Why Australia’s Housing Crisis Is a Warning for the World

Very insightful

Renovate? Are you serious? More like a straight our demolish... lol

What is driving the housing market is an outbreak of mass stupidity.
If the baby boomers ever die, there are lots of empty properties that will come onto the market.

How about Zurich?

There is one simple solution: 1st property 0% tax, 2nd property 40% tax, 3rd property 60% tax, 4th property 80% tax ...

Why, because US corruption in Australia, that is why. We need to kick US ownership of property and business out of Australia. All countries that the US buys into has this issue.

What other countries allow foreigners to buy and own and trade real estate in their country? 100% guaranteed catastrophy for the locals.

You mean Greed Crisis?

Exact same situation in Ireland, very bad times

The reasons for why the prices are so high seem to be five. 1. There are many overseas corporate investors. 2. People work from home and half the commercial properties in Australia are empty and crashing in value. This makes housing the best investment as it is full, going up. 3. During Covid, city centre tall multi story buildings were worthless, being a liability. You could not travel to work by train or taxi or bus, or even get in a lift and go up in them. The big multi national pension funds funded many of these buildings. So after Covid they divested to housing, so as to not remain insolvent. Their new pension fund investments then went to housing and rural properties. 4. Australian house loans also went from 20 year loans to 30 year loans some time back, pushing up prices ty half. 5. Migration is such that majorly only wealthy migrants are able to land in Australia with family cash behind them. And they become immediate competitors to Aussies in the housing market.

1) migration caps: too much demand pushes prices. It's basic economics. 2) no, migration so far has not provided the so called "productivity" boost. Quite the contrary: Australia has been receiving RECORD high migration over the past decade and productivity has just gone DOWN the drain 3) all this resulting on lower wages on an overly saturated job market on where low pay is the norm due to abundance of labour capital.
Australia is a migration country, but that does not mean it requires a strategy and control

Buy low, sell high...

It's NOT supply! Globally inestors have been parking thei rmoney in real estate due to low rates

Immigration has to be stopped and brought down significantly; government funded-housing only results in increased taxation for all Australians and an increased cost of living as a direct result, the government can only give money taken from citizens - you can't keep printing money and think the cost of living for Australian taxpayers isn't going to keep rising.

homes are 50% taxed by State Government by “lifetime” GST and Stamp Duty. Gov tax is Housing inflation-pure and simple fact.

Its all a WEF Agenda remember you will own nothing but be happy this is one reason our government's and council's not releasing land

This is what happens when your politicians are soo corrupted that they allow a few to control a huge amount of wealth... A little greed is ok, but this amount of greed just leads to destruction of communities around the world...

That’s what happens when you bring in millions of immigrants a year! Canada and the rest of the western world has the same problem. Are we waking up yet?!

they need 900,000 new homes. Well build them you bunch of morons . seems to me they want there to be a lack of homes to buy so their homes be worth more money.

A scam. Poor people.

Me Very lucky 🤓

Too many people

Why can't there be a law that the first offer should be accepted? That will avoid a bubble like Canada's housing market. Politicians don't care about their people anymore.

Its the same problem here in Frankfurt, Germany. I do not see this getting better anytime soon.

2008 is reapeting

Answer is Simple :STOP mass immigration.

Australian investors get huge tax discount called negative gearing which has pushed house prices up to make it impossible to afford a house. The best way to take the fuel out of the marked is to remove negative gearing tax benefit.

Reduce immigration to a trickle. Real estate should only be available to Australian citizens.

Immigration gone nuts. Immigration should be reduced to a trickle and real estate should only be available to Australian citizens - not foreigners or non citizens. Successive governments of all political parties have betrayed Australians.

Population of the world will continue to swell, and they just aren’t enough resources or manpower or money to safely house. All of us. Humanity is becoming way too big globally for any real solution. I fear that it will continue to get worse and harder from here on out, especially for poor people which is most of the world.

Find a Work From Home job and move out of Sydney / Melbourne.

Well why don't people stop breeding?

Sad.

The housing market is a giant Ponzi scheme, new housing supply is deliberately constrained to benefit builder’s profit margins. Planning policy and politics don’t do anything to help

taxes & regulations to fk high in australia why homes expensive to build

it's just mass immigration from China I bet

Unemployment low rate is cause of all the overseas tourists on work visas 800 000 ppl, then permanent residents with money coming into the market and then students studying all the ppl are killing the housing markets ... Fake economy to benefit the politicians and real estates cha ching cha ching

This is expected of Political leaders "concern about China Threat" and ignore peoples basic needs. 280 Billion could have been spend on building more houses.

Migration is causing havoc to the actual citizens of the country.

Paying millions for mouldy houses. Mkay...

The answer is simple. It all began when sawmill’s raised the price of wood. Make houses out of something else, something better.

The Australian govt could fix this today by removing negative gearing for property investors. There would be a bloodbath in the net wealth of the well-heeled, of course.

Millennials are at age this is the largest population on earth

We are on the verge of an automated building revolution and the old construction companies, suppliers, insurers, bankers, etc… know it.

Australia is simply California but with Kangaroos...😮

We speak of warnings 😡 New Zealand should have been a wake up call. YEARS AGO!!!

Millions put into Olympic games, getting to space and the list goes on while hard working Aussies are thrown under the bus.

Blessings be upon all, we are witnessing the demise of the middle class. Stay strong ❤️🙏✌️

They are accurate in pointing out that the current situation is driven by supply and demand dynamics. The increasing influx of people migrating to Australia, coupled with the aging population entering the housing market, is intensifying the demand for housing. This surge in demand is causing property values to rise. The cost of purchasing land and constructing houses is also escalating. Moreover, with a substantial proportion of properties in Australia designated for rentals or Airbnb, rental prices are on the rise. The market is expected to stabilize only when the value of the dollar increases and the demand for housing is met.

It is evident that the diminishing purchasing power of our currency has not gone unnoticed. Acknowledging that we are undergoing a financial crisis is crucial for initiating necessary changes. This may involve reconsidering the paychecks of politicians and implementing a temporary pause on migration until an adequate housing supply is established.

As someone on disability, there is a genuine concern about the possibility of homelessness within the next four months. Urgent action is required, and the government's current strategies appear ineffective. It is imperative that the government reassesses its approach to address the pressing housing crisis and ensures the well-being of citizens. Otherwise this will snowball into something much worse.

Australian Government - draw a line in the sand now!

1. No more negative gearing for established housing “investors” … ONLY allow it for NEW to be constructed residential buildings!

2. No more foreign buyers allowed for established residential properties …. ONLY allow them to buy NEW to be constructed residential properties!

The above will encourage the construction of additional new housing and also give genuine Australian owner occupiers and 1st home buyers a chance at buying an established home without competition from cashed up investors and foreign buyers!

As a retired Oz finance consultant, I’ve had past clients with over 40 housing properties “negatively geared” and seeking to buy more established residential properties - enough is enough… make them create NEW housing through negative gearing for NEW TO BE CONSTRUCTED property investments ONLY !!

What witches?

Notice how the issue is due to lack of stock in the city? No mention of the regions. 72% of the population live in major cities. The problem is a lack of political clout to push decentralisation of the population, investment in regions and the embracing of remote work. They know it would be political suicide.