The Aussie Housing Affordability Crisis – 4.32mins


Dick talks housing affordability, population growth, and the first research report of his new group.

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10 Comments

  • Thank You Dick Smith for revealing this problem and doing such an in depth study on this issue.
    In addition to everything above, the issue is further amplified by the “interest groups” in politics and by levels of corruption in Australia that i have never witnessed before. Interestingly all corruption here happens on the “higher level” with councils saying “no” for application to add a garage on existing properties but “yes” to a 8 plus story apartment blocks on the property next door. But obviously it doesn’t end there… Infrastructure projects and major tax reforms is where the “real money” is made by our “honest” politicians and their lobbyists. Their “cuts of the infrastructure pie” have never been bigger as all projects blow the budgets and take the taxpayers to the cleaners while corporations are enjoying consensus on lower tax rates or loopholes to avoid taxes. Reluctance of implementing any decisions that are beneficial to the majority of Australians are staggering.

    The are 2 main types of corruption opportunistic and systematic. In Russia, for instance, corruption is “opportunistic”, with government structure remaining in somewhat fluid state, in Australia it is systematic. In plain English, in Russia politicians who manage to “earn” their money in unethical and illegal ways rush to move their assets to the foreign banks and soon change the place of residence, whereas in Australia there is no such rush to move anywhere, as corruption is systematic and wide spread and there is no risk for the individuals to be investigated and evicted from the “club”, so the same people are getting reelected from the same pool of “talent” and the same “pies” are getting shared over and over again. So opportunistic corruption is better in the way that system, in time, is getting fixed to present less opportunities, whereas in Australia system remains corrupt to the core. I am sure many voters find it difficult to put a line between parties and policies especially when it comes to their implementation. Sadly it is much easier to overcome “opportunistic corruption” rather than revolt against “systematic corruption”.

    The last but not the least, the GDP is a very poor indicator of general health of economy and related statistics no longer have a fair representation of the economy either. If we take an approach of top 30% and bottom 70% we will quickly realize that there is a very substantial difference in wealth, job stability and financial stress between these classes. So far majority of bottom 70% have managed to live up to a modern definition of “success” on the streets of their choice by buying expensive houses via excessive borrowing which they will never be able to repay. Given that the divide between asset rich and asset poor (but debt rich) classes is almost at all time high we might witness some major changes in political landscape. It will be very interesting to see what happens to “The Block Economy” next year when house prices will further extend their losses and turn the entire bottom 70% into have nots… “When people have nothing to lose they lose it”.

    On a positive note, every crisis presents us with endless opportunities, and this one will surely deliver once in a lifetime (128 years to be more precise) event. 1890 all over again, this time not just in Melbourne but all across Australia… The favorite disclaimer comes to my mind: – ” Past performance isn’t an indicator of the future performance”. Indeed we have all the stars aligning to make make it something very special this time around.

  • dear dick smith
    we as genuine aussies must regain control of our nation.— somehow we have to tear away the control of the super wealthy families that control our destiny purely for their own selfishness
    It is pathetic that a mere handful of rich persons can dictate to the nation by using their wealth
    stop the growth of multiculturalism which divides our country — -bring back national service which will unite us once more we were great once — and we can do so again

  • I haven’t read all the articles yet, just signed up this morning (at work) anyway just want to comment on housing affordability, I am so anti banks, I have lost so much over the years to their policies, the most recent was I was trying to get back into the housing market (I’m in my 50s) I had a 10% deposit, secure government job, but because the place is rural they want a bigger deposit because they don’t see the value in what was being asked for it. Yes I tried 3 major banks and two brokers, all the same, rural isn’t worth it….no wonder the cities are getting crowded. The place I was trying to buy was $40k, pathetic banks pathetic.

  • Hello Dick,
    it is great to see some of the baby-boomers [I am one too] stand up for the huge inequities we have created. I had no trouble at all buying my first house in a central capital city location at age 21 and for under 3 years of my average wage.
    My pet hate is negative gearing, which is really taxpayer subsidisation in the form of forgone tax revenue. My manager at work [public sector] has a salary of around $160K but is very proud that he pays not a cent of income tax, …zilch. This is achieved by buying yet another negatively geared rental property every time it looks like he might exceed the tax free threshold. Ofcourse the demand from negatively geared investors is in direct competition with first home buyers. This non taxpaying individual still drives on our roads, uses hospital services and calls the police if he needs them. Unfortunately nothing will change because there are now millions of negatively geared real estate investors and they all vote.

  • Thanks Dick
    I could never understand why bigger is better. It just puts a strain on everything. Hospitals are quaking at the knees, it only takes one problem with traffic and it’s at a stand still. Our kids can’t buy a home etc.
    Slowing immigration has nothing to do with nationalities , it has everything to do with numbers.

  • Thank you. Finally!! Someone with sense and a voice to relay what most of the population are thinking. You’d have my vote!

  • Hi Dick,

    If you do read this, I would like your opinion on Privatization;

    I believe privatization has made the tax payer financially poorer and vulnerable. Not only are corporations not paying their fair share of taxes, the bulk of the revenue from these privatized assets that should have been in tax payers hands would be greater than the tax, if any, that we receive from these corporations. Our services are shrinking because the tax payer has no assets to generate income. It doesn’t make sense. Every time we privatize a government department that assets work force is reduced by more than half.

    Your opinion on this would be appreciated.

    I support your Articles I believe they are what is needed to make changes for a sustainable planet and equity within society.

    Cheers

  • Totally agree with you Dick. We need more level headed and focused people like you in politics thinking about the future and sustainability. There are far too many things spiralling out of control in Australia including unrealistic housing prices, the high cost of living, rising uni costs and unemployment/casualisation of jobs. My daughter has anxiety daily about whether she will ever be able to buy a home near us in the years to comes and she is 19 and just starting out! I am starting to think the answer is no if you Dick are saying 25 years to save a deposit. Very sad, that stress wasn’t there for me 25 years ago. Time to have a hard look and make a change.

  • Your on the money Dick. Overpaid politicians, journalists, sports people and corporate heads of industry have difficulty relating to ordinary people. I don’t think fairness will return without a wage fixing system for all non self employed people.

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