MEDIA MISINFORMATION … ARE OLDER AUSTRALIANS TO BLAME FOR BOOMING HOUSE PRICES? When will the Media be able to tell the truth?

7.30

“Given the recent horror stories about aged care, it’s no surprise that a growing number of older Australians are choosing to stay in their own homes as long as possible.

But at least one economist thinks it could be making it harder for everyone else to get a house.”

Really!

WHEN will the Media be able to tell the truth?

With so many obvious vested interests at play perhaps that explains why the Media is so scared of telling it as it is?

ARE OLDER AUSTRALIANS TO BLAME FOR BOOMING HOUSING PRICES?

RACHEL ONG, ECONOMICS PROFESSOR:

“It certainly doesn’t help in terms of housing affordability. House prices are probably a bit higher than what they should be.

I’m not trying to say that older people are just trying to hang on to the family home. And hogging space. I think the issue here is that there are very few options for older people.”

WHAT NEXT? FFS!

The Seniors who were interviewed are determined to stay in their homes because they have worked hard to buy them, all their memories are in their homes, they have their independence, and as one interviewee said:

* “I am not going to lose sleep over an economist’s statement about pushing up house prices.”

(* This comment from the gentleman in the photograph appears to have been edited out of the transcript!)

-92% of older Australians are staying put
-that is 3.4 million older Australians

FACTS:

-Australian LNP Government policies written by the developer lobby pushed up house prices locking out a whole cohort of Australians

BECAUSE:

-FIRB ruling allows developers to sell 100% of “new homes” overseas particularly in China (now across Asia)

-no Anti-money Laundering Legislation for the Real Estate Sector to prevent money laundering in Australian Real Estate

.an onshore Proxy agent can launder black money in Australian real estate

-the NSW LNP Government policies benefit developers with private certification, complying development, and rezoning our suburbs for higher density

NOTE:  This morning 19 September most comments referring to the sell off of Australian housing to foreign buyers had been filtered out on the 7.30 Facebook!

Older Australians choosing to live at home for as long as possible

Posted 
Updated 

A growing number of older Australians are doing what they can to avoid aged care and retirement homes and are choosing to live at their own homes for as long as possible.

Transcript

minus

AUSTRALIAN HOUSE VALUES have fallen $36 billion so far this year

Australia’s residential property lost a combined $13 billion in value in the three months to July.

This is the first annual fall since the June quarter in 2012.

Following which house prices escalated especially in NSW with the developer property boom, the sell-off to the World-wide market particularly in China inflating competition and prices.

The current tightening in supply of credit to investors will negatively impact Australian investors, and will not impact the foreign investor/buyer that does not access the Australian Banking and Finance system. There is no Anti-money Laundering Legislation for the Real Estate Sector allowing for more foreign financial control of Australia to flourish!

In conclusion contrary to the 60 Minutes report of a 40% fall, and assuming housing turnover holds around current rates, prevailing credit conditions are likely to see house prices fall around 5 per cent over the year for Sydney and Melbourne.

Australian house values have fallen $36 billion so far this year

BY BUSINESS REPORTER STEPHEN LETTS

Suburbia
PHOTO

Australian residential properties have lost around $36b in value since the start of the year.

ABC NEWS: NIC MACBEAN

Australia’s residential property lost a combined $13 billion in value in the three months to July, according to the Australian Bureau of Statistics.

The ABS residential property price index across the eight major cities fell 0.7 per cent over the June quarter, to be down 0.6 per cent over 12 months.

It is the first annual fall since the June quarter in 2012.

ABS chief economist Bruce Hockman said Australia’s two largest cities continued to lead the fall.

Sydney recorded its fourth consecutive quarter of falling property prices (- 1.2 per cent) while Melbourne was down for the second consecutive quarter (-0.8 per cent).

“The initial slowdown in these markets was spurred by regulatory changes and a tightening in the supply of credit to investors,” Mr Hockman said.

“A drop in investor demand over recent months appears to be adding to the slowing in housing credit growth.

“The effect of this is more pronounced in the larger property markets of Sydney and Melbourne.”

With the exception of Hobart (+15.5 per cent), most capital cities have continued to record a moderation in annual growth rates since the September quarter 2017.

 

View Link for: Residential property price index – 8 cities, June Qtr 2018

http://datawrapper.dwcdn.net/yY0Om/1/?abcnewsembedheight=430

On ABS figures, the total value of Australia’s 10 million residential dwellings decreased $36 billion to $6.9 trillion so far this year.

The mean price of dwellings in Australia is now $686,200.

VIEW Link for: Total value of Australian residential property

Apartment values hit hardest

JP Morgan’s Henry St John said apartment values have been the hardest hit, reflecting an on-going glut in the sector.

“Apartment prices remain on a slightly weaker footing compared to detached dwellings, as they have done for some time, owing to widespread issues of oversupply in the major eastern capital cities of Sydney, Melbourne and Brisbane.

“With completions continuing to track higher [in the second half of the 2018], this weakness in apartment prices, over and above the broader price declines, is likely to persist,” Mr St John said.

 

Mr St John said Sydney and Melbourne, having seen the most significant prior upswing in prices and the highest concentration of investor lending, continue to display the most noticeable signs of cooling.

“Given recent credit tightening, it is not surprising that the pullback in investor activity has disproportionately impacted these markets.

“New lending activity and refinancing have contracted significantly since the beginning of 2018, a culmination of regulatory pressure, enhanced scrutiny following the banking royal commission, and the self-fulfilling consequence of slowing house prices driving an investor pullback.”

The recent spate of out-of-cycle mortgage rate hikes is unlikely to change the downward trajectory in house prices, in the short-term at least.

“A rising cost of credit represents a blunter instrument for slowing lending, since it impacts both owner-occupiers and investors in parallel,” Mr St John said.

Mr St John said, assuming housing turnover holds around current rates, prevailing credit conditions are likely to see house prices fall around 5 per cent over the year.

VIEW Link for: Residential Price Index Major Capital Cities

https://tmsnrt.rs/2xqueTK?abcnewsembedheight=430

Mr St John said house price gains remain modestly positive elsewhere, with Brisbane (+0.9 per cent) and Perth (+0.2 per cent) both stabilizing following declines in the previous quarter.

VIEW Link for: Residential Property Price Index

https://product.datastream.com/dscharting/gateway.aspx?abcnewsembedheight=430&action=REFRESH&guid=74e36a68-665d-4af4-8ab6-73343e89d589

 

SYDNEY MAYORS call on NSW government to speed up affordable housing approvals

Residential construction projects line the shores of Parramatta River at Ryde in Sydney’s West as the areas experiences a housing boom. Photo: James Alcock

DESPITE the GROWTH in the Housing Supply that could not meet the foreign demand … the STING that locked out Australians … higher density has taken over our quarter acre lots, our Vistas and our streets obliterated by OVERDEVELOPMENT … our Mayors wait for approval of the Inclusionary Zoning for “affordable rental housing” … the more developers make money!

ISN’T this sh.t?

ONE can see what is happening here … can’t one? … derr …

SYDNEY MAYORS call on NSW government to speed up affordable housing approvals

WESTERN SYDNEY is best for city’s future growth, says LJ Hooker chief

OBVIOUSLY when Mr Hooker refers to “the people driving the population growth” he is referring to the property sector 100% foreign buyer/new residents esp. from China and India.

AND no doubt despite Western Sydney being a “heat sink” and enduring a drought – with only 9% of the Cumberland Plain Woodland remaining -it

is better than where they have come from!

THIS clearly is not about building “affordable housing” for Australian First Home Buyers!

 

IT would appear the huge tracts of land available have in fact been landbanked!

We do not take the bait hook, line and sinker!  We shared with you “How the

LNP and  developer mates have depleted Western Sydney 2011 – 2018.”

Back in June 2017 “Chinese property investors search for Badgery’s Creek Airport opportunities”

The Medich brothers secretly sold their substantial landholding adjacent to the second airport site at Badgery’s Creek.

AND  in December 2016 Boyuan purchased a development site near the airport;  the identity of the proposal was treated as “commercial in confidence” by the Greater Sydney Commission as recently as February 2018!

Western Sydney is best for city’s future growth, says LJ Hooker chief

 

Inner-city dwellers may look down on western Sydney, but life in the outer suburbs is superior to many other global cities.

And the solution to Sydney’s affordable housing crisis lies in building more residential dwellings in these areas, according to Janusz Hooker, the chairman of LJ Hooker.

Janusz Hooker, pictured at Mosman Rowing Club, said the population of Sydney and Melbourne would continue to grow because both cities were “such attractive places for people to live”.
Janusz Hooker, pictured at Mosman Rowing Club, said the population of Sydney and Melbourne would continue to grow because both cities were “such attractive places for people to live”.Photo: Janie Barrett

“It might not be for the Sydneysider who’s been here for a few generations wanting to live close to the CBD, but for anyone else – and the people driving the population growth – they would still see that as 10 times better than where they’ve come from,” he said.

Mr Hooker said Sydney and Melbourne were unusual in being fast-growing cities that were also rated as highly liveable.

“If you’ve got that sort of population growth, you inevitably need more housing,” he said. “There is a tension between the existing residents and new residents who are looking for places to live.”

Residents across Sydney are increasing complaining about residential development altering the face of their suburbs and straining local infrastructure – forcing the NSW government to apply the brakes to development in areas such as Ryde.

Anoulack Chanthivong, the Labor member for Macquarie Fields, has said development in his electorate in south-western Sydney was “out of control”.

But NSW Planning Minister Anthony Roberts told a panel discussion on Friday that he was “done with the term overdevelopment” and annoyed at “councils whingeing along the way”.

Mr Hooker said more housing should be built in less developed areas of Sydney to address the affordability crisis.

“If you look at Badgerys Creek and the south-west corridor, there are huge tracts of land still there,” he said. “On an international basis [and] as long as you have the right infrastructure out there, the quality of life is still very high compared to any other metropolis in the world.”

Mr Hooker spent two decades working in cities such as New York, Hong Kong and Shanghai before returning to Australia to buy back the LJ Hooker real estate business began by his grandfather, Sir Leslie Joseph Hooker, in 1928.

He said Sydney and Melbourne were sprawling, low-density cities compared to overseas metropolises.

“Density doesn’t have to be 30-, 40-storey buildings,” he said. “Anyone who’s been to those major metropolises around the world that have high density would see quality of life doesn’t necessarily have to be less.”

He said the population of Sydney and Melbourne would continue to grow because both cities were “such attractive places for people to live”.

He said Australia’s high immigration was a key reason for the country’s long period of economic growth.

“Population growth is clearly linked to economic prosperity for all Australians,” he said. “Therefore we need to continue that going forward and in order to continue that we need to have more supply of housing.”

 

Andrew Taylor is a Senior Reporter for The Sydney Morning Herald.

SOURCE:  https://www.smh.com.au/national/nsw/western-sydney-is-best-for-city-s-future-growth-says-lj-hooker-chief-20180915-p503yp.html

CAAN FACEBOOK:

https://www.facebook.com/Community-Action-Alliance-for-NSW-744190798994541/?ref=aymt_homepage_panel

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

ARE WE ALL TO BLAME FOR LOOMING HOUSING MARKET CRASH? SERIOUSLY …

Reporter Tom Steinfort's house-buying quest revealed that we're all part of the problem facing the housing market.

FROM what appears to be a thorough report from Data Scientist Martin North:

“It’s not just the battlers in the urban centres… I’m also seeing it now in affluent households, places like for example Bondi. They’re in difficulty and that is something we’ve not seen before.”

Dr North also warns that the housing crisis in Sydney and Melbourne could soon see the same impact as the ‘Ireland Property Bubble,’ putting greater pressure on superannuation, retirement and government pensions.

He raised his concern that the predicament was being made worse with First Home Buyers being told “prices are down 10% … a good time to buy”, but with people buying in a falling market, that is really an uncomfortable thing to do;  he advised FHBs to hold off to get a better deal next year.

Further he said we need a government with the ability to respond and react;  that we don’t have a government that knows what to do about this, and therefore preferring to talk about “other things”!

Dr North referred to an Elastoplast fix around it, but this is structural;  we need a structural solution, he said.

Sydney and Melbourne’s housing market estimated to be 40% over-valued.

CAAN WILL GO FURTHER on a structural solution …

THERE was no mention of the role the Australian Government has played in the property market … with policies written to benefit the developer lobby and construction consortia … with home prices escalating in NSW from 2012

despite a housing supply boom.

We note there was no mention of the impact of “overseas buyers” from either 60 Minutes or Dr North.  It appears the fact of its existence has been quarantined despite:

-developers can sell 100% of “new homes” overseas (FIRB ruling)

-Visa manipulation; gain residency visa following home purchase

-no anti-money laundering legislation for the real estate sector

-onshore Proxy agent

.thus foreign buyers avoid Australian banking system, higher stamp duty, fees and charges

Have the 60 Minutes team and Real Estate commentators been scared off?  By the Scomo Government or the Big End of Town?

Perhaps because any comment in this area is easily seen as “non politically correct”, and prejudiced …

Has this programme too copied the success of others in suppressing the truth?

We’re all to blame for looming housing market crash: 60 Minutes

VIDEO URL:  https://www.facebook.com/60Minutes9/videos/290729311522515/?t=17

Bricks and slaughter: Part one
  • Bricks and slaughter: Part onee

At the start of this year I was looking to buy a house in Sydney, despite most likely having to sell a kidney and ownership rights of my first born to do so.

We’ve all been told for so long you need to be on that you need to get on that property ladder sooner or later, and as house prices continued to soar to unprecedented levels, I figured I had better opt for sooner.

Reporter Tom Steinfort’s house-buying quest revealed that we’re all part of the problem facing the housing market. (60 Minutes)

But after a couple of months after I began my search, I got an email from a real estate agent telling me that the owner of a property I’d taken an interest in was willing to accept offers of $250,000 below the asking price.

“Sorry, do you mean $25,000?” I replied, assuming that was some sort of typo. Nope, it was spot on – they were willing to cop a quarter of a million-dollar loss.

That to me said they were panicking, and in turn, it made me panic that this was definitely not a good time to be getting in to the market.

And so I decided I was going to sit it out for a year or two and just see how far prices will fall.

Play Video
Bricks and slaughter: Part two

After hearing the whispers of a housing market crash, reporter Tom Steinfort is joined by various experts to answer the question on every home owner’s mind – has our property boom finally ended?(60 Minutes)

Turns out I’m far from alone – clearance rates are now down significantly from the madness of a year or two ago, and the dip in property prices can so quickly become a crash when people like me lose confidence in the market.

The million/trillion dollar question now is how far will prices fall – several of the experts we interviewed for this story estimate it could be as much as 40 percent in Melbourne and Sydney, while even the most optimistic property analysts concede there will be a drop of at least 10-15 percent.

But as the rise and fall of our housing market continues to become more volatile, is it time for us to wake up from the ‘Great Aussie Dream’ and acknowledge a looming economic nightmare? (60 Minutes)

The problem with these situations is that they can very quickly become self-fulfilling prophecies – that if everyone gets scared, no one ends up buying, and prices fall and fall until eventually people decide prices are so low that they’d be mad not to cash in.

There are numerous factors to blame here – banks tightening up lending restrictions, the end of many interest-only loans, an over-supply of apartments, and the simple fact that everyone probably got a bit carried away with our property boom in the last decade and created an over-inflated marketplace.

So we’re all the cause of the crash, but we’ll all eventually be the solution as well – once people decide there are bargains to be had, the market will roar back to life.

Some banks are doing what many prayed would not happen – raising mortgage interest rates. (60 Minutes)

For now though, significant doubts remain.

Confidence is an extremely rare and elusive commodity – legendary AFL coach Mick Malthouse often lamented when his team was in a form slump that “you can’t buy confidence” – but this is the one time that statement is actually wrong, because as soon as buyers return, so too will confidence in the market.

But when that will be is anyone’s guess, and I for one am planning on sitting this one out for some time yet.

Watch the full story on the 60 Minutes website.

SOURCE:  https://www.9news.com.au/2018/09/16/03/13/60-minutes-housing-market-prices-mortgage-economy-property

CAAN FACEBOOK:

https://www.facebook.com/Community-Action-Alliance-for-NSW-744190798994541/?ref=aymt_homepage_panel

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

 

Planning Minister Anthony Roberts’ response to critics: ‘Overdevelopment does not exist’

Robbo says  “Admittedly previous governments allowed poor development but I’m confident we’re rectifying that with the world’s best design and planning principles” he said,

Adding “the missing middle — backed by supporting infrastructure — was key to supporting a growing city.”

Oddly, one Sydney Council reports:

-the Code is at odds with recent directives from NSW Govt to protect local character

.to facilitate community engagement at the strategic stage of planning

-the Code will permit more intensive development in low density neighbourhoods

.than that which is permitted by the primary environmental planning instrument

-and cites “further erosion of landscape character” and “greater building bulk which will exacerbate impacts on neighbours”

Robbo also says “he was ‘done with the term overdevelopment’ and annoyed at ‘councils whingeing along the way’ as Sydney undergoes a much-needed renovation.”

WHAT does ROBBO’s response tell us … following that of Sir Frank?

(View:  )

We must ALL be getting to them!

MESSAGE FOR ROBBO & THE KNIGHTS AT THE BIG ROUND TABLE …

SYDNEY is ‘over’ your contrived renovation with its OVERSEAS INFLUX and a housing crisis like no other impacting a whole cohort – our families – locked out as you destroy our Sydney 

 

Planning Minister Anthony Roberts’ response to critics: ‘Overdevelopment does not exist’

Analysis: House prices are falling, but is affordability improving?

Capital city median prices are down from 1.8 per cent their peak.

Analysis: House prices are falling, but is affordability improving?

FROM FARMER TO LAND BARON, thanks to planning racket

THE GAME OF MATES is all about developers buying access to politicians to have land sites especially farmlands upzoned for residential. The only reason why the Troutbeck family’s land is worth so much is because the government has rezoned it residential.

THE sell-off (FIRB Reg.) of Australian property to wealthy foreign buyers, and with foreign developers competing for Australian land sites this has disadvantaged discriminating against a whole Cohort of Australian first home buyers.  Another consequence being the exhaustion of land sites!

Country Garden's future Windermere estate will provide 7500 homes.

From farmer to land baron, thanks to planning racket

By Leith van Onselen

Back in November, The AFRreported that first-home buyers (FHBs) were desperately fighting for land in Melbourne as the city’s population soars.

Then in December, The AFR reported that the median price for a housing lot in Melbourne had hit $318,500 – up 31.5% over past 12 months – driven by the influx of new arrivals into Melbourne.

And in June, The AFRreported that Chinese developers have taken a “virtual stranglehold” of Melbourne’s land supply pipeline, “acquiring more than two-thirds of all big greenfield land parcels offered for sale in the past 18 months”, thereby driving-up prices.

Now we have a textbook example

The 25 hectare farm is about to be swallowed by Melbourne. Picture: Alex Coppel

of why capital city lot values have become so expensive, with three Victorian brothers to pocket $50 million by selling the family farm to a developer in the Melbourne suburb of Mickleham:

Back in 1935, the Troutbecks forked out 500 pounds for a 25 hectare patch of land in the Melbourne suburb of Mickleham, a 45 minute drive from the CBD…

But now their modest weatherboard home and sprawling dairy farm is up for sale and with a number of developers already eyeing off the property, the Troutbeck brothers are expecting a $50 million payday.

Speaking to 7 News, Keith Troutbeck said his dad knew long ago the property was a good investment.

“Dad said, ‘One day, one day you’ll come into a fortune but don’t sell it before you do,” Keith said. “It’s taken a long time to get there hasn’t it?”…

The three elderly farmers, aged between 70 and 82, have worked on the dairy farm their whole lives but are due to close up shop and become multi-millionaires instead…

The sale, which will close next month, is expected to fetch the brother at least $15 million each, a figure Edward initially thought was a “joke”.

“Forty five years I’ve been playing Tatts Lotto and never hit the jackpot,” he said…

When sold, developers are expected to divide the land up into hundreds of residential plots for first homebuyers.

The only reason why the Troutbeck family’s land is worth so much is because the government has rezoned it residential. Therefore, it makes policy sense for the government (taxpayer) to capture some of this value uplift.

Dr Cameron Murray explains how this could be done in his book, Game of Mates.

Essentially, the government would capture 75% of the value gain, payable upon approval of the development application (i.e. approval is conditional upon payment).

So in this case, if the property was worth, say, $5 million as agriculture and $50 million as a housing estate, to get approval for the housing estate the developer would have to pay 0.75 x ($50m – $5m) = $33.75 million. They would account for this and subtract it from their payment for the site, so in the case the Troutbeck family would only get $50m – $33.75m = $16.25 million – still a handsome payday for effectively doing nothing. However, $33.75 million dollars that is pure windfall would now flow to the public.

As an ancillary reform, Melbourne’s urban growth boundary (UGB) should also be removed. This would raise competition and contestability in the land market, and prevent landholders like the Troutbeck family from charging monopoly-style rents. A developer would be free to obtain a cheaper site further afield (i.e. across the old UGB), thus ensuring cheaper land values (and lower cost fringe homes).

Whatever your perspective, the existing setup is clearly not working effectively, resulting in rapid land cost escalation that is ultimately borne by home buyers and the younger generation, all for the benefit of a few lucky landholders effectively handed monopoly-style rents courtesy of the state government.

unconventionaleconomist@hotmail.com

SOURCE:  https://www.macrobusiness.com.au/2018/09/farmer-land-baron-thanks-planning-racket/

Warren Mundine: Cutting immigration isn’t “racist”

Indigenous community leader Warren Mundine says having a debate about sustainable immigration levels isn’t racist, it’s necessary.

In a NewsCorp article, Mr Mundine wrote the major political parties are continuing to push that our current migration intake is “desirable and sustainable” while ordinary Aussies disagree.

IT appears obvious to us at CAAN that the Property Sector exerts far too much influence over our major parties.  Housing is intertwined with migration and visa manipulation to the extent that this sector can sell 100% of “new homes” to foreign buyers, and with the alleged fall off from China Real Estate Agents have opened offices across Asia in India, Indonesia, Vietnam, Malaysia, Thailand … the result is that Australian First Home Buyers are being discriminated against … locked out of the market by the wealthy competition and where we live is being destroyed by the influx!

Warren Mundine: Cutting immigration isn’t “racist”

By Leith van Onselen

Indigenous community leader, Warren Mundine, has thrown a barb at Australia’s major political parties and the Fake Left, calling for a sustainable and non-discriminatory immigration program. Here’s an extract from Mundine’s opinion piece in The Daily Telegraph:

To date the discussion among Australia’s political class has been muted with the major parties holding the line that current ­record immigration levels are both desirable and sustainable.

Regular Australians don’t see it the same way.

It’s not bigoted to debate whether Australia’s immigration levels should be ­reduced.

It’s a debate about how many immigrants Australia should take each year and about what population our cities and towns can realistically sustain…

By land mass, Australia is one of the largest countries in the world. But we also have one of the most concentrated populations.

Nearly half of all Australians live in three cities — Sydney, Melbourne and Brisbane. Include Perth and you have 55 per cent of the population…

It’s a key reason housing is so expensive and rental affordability is so low in major cities… Add to this that 90 per cent of new arrivals to Australia settle in Sydney or Melbourne. It’s no wonder both cities are bursting at the seams…

And here’s more from Mundine’s interview on Radio 2B:

“We’ve got to get away from calling people racist,” he tells Chris Smith.

“We’ve always had a non-discriminatory immigration policy since the 1960s.

“The issue is about numbers and the type of skills and professions they can bring to Australia to help build Australia.”

Too right. The fact of the matter is that Australia’s immigration intake is running at triple the historical average, after being ramped-up from the early-2000s:

This massive increase in Australia’s immigration (population) was never cleared by the Australian people and was done without proper planning and without consideration of longer-term consequences.

The end result has been Australia’s major cities – Sydney and Melbourne – taking the lion’s share of migrants and bursting at the seams from unprecedented population growth:

Enter new Prime Minister, Scott Morrison, who continues to sell the Coalition’s ‘migrants to the regions’ smokescreen:

Mr Morrison said there “could be a case” for tougher rules that slowed the intake of some temporary migrants into congested cities, but he warned against simplistic changes that would hurt areas that needed more workers.

In an exclusive interview with Fairfax Media, the Prime Minister likened his new approach to dealing with the huge variations in weather conditions across Australia.

“I’m happy to have a fair dinkum conversation about population, but we’re not going to do it in a vanilla sort of way, assuming that there is average population growth,” he said.

“There isn’t, any more than there is average rainfall. It was raining in Albury today, but it wasn’t raining in Quilpie”…

The government is working on a region-by-region approach to migration that puts a premium on migrants who go to parts of the country that need growth, including some capital cities as well as regional areas…

Mr Tudge has already aired the idea of encouraging migrants to settle in regional areas, but the government is yet to show how this can be done in a world where all permanent migrants are free to move where they wish.

However, big business front – the Migration Council of Australia (chaired by the Australian Industry Group’s CEO Innes Willox) – is already resisting sending migrants to the regions:

Carla Wilshire, from the Migration Council of Australia, says there are enormous benefits in regional resettlement for individuals and communities.

“However, it’s critical we have the necessary social infrastructure invested into these regional locations,” Ms Wilshire told AAP on Sunday.

“We also need to remember a lot of temporary workers that are settling in metropolitan areas are doing so because they have specific skills or qualifications that are vital to building the economy of the future.”

Ms Wilshire urged the prime minister to maintain a long-term view and consider the population size Australia needs to compete on a global scale.

Let’s be honest: Australia has tried decentralisation for more than a century without any success (other than the construction of Canberra).

Instead, the immigration program has become more centralised that ever, with 94% of migrants last financial year settling in the cities, and 86% settling in just Sydney and Melbourne alone.

Short of erecting ‘migrant proof fences’ and electronic angle bracelets, how can the federal government realistically force migrants to stay in the regions?

And how will these regions cope with significantly larger populations? The federal government is unlikely to fund the infrastructure and services necessary, thus will they end up similarly crush-loaded as Sydney and Melbourne, as well as suffering from a chronic shortage of water (since desalination is often not an option).

We also know that state-based migration programs have been systemically rorted, with migrants temporarily settling in places like the ACT and Tasmania purely to get the required number of points for permanent residency before moving to Sydney and Melbourne. How can this type of rorting of state and regional schemes realistically be stopped? It can’t.

This ‘migrants to the regions’ gimmick is merely another diversion from the major issue: that Australia’s immigration program is far too large – at roughly triple the historical average – in addition to being too concentrated into Sydney and Melbourne.

This ‘Big Australia’ policy has also lost the community’s support, with the five most recent opinion polls all showing majority support for lowering immigration:

  • Australian Population Research Institute: 54% want lower immigration;
  • Newspoll: 56% want lower immigration;
  • Essential: 54% believe Australia’s population is growing too fast and 64% believe immigration is too high;
  • Lowy: 54% of people think the total number of migrants coming to Australia each year is too high; and
  • Newspoll: 74% of voters support the Turnbull government’s cut of more than 10% to the annual permanent migrant intake to 163,000 last financial year.

The Australian people want a genuine moderation of the migrant intake, not a poll-driven smokescreen. Cutting immigration is also Scott Morrison’s only hope of winning the upcoming election.

unconventionaleconomist@hotmail.com

SOURCE:  https://www.macrobusiness.com.au/2018/09/warren-mundine-cutting-immigration-isnt-racist/

CAAN FACEBOOK:

https://www.facebook.com/Community-Action-Alliance-for-NSW-744190798994541/?ref=aymt_homepage_panel

WEBSITE:

https://caanhousinginequalitywithaussieslockedout.wordpress.com/

 

DISCRIMINATION OF AUSTRALIANS BY SCOMO GOVT POLICIES WRITTEN TO BENEFIT FOREIGN BUYERS

IT would seem the majority of “foreign buyers” circumvent our Banking and Finance Sector because there is no legislation to prevent money laundering in our real estate.

Prime Minister Scott Morrison prior to entering politics wrote the policy for the Developer Lobby, the Property Council of Australia!

With this new government it would appear this lobby has seized control of Australia!

The $24.5B reported through Juwai.com looks like SPIN to conceal the extent when it is alleged that “capital controls, restrictions on bank financing, new foreign buyer taxes” have moderated growth …  B.S.

MEANWHILE Australians see many neighbourhoods now largely inhabited by foreign buyers.

WHY do media outlets persist reporting that foreign investment is largely limited by Australia’s Foreign Investment Review Board (FIRB) to new builds when overseas buyers launder cash through an onshore Proxy to buy an established home to demolish it for a “new home” to gain a Residency Visa? (View CAAN Website to find out more)

Dr Dallas, with a “whole Cohort of Australians” locked out of home ownership, why is that not considered to be a form of discrimination?

To become tenants to “new residents”?

P.S. AUSTRALIA IS A WIDE BROWN DRY LAND!

 

Australian real estate ranks second only to the US for Chinese property investors

Australian real estate remains appealing to Chinese investors, according to property site Juwai. Photo: Getty

Last year Chinese investors poured a massive $US17.4 billion ($24.5 billion) into Australian real estate, according to a new report.

The enormous sum puts Australia second only to the US as a destination for Chinese property investors, according to Juwai.com, one of the Asian superpower’s most prominent international real estate sites.

Australian property accounts for close to 15 per cent of the $US119.7 billion spent by Chinese investors on overseas real estate last year.

The vast majority was spent on housing, with $US14.1 billion funnelled into residential real estate in Australia, and $US3.3 billion in commercial real estate, Juwai reported.

Despite the extraordinary sum, Chinese demand for Australian real estate was down by more than 25 per cent compared to 2016 levels, dropping $US6.4 billion.

Some experts attribute the decrease to stricter controls on outbound investments by the Chinese government.

“Capital controls, restrictions on bank financing to offshore buyers, and new foreign buyer taxes and restrictions all served to reduce Chinese investment last year,” Juwai CEO Carrie Law said.

“This year we expect moderate growth, which is in line with Beijing’s goal of managed, rational overseas investment.”

https://e.infogram.com/2b759ae6-683d-4723-86bb-f2174e9e2844?src=embed#async_embed

 

INVESTMENT BY COUNTRY (US$) 

Countries / Regions Residential Commercial Total
USA $30.4B $9.3B $39.7B
Australia $14.1B $3.3B $17.4B
Malaysia $2.0B $0.3B $2.3B
Canada $0.9B $1.2B $2.1B
New Zealand 1.0B $1.0B
United Arab Emirates $0.7B $0.7B
Portugal $0.4B $0.4B
Greece $0.3B $0.3B
Total $65.9B $53.8B $119.7B
Source: Juwai

 

Despite the dip, Australia continues to be favoured by Chinese investors, ranking second only to the US in terms of the number and value of buyer inquiries for residential property, according to Juwai.

In 2017, the US experienced approximately double the volume of Chinese investment compared to Australia, with $US30.4 billion worth of residential property and $US9.3 billion worth of commercial property.

Chinese investors still see Australian property as “long-term value” despite high stamp duties, Ms Law said.

“The majority of our residential buyers are purchasing for their own use, because they have children studying or working here, or because they plan to visit regularly or to retire here,” she said.

“Australia offers a stable environment, safety, quality educational institutions, and high quality of life.”

The sometimes strained relationship between lawmakers in Beijing and Canberra hasn’t dampened Chinese enthusiasm for Australian residential real estate, Ms Law said.

“Political tensions between the two countries have a greater impact in creating uncertainty with corporate commercial real estate investors than they do with individual investors buying residential property for their own use.”

The impact of foreign investment on property prices

Foreign investment in Australian residential real estate has become a vexed issue as property prices in Sydney and Melbourne skyrocketed over the past decade.

Foreign investment is largely limited by Australia’s Foreign Investment Review Board (FIRB) to new builds and developments that add to the existing housing stock.

Modelling done by Treasury in December 2016 suggested that foreign investment had only a slight effect on residential property prices.

Treasury found that foreign investment increased home prices by between $80 and $122 in Sydney and Melbourne per quarter for the period analysed between 2010 and 2015.

FIRB described the price impact as “modest when compared
to the average quarterly increase of $12,800 in Australia’s two largest cities during the period”.

“Foreign investment in residential real estate was concentrated in Melbourne and Sydney over the period of the study. While Melbourne received more foreign investment approvals than Sydney, price growth in Sydney was much stronger than in Melbourne,” FIRB noted.

However, housing scholars say the true impact of foreign investment on Australia’s neighbourhoods is difficult to gauge without more in-depth data being made publicly available.

University of Sydney housing expert Dallas Rogers says more data and a long-term view is needed.

“All the debate about foreign capital is fixated on today, but we also need to look at where our cities are going in the future,” Dr Rogers said. 

“We can make the assessment about who [foreign investors] are today, but who are they in a decade? Do they come here, do a uni degree, settle down and build neighbourhoods? Or do they stay overseas, rent the property out, get the capital gain, and become absentee landlords?” 

Dr Rogers said that foreign investment in Australian real estate was “small overall” but something regulators should “keep an eye on”.

He also warned against politicisation of the issue, pointing to a “complex” history of discrimination against Chinese people looking to purchase property in Australia “all the way back to the gold rush”.