reduce that available limit (the amount you could theoretically redraw because you are ahead) and tell you after its done it. If you are near your limit, then its a lot more work.
Keep your payments up to date, but keep the extra cash in a 100% offset account. The added bonus, is that if you buy another property, and want to keep the current one as a rental, you have not boned yourself in terms of tax and interest deductability.
There needs to be better rules around investing into residential property. The issue isn’t the interest rates, the rates are only a current issue because of a bigger issue which is residential property has become such a huge investment platform that it has become out of hand.
I’m a property investor myself (small time). It’s the big time investors those who have made epic money from residential property in the buy and hold(rent). Investing in residential property needs to be capped and only personal purchases not companies or businesses.
Inflation is a monetary phenomenon, not a spending phenomenon
Blue chip suburbs like Glen Waverley and Mount Waverley in Melbourne south east have seen price rise in last three months. A townhouse with 300 sqm in decent condition now goes for 1.45 mils while just early next year, many of these sold around 1.35 mils. And the ones which are well built and less than 10 years old, they are going crazy between 1.5 to 1.65. That’s the house price !!
I wonder why🤷♂️😒
38 mins rich people spending more shouldn't cause inflation. CPI is a measured based on a basket of goods. It's the price of those items in the basket increasing ahead of wage inflation that's the issue.
Not sure about Australia. But in Canada it is known as the C P Lie. Because the list of goods year in year out is not immutable.
Who said inflation needs to be between 2-3% When determining inflation are wages considered in the final number?
Australia cannot bear 30 million people.
It definitely can with proper management
@@DBolt-xb7sg of course, like Mumbai, Los Angeles, San Francisco. Many good examples
I think the answer is to cut negative gearing and CGT discount coz a home has turned into a pure asset when it should be an essential. Can't run a small business with such crazy property costs and rent. It permeates through the whole economy. Can't afford to start a family and live in a shoe box. The last 30 years of property boom is a disgrace!
While currencies printing is tolerated and promoted by coercion and manipulation?...
Stores of value, gold, real estate, Bitcoin, rare art, collectable wine, low stock to flow ratio commodities will seem to be increasing in price!!
It's not the values rising! It's the currency devaluing!
Nearly, nearly!, all analysis is an illusion beyond that.
I think people are paying off MORE as it is no longer easier to keep cash elsewhere.
People who had equity loans and for example bought shares - now have a big incentive to sell the shares and put the money back in an offset account. Makes perfect sense.
Great podcast, GST rise makes so much sense...problem is untrustworthy politicians won't reduce it when they say they will
GST increases hurt the poorest people the most. It would only ever go up, as the biggest lie about inflation is that it is caused by money printing and government spending, not consumer spending. It's a double hit as the expansion of money also reduces the value of the existing currency.
Just remember, only 2 weeks to flatten the curve
the pure bred expensive prestige dog markets completely gones
no1 is buying dogs or has the money to buy 4000/5000$ dogs.
most breeders have stopped doing litters or breeding
C'mon Mark... never earned so much interest? You're kidding right? We used to earn 17.5% when we were saving for a house.
Some older people that are travelling might not have been on a holiday for years. Not everyone over 50 is ruch like you two.
The problem is not the current interest rates, the problem waa the low interest rates allowing peoole to borrow so much.
Stop the foreign demand and mass immigration to our country and prices would come down in relation to the increase.
Any GST increase will hit the poorest Australians the most, and once increased will never get decreased, so please drop that idea.
Inflation is not increased by consumer spending, but by money printing for government spending. It was obvious back in 2020 with the ridiculous money printing where we would be now.
Great job on how to destroy wealth Mark Bouris. I invested in your YBR years ago. Sold out at a loss thanks to your sales pitch. But I learned a valuable lesson?.
Excellent!
All these references to 'million' dollar houses used to be reserved for exclusive mansions. Now it's for just about anyone in Sydney / Melbourne.
Whether prices go through the roof or collapse - this will end very badly for millions of people.
Very sad. Also very avoidable if average citizens educated themselves more on these issues.
dont forget the small real estate agencies, farmers and property investors prior to 2010 that subdivided or bought like crazy, sold a small portion and held the rest. Despite them holding interest only debt they saw stupid amounts of equity and rental income generation particularly in smaller cities that can now perpetually buy.
I just realised I bumped into Tom Panos at a 2BR Burwood auction and he said the same thing lol units are a good property to buy. How important is pre-approval if your income hasn't changed?
Great interview. Thank you Mark.
Overpriced housing in crippling this country for the sake of benefiting those who own more than one property... oh and those in the real-estate transaction businesses.
The next generation wont be able to buy.. millions of Australians! and AI impacts of incomes.. well who knows, the rules of the game are changing and also the game.
Who is buying up all the homes?? Recent immigrants and foreign buyers.
Taxes are inflationary, inflation is a product of supply and demand.
Maybe they should stop migration in John Howard's era migration was minimal
I would like Tom Panos to tell us if he has witnessed property prices ever crashing in his decades long career and some stories, I’m sure he has. Everyone seems to think property is bulletproof in Australia.
I was looking for a house, the prices are just ridiculous though. I can afford one, but it feels wrong to me to support the rip off prices. I just lost enthusiasm after seeing countless 2 bedroom cheaply-constructed tiny townhouses for 700k in really uninspiring areas.
Suddenly everyone is an economic expert, if it was up to these two interest rates will be 0,1 again and we would really be stuffed!
Great content and expressed kind of realistic sense of what’s going on not what media says despite people got freaked following media’s predictions regard the interest and so on.
1 grand in the bank for a kid who finish school or uni? That's crazy. My son is only 5 years old and he got $4k in the bank.
For housing we need to allow tiny homes, they are a great interim measure to get people off the streets. We need to invest and support prefab housing factory made and assembled on site in a day. There are some excellent solutions out there. However councils are very contrived around their permits. I am talking about solutions for rural areas. Granny flats in the cities need to be allowed for renters not just your elderly relative. Even if councils were flexible for a period of 10 years while the government is doing their traditional builds promised. Property in Australia is our gold. There is nothing like it to make money with. Young people can buy property out side of where they live that are positively geared or they can do the old lets buy with a group of mates with our names on the title and live in it and pay it down. Yes there are some excellent buys in other countries where it is so much more affordable. Just remember there is a deal out there for you the right size.
What happens when median house prices are say $3Mil, the divide between the haves and have nots will be huge. Will we then have a shortage of tents to live in.. This madness has to stop IMO..
Underrated spend area is medical, private everything outside of any gov subsidies especially dental!
Hi Mark, what do you think of have the 1031 exchange policy from the USA introduced here? It will trigger a lot more sales, more stamp duty.
There is only way to slow down house prices - balance the supply and demand.
How to do that is where the complexity lies. Many options for this, and some of them will not be supportive of first home buyers in the short term. And because most of the solutions are unfair to certain demographics - that’s why the politicians don’t implement them.
For example, ‘back in the day’ home buyers needed a huge deposit whereas now buyers only need 5% plus stamp duty. There was a period during the early 2000s (when prices when gangbusters) that buyers could borrow 105% home loans. Regulating a min 20% deposit and banning LMI would significantly reduce demand and therefore reduce prices, but would be wildly unpopular.
On the Supply side, we desperately need more more medium density housing in existing neighbourhoods. But NIMBYs fight against this, so that most new housing is skyscrapers or on the outskirts. This is not sustainable but legislating medium density housing in the middle ring suburbs would be wildly unpopular. It’s ironic that the NIMBYs who fight medium density also love London, Paris, Barcelona and Copenhagen which are perfect examples of how 3-5 storey medium density housing creates great outcomes.
Can this be made into a podcast? i don’t have time to watch youtube
@yellowbrickroadtv hi, what is your opinion on fixing the Negative Gearing and Capital Gains taxation?
Love good aussie content. Ta lads!
Treasury are going to the airports... the small airports for private jets. You can extrapolate this to all areas of life. Those elected to govern us do not live like us.
Mark why do you focus on making your business YBR profitable instead of interviewing Tom Panos?
Thanks for your video Mark. The irony is nobody wants the new units anymore after dodgy builders and developers self certifying and building trash like at mascot and Olympic park. We need more red tape to ensure the quality of buildings.
There's a glut of new units available nobody wants to buy but rents are sky rocketing on them more than it would cost to have a mortgage. There's a stigma now on new units thanks to Mascot and Opal towers. And only the old brick 6-12 unit buildings are selling. It sucks for those that bought new units 7-10 years ago before the debacle of structural defects coz they have hardly had any capital growth no equity to buy and upgrade after 10 years of ownership. Albanese and Labor have only made it worse too. Australia is such a lazy inefficient country compared to Japan.
‘Feels like the road to heaven, but looks like the road to hell’ George Micheal - Freedom…
As long as it's not a Yellow Brick Road 🤔
Can you say ‘every dollar extra they pay towards their Loan can give them a 6.5% return’?