In my live show with Leith van Onselen yesterday, we pulled apart the major party campaigns relating to housing, which focussed on those trying to buy, and a promise of higher home prices for all. This will put a rocket under home prices. But the real story, and the accompanying policy vacuum relates to the rental sector. One third of households are renting, and the number continues to rise as people are squeezed out of home ownership.
As I reported my surveys show that more than three in four renters are under financial pressure, with many caught in the ugly situation of having to accept significant further lifts in rent or have to enter the scrum to find another place which is more affordable.
“Australia is facing its worst rental crisis yet … with little relief in sight for most renters,” said Karen Walsh, chief executive of National Shelter. “Many renters across Australia are hurting and in distress. As rents rise faster than wages, they’re trapped in a relentless cycle … facing a reality where hope for a brighter future feels increasingly out of reach.”
Speaking to ABC News Channel, Maiy Azize from Everybody’s Home — a National campaign dedicated to fixing Australia’s housing crisis — and a former national secretary for the Greens, said it was a huge problem but there had not been any significant major party announcements for renters.
“Six hundred and forty thousand renters across the country are in really, really extreme rental stress, there is just nothing put on the table for them this federal election, which is really disappointing to see.”
This is a policy free area, through the campaign, yet its the pointy bit of the housing crisis. Why are politicians avoiding the issue?
This is an edit version of a live discussion as I explore the latest political interventions into the housing market and other economic issues with Leith Van Onselen, Chief Economist at Nucleus Wealth and Co-founder of Macrobusiness. Will house prices skyrocket following the election of a second-term Labor government?
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An important week for a Rant as Edwin and I pick apart the latest housing policy announcements, and the broader economic questions surrounding the Trump Tariff games. What will property do as a result?
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Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
You can tell an election is close as both major parties have launched their campaigns formally, with Dutton in Western Sydney and Albo in Perth. Recognising that costs of living and housing specifically are haunting younger voters, who now comprise the bulk of voters for the first time, housing was at the heart of both campaigns. Both parties launched proposals aimed at tackling the housing market, which of course has become more unaffordable for many, as a result of a generation of bad policy.
But I give them both a major fail as both sides presented a fig leaf that their policies will increase the supply of homes.
Yet again, politicians are dealing with the symptoms of high house prices, not the root causes.
And also remember one third of households are renting, and three quarters are in rental stress, how does any of this help them? Cut migration, cut red tape and step back from further financialisaton of the property market, by reducing tax breaks. Its not that hard, but politically, seeing home prices fall is not a winner either, which is what we really need to escape the housing affordability death trap.
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Go to the Walk The World Universe at https://walktheworld.com.au/
This week we consider the impact of the Trump Tariffs on Property in Australia, look at the latest numbers and where property demand is coming from, and also consider some of the risks embedded in your homes.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
As the election campaign starts in earnest, Property Insider Edwin Almeida and I consider the policy options as they relate to housing and migration, kick around the latest numbers and consider the real agenda which is running across the Country. Horror story number one.
We also show a example of what damp can do to a property if it is left unchecked. This is a real horror story… and horror story number two!!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
This is an edited version of a live discussion about finance and property, as we look at the latest data and ask where has Australian gone wrong? Prices relative to income are off the charts, property listings are rising, and despite the hopium of prices rises off the back of a single rate cut, the truth is rather different.
So tonight, as the budget speech is rolled out, we will take questions live.
http://www.martinnorth.com/
Details of our one to one service are here: https://digitalfinanceanalytics.com/blog/dfa-one-to-one/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
It’s been another spicy week in the political and property sector, so in this weeks rant Edwin and I look at the latest Government announcements – could there be an election incoming?). We also discuss the rising number of deceased estates, and how tenants need to protect themselves when taking on a new leased property.
And Edwin’s new channel is also featured. Check it out. https://www.youtube.com/@UCIGkOVR6GDQnkrhN9zFlu8w
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
This week we dive into the questions of selecting an Auctioneer, under-quoting and the competition for regulation between Sydney and Melbourne, plus the latest trends in prices and listings.
And Edwin shares some feedback direct from the industry, so we can see how they are seeing things. Below the hood, things are not as presented in the RE community.
Caveat Emptor!
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
The trends are clear, in many western countries around the world, home prices have been rising, and in recent years rising fast. The underlying drivers are the freeing up of mortgage markets, and lower interest rates, allowing more people to borrow more, which is why debt has been rising too. As you know I have long argued the rise in home prices to stupid levels is all due to the deregulation of the financial system, driven by neo-liberal thinking which leaves ordinary people in the dust. Greater debt driven demand lifts prices.
Of course, the Government is fixated on the supply side story. And we can expect they will peddle this hard into the election. The government’s housing policies include 1.2 million new homes built by mid-2029, a $9.3 billion agreement with states and territories to support social housing and homelessness services, a scheme to help 40,000 households purchase a new or existing home, and tax incentives to support investment in new build-to-rent developments. One of those latter tax incentives includes increasing the capital works tax discount depreciation rate from 2.5 per cent to four per cent.
The other factor in play is high migration, another demand driver, with another 2 million people expected to land in the country over the next few years. This was subject to interesting questioning from Senator Bragg in Estimates recently. Astonishingly, Treasury has not considered the impact of high migration on housing demand (and implicitly) price.
But what of the tax breaks for investors? Well according to a new report from Australian Council of Social Service (ACOSS), Two tax breaks are “disproportionately” benefiting Australia’s richest while simultaneously fuelling the housing affordability crisis. The report criticises the capital gains tax deduction for property, where only 50 per cent of capital gains made from an asset are taxed when it is sold, and negative gearing, which allows investment expenses to be deducted from income.
ACOSS says the wealthiest 10% of households own two-thirds of all investment properties and are receiving 82% of the $16 billion in tax relief the two breaks provide.
While I absolutely agree the investor tax breaks are part of the problem, unless we address too high migration, control unsustainable lending growth, and also work on building enough new homes to meet new demand, the affordability situation will continue to deteriorate.
As a result, many will choose to leverage up just to get into the market and out of the rental sector. Government policy is at fault here. And they appear to be avoiding the elephants in the room. Address too high migration, and control unsustainable lending growth.
I wonder if this is because many politicians are also property investors?
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
Find more at https://digitalfinanceanalytics.com/blog/ where you can subscribe to our research alerts
Today’s post is brought to you by Ribbon Property Consultants.
If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.
Buying property, is both challenging and adversarial. The vendor has a professional on their side.
Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.
Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.
Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.
