Tuesday, August 15, 2023

Housing problems discussions.

WELCOME TO OUR GENERAL BLOG YOU ARE INVITED. Today we are reposting some of those articles, that in a way can link to our main message about housing, where we will talk about the housing problems in Australia, the Social Security System, and the ASSETS TEST that can prevent the Social Security to be equal for everyone. And I believe that the assets test is the main problem, why today there are not enough rental properties on the market. 
This article can also be found at this link,  Housing Problems Discussions

To read all the blogs of this selected group about rentals click on this link, http://menfranco.blogspot.com

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I belive that past politicians are to blame for today affordable rental problems, and they need to fix it, asap to go back to normal. 


Everybody is talking about that today in Australia is hard to find a house or unit for rent. We must say that it is hard to understand the reasons why this is happening, so, we are looking for the reasons why this is happening, and writing these discussions why this is happening. 


NOTE, ARTICLE No: 15. 

This article is the fifteenth article of a group of articles, about Australia housing problems and its cause and remedy discussions. We are reposting some articles to show you, what we believe is the cause of the rental shortage in Australia. You see, the Australian Social Security System fails to help the farmers, because of the assets test, and fails and punishes the small rental investors, because of the ASSETS TEST, that is the only reason I can see, why today there are not enough rental properties on the market. So, to solve the housing problem, the politicians need to abolish or reset the ASSETS TEST at least to the same level or below, what people can lose from their pensions or other benefits. Also, to solve the housing problem, the politicians must find grounds to work together with the private sector, and definitely not against the private sector. But today, from what they are doing, they seem to say that the private sector is their enemy, when the private sector is only running a rental service to the community. 


Welcome to our article, Housing Problems Discussions

Dear readers, as I have said, I have been writing several articles about this rental crisis in Australia, and I have suggested a few things, but I do not know if what I am doing is helping, because there is no feedback, all I know is some people read them.  

Anyhow, I will continue to write more articles, at least I know I have done my best to help solve the situation, because it is only through people views and discussion that most problems are solved. In this article we will review what we have said and talk about what we see happening.

One of the things that is worrying me is that there are properties that end up in the wrong hands, one of which is foreign ownership. Look what I found in the net, (and I quote).

The daily mail 20 July 2023

How Chinese buyers are snapping up Australian properties at the rate of $6million a day.

Story by Stephen Johnson, Economics Reporter For Daily Mail Australia • Yesterday 1:49 pm

  • Chinese spend $2.4billion a year on Australian property 
  • Australia top choice for Chinese real estate buyers

Chinese buyers are snapping up real estate spending more than $6million a day, with Australia an even more popular market than Canada, the United Kingdom or the U.S.

New Treasury figures show the Chinese spent $2.4billion on Australian residential real estate in 2021-22, with investment surging in the following financial year. (Shortened article)

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On another article.

Chinese buyers return and cause tension at auctions across Australia as they outbid locals, says real estate expert. Here's why they are buying up homes down under

Story by Olivia Day For Daily Mail Australia.

  • Auctioneer said Chinese investors are back on property scene
  • He said local buyers felt 'resentment' towards Chinese buyers
  • Chinese buyers spending up to $8million on Aussie real estate 

A top auctioneer says Chinese buyers have returned to Australia's property market and are causing tension at auctions as they outbid locals.

And then.

One Nation Leader Pauline has raised concerns about the impact migration and foreign investors have on Australia, saying it’s hard for Australians to “buy their own home”. 

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Now let me tell you about my views on this foreign ownership. I believe that Australia does not need them, because what they do is drive the price of real estate up. They also do not seem to care if their rental properties are vacant. So, they are here because they have too much cash in their country, and they want to transfer it to Australia to keep it safe and avoid taxes. In this case it would be good if the Australian government taxes them, with a tax that applies to foreign ownership, at least they could recuperate some of the damage they are doing to the economy.

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Other things affecting rentals. 

We have talked about the Chinese investors, that buy rental properties for their own benefit, but there are many other things that need to be assessed, like what is being done to fix the rental problem, and is it the right thing to do, so, let us see what is happening, and report what we find here. (And I quote)  

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Greens Senator Janet Rice says the government is only going to provide a “tiny drop in the bucket” by building only 30,000 homes in the next five years.

“We want to see an outcome,” Ms Rice told Sky News Australia.

“We’ve got 750,000 people on public and affordable housing waiting lists around the country.

“What the government’s proposing is only going to provide 30,000 houses over the next five years – tiny drop in the bucket of what’s required.” (End of quote)

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My reaction to that is. Okay Senator Janet Rice, we agree with you 100% that what they are going to build is not enough to solve the rental problem, but your party is making it harder even to do that, and with you scare tactics you are making it even worse, look at what else is happening. (And I quote)

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  • Aussie investors 'over it' as they bow out of the property market
  • Queensland sales of investor-owned property have ballooned

Property investors in one state are 'over it' as they bow out of the market in droves amid rising interest rates and higher land taxes.

Sales of Queensland investor-owned property increased to almost a third of all homes sold in June, according to PropTrack research. 

It comes as owners across Australia face skyrocketing property taxes and rental price cap speculation - adding pressure to their high mortgage repayments.

Sales of owner-investor properties in Queensland grew by eight per cent in just one month - up to 29.5 per cent of all house sales, higher than other state.  (End of quote).

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I must say that, after seeing what is happening in the rental market, as I have reported above, I believe that things are getting worse. And the Greens party is making it hard to fix, with their short sightedness, they want only to help the have not, even if they make the small investors become have not, with their unworkable policies, because the small investors most time are worse off financially than the have not, even if they own properties.    

Anyhow, my view is that to solve this problem, all Australian sectors must try to work together, we do not need foreign ownership to control the Australian rental market, and the politicians must make sure that that does not happen.

So, it would be wiser to try to reconcile the differences and keep the rental market as it has been in the past, in   if it has worked for a very long time in the past, and it will continue to work in the future. Here I must add that, if the politicians want affordable rentals for the homeless at affordable cost, they must make sure that the landlords, can run their properties at an affordable cost, that guarantees some earning at the end, nobody can run properties at a loss. Therefore, they must not charge levies that the landlords find hard to pay. I hope I have explained myself clear enough.

I could say many other things, but I believe that this article is becoming too long for today readers, so, see you next time. 

To see more click on this link,  Housing Problems Discussions.  

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 NOTE. This article above, is the link to the following article, (still to decide the name). This article is also the fifteenth article of a group of articles that we want to publish. The aim of these articles is to show you that, the Australian governments can fix these existing problems, if they run a better Social Security System that fails to help those that need their help. And we believe that it must be equal for everyone. The greatest problem is created by the assets test anomalies, so, the ASSETS TEST must be abolished or adjusted, so that those anomalies are eliminated.  Because it is not fair to the pensioners, and this is one of the reasons why, there are not enough rental properties on the market, since the pensioners, are forced to sell out to receive their pension. Anyhow, here the greatest problem is the politicians that do not want to see it that way, and they make laws that would stop anybody to invest in rental properties, when they need the private sector to invest in the rental market, so, the politicians need to make laws that helps the private sector invest in rental properties. So, let me explain.  

For me there are three main things that the government can do, to come out of this rental crisis: give more rent assistance to the low income earners, abolish the assets test on affordable rental properties and low other levies, so that the small investors can keep renting at affordable price, and stop foreign ownership on rental properties, that is pushing real estate prices up, and the rental market must follow to go up, because the properties cost more. 

Some politician believe that the government should build, affordable rental units to solve this rental crisis, but for the government, to build an infinite number of affordable rental units, is not practical, because it will cost the tax payers several times more than helping the present rental set up, as we have suggested above.  

To read all the blogs of this selected group click on this link, http://menfranco.blogspot.com,

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