The Social Housing Crocodile Tears…

The Guardian highlights the problems with NSW Public Housing policy. We discuss the reasons why this is happening.

https://www.theguardian.com/australia-news/2022/apr/16/more-than-3bn-of-social-housing-sold-by-nsw-government-since-coalition-took-power

The New South Wales government has sold off $3bn worth of social housing during its decade in power, while failing to meet its own targets for new properties.

New figures released through parliament this week show that since it was first elected in 2011, the Coalition has sold off 4,205 social housing properties across the state.

The sales have added about $3.5bn to the government’s coffers over the same period.

But while the government said all of those funds were used to prove “more, and better” social housing stock, data for new social housing constructions reveal the government has fallen well behind its own targets for new dwellings.

In 2016, the Coalition pledged to build 23,000 new social housing dwellings in the next decade as part of its Future Directions housing strategy. It committed to funding new social housing construction through the $22bn Communities Plus program.

But eight years on, with more than 50,000 people on the social housing wait list in the state, the Communities Plus program has achieved only 10% of that goal.

The Bank Of Mum And Dad Is Getting Strangled!

We examine the role of the Bank of Mum and Dad, in the light of the latest data. As well as highlighting inter-generational issues, there are pressures on both parents and their kids. And if you do not have “wealthy” parents the chances of getting into the property market is diminished significantly.

Go to the Walk The World Universe at https://walktheworld.com.au/

The Next Crisis Has Arrived! With Tarric Brooker

In my latest Friday afternoon chat with Journalist and Chart hoarder extraordinaire Tarric Brooker we parse the latest data and conclude that the next crisis has already started.

We question the quality of the current political dialogue, the role of Central Banks, the relationship between interest rates and inflation, and so much more…

We had to make do with 15 out of a potential 50+ slides, but the story is crystal clear. Be prepared!!

Tarric is @AvidCommentator on Twitter, and the slides can be viewed at https://avidcom.substack.com/p/charts-that-matter-15th-april-2022

Here is his article on the warning lights: https://avidcom.substack.com/p/recession-warning-lights-are-flashing

Go to the Walk The World Universe at https://walktheworld.com.au/

FINAL REMINDER: DFA Live Q&A Flood Special With Meighan Wells: Brisbane Property 8pm Sydney Tonight

Join us for a live discussion as I explore the latest in Brisbane Property with Meighan Wells. We will be looking in particular at the issues around flooding.

As the Principal of Property Pursuit and co-founder of the Home Buyer Academy and co-presenter of Your First Home Buyer Guide Podcast, Meighan is committed to excellence and the swelling list of satisfied clients as well as its multi-award-winning status is a testament to her ethics and hard work. In recognition of her expertise and high standards in the fast-growing buyer’s agency industry, Meighan was engaged to develop and deliver the education module for the REIQ course Acting as a Buyer’s Agent and is the former Chairman of the REIQ Buyers’ Agent Chapter.

You can ask a question live.

Go to the Walk The World Universe at https://walktheworld.com.au/

Seeking Property Smoke Signals…

Real estate sales are facing headwinds as buyers and sellers grow more wary ahead of the federal election campaign and deal with affordability problems and the prospect of rising interest rates.

And there are Easter and the school holidays.

Data from SQM Research shows “Vendors are racing to sell to make the most of the current strong prices and before the market softened further,” SQM Research managing director Louis Christopher said.

“Sellers now understand that this is probably as good as it gets when it comes to selling, with the federal election and rate hikes looming, buyers are likely to stay on the sidelines.”

Buyers’ advocate David Morrell believes uncertainty, ranging from the federal election to rising interest rates, has caused buyers and sellers to “hit the pause button”.

“The market is in a state of flux as people look for a smoke signal telling them where the market is going,” Mr Morrell said. “Others are pulling up stumps before Easter.”

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.

Below The Budget Blizzard

I have to say last week’s media coverage of the Budget was at least sycophantic, at worst deceptive. Take the Tele’s working class plan headline. The coverage missed the point, and in fact the short term-cash splash – aka bribe will soon be totally consumed, and people will generally be worse off.

There were a couple of high points in the online media though which go to the heart of the story. This from Alan Kohler in the New Daily, focussing on the strategic errors which were made in 2020, thus creating a higher than needed debt burden for the country.

And this from Michael West Media, By Callum Foote arguing that Frydenberg hides $30 a week tax increase for most Australians.

Treasurer Frydenberg announced a number of cost-of-living measures in his budget speech.

These include a one-off $250 cost of living tax offset for more than 10 million low and middle-income earners, a boost to people receiving the low and middle-income tax offset by $420 for the 2021-22 financial year as well as halving the fuel excise for six months.

What the Treasurer didn’t say is that the additional $420 tax offset for low and middle-income earners he mentioned will stop entirely at the end of this financial year, on June 30.

The extra cash bumps the tax offset up to $1500 this year which ends on June 30.

This means that despite the extra cash given to them this year, those on this tax offset will be $1500, or almost $30 per week, worse off.

New Zealand Housing Inequality Grinds On

There was a significant piece in The Conversation by Claire Dale, Research Fellow At The University of Auckland – titled The coming storm for New Zealand’s future retirees: still renting and not enough savings to avoid poverty

A large number of New Zealanders are facing a perfect storm at retirement, with minimal savings and no house, raising the risk that thousands will enter old age in poverty.

According to the latest retirement expenditure guidelines from Massey University, a two-person retiree household living an urban “choices” lifestyle, which includes some luxuries, would need to have saved NZ$809,000. In the provinces, a couple would need to have saved $511,000.

New Zealanders have traditionally relied on owning a home to support themselves during their retirement years. But many of the New Zealanders now aged between 50 and 65 – a cohort of almost half a million people – will go into retirement as renters after skyrocketing house prices over the last three decades put home ownership out of reach.

At the same time, this generation were already working adults when the Labour government introduced KiwiSaver in 2007, and are less likely to have a significant savings cushion.

Go to the Walk The World Universe at https://walktheworld.com.au/

China’s Property Fuse Burns Bright

Every time I look at the Chinese Property Sector, I get a sinking feeling, and a complete contradiction of statements on what is really going on – to the point where it is really hard to know where truth lays.

One report says State-owned developers in China are accelerating plans to tap debt markets in a further sign of easing for the embattled real estate sector, while Beijing takes steps to set up a multi-billion dollar stability fund for the financial industry.

Yet, China’s home sales slump deepened in March, keeping pressure on cash-strapped developers even as policy makers vow to support the property market.

The 100 biggest companies in China’s debt-ridden property industry saw a 53% drop in sales from a year earlier, according to preliminary data from China Real Estate Information Corp. That’s the steepest decline this year.
And one of the biggest developers, said China’s housing market reached a peak last year.

Go to the Walk The World Universe at https://walktheworld.com.au/

New Credit Growth Turns South: Property Prices Falling Ahead?

New data from the ABS shows new lending fro property is falling alongside a fall in first time buyers, and average loan size. So we look at this in the context of high rates as NAB and ANZ lift some rates further. And we review the ABS notes on changes to the data series ahead, so things may change again…

Go to the Walk The World Universe at https://walktheworld.com.au/

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

Emotions run high – price discovery and price transparency are hard to find – then there is the wasted time and financial investment you make.

Edwin understands your needs. So why not engage a licensed professional to stand alongside you. With RPC you know you have: experience, knowledge, and master negotiators, looking after your best interest.

Shoot Ribbon an email on info@ribbonproperty.com.au & use promo code: DFA-WTW/MARTIN to receive your 10% DISCOUNT OFFER.