How state and federal governments are helping to fuel the housing boom | 7.30
Vložit
- čas přidán 11. 02. 2020
- Record low interest rates have encouraged Australians to borrow more than ever. State and federal governments are helping to encourage it, with a raft of inducements encouraging would-be buyers to take the plunge.
The average new mortgage is now almost half a million dollars, the highest it's ever been, meaning it could be a bloodbath if property prices fall or interest rates go up.
Watch Part 1 of Betting on the House here: • A booming property mar...
Watch Part 2 of Betting on the House here: • Why more of us may be ...
For more from ABC News, click here: ab.co/2kd3ALi
You can watch more ABC News content on iview: ab.co/39iq2Xt
Subscribe to ABC News In-depth: / abcnewsindepth
For breaking and trending news, subscribe to ABC News on CZcams: ab.co/1svxLVE
You can also like us on Facebook: / abcnews.au
Or follow us on Instagram: / abcnews_au
Or even on Twitter: / abcnews
When people begin to understand that negative yeilding assets should fall in price, this whole house of cards is over.
What are we doing? We are happy with someone owning 10 properties while others can't even afford one? I wish the RBA never lowered rates like they did - you can't even save effectively now, while the bubble it has caused in prices is ridiculous.
Remember, being houses/shares rich is not true wealth. True wealth is in being physically and mentally healthy, which a lot of people who chase houses/shares riches aren't.
Average rents 250 & up to 500 pw for an attic in a major city, no mention of people paying 40% of their income so not having anything left to save, they don't matter I suppose. Home ownership used to be 50/50 between rich and poor back when 'a fair go' was all the rage in the 70's & 80'. Landlords & serfs now, Single renters ? 'givin it all away'
F STOP earn more money... don’t be a loser
Can you please do an updated 3 part doco on the same subject of property with the Coronavirus Crash
Not a crash now...
Housing has not gone up in value, our currency has just lost value.
and wages have stayed the same.
Don't buy on emotion. Have clear and defined plan
Tell them people who keep buying property because they got a $100 a week payrise.
See what those figures look like once the bubble bursts
Will it though?? Or will the Government just keep allowing more people immigrate...
As a renter with a really good rental history & dreaming about one day owning my own house, this is so depressing for me especially since I have the ability to pay a mortgage but due to my circumstances, I can't save for a deposit. And if I started putting money away now, I wouldn't have enough for a deposit for another 5 to 8 years and by then, the house prices would have gone through the roof. We probably would have to move right out into the regional areas far away from our work location which then would have additional commute cost. Other factors come into play too. It totally sucks when you can't own your own home :(
Go country.
Also, it doesn't matter if you have 1 miion dollars or 10 thousand, if you've worked your whole life and paid taxes, you're entitled to the pension.
If you pay taxes your whole life you deserve the pension...... this is typical poor people moaning about nothing... there poor because they have a poor attitudes...
says the poor person
windwaker0rules ha
*they're. Are you poor because of shit grammar and spelling? I bet you are.
GOT THAT RIGHT.
If people have worked there arses of all lives and paid the taxes they were liable for, then they deserve to receive the pension know matter what there assets are.
I agree Geoff. It's not a pensioners fault that poor government policy has led to a housing bubble of epic proportions. However, Australians had the chance to reverse the government policy of neg gearing and lowering capital gains discounts and they elected not to.
Exactly
Ahmed A negative gearing is good...an MP that runs on abolishing negative gearing would be political suicide... you don’t know anything.... idiot
@@turbostyler depends, if you voted LNP, are LNP, or helped spread the BS information then its totally your fault. especially if you kept voting in a direction that will WILL eventually lead to a huge market crash.
In the future there should be an asset test.
Something like 2-3 million in assets - the government funds should start tiering off.
understandably today's pensioners were promised full pensions and that should continue to happen.
However in the future I'd prefer not to subsidise people living in 3 million dollar houses.
The Australian obsession with property is unhealthy. Both government and the RBA aid and abet this addiction.
So she not first home buyer? How she get it
I like whenever a good video comes out no one watches it 🤣
You may have bought decades ago in a suburb which has gone up value. The aim is to penalize those who have contributed years to secure a home to remove their right to a pension. Over the years the incentives have been watered down with higher expenses makes it an unattractive investment.
So we are in a housing boom now?
I want some of what you're smoking..
well boom can mean explosion as in its falling apart.
7:25
If you can afford a 2 million dollars home..
SHAME ON YOU FOR SEEKING OUT ANY ASSISTANCE, DISCOUNTS AND VOUCHER WAIVER PROGRAMS!! SHAME ON YOU!!!
Not accepting them, if you qualify for them, would be like throwing money away. It's only people that could never afford them in the first place that try to shame people into doing that.
Loki
Some people would have lived in the same house for 40 years and overtime inflation has increased value to 2 million. So they actually afford didn't afford 2 million house.
4:46 🤫
he knows about the Murdoch
well...I live in a mazda van, its not ideal but its necessary.
So the Pages got greedy. Well they gambled and they lost. Many people don't even have spare money to attempt to invest
Were you listening to the story? They chose to sell up and invest in other investments and they say they've done better than property would have done, financially. What they were complaining about was the lifestyle and stigma of being a renter.
Now hang on a minute! Australia has tax exemptions for first time home buyers, but they're not actually limited to first home purchases? That sounds more like legislation actually meant for rich real estate investors falsely sold to the people as something more palatable.
I bought my first home last year and my first time home buyer's real estate tax exemption went with it as it's obviously one time only here in Finland. Next property I buy I'll have to pay the same taxes as everyone else who isn't buying their first property.
"Australia is so good ain't best country on Earth" - some guy who works minimum wage at a truck stop
FTHB tax exemption is only valid for your OWNER-OCCUPIER purchase. The lady purchased 2 investment properties.
We need to encourage older people to move out of the suburbs and cbds which are highly desirable to young families and working professionals and instead move into satellite suburbs built around services such as hospitals etc.
Makes no sense for an elderly couple to be living in a 5 bedroom home in the suburbs.
well yeah, but i think the whole "i don't rent a property to keep its value up by avoiding damages from renters should be axed
If they paid for it through life, can maintain it happily, and enjoy the memories and love the place, THEY CAN BLOODY WELL DO WHATEVER THEY WANT! No matter how many bedrooms they PAID FOR. MAKES SENSE TO THEM, AND ME.
Pension is earned, nothing to do with where you live.
Poor Megan. Seriously. Supply and demand. Why is everyone so upset and entitled with this “how dare you” attitude that the beach side mansion is out of their league. Guess what people. Everyone wants the beach side mansion, hence, prices rise. Supply vs demand.
because it as nothing to do with supply and demand since supply on property is really high? so your statement is just false? do not talk?
windwaker0rules
Property price is EVERYTHING to do with supply vs demand. Supply is low compared with demand, so prices rise.
People complain because they can’t afford the house in the suburb they want. Doesn’t mean we have a “housing crisis”. It means we have an entitlement crisis.
@@amielmatt housing affordability - youtube by friendlyjordies
If you cant understand that you watch sky news and are too far gone.
@@amielmatt have your looked recently?
2/3 bedroom shit holes far from anything are 300-400k, that's expensive - not entitlement.
Would like to see an update with housing prices now up the roof. Bet the couple who sold their house and put their profit into stocks held onto their home..
The new home buyers to qualify they must earned $125,000 the year before...how lid that help from F Gov.for workers getting $50,000 or $35,000..? It's discrimination..don't be alluded if you own 3 propertys, city council's will charge higher rates
Thanks to govt for making house unaffordable to first home buyer
Paying a mortgage is more expensive than renting in the vast majority of cases. So if at age 65 homeowners have an average net worth of $960k (own outright) or $935k (with mortgage), and renters have an average net worth of just $41k - you have to ask the question "what did renters do with all that money?"
Have a life.
@@eljimberinoq5518 Must have been one heck of a life. Hope they enjoyed it, 'cause $41K plus the aged pension isn't something I'd be looking forward to age 65.
Expensive Fun. Their CHOICE!
You don't have "All that money" if you are living to rent with no extra to save.
If your rent you're just paying the landlord at the end of that time the landlord will have a paid-for house or apartment the renter will only have receipts.
Her negative gearing did not get her equity. Anyone who starts off and banks on the incentive or trick 'negative gearing' is fooling themselves, not anyone else
Denying the pension to those having assets over a certain value: how will that work? That may be fine for the mega wealthy but for those whose "wealth" is the family home they bought 30-40 years ago, it won't work at all. They will not be able to afford the rates and insurance that go with a high value property. They won't be able to sell to downsize as few will be able to afford the house they want to sell. These are not greedy people. They just bought at a time when purchasing was more affordable and lifestyles were different. Property values going they way they have was not their doing.
It wont work today but there needs to be a plan for the future (when the next generation that wasn't promised the pension are older)
You can't have people sitting in 2m dollar properties recieving government/tax payer funds.
If they can't afford to live there without financial assistance... Then they can't live there (same as everyone else).
The simple solution would be to downsize to a 1.7m dollar property and continue recieving government funds (in that example).
Whats wrong with incentives to help buy a good home and own it. It's great for first home buyers. ABC, is there a tax that you don't like?
Incentives, such as grants, just drive up the price even more. Personally I think there is enough government intevention in this space, especially monetary policy.
Negation, and deferral, of stamp duty is probably a good idea though.
Sonja Kozman housing red + green tape and increased population push up prices.
@@BECKS90001 totally agree, immigration has been a big driver.
Kendall
That's not the problem.
Banks government speculators are issue
the wording is "incentive for a house or land" not a home.
And how do you think landlords get treated at Vcat !!! let me tell you ITS IN FAVOUR OF THE RENTER
Wanna see how bad it can get?... Visit New Zealand.
You would have to be crazy or stupid to sign yourself up for a debt of over $500,000.
depends if that debt alternative is homelessness.
Nothing will change unless one can edge out a margin without the grey vote that is already so intergenerationally wealthy
*It won't end well*
And she will end up with *nothing* and nothing but debt
Greed has to be paid for, sooner or later. People like her aim to succeed by having others pay for her “assets”. The American Way, assured.
So the Pages said "Let's sell the house and buy some stocks and do a website!" Clever. And if they're doing well why are they renting?
banks wont give large loans out with such low interest rates unless you are a really rich.
Drugs are bad mmmkay
Can she afford 3 property's...????
Yes. She has no children and is a financially smart woman.
What the hell? If you're sitting on a 2 million dollar house. Of course you deserve a pension. It's a house. A place to live. The currency devaluing and you house being worth more is out of your control. Even if you downsized to take advantage of some gains, the market would be mean you'd still buy something like for like. And you'd still need somewhere to live. Dumb video.
Dump move
Snouts in the trough.
Not "government." It is the right wing government.
You can't just say "government." You have to describe who is in control of government. Not doing that is irresponsible and propaganda.
The more clowns that get into the system more clowns pay state stamp duty rates etc etc they are all apart of the system they have no incentive to lower prices LOL cuz their revenues and charges are based off a higher figure lol
Capitalists : Sells the land to the highest bidder.
Then complains it was a rich Communist.
Lol
Grrrg Grrrg but they could be your fellow white foreigner from Canada, Usa, Uk, Norway?
The more debt the bigger profits for banks. So people who think getting in debt is getting rich should reconsider. All that it takes is a downturn and their investments become bank properties. Australia hasn't had a recession yet because of the Labour party prompting up the economy in 2008 but with Chinas economy slowing down and the Trump and Coronavirus factors might just be the triggers for a recession in Australia.
something like that but labor not labour
How can you blame people who love property when it returns millions.
when they voted LNP you can, and especially when they keep saying: work harder
Well someone has to pay that debt back at some point though, don't they??....if house prices continue to increase over time, the debt to pay back will also increase right?? Is that sustainable??
They vote for a corrupt political party that only serves them in exchange for the humanity of everyone else and the environment. Sure you can own a house and vote liberal, but no point having a bedroom, because you shouldn't be able to sleep at night when one in 10 people on the street are veterans. What are liberals doing about that? This country is a disgrace and the liberal government have a shocking legacy.
My dad didn't get his full pension because he had just over $100,000 in a Westpac investment account. Plus he owned his little old run down cottage - he had stopped maintaining it when his Alzheimers was developing and he was a hoarder as well.
Juanita
Play the game. Should have pulled cash out and hoarded or give it to trusted family
@@coasteyscoasteys4150 Trusted family? With one daughter who defrauded him for decades and stole cash he had hidden in his drawers. His only trusted family is me and I'm his power of attorney since he got Alzheimers. But I lived far away for 40 years and didn't know what my half sister was doing. And his house is in a family trust. He has other things in place but hes an honest man and when you apply for a pension they fine comb your finances and assets.
That couple that moved 5 time,...classic example of greed. Killed their dream.
The oval comfort morally handle because government definitely fool despite a super tendency. maddening, delicious accordion
To the couple who sold their house and then invested their money in the share market. If u held on to your property you would have made more money than what you have earned in the share market... especially if you are in Sydney or Melbourne. Bad choice...
The fact that they are still renting is a sign they are priced out of the market
@Robert Halili right on the money. Too hard to get in now. They should have gone to a financial planner or got advice
They made more in the stock market then the house price rise why are they priced out? Where they taxed heavily?
@@grlmgor because of low interest rates caused by the property boom, banks wont lend to anyone not really rich.
@@windwaker0rules It would be easier to get a house when your cashed up and low interest rates.
Investing in real estate is an investment in self funded retirement when entering a private nursing home. Renters will end up in public nursing home. Thats the fundamental difference.
sounds so communistic!!
I'm going out today to get me a 30 year debt on an asset that will rapidly depreciate in the next 12-24 months... This episode is a jokes... Come on ABC your better then this.. Leave this crappy journalism to the other three..
they are not better than this
Build More Homes. Build More Apartments. It will bring down the prices and keep it affordable for majority.
Stop crazy massive unsustainable immigration will do it far quicker!
@@JP-qn4uo The sooner you realize immigration is not the problem the faster you can work towards solving the actual issue.
@@anshuman2089 pray tell us what the problem is then Champ?
@@anshuman2089 you have heard of the concept of "supply and demand"?
We have a glut now. About 100,000 houses sit vacant in Sydney alone. People are just feckin' greedy.
great the pensioners who's property value gone through roof with no fault of their own will have no pension and starve to death . how about people who have never worked a day in their lives , will they get a pension .
Only the non-white ones.
how about someone who owns a property and hasn't worked a day in their life?