The future of Australian property prices

[Smurf1976]

I did owner builder in SA. Get a superior build that way. Unfortunately the hoops you have to jump through means that in reality, it is near on impossible to do these days to owner build.

There's one near me that I noticed under construction when first looking around suburbs on a trip before moving to SA. This was 2018.

It's still being built today.

Probably the best built house in Adelaide but definitely not the quickest.

 

[wayneL]

Bouris speaks, for whatever it's worth

https://www.news.com.au/finance/economy/interest-rates/mark-bouris-warns-families-will-be-forced-to-sell-their-homes-within-months-as-mortgage-cliff-erupts/news-story/40b6b439d21305344c4df6fe87ec2726

 

[Dona Ferentes]

Looking to curb the growth of the short-term airBnB rental market that is squeezing out residental tenants, the City of Melbourne voted last Tuesday to push ahead with registration fees of $350 and 180 day-a-year caps for 4100 listings, which account for 14 per cent of Melbourne’s total residential stock.

A consultation process that kicks off this week will report back by November to draft the law, with the aim of implementing it in February next year, minutes of Tuesday’s council meeting show.

A report prepared for the Melbourne city councillors ahead of Tuesday’s vote cited the experiences of Sydney, London, Vancouver, Denver, Amsterdam and San Francisco and said the economic costs of short-term rentals “likely” outweighed their benefits.

“We don’t control much in this space around the housing supply, but the bits that we do, we’re giving it a red-hot go,” City of Melbourne Mayor Sally Capp has been quoted as saying.

There is growing consensus among policymakers that the benefits of additional tourism are outweighed by the economic and social cost of driving renters out of the places tourists frequent.

Or to put it another way, there’s something seriously wrong when tourists are taking up apartments while residents are living in tents and caravan parks.

Predictably, the short-term rental lobby predicts any clampdown will cost jobs, that “mum and dad” investors will suffer, and that there is no proof that holiday lets will be returned to the residential rental market.

 

[TimeISmoney]

Looking to curb the growth of the short-term airBnB rental market that is squeezing out residental tenants, the City of Melbourne voted last Tuesday to push ahead with registration fees of $350 and 180 day-a-year caps for 4100 listings, which account for 14 per cent of Melbourne’s total residential stock.

A consultation process that kicks off this week will report back by November to draft the law, with the aim of implementing it in February next year, minutes of Tuesday’s council meeting show.

A report prepared for the Melbourne city councillors ahead of Tuesday’s vote cited the experiences of Sydney, London, Vancouver, Denver, Amsterdam and San Francisco and said the economic costs of short-term rentals “likely” outweighed their benefits.

“We don’t control much in this space around the housing supply, but the bits that we do, we’re giving it a red-hot go,” City of Melbourne Mayor Sally Capp has been quoted as saying.

There is growing consensus among policymakers that the benefits of additional tourism are outweighed by the economic and social cost of driving renters out of the places tourists frequent.

Or to put it another way, there’s something seriously wrong when tourists are taking up apartments while residents are living in tents and caravan parks.

Predictably, the short-term rental lobby predicts any clampdown will cost jobs, that “mum and dad” investors will suffer, and that there is no proof that holiday lets will be returned to the residential rental market.

I hope they all sell on the spot, I think Australia is becoming a joke when people are pushed around by governments that can't accept fault in the first place.

 

[Smurf1976]

I hope they all sell on the spot, I think Australia is becoming a joke when people are pushed around by governments that can't accept fault in the first place.

Normally I agree with the concept but in this specific case I think there's possibly some unfair competition going on here.

How many of these properties would meet all the rules required of the proper hotels they're competing against?

 

[TimeISmoney]

Normally I agree with the concept but in this specific case I think there's possibly some unfair competition going on here.

How many of these properties would meet all the rules required of the proper hotels they're competing against?

That's not the reason they're trying to get rid of them for, there are areas where you have holiday rentals where you have limited other options of accommodation. It's another laughable greens/labor concept, how many renters can afford to live in towns with limited work, in high-end homes, and exotic tourist prices?

 

[wayneL]

Holy Snapping @55holes, Margaret!

Oz must be even worse I'm guessing ?

 

[Knobby22]

Holy Snapping @55holes, Margaret!

Oz must be even worse I'm guessing ?

Not as bad.
Countries that have a public rental market have a downward influence on rents. Also, unlike the USA, we have rising wages and a minimum wage that rises regularly , due to the power of unions.

Though ordinary people are slowly losing over time to the wealthy it is not as strong as the USA where tax systems are highly advantaged to landholders and wages are stagnant but we are doing a lot worse when compared to Sweden, Netherlands etc.

It is very important that the Government builds more affordable housing and retains and rents them. In the 1950s _1980s we built plenty.

We know what to do but there are powerful interests that oppose this as it will reduce profits.

 

[Warr87]

It is very important that the Government builds more affordable housing and retains and rents them. In the 1950s _1980s we built plenty.

We know what to do but there are powerful interests that oppose this as it will reduce profits.

Even if the current gov does manage to build up affordable housing, I can see those assets being offloaded in the next gov. Typical cycle of accumlate gov owned assets that provide income, which are then privatised, and then back to the beginning. Perhaps I'm too cynical.

 

[wayneL]

Not as bad.
Countries that have a public rental market have a downward influence on rents. Also, unlike the USA, we have rising wages and a minimum wage that rises regularly , due to the power of unions.

Though ordinary people are slowly losing over time to the wealthy it is not as strong as the USA where tax systems are highly advantaged to landholders and wages are stagnant but we are doing a lot worse when compared to Sweden, Netherlands etc.

It is very important that the Government builds more affordable housing and retains and rents them. In the 1950s _1980s we built plenty.

We know what to do but there are powerful interests that oppose this as it will reduce profits.

View attachment 162352

Agree in principle, but the ideology around the details can make or break it.

 

[sptrawler]

Agree in principle, but the ideology around the details can make or break it.

Yes what Knobby isn't mentioning is, as wages go up by 4%, house prices are going up by 6-8%, so a $10 increase in wages doesn't really cover a $100k increase in the average house price in Sydney.
But the sentiment is noble.

 

[Knobby22]

Even if the current gov does manage to build up affordable housing, I can see those assets being offloaded in the next gov. Typical cycle of accumlate gov owned assets that provide income, which are then privatised, and then back to the beginning. Perhaps I'm too cynical.

That would not be good.

 

[sptrawler]

That would not be good.

Unless a State housing comission construction section is started, that is exactly what happens.
There is a push currently to spend the money in the future fund, nothing much changes.

 

[qldfrog]

I like the last announcement by ALP Green with our tax dollars: 30,000 new houses as social housing in the next 5 y;
during that time, open the floodgates at 600,000 migrants per year so 3 millions (yes 10% of population) over 5 years
ending up to a new social housing house built for 100 new migrants...should I LOL or just cry at the incompetence

 

[qldfrog]

and about the neverending claims that airbnb is to be blamed..and so taxed to death:
from their ABC itself: https://www.abc.net.au/news/2023-09...-short-stay-drives-up-rental-prices/102830754

 

[qldfrog]

and about the neverending claims that airbnb is to be blamed..and so taxed to death:
from their ABC itself: https://www.abc.net.au/news/2023-09...-short-stay-drives-up-rental-prices/102830754

and obviously, no one ever considering https://www.housing.qld.gov.au/about/initiatives/rental-law-reform could actually restrict even more the rental offers..WTH would you rent if you can avoid in qld

 

[divs4ever]

Perhaps I'm too cynical.

maybe and maybe not

you can always dream it will be different this time , but i think a lotto ticket might work better

 

[wayneL]

and obviously, no one ever considering https://www.housing.qld.gov.au/about/initiatives/rental-law-reform could actually restrict even more the rental offers..WTH would you rent if you can avoid in qld

I sincerely think rental law does need reform in this country, not to mention the economics. As things stand, plus mooted shape of reform from various quarters, I wouldn't buy investment property, not a chance.

 

[qldfrog]

I sincerely think rental law does need reform in this country, not to mention the economics. As things stand, plus mooted shape of reform from various quarters, I wouldn't buy investment property, not a chance.

Yes we sold all.just need to sell farm now.
It would be utter stupidity for us, with knowledge of European experiences, to invest a cent in investment property.

 

[farmerge]

Nothing but grief with rentals.
At one stage had 3. Sold 1, 1 got burnt to the ground and the 3rd is empty now here at home.