Opinion Locked out of home ownership? Thank John Howard and the seat of Aston Tony Wright Associate editor and special writer March 31, 2023 https://www.smh.com.au/business/the...rd-and-the-seat-of-aston-20230329-p5cwgd.html John Howard had his back against the wall as an awkward byelection came at him in the seat of Aston, in Melbourne’s eastern suburbs. But Howard being Howard, he had a weapon up his sleeve. John and Janette Howard with first home buyer Ivan Kenny-Sumija and his family at their under construction Rowville home during the 2001 Aston byelection campaign.Credit:AAP He’d experienced a vision among the newly tiled roofs spreading across the suburbs. Out there, he felt, lay hope in the Australian Dream. And votes. He would supercharge the dream and harness the votes of all those young people wanting to get into their first home. Twenty-two years later, as the voters of Aston go to the ballot box for this weekend’s April Fool’s Day byelection, it is possible to trace the beginnings of today’s preposterous housing market – so massively inflated it all but locks out a generation of would-be first home buyers – to Howard’s desperate vision. It was mid-2001 and just about everything that could go wrong had gone pear-shaped for Howard and his government. His GST had been introduced the previous year, to much howling. The $10 billion investment would provide 20,000 houses to those in need, but the Greens say it's not enough. In the first half of the year uproar spread across the land about petrol prices, small businesses flummoxed by GST red tape, and even the price of beer. Both the West Australian and Queensland Liberal governments were given the heave-ho in state elections in February. Howard and his GST copped a lot of the blame. In March, Labor won a byelection in the Brisbane seat of Ryan, previously considered a blue-riband Liberal electorate. Howard spent months turning himself inside-out trying to fix his problems, even cutting the fuel excise tax and announcing a “temporary” pause in indexing it to inflation, which took 15 years to reverse. Howard was in a hurry: he was due to face a general election in the second half of the year, and polls suggested he was losing to Kim Beazley’s opposition. A byelection in Aston caused by the death of long-time Liberal MP Peter Nugent shaped as a grim prospect. But Howard had seen a future rooted in the past among those red-tiled rooftops rising across the nation’s suburbs. His hero, Robert Menzies, had overseen a nation with 70 per cent home ownership. Howard would try to do even better. In 2000, Howard had introduced a $7000 first homeowners’ grant scheme as compensation for the introduction of the GST. It proved instantly popular. Suddenly, on March 23, 2001 – precisely six days after the disastrous Ryan byelection – Howard’s government announced it was doubling the First Home Owners Grant to a mighty $14,000. Ostensibly, the purpose was to provide “a targeted, short-term stimulus to the building sector”. It seemed curious: builders were entitled to optimism because interest rates were falling. The average mortgage rate in 2001 was 6.97 per cent, down from 8.05 per cent in 2000. It would fall in the next two years to 5.8 per cent and settle around there until 2009-2010, when it began its decade-long plunge to the historic lows of the pandemic. The $14,000 handout was a political ploy. The stimulus, clearly, was for mostly young families to deliver their thanks in votes. The $14,000 was available only to those who entered contracts between March and December 31, 2001, to build or purchase new homes. In short, the extra joy was available only during the 2001 election period. It was embraced gleefully. In 2001-2002, first home buyers represented almost a quarter of all financed home purchases in Australia. Mortgageville Aston, instead of turning its back on Howard’s government, as previously expected, elected Liberal candidate Chris Pearce. The next day, Howard declared: “I believe that the government is well and truly back in the game. If there were an unstoppable momentum for Labor to win the federal election, they’d have rolled us over in Aston.” Howard always maintained that after Aston he believed he’d win against Beazley - as he did - and that it was suburban Australia, not the fear engendered a few months later when hijacked jets smashed into the Twin Towers in New York, nor his own appeal to xenophobia when the MV Tampa, laden with asylum seekers, sailed to Christmas Island – that saved him. There was, as ever, a cost. From July 2000 to June 2002, around 360,200 grants were made, totalling almost $3 billion. The bigger cost was to the future. With all that extra cash injected into the housing market, and interest rates falling, house prices began rising from 2001 and never stopped. With every state competing with various schemes, the cash kept coming, prompting further runaway housing prices. In 2008, responding to the global financial crisis, Kevin Rudd’s government tripled the grants for new homes to $21,000 and doubled handouts for existing houses to $14,000. Two years ago, a study by the Australian Housing and Urban Research Institute found that Australian governments had spent more than $20.5 billion on first home buyer schemes in the previous decade. And what of the supposed benefits of those massive handouts to first home buyers? It had made housing affordability worse by driving up property prices and leaving existing homeowners richer, the study found. Quite. Analysis of census data by the bureau of statistics in 2022 showed home ownership for those aged between 25 and 39 had decreased in each successive generation since the 1990s. At least in part, we can thank John Howard and a byelection in Aston.
John Howard screwed the housing market in Australia for generations because he was one time chasing votes.
GP issues plea for struggling patient who needs a roof over her head to help tackle health problems By Matilda Marozzi Posted 7 hours ago https://www.abc.net.au/news/2023-04...needs-home-to-solve-health-problems/102165886 Tim Wittick says it's hard to improve the health of patients like Jane while they are experiencing homelessness.(ABC News: Matilda Marozzi) Melbourne general practitioner Tim Wittick is "at a loss" for what he can do to help his patient Jane. Key points: A Melbourne GP is concerned about the growing number of homeless people suffering mental health issues He wants to see greater access to government housing and the broader rental market Homelessness is an increasing problem in Victoria After fleeing family violence 18 months ago, Jane (not her real name)has been experiencing homelessness and her mental health has deteriorated. "We can throw all the counselling and medication at her situation, but really it comes down to the fact that she needs a roof over her head," Dr Wittick told ABC Radio Melbourne Drive. "Access to safe and stable accommodation is a key social determinant of health." Despite having a job and a good rental history, Jane says she has unsuccessfully applied for hundreds of private rental properties on the Mornington Peninsula. Often when she arrives for a house inspection she is competing against 30-40 people for the property. "When you've got someone on paper that's a single mum, it's one income versus perhaps a couple," she says. "I can understand why I wouldn't be the first pick there, but will I ever be the first pick?" Without a stable house, Jane says it's hard to stay healthy. No help available Jane says she and her GP have contacted several family violence and homelessness organisations asking for help, but they haven't had anything available. When she had a home Jane looked after her two children from a previous non-violent relationship one week on, one week off. Now if she wants to see her kids she saves up to rent a hotel room and due to the cost she can't do that as often as she would like. She has been told if her children were living with her, she would likely get access to emergency accommodation and housing. "It's a Catch-22," she says. "But I don't want to put my kids or their dad in that situation." Dr Wittick says Jane is one of many people who are "falling through the cracks" of the housing system and experiencing health issues because of it. "Access to government housing that's readily available and safe as well is key," he says. "But clearly there's a big rental market out there and people need to be able to access it." Homelessness 'a health crisis' Cohealth chief executive Nicole Bartholomeusz says they see the impact homelessness has on people's physical, mental and social health every day. "When we don't have the basics, like a secure home, and are constantly worrying about making ends meet, it puts a strain on our bodies and our minds," she says. "Studies show that people who are unhoused die up to 20 years earlier. "Homelessness is a health crisis." The 2021 census suggests homelessness is an increasing problem in Victoria. More than 30,000 Victorians were without a home on census night — nearly 6,000 more than in 2016. Ms Bartholomeusz says an adequate supply of social and affordable housing, alongside wraparound support services, could transform people's lives and reduce the need for expensive medical treatment. "Countless people would be diverted from emergency departments and hospital waiting rooms if they had secure housing," she says. "People can stop worrying about where they'll sleep tonight, and focus on raising their kids, finding work and engaging with education."
‘Unprecedented’ rental crisis may lead to essential worker exodus Georgie Moore Breaking news reporter Apr 5, 2023 https://www.afr.com/politics/federa...ad-to-essential-worker-exodus-20230405-p5cy7x The rental crisis is creating “punishingly long” commutes and making working in regional areas “untenable”, prompting warnings that essential workers will exit their professions. “Suppressed” public sector wages combined with surging housing costs were making it harder to attract and retain nurses and midwives, said Shaye Candish, general secretary of the NSW Nurses and Midwives’ Association. “Lack of housing, particularly housing that’s affordable, is a barrier to the recruitment of staff and also impacts on the ability to deliver some health services,” she said. The rental shortage risks squeezing workers out of essential industries like healthcare. Peter Rae The warning was echoed by industry superannuation fund Aware. Essential workers such as nurses and police make up a significant proportion of its 1.1 million members, and Aware has touted built-to-rent housing as a key element of its property platform. “So often, the cost of rental accommodation in areas where these members work is quite simply out of their reach, meaning many have no choice but to commute punishingly long distances or, in the extreme, change jobs – they may stay in their industry but seek a different role closer to home,” chief executive Deanne Stewart said. The nurses’ union stressed the problem was not limited to Sydney and was as much as an issue across regional areas such as Tweed Heads, Griffith and in the Murrumbidgee. “What started as something more apparent across metropolitan Sydney has certainly become a huge problem across many regional cities and rural communities,” Ms Candish said. “The private rental market is not meeting the needs of all low to medium income households, and when coupled with childcare availability issues, these factors make working in regional areas untenable for some nurses and midwives.” There are no local government areas in metropolitan Sydney or Melbourne with a median house price affordable for early career essential workers, a study last month by the University of Sydney and not-for-profit fund manager HOPE Housing showed. The study looked at 21 essential worker categories including teachers, registered nurses, social workers, ICT support workers, and bus, tram and train drivers. The study found areas including the NSW Central Coast, Newcastle and the Illawarra had also become too expensive for these workers to buy property. Essential workers who could not afford to live near their work faced “prohibitively long commutes” and that is not feasible or sustainable for many, said Michael Fotheringham, managing director of the Australian Housing and Urban Research Institute. For example, nurses and doctors working on call often needed to be able to get to hospital on very little notice and “if where they can afford to live is 90 minutes away, that’s not workable”. “What it means is in those sorts of instances nurses leave the profession because they cannot afford to live close enough to work,” Dr Fotheringham said. “Competition for workers is quite real and if some of those essential services are not competitive enough in their remuneration, then there are other industries that are perhaps less placed-based ... that that will attract those workers elsewhere.” Dr Fotheringham said the rental market was facing a dual crisis of both affordability and availability, one unprecedented in the last quarter-century. While a “good” rental system typically had a vacancy rate of about 3 per cent, Australia’s was sitting below 1 per cent. “That’s unprecedented in the last 20, 25 years,” he said. “We had one month in 2006 that the vacancy rate nationally dropped below 1 per cent, but then it bounced back up again. We’ve not had a sustained period like this have very low vacancies in a generation.”
A result of brain dead corrupt bs artist self interested greedy politicians, more concerned garnering votes for themselves and raising taxes by inflating property prices than working for the overall good of country. Government too afraid to tackle problems, more interested in hiding from reality. The only reality they know are perks for themselves.
‘Whiplash’: Rental crisis deepens as Sydney unit rents jump $120 a week in a year By Tawar Razaghi and Melissa Heagney-Bayliss April 6, 2023 https://www.smh.com.au/property/new...ump-120-a-week-in-a-year-20230404-p5cy0w.html Key points House and unit rents in every region of Sydney are at fresh records. Units recorded their seventh consecutive quarter of growth. Experts say there are not enough rental properties to meet ongoing demand. Sydney’s rental crisis has worsened as unit and house rents reach fresh highs, and experts say there is no end in sight. The median asking rent for units jumped a whopping 24 per cent to $620 a week in the year to March – the fastest annual growth on record, the latest Domain Rent Report released on Thursday shows. Unit rents also recorded the fastest quarterly growth, increasing 6.9 per cent – or $40 a week – in the first three months of 2023. House rents hit a record of $660 a week, after increasing $10 a week – in the March quarter. The steepest annual rises for units were in the city and inner south, up 31 per cent, while there were jumps of more than 25 per cent for units in the inner south-west, Parramatta, inner west and eastern suburbs. A snap back in rental demand from locals and overseas migration amid low vacancy rates has pushed rents higher, and rents will continue to rise amid ongoing demand and not enough available properties, experts said. Domain’s chief of research and economics Dr Nicola Powell said overseas migration and locals looking for affordable rentals have pushed rents higher than ever. “This is the seventh consecutive quarter of unit rent growth, it’s the longest stretch of unit growth on record,” Powell said. “Most people arriving from overseas have historically gone to Sydney and Melbourne. That’s now really weighing on rental markets in Sydney and Melbourne and that’s why we’re seeing such strained conditions,” she said, noting locals were also flocking to more affordable rental markets. It comes as Reserve Bank Governor Philip Lowe warned rent inflation is likely to stay quite high for a while. Demand for floor space increased as people worked from home, and population growth picked up now the international border reopened, but the expansion of housing supply is likely to be fairly modest, he said in a speech to the National Press Club on Wednesday. Lowe was concerned about the pressure on renters, as financial counsellors had been receiving calls from renters in financial stress. Westpac senior economist Matthew Hassan said record unit rent growth was driven by a snap back in demand since pandemic restrictions were eased. “The demand side has surged really strongly. Last year we clocked a flow of close to 400,000 people and the lion’s share of that is coming into Sydney and Melbourne,” Hassan said. The surge in demand was akin to “whiplash”, Hassan said, as rents have turned around to make up for past declines. He said households that can pay more will push rents higher, squeezing middle- to low-income earners even more. “We’re hearing plenty about rental bidding happening. That speaks to some capacity of tenants of higher rental properties,” Hassan said. “We may not be at the worst point of the affordability squeeze, we may have just started, and it will get a lot worse. Few rental properties are available.Crediteter Rae “There’s not really an end in sight in this tight rental market and rents are likely to continue to move higher.” Bondi renter Chris Jones, who is looking to move from the eastern suburbs to inner west to find a more affordable home, said rents were rising everywhere. “I’m finding it astronomical in Bondi ... for a one-bedroom apartment that’s semi-decent, you’re talking $800 at the moment. You seem to get a lot more for your money [in the inner west]. That said, it seems to be an extra $100 or $150 week more than it is normally,” the 40-year-old said. Chris Jones in Newtown is one of thousands of Sydney residents attending open inspections for a rental property in a very tight rental market.Credit:Janie Barrett He has seen “terrible, awful quality” Bondi units with a shared laundry asking $750 a week, as well as newer one-bedders asking $795. “I’ve had bigger hotel rooms. Seriously it was tiny, if you wanted to have a TV, you’d have to have it on the kitchen counter ... there were 100 people queuing up for that.” Jones said he missed out on the “perfect” unit in Bondi because someone offered $50 more. NSW has banned agents soliciting higher bids, but not tenants offering them. Tenants Union of NSW chief executive Leo Patterson Ross said rising rents was a vicious cycle, forcing middle-to-low income households out of once-affordable regions of Sydney while others were stuck in unsuitable homes. He urged the state government to do more to alleviate the rental crisis, from increasing affordable rental supply to capping rent increases like the ACT. The new NSW Labor government plans to remove no-grounds evictions, establish a rental commissioner and increase housing supply. “There is nothing in the plan to reduce rents relative to income, particularly for lower to middle income,” he said. ANZ senior economist Adelaide Timbrell also said there would be little relief for tenants in the short term, as rental markets in Sydney and Melbourne remained ultra-tight. “Housing construction hasn’t kept up with demand, so there’s not enough houses and those that are available are becoming short-term rentals which is also taking houses out of the market,” Timbrell said. “There will be a short term worsening of availability, so there’s no short-term escape from the challenge of Australian residents demanding more housing and more housing not coming online.”