So, it's all ok for our Super to be used to build apartments which will have to then rent back. But it is not ok for us to use our own super to purchase a property. Am i missing something here or are these people brain dead.
Superfunds investing in build-to-rent = Relatively consistent medium to long term returns for people with Super (i.e. almost anyone with a job). Also provides competition within the market which will help to improve quality and lower rents. Individuals able to use Super to buy a house = House prices go up to even more, less people with Super, even harder landing when the bubble bursts.
@@Acidblood83 Sure, i expect the price of housing to increase as it always has for decades. It's better to own your own place when you retire then be stuck in a BTR paying go knows how much in rent. You are aware that housing also increases every time interest rates have a big drop. They also increase every time the govt or state govt hand out money to 1st home buyers.
@@coffeehouse44 So basically you want to pour more gas on the fire and hope you're the one that doesn't get burned?? Yes, house prices have increased a lot in the past few decades, but historically house prices typically only increase in-line with wages (because that's what people can afford)... it was the policies of the Howard government (in the late 1990s) that turned houses into private investments (instead of a fundamental public good)... private investment, that by the way, is driven almost entirely by capital growth. The problem is we now find ourselves in a situation where even a couple on median incomes cannot afford a median house; this is NOT sustainable. Yes, you can kick the can down the road (and significantly increase the risk, and social problems) by dumping more money into private housing investment, but the fact is that at some point prices will stop rising (totally unaffordable) and in all likelihood will fall (capital growth stops = investors want out; economy slows = people default on their loans or are forced to sell; over-supply = no one wants to buy at the top of a falling market, etc.) And you are now stuck with an 'asset' that isn't worth as much as the loan you have against it... better hope you can maintain your income and aren't forced to sell. PS. Yes, it is a s**ty situation, but it will already be an absolute miracle if Australia gets out of this without a major market crash... the only hope for which is if wages can somehow slowly catch-up with house prices (an already unlikely scenario given Australia is in a per-capita recession, still has an inflation problem, and the more money we pour into housing the less there is to go around the rest of the economy).
I've given up on home ownership here. The prices are insane. Instead of 30 yrs of slavery to a bank, my partner and I have instead decided to rent, and invest $100k per year for 10 years and then retire at 45 in a cheaper country like Thailand or Chile, and live like kings on the investment income. Bye bye, Australia 😢
Does she even mention negative gearing or capital gains tax which are a big cause of the housing problem. Just let foreign investors buy Australian property as usual.
Susan starts by calling for homes not assets, says demand side measures are bad, but throws her support behind foreigners owning Australian housing assets for profit. Being in favor of the government putting money on the share market via the HAFF is being in favor of delaying action and very curious given her recognition that investment in social housing provides $2 in benefits for every $1 in. This former MIRVAC CEO appears conflicted and laboring under a neoliberal/privatisation mindset, unable or unwilling to talk about the monopolistic nature of land markets. Choosing to talk about Auckland but not Singapore is indication that Susan is not focused on the most effective solutions, only politically acceptable neoliberal "solutions". Mike Zorbas of the Property Council representing property developers and landlords is clearly a fan of Susan deliverying more supply for his wealthy stakeholders.
