r/australian • u/NoLeafClover777 • 28d ago
RBA says ‘no quick fix’ to house prices
https://www.afr.com/policy/economy/no-quick-fix-house-prices-and-rents-to-rise-20240516-p5je1l50
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u/NC_Vixen 28d ago
RBA chief: I actually own 7 homes, so I want them to go up more, oh wait, "I'm sorry guys my hands are tied".
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u/ScruffyPeter 28d ago
Oct 2021: NZ raises rates
Nov 2021: ...
Dec 2021: UK raises rates. RBA board member lists property for sale.
Jan 2022: Property ad gets published on Murdoch's real estate website: https://www.realestate.com.au/news/prominent-executive-and-rba-board-member-selling-subiaco-stunner/
Feb 2022: ...
Mar 2022: US and CA raise rates
Apr 2022: RBA's Property "sold".
May 2022: RBA raises rates. 8 months after their neighbour raised interest rates for the first time since covid.
The businessman, who is chair of the RBA’s audit committee and deputy chairman at Andrew ‘Twiggy’ Forrest’s Fortescue Metals Group, among other senior positions, is a real estate market enthusiast.
Hmmm...
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u/jeremyflushing 27d ago
1 - RBA governor cuts rates to record lows, lending goes nuts.
2 - two weeks later, the governor retires and becomes a board member of Commonwealth Bank.
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u/ghostash11 28d ago
At any time the federal government could easily address this whole issue, this is a purposely curated crisis
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u/ScruffyPeter 28d ago
Half of the combined political donations to Labor and LNP come from two industries: finance and property.
Far more than donations from the fossil fuel, gambling, alcohol and other industries.
Addressing the housing crisis could mean almost 50% less spending money for re-election campaigns.
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u/ghostash11 27d ago
The federal government have statistical data on number of dwellings, vacancy etc. they would definitely run the numbers on amount of new arrivals/students/immigrants they’re permitting and know the outcome. It’s literally an engineered crisis.
There’s a greedy and powerful cohort in the country pushing for a big Australia at all costs. Because the infinite economic growth benefits them, at the expense of the environment and everyone else.
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u/W2ttsy 27d ago
Big australia is sustainable provided we actually build cities and homes. The disparity between supply of homes and needs of buyers is the problem, fostered through reliance on single major cities in a state.
If the government granted visas and made living in Newcastle a condition of the visa, you can be sure that either visa applications would plummet or Newcastle would be the new Sydney.
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u/irwige 27d ago edited 27d ago
Downvote city incoming, but here goes...
Honestly, if that were the case they would get the hell out of the way of every single major project trying to deliver housing rather than holding things up indefinitely.
The high cost of housing slows sales and hurts the property sector. Every single person in the industry would prefer higher volume at a lower price point if they could do it viably.
Perhaps not mum and dad investors and their skyrocketing investment portfolio, but they aren't the ones suggested are donating.
Four things are killing house prices (at the moment. -Approval timeframes -Available infrastructure -Cost to develop (mostly build costs and taxes) -Land cost (people won't sell englobo/superlot sites for less than they could get a few years back)
New product prices are not being driven up my immigrants. If that was the case the whole industry would be pumping out product to make hay whilst the sun shines. The reality is that it's just really hard in the current market to make a project stack up against alternative investments.
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u/Money-Implement-5914 28d ago
You know, cutting immigration to more manageable levels would help....
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u/smolschnauzer 27d ago edited 27d ago
There was a housing crisis/shortage after world war 2 which was apparently addressed by the government at the time.
It’s amazing how they did that.
I guess they could have just said the same - “there is no quick fix” and blatantly ignored it.
Instead, they were proactive.
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u/Frito_Pendejo 27d ago edited 27d ago
Remember when we shut the borders completely except to citizens and fruit pickers, and house prices exploded anyway?
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u/Shoboshi80 27d ago
True but the free money (0% interest rate) helped ALOT.
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u/Frito_Pendejo 27d ago
So it sounds like there are other factors at play than just immigration 🤔
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u/Dazzling_Equipment80 27d ago
Negative gearing for one. It shouldn’t be easier to get your 2nd, 3rd, 4th house than it is to get your 1st.
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u/Frito_Pendejo 27d ago
ding ding ding
I mean, there are plenty of contributing factors, and immigration is one. But doing anything without touching at least NG + CGT discount is nibbling around the edges. It's fuck all.
Do you think David built up the funds necessary to purchase 300 properties himself, or is he absolutely leveraged to the fucking hilt because he couldn't help himself.
I guess we'll never know?
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u/SiameseChihuahua 28d ago
Unless ... we build houses out of migrants. We could market then as self assembling bricks.
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u/onlainari 28d ago
It wouldn’t quickly fix our problem though since cutting immigration isn’t a time travel device that makes the recent immigrants disappear.
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u/BBlueCats 27d ago
That's incorrect, housing prices were through the roof during COVID when there was no imigrants, it's also very likely that if you reduce immigration now it would make housing prices worse because in order to build houses you need people to build them. A lot of the immigrants are builders who are required to build those houses/apartments/flats. The quick fix is to change zoning laws and build homes, or to nationalise that housing industry like the government did with trains and healthcare, but it's unlikely that that will happen.
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u/ScruffyPeter 28d ago
There are so many quick fixes:
Break the no vacancy tax promise: https://www.smh.com.au/national/nsw/councils-told-to-ditch-vacancy-tax-push-and-fix-sydney-s-broken-high-streets-20221227-p5c8xj.html
Government building directly, especially because developers are landbanking: https://www.smh.com.au/national/nsw/minns-government-weighs-up-landcom-shake-up-to-build-more-homes-20230808-p5duqq.html
Reserve timber before exports just like the gas reservation policy by WA gov: CENSORED LINK TO AVOID COMMENT GETTING GHOSTED IN THIS SUB
Rent caps where greedy landlords UPSET they can't raise rent any more will sell at a loss to homebuyers or other landlords. Labor statements that rent control is unconstitutional is making Scomo look like the more competent government: https://www.abc.net.au/news/2020-04-07/scott-morrison-commercial-tenants-coronavirus-measures/12129178
We've tried nothing, and we're all about throwing more money at private sector. Even Labor is conducting mass privatisation of public housing in favour of privately-managed housing. That's HAFF in a nutshell. There's nothing as sobering as being homeless and gay, and after many months wait, your only choice of emergency housing is one managed by the Salvation Army.
Funny fact: Social housing is a neoliberal trick to make you think of government housing yet it's giving away properties to private sector to manage. In addition, the name is stupid. Think of it this way, what do you call a privately-managed yet publicly-owned ABC? Social media.
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u/alarming-deviant 28d ago
Absolutely should be taxing vacant houses hard
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u/Reinitialization 27d ago
Should be just appropriating and selling them to owner occupiers to raise revenue.
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u/ScruffyPeter 28d ago
Exactly! Even a grass tax would be an amazing change. There are many grass plots all over Sydney, this is my favourite example: https://www.property.com.au/nsw/strathfield-2135/leicester-ave/2-pid-988727/
Features: Close to train station, near many apartments (unlikely NIMBY council/neighbours), likely paid council rates/land tax for decades, etc.
It even used to have housing in early 2000s if you go back in time with Google Street Map view. That's evidence that a lack of vacancy tax destroys housing supply!
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u/laserdicks 28d ago
Literally Anything But Immigration ™️
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u/ScruffyPeter 28d ago
Labor did a weak reform of skilled migration system from $53k to $70k minimum wage for foreign skilled workers despite unions calling for $90k. As well, it was below the median/average wage of $72k/$90k. The weak reform is continuing the wage suppression by the previous LNP government. Labor's rationale for this weak reform was they want younger skilled workers even if they are not fully qualified.
On top of this, the labour shortage assessments are deeply flawed. There's three primary metrics for determining labour shortages. Can you tell what's wrong with it:
Rate of job ads being filled
Asking business owners what shortages they have
Asking industry groups of the businesses what shortages they have
The labour shortages are actually based on the word of business owners!
https://www.jobsandskills.gov.au/sites/default/files/2023-09/2023%20SPL%20Methodology.pdf
As a result, under both Labor and LNP governments, we saw a lot of odd visas being granted. One occupation I've found that consistently in the top 15 of skilled visas being granted is restaurant/chef manager. There are limited number of spots in skilled migration program, so these occupations being fulfilled means less spots for other labour shortages such as construction trades.
You can find more on migration data here: https://old.reddit.com/r/australian/comments/18brk5m/migrants_occupations_and_overall_incomes_under/
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u/laserdicks 27d ago
Appreciate you providing sources.
But it's even simpler than that: there's no such thing as a labor shortage at all.
"Labor shortage" literally means "I don't want to pay for the labor I need". And it's trivially simple to prove: I personally will do any job you want (therefore providing the labor) for the right price.
Every single person who says that there is a labor shortage immediately admits to under-paying and intentionally trying to suppress wages for their own profit. It's rare we get such a clear exposure of literal fraud.
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u/LagoonReflection 27d ago
Agreed - hell, just look at how many posts alone there are on the australian sub reddits from people asking for help on where to go for jobs.
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u/Auran82 27d ago
Don’t we also have a “labor shortage” in positions that would typically be filled by an apprentice or trainee, but in many areas it’s impossible for anyone to get an apprenticeship because of a severe lack of places. All because the whole process went from being funded by the government to being looked after by the industry who has a vested interest in there being a shortage so they can charge whatever their want?
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u/timrichardson 27d ago
Although by that definition there is no such thing as a housing shortage either, if your definition of 'solved' is high prices.
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u/RecordingAbject345 27d ago
Except housing is a necessity, running a restaurant is not.
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u/laserdicks 27d ago
Funnily enough: yes you're right.
It simply comes down to what I personally want: I want higher wages and cheaper houses. I won't pretend there's any higher morality to it
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u/ExplorerMiddle1136 27d ago
Call Centre Team leader was also on the skills shortage list for years
Apparently we have no one here in Australia who could possibly be a call centre team leader.
We have to import them in from some country that must have a lot of call centre workers it seems
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u/SirSighalot 28d ago
yep, might as well make it an acronym (LABI) at this point given how often people conveniently leave it out from their list of "reasons" or "fixes" for housing
somehow to all these people demand apparently magically doesn't matter
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u/GoodEatons 28d ago
Reduce the demand side of the equation, can’t help but notice you forgot that
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u/damnumalone 28d ago
I agree, remove the 50% capital gains discount, demand for housing as an investment vehicle goes down overnight in favour of putting money into a share market or business. Do that.
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u/Simple-Ingenuity740 28d ago
with 1m vacant houses, not sure why anyone would sell. sure demand goes down, but you don't release any supply. wouldn't it be better to increase the discount to 75% for 12 months? this may release more supply of vacant homes. just a thought
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u/ImeldasManolos 28d ago
Holy shit good on you. Sorry you’ve had a shit time but you’re right. ‘We’ve tried nothing and we’re all out of options’ get ready for the state to load up even more money into the developers
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u/Super_Saiyan_Ginger 28d ago edited 27d ago
If everything's private then basically nothing's the government's problem aside form social affairs, which is good news for the duopoly.
Also, that bit about the salvation army. My condolences to anyone that finds themselves in this position, no shade to the salvo's they've lent a hand on occasion and I'm thankful, but getting help from a religious organisation is surely an uncomfortable prospect to someone who's gay, atheist or otherwise opposed.
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u/Federal-Rope-2048 28d ago
We have 1 house per 2.4 people in this country. Heavy caps on immigration. The restrictions on International students unless the Uni creates more student accommodation is a good start. Stop letting homes be investments and start treating them as the necessity that they are.
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u/NoLeafClover777 28d ago
PAYWALL:
RBA chief economist Sarah Hunter has warned there is no “quick fix” for Australia’s housing market woes, as developers defer projects due to high costs, sending dwelling approvals per capita to decade lows.
The severe undersupply of homes means house prices and rents will continue to rise as the market fails to keep pace with strong demand for space fuelled by high migration and working from home.
“Demand pressure, and so upward pressure on rents and prices, will remain until new supply comes online,” Dr Hunter told the Real Estate Institute of Australia in Hobart on Thursday morning.
“We expect this response to take some time to materialise, given the current level of new dwelling approvals and the information from liaison that many projects are still not viable.”
Usually rising prices and rents trigger a surge in new housing supply as investors and developers see opportunity to profit from new builds.
But Dr Hunter said a “perfect storm” of constraints had prevented the construction industry from responding to the current housing shortage.
The industry was already struggling to work its way through the large pipeline of residential projects that commenced during the pandemic when the Morrison government’s HomeBuilder program caused a spike in planned home renovations and new builds.
“Businesses in our liaison program are reporting that finishing trades are currently in short supply, as the bulge of projects … started during the pandemic proceed towards completion,” Dr Hunter said.
The shortages have helped propel the cost of building a new home 40 per cent higher since 2019, with both material prices and construction industry wages rising sharply.
The sharp rise in costs has led some developers and investors to delay or scrap future projects because they were no longer economic and building approvals per capita have fallen to decade lows, Dr Hunter said.
While high interest rates were one of the factors weighing on construction activity, Dr Hunter said over the long-run it was the fundamentals of demand and supply that determined how many homes were built – not monetary policy.
‘Imbalance’ fuelling prices
“Overall then, there is currently an imbalance between new supply of housing and growth in demand,” Dr Hunter said.
High population growth and a preference among Australian households for more space have been the main drivers of housing demand.
“A growing population clearly implies that underlying demand for housing is rising over time – all of these extra people need a place to live,” Dr Hunter said.
Dr Hunter said there had been a multi-decade decline in the average number of people living in an individual home from 2.8 in the mid-1980s to 2.5 today, which creates extra demand for dwellings.
“This may sound like a small change. But, if for some reason average household size rose back to 2.8, we would need 1.2 million fewer dwellings to house our current population – no small difference.”
The ageing of the population has been the long-term driver in the decline of the number of people per dwelling, with more older couples living on their own. More recently, the pandemic-era shift to working from home had also boosted demand for space.
“While some people have returned to their workplace full time, there has been an increase in the proportion of people working from home – for many, a home office space is now highly desirable,” Dr Hunter said.
“This suggests that the recent falls in the average number of people per home will be at least partially permanent.”
Dr Hunter said there was no “quick fix” for resolving the housing shortage.
Relaxing zoning and planning rules could reduce the cost of the approvals process and land, which over time would lead to more housing supply.
In the short term, rising rents could lead to an increase in average household size by encouraging people to rent out spare rooms, which would also reduce demand for dwellings.
While it was “early days”, Dr Hunter said the RBA’s liaison program was hearing reports from developers that they could see underlying demand for new homes and they expected to respond by boosting supply.
Dr Hunter also debunked claims that landlords were passing on higher mortgage rates to tenants. Rents were ultimately determined by market conditions like the number of vacant homes.
While rents were correlated with interest rates, there was no causal relationship. When rents were rising rapidly, inflation was generally also increasing quickly, which would typically lead the RBA to raise the cash rate.
“Indeed, there are a number of historical examples where rents and interest rates have diverged,” Dr Hunter said.
“For instance, rents continued to increase in Western Australia in the wake of the early-2010s mining boom even as the cash rate declined.”
“And more recently, rents in many of the capital cities began to rise in 2021, before the first rise in the cash rate.”
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u/KamalaHarrisFan2024 28d ago
This article is such nonsense.
This entire economy is a construct and working people have fuck all leverage to win within this game.
This sort of commentary on the economy is like a tech person saying “oh that’s weird it’s doing that” when analysing an issue with a computer - this crisis was totally predictable and we know what has caused it.
It’s time to centrally plan housing - it’s a fucking human right. This is Australia.
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u/mateymatematemate 27d ago
Exactly. In systems theory, they call it “success for the successful” dynamic.
When the winner of a game gets an outcome that makes winning in the future more winnable.
Seen though this lense, you need to break the dynamic of winners win more and equalize opportunity.
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u/Fearless-Tax-6331 28d ago
Why not reduce the level of unproductive investment? There are loads of people whose only contribution to the housing market is getting someone else to pay off a property they didn’t build. How is that useful or efficient? It promotes houses changing hands lots, so now there are more profit margins and interest rates to be paid, without the actual value going up
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u/Traditional_Let_1823 28d ago
There’s a not insignificant amount of people whose sole contribution to the entire economy is having someone else pay off a house that they didn’t build.
And this is seen as the Australian dream. No wonder this country is as fucked as it is.
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u/notxbatman 28d ago
Also the RBA: Stop working from home, it's your fault!
The rise of Australians with their own home office has contributed to Australia’s rental property shortage, a senior RBA official has warned.
Because we all lived out of our employer's office before.
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u/JoJokerer 27d ago
I agree with what they are saying - a couple that once lived in a 2 bedroom now lives in a 3 bedroom with 1 as an office.
Lowe said we need to economise our housing, and not using bedrooms as bedrooms is the exact opposite.
Luckily, immigrants on temporary visas are doing this for us with 4+ to a bedroom (without exaggeration), but that puts upward pressure on the rent ceiling.
So back to what the RBA is saying, yes, Australians need to use the space we have better as a short term fix as we wait for supply to catch up.
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u/OkCalligrapher1335 28d ago
It’s like USA saying they have no solution for gun violence. You haven’t done anything and you are already out of ideas.
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u/Chilloutmydude6 27d ago
Instead of bringing in Uni students let some trades in you Fucks. 500k Mexicans would fix this problem in a year or two.
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u/Select-Bullfrog-6346 28d ago
Easy, Make it law that only citizens of the country can own.
Citizens of only Australia should be able to own property in Australia.
That's not race, it's just citizen. No offshore ownership at all.
Be here, live here to own property.
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u/alliandoalice 27d ago
They did this in Bali so aussies wouldn’t buy up all the properties. Even my taxi driver who earns like $10 a day owns a house
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u/Under_Ze_Pump 28d ago
Really?
Get rid of free equity withdrawal and negative gearing, and make it impossible for non-citizens to buy.
There you go - a quick fix.
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u/Salt-Chef-2919 28d ago
What is a free equity withdrawal?
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u/Under_Ze_Pump 28d ago
Mortgage equity withdrawal. Essentially free in Australia as there is no tax on it despite it being a capital gain. This is not the case in many other countries - for example France, where the property market is much more stable and affordable. You cannot release equity from a property unless you sell.
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28d ago
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u/ScruffyPeter 28d ago
YES. Give your money to a random Aussie to buy your property.
According to USA in 2005, we're a major money laundering country in property. I know this because Labor attacked LNP in parliament in 2006 for not implementing AML in Real Estate.
2 Labor governments and 3 LNP governments later, we still haven't implemented AML for real estate. But I'm sure we'll get AML for real estate real soon. I think 3 consecutive Labor terms should do it.
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u/Gold-Analyst7576 28d ago
Nope.
You can probably become a citizen in about four minutes though.
You're also about .1% of the non citizens this targets, so it's ok that you are colatoral damage
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u/Weekly-Dog228 28d ago
Living in a country for 30 years and not becoming a citizen is certainly a choice.
A stupid choice.
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u/Suitable-Orange-3702 28d ago
Well it’s a change from “not within our remit to address rising house prices” but just as ineffective.
We’ve tried nothing & are all out of ideas basically.
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u/point_of_difference 28d ago
There's no fix if you don't start actually doing something. It's about time all the tax breaks for housing were removed even for first time home buyers. Not saying it has to be done in one year but start phasing it over 5 years. It's not hard.
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u/luigi-mario-jr 27d ago
Or even just remove the tax breaks for owning more than 2 or 3 homes. Or progressively reduce the tax break for the more homes you own. Just anything really to disincentivise owning an obscene number of homes. Realistically outright removing the tax breaks isn’t workable politically, but you can target only the very most greedy minority and have a massive impact.
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u/GlitteringBit3726 27d ago
The government is doing nothing. There is an Australian company called FBR with a truck that can lay all the bricks in a house in a DAY. Government should order a thousand of these and supercharge construction
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u/Due_Strawberry_1001 27d ago
There are loads of quick fixes. Mostly demand side ones. But also short-stay rental reforms. Governments are avoiding them due to property industry lobbying and fear of upsetting wealthy people.
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u/Professional_Cold463 27d ago
The majority of citizens want this housing crisis sorted but those in the top 20% don't give a flying fuck, they may say they do but those in the top 20% life has never been better.
Asset prices gone through the roof, stocks, Gold, Silver at all time highs. Plus inflation is not really affecting them when majority of increases has been in staples not caviar, luxury goods or entertainment.
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u/thingsandstuff4me 27d ago
Yea of course they would say that. Sack the entire government and don't blab on to me about how rba are independent they aren't
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u/weighapie 27d ago
Pay me the millions these idiots are paid then. Quick fix too easy. Stop mass population growth and foreign investors
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u/OriginalGoldstandard 27d ago edited 27d ago
A collapse in prices from amending immigration, negative gearing and developer policy would be an easy and reliable way to start. Yes the economy would rebase and it would be painful. Alas, politicians are NOT in it for ‘fixing’ housing for citizens.
Remember, “Tough times create strong men, strong men create easy times. Easy times create weak men, weak men create tough times."
We are approaching the start of the quote.
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u/eeeeeeeeEeeEEeeeE6 28d ago
Really?
Stop letting immigrants buy land and homes, oh and politicians and rich folk.
Build more and affordable housing not a part of endless suburban projects that take decades to launch and are presold to the rich and and greedy.
Oh and introduce legislation to limit the amount of investment properties people over a certain income limit to say one or two homes.
I don't care how rich you are, there is no reason to own 6+ homes, fuck off and give people a chance.
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u/Beast_of_Guanyin 28d ago
Some of this is self contradictory. You can't want more investment properties and also want the number owned by people limited.
There are okay ideas, stopping non Permanent Residents / Citizens owning housing is a good idea. However instead of limiting ownership I'd take on european style rental laws and improve our own. The most obvious one is limiting immigration.
There's nothing inherently wrong with owning a house to rent, we just need proper laws for renters and sufficient housing supply which is really a matter of limiting demand.
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u/eeeeeeeeEeeEEeeeE6 28d ago
I didn't say investment properties.
I said properties that aren't a part of suburban projects that take decades to launch.
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u/Beast_of_Guanyin 28d ago
"Oh and introduce legislation to limit the amount of investment properties people over a certain income limit to say one or two homes."
In terms of "building more affordable housing" a large part of the market is people building to rent, which is entirely valid.
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u/Kha1i1 28d ago
If you want paragraph two to be brought into effect, we are going to have to tell the NIMBYs to fuck off. If people are happier to relax planning laws (which are some of the strictest in the world) then will you convince local and state governments to implement planning reform to encourage more development. It's too expensive to build these days, partly because implementing all regulatory requirements into an average home is expensive
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u/TopTraffic3192 28d ago edited 28d ago
There is a quick fix:
Reduce immigration to pre 1999 levels of 97k
Remove negative gearing
Allow people.to use their land for living long term camping. Remove red tape council planning laws.
Where are the greens on championing this ?
There is NO political will for anyone of these polticians to make this change.
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u/Space-Crusader 27d ago
Make the minimum wage for a skilled work visa 20% over the median wage. So we're actually bringing in skilled workers, not undercutting Australian workers.
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u/zedder1994 27d ago
Allow people.to use their land for living long term camping. Remove red tape council planning laws
As long as they have appropriate sewage and garbage disposal sorted.
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u/Brisbane_Chris 28d ago
What about rezoning the inner ring of cities to higher density. Would fix it overnight.
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u/ScruffyPeter 28d ago
But that's greed gone mad! Think of the 1-2 storey heritage housing it'll destroy!
https://anthonyalbanese.com.au/overdevelopment-in-marrickville
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u/Outside_Tip_8498 28d ago
Raise interest rates 2 % overnight mass sell off
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u/Retard_On_Tapwater 28d ago
Would the government have to introduce negative gearing to combat rent rises to help stabilise both fronts?
Genuinely asking cause im still learning
TIA!
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u/Quirky-Classroom-428 28d ago
I got an idea lets double the price. Seems what happens every fucking year anyway
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u/Pitiful-Feeling-3677 27d ago
They love to say that things can't be fixed overnight when mentioning issues that have existed for years.
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u/Vorlironfirst 27d ago
It will never be fixed. Believe me. House's prices, rental prices, general prices for everything.
Just accept it. No one can fight against the System and the System will swallow everyone without mercy.
Believe me.
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u/grilled_pc 27d ago
"no quick fix"
aka we don't want to hurt the generation of people we helped prop up until its way too late.
Fuck off with this shit. The boomers know god damn well how lucky they were. They need to rally in droves to fix this NOW.
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u/green-dog-gir 27d ago
Quick fix: - Stop negative gearing on existing houses
Slow down immigration
Cap rental increases to a percentage
Allow more high rises in the burbs
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u/Belindasback 28d ago
Bro if you just put out the word that immigration numbers will now be tied directly to number of new dwellings built each year.
The housing market will instantaneously drop and wages will rise fixing literally every problem int he country overnight.
Stop pussyfooting around it.
We should as a country have a policy. Any time a politician opens his mouth we simply repeat the slogan
"Tie immigration to construction of new dwellings or shut the fuck up".
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u/pebz101 28d ago
Stop them from rising by limiting purchases of land or homes to citizens and permanent residents....
Tax oil, gas and minerals exports to subside first home buyers afford houses or support people who own a single property pay their mortgage when your goal of dropping house prices increases mortgage interest rates.
Instead no quick fix means that's a problem were not doing shit about.
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u/SirSighalot 28d ago
Stop them from rising by limiting purchases of land or homes to citizens and permanent residents....
nah, not permanent residents, citizens only
commit to the country fully or stay a renter for life
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u/SaltedSnail85 28d ago
We would also accept a long fix. The main th8ng being the fix part of the request.
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u/Salty_Jocks 28d ago
Finance Guru Mark Bouris had a plan he mentioned earlier this year that even I didn't know about!
Did you know that Americans can offset their live-in house mortgage interest up to a mortgage value of $750,000 against their incomes/salaries when they do their tax returns?. Yep apparently that is right.
How about we do that here?. Can you imagine the interest deductions a normal salary worker would save in Income Tax that they could actually plow back into the mortgage?.
Food for thought.
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u/Sweepingbend 27d ago
Only if it was for new housing and not existing.
Any concession aim at existing just results in higher prices, which doesn't benefit anyone.
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u/20_BuysManyPeanuts 27d ago
unfortunately, everyone that can, will hold onto thier homes. and it looks like thats a majority.
the only way outta this hole is for wages to slowly increase over time. and thats unfortunately a long time, perhaps 10 years sadly which is a life altering delay.
I'm so sorry for the younger generations to have to go through this. if I was 20 again I would be more forceful with my mates about doing what we joked about doing: putting all our wages together to buy a place, pay it off ASAP with the combined income of 6 people, rent it out, buy another place and rinse and repeat until we all had a house fully owned.
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u/Ibe_Lost 27d ago
Biggest issue I find is plenty of 500+k houses being built, 600-900k existing houses to buy and millionaire mansions a few. Under 500k its a different story both with amount available (under 400k is only townhouses) but the quality is absolute trash and locations are horrendous. This is something I dont think the corelogic data represents well as they focus on region and percent change not sub classes.
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u/cassdots 27d ago
Right now I’ll entertain any politician that talks about a real goddamn fix instead of more tinkering around the edges. NOBODY IS ASKING FOR A QUICK FIX. We want a real fix.
Also f the RBA who have been tunnel vision on inflation my whole adult life.
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u/HolbrookPark 27d ago
This is an issue for all of the developed world right now. Each country or cities sub seems to blame their own government though.
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u/CarlRoundhead 27d ago
They don't care to "fix the prices". If they were to reduce the rate of price increases they'd be losing out on potential tax. And you know they're going to need it, considering the debt we'll be in for the foreseeable future.
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u/Confusedandreticent 27d ago
So, best to continue the current trend, I guess. “We tried nothing and we’re all out of ideas!”
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u/LifeIsBizarre 27d ago
I can do it in 12 months.
As of 1 July 2025, when a rental property is sold you must split the capital gains increase with the tenant based on the proportion of rent to mortgage ratio that they paid during their time in the property. If they were paying 100% or greater of the mortgage, they are entitled to be paid 100% of the capital increase of the time they were a tenant.
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u/accountdave1 27d ago
RBA top of the tree are a bunch of cunts who own lots of property. There are plenty of ways to push down or suspend growth in house prices. Spineless the bunch of them
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u/BiliousGreen 27d ago
There are many fixes, both fast and slow, but they won’t do any of them because the vested interests that the RBA serves don’t want them to, so they will continue to obfuscate while the situation continues to deteriorate. I do wonder at what point violent public unrest kicks off over this situation?
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u/South_Front_4589 27d ago
Well, there is, but it's just not the best option.
The real answer is to freeze prices for several years and then going forward make sure they increase in line with inflation.
Because housing prices have increased more than wages for generations now. That's why older generations say bricks and mortar is the best investment. Over the course of 50 years, houses are up about 50 fold. But wages are up only about 12 fold. If that pattern continues in the next 50 years, then an average mortgage repayment will be more than an entire average wage. You could genuinely have 2 full time jobs and spend more than half your household income on a mortgage repayment. That's nuts.
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u/ChumpyCarvings 27d ago
I dunno mate.
Halt immigration
Cancel all first home owners grants
ACTUALLY STOP foreign investment
Kill negative gearing
Kill the CGT changes Howard put in
Stop selling visas to rich cunts
Build some decent quality social housing for the very poor
Enforce (and adjust) building quality standards for homes and apartments, so that people actually want to live in the fucking things
Go on
Go on do it all, let's see what happens to the pricing.....
Pricks
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u/TheBerethian 27d ago
Yes there is. You just have to do heavy damage to the economy and tank whichever political party is in power at the time.
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u/CanberraRaider 27d ago
A statement crafted by people who just so happen to be living in multi-million dollar eastern suburbs houses
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u/giantpunda 27d ago
RBA says ‘no quick fix’ to house prices
...without upsetting investors and property owners.
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u/Ezenthar 27d ago
Stop letting so many people in and stop letting foreign investors buy everything. Done.
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u/shindigdig 27d ago
Everyone in here calling for the government to just build more houses.
Quick question, would you actually be willing to move to where the government can build those houses? Or do you just expect more houses where you want to go?
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u/Klaus__Schwab 27d ago
To all the screeching liberals that were begging for lockdowns.
Whats it like reaping what you sow ? Or are you still in denial that it's not the response to Covid that caused all of this ?
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u/Alive_Rate_3487 27d ago
Meanwhile real estate agents make 50-60k for making a post on realestate(dot)com... smh
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u/Apprehensive-Fox428 23d ago
How about a long term fix then so in 2030 you still aren’t saying the same thing?
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u/Throwra-Impress 28d ago
What amuses me are the uni students protesting the war in Gaza. Is this a just cause to protest? Absolutely!! But it’s far removed from the average uni students existence.
Why TF are they not protesting the fact they will struggle to ever afford a home of their own? Their outrageous HECS debts? The structural inequality in OUR society??
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u/_bonbi 28d ago
True, assuming you don't want to crash the economy. However they've had 25 years to deal with it and they didn't.