What broke the rental market (and can it be fixed)? | ABC News In-depth
Rental costs are soaring, but not just in Australia. Our reporters are criss-crossing the globe to find out what’s going on. Armed with 30% of the median household income, we’re challenging them to find the best apartment they can in their city, without blowing the budget.
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Correction: 39:05, the line referring to 10 million unused dwellings should refer to Japan as a whole, not just Tokyo.
36:20 video courtesy Nneka Okoli @nourishnneka
0:00 In case you hadn't noticed, the rental market is really bad
1:56 So just how bad is rental affordability?
7:19 How did rent get so expensive?
9:35 House hunting in New York
14:23 Looking for living space in London
20:37 Size isn't everything in Tokyo
26:43 Beating away the competitors in Sydney
31:11 Should we look at New York style rent caps?
38:07 Could Tokyo's approach to zoning help?
43:30 How London's essential workers afford a house
51:10 Could "build to rent" help affordability?
56:04 So is there an answer?
ABC News In-depth takes you deeper on the big stories, with long-form journalism from Four Corners, Foreign Correspondent, Australian Story, Planet America and more, and explainers from ABC News Video Lab.
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The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
I won't pretend to know everything, though. Her name is Vivian Carol Gioia but I won't say anything more. Most likely, you can find her basic information online; you are welcome to do further study.
It's worrying that big financial firms could own 40% or more of homes, squeezing out the middle class. Most folks should hold onto their homes if they can. I'm thinking of buying cheap houses in 2024 and maybe trying stocks too. When's the best time for stocks? Some say it's profitable, others say it's risky. Any advice?
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Mind if I ask you to recommend this particular coach you using their service?
Sharon Lee Peoples is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I like how in the first NYC studio the lady wouldn't even give a ballpark number on cost of rent because she knew it was that ridiculous.
NYC rent is disgusting for what you get. I grew up in NYC and rent was one of the reasons I left. A few places I looked at were at least $2k a couple of years ago and had evidence of rodents and roaches all over. To get below market rate housing, you have to go by word of mouth pretty much and accept a long commute.
@rileystein6195 and it's going to get worse with the new migrants
She didn’t want to advertise what they would accept as they hope they could extort much more from someone desperate enough.
@@rileystein6195wait till the new migrants get their work permits and start filling apartments with 4 families 😂😂😂 this is nothing
That’s because it’s a bit of a Dutch auction …😂
I hate how houses are seen as investments instead of a basic need. Edit - I am not saying houses should be free. They should be affordable for people on an average wage. Home ownership shouldn't be seen as a luxury or a high paying investment. They should be seen as just a home.
and THIS is the nub of the problem.
Name a high tax country where homes cheaper to buy there none . Socalism is the curse of less home owners
What absolute rot. @@coopsnz1
It does not matter if it is a socilaist country or a capitalist country...Housing should NEVER be monetized.@@coopsnz1
@@coopsnz1Correlation != Causation.
Can't believe am saying this, but £1900 a month wasn't even that bad. Also, my friend just heard back for 3 apartments for the housing lottery. We work for the city. I had to convinced her to take one after she turned a previous offer a few months ago. She currently pays a little under 1700 a month for a 2 bedroom in Flatbush and this one would cost almost 2500. Obviously that's a huge increase but with the conditions of the apartment, the neighborhood, and a landlady who's mostly unresponsive, I think the increased is worth it
Both houses & cars have become too expensive for most Australians these days, most especially for single people and/or single-income households. Even a lot of 2 income households can't afford them.
Thanks for shedding light on the real estate crunch. It's high time prices matched family budgets, even if it means a market correction. Diversifying income outside of government support sounds like a smart move.
I get your point about investing, but where do you even start if you're not familiar with any?
@@GreggVElrod You're spot on. Knowing where to invest can be daunting, especially if you're new to the game.
Having a knowledgeable investment coach guiding your decisions sounds like a game-changer. Been using one for over two years now and it's paid off big time.
It’s not a rental crisis, it a morality issue, it’s a GREED crisis
The kind of greed that makes your blood boil, the swines have no fear.
To be fair. The interest rate is thr culprit. It has put a lot of pressure on the outgoings for mum and dad property investors.
Wait until the government starts the digital official currency your account will be debited regardless of your debt you be kicked out assets taken off you
Greed is good!
Exactly, some of these houses and apartments are so old. Most landlords repaint over old wall paints and put layers and layers of floor polish on very old floors. Not to mention rats and roaches after you move in. It's not worth the high prices the are asking for. It's all just GREED, not really SCARCITY.
Elephant in the room: 600,000 students and immigrants into Australia past 12 months. Double previous years. They all need places to live, so of course rents have soared. Ridiculous ignoring this.
Why not do the study in a German city where there is rent control? I live in Berlin and my rent has not changed for 6 years and it cost 5% of my income. In Germany, housing is a fundamental right. Nobody talks about mortgages, house flipping, investment properties like my friends do in Australia. Time to make some tough decisions.
The percentage of homeowners in Germany is now less than %50😕
Is housing in Germany affordable to buy though?
@@roughhabit9085 and why is that bad? My rent is literally 1/8 the cost of many of my friends in Australia. The cash I save is now making me good money on investments. I can live a good life and not own a house and have lots of cash and no mortgage.
@@roughhabit9085 47% like Denmark
@@roughhabit9085 Berlin 15% home ownership that where rental crises is worse
Unfortunately, this report doesn’t really scratch the surface of what it’s really like to rent in Sydney. Anyone renting in Sydney knows that the advertised price means nothing, agents just keep it low to get huge crowds through the door. I’m lucky that I’ve not had to look for a new rental for years, but almost everyone I know rents, and the only way to “make your offer stand out from the crowd” is to offer a lot more than is being advertised, and to pay a few months upfront in advance.
Australia imported too many foreign workers last 3 years. Non-skilled migrants. They are each where aound 370 000 according to news TV 9. They imported them for Corona Virus shortages of workers. They are staying doing nothing. The problem is that they have money. I don't know how, but they bid and increase rents everywhere. Problem can be solved but obviously this artificial increase of rents is twelcome by the government. They have issued visas and they don't send them back after Corona virus problems are over. We will see!
@petremitrov I heard such "auctions" for rental is illegal, by the way
@@annalulinkova How? They give their offers not in writing! OK?! So, illegal, but not forbidden. By the way, the price of rent goes up because these hundreds of thousands of migrants can pay high rents. Something fishy and dodgy is happening, far beyond normal.
Yea those numbers were nonsense. A room in a share house $500.
@@jackryan2135 Yes. All international students will go USA and UK. In Australia will come non skilled migrants from India.
I predict a housing crash due to people buying homes over asking price, lacking equity if prices decline further. Foreclosure becomes likely if they can't afford the house, and selling won't yield profits. With anticipated layoffs and rising living costs, many individuals may face this situation.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too
@@theresahv Do you mind sharing info on the adviser who assisted you?
@@theresahv Benevolence, this reference seems valid.. Just inputted her full name on my browser and found her site without sweat, 20 years of experience is certainly striking! very much appreciate it
@@berkrix4312 wow omg i just doubled my money within 2 weeks simply using code JULIE ANNE HOOVER and her qualifications very much thanks XD
will never happen in those cities
I can’t close my bathroom door because the frame has warped…… also my rent went up by 40%. I was born in this country but I don’t really feel like I belong here anymore.
I like immigrants. But we are being replaced by wealthy immigrants. Our government consider them as more desirable citizens than us.
No, your money went down. The Government is to blame.
Its a lot better in a lot of overseas countries. Pay relative to living costs is much better. Lot of the smart younger aussies looking to build a future are starting to move
@@Shadow1986 yes. Australian living costs aren’t tied to living earnings, they are tied to government spending and handouts. The only way to fix the problem is to stop government spending, stop reckless immigration.
@@user-er3bx8qb1jIt’s not a great solution, but unfortunately it’s the sad reality. The wealthy and investors have taken the loot in this country and everybody else can go and eat sh!t. The Government has essentially signed us up to become the next indian province and don’t even make the slightest attempt at meaningful reform of the economy. Overseas is now looking very enticing for anyone under 40 and I don’t blame them. I only see South east Asia rising for the next decade and it’s cheap cost of living and close proximity to Aus makes it a very attractive destination. To anyone young, go and at least try it for a few years. Everyone one I know who did loved it and havent been back.
Lived (and rented) in Tokyo for three years - for a while lived in an apartment of 18 square metres. It was basically a walk-in wardrobe with a kitchen and bathroom but it was close to the financial district where I worked and rent was the equivalent of AU$200 a week. After that, moved into a 4 bedroom apartment with friends - the rent was ridiculously cheap because it was across the road from a graveyard. Seriously. Ghosts are so deeply entrenched in traditional folklore that, even now, superstition affects the desirability of real estate - very few Japanese people were willing to live near a cemetery because of the _restless spirits of the dead_ Contrary to what I had been told about Tokyo before I moved there _everything_ is a lot less expensive than in Sydney. And a million times more efficient.
Low international immigration = low rents who would've thought??
Tokyo has the best policies. They are slowly increasing immigration especially in the healthcare section.
@@mordecai3366 Irrelevant. High rents in Australia are entirely the result of greedy f*ckers owning multiple investment properties and the successive governments that changed tax laws to benefit those wealthy property owners, resulting in extreme inequality and wealth hoarding. Real estate ownership does not benefit the economy. It's a non-productive asset that diverts money from circulation causing economic stagnation. And a critical shortage of affordable housing. The greater Tokyo area also has more than 37 million people + 90% of the city was destroyed by US firebombing in WW2. The city and its infrastructure are vastly superior to any other city on earth and it was all built after 1945. There's a million other factors too - including that employers pay for the cost of transportation to and from work so people can afford to commute long distances. I had colleagues who came to work on the Shinkansen every day. Nothing to do with immigration - there or here. The rental crisis in Australia is caused by greed, stupidity, mismanagement and policy failures.
Houston also has no zoning and it was a great city to live in - and full of great surprises.
@@jeretsoTokyo has cheap housing by megacity standards because they build more houses than other cities of similar size.
I think it’s funny how it’s unfair to add rules to landlords but they can screw renters and no one says anything.
You have no idea how expensive to build a house and to maintain a house in good condition. On top of that government takes tax. Low income people just can't afford that level of service provided.
why not take it further and say why can bank increase mortgage rates in turn increase landlord's cost so rent needs to rise.
Will noone think about the poor landlords 😢😢😢
@@thelogician1934that cost is covered by the rent
You have absolutely no idea where your rent goes. Firstly, it costs to build or purchase a domicile. It costs a lot! Then there is the stamp duty payable to the state government. On a half a million dollar flat in Melbourne, it's close to $24k, or about a years worth of rent. Then there is land tax, payable to the state government, every year. On that $500k flat, it's $2850 per annum, or about six weeks rent. Then you've got council rates at a bit over $1k or two weeks rent. Water rates, $1k or two weeks rent. Gas and electrical compliance, about 300 per year, or half a week's rent. Agent's fees 5%, about $1250 or about 2 and 1/2 weeks rent. Insurance, about $1k or 2 weeks rent. Body corporate fees, give or take $2k or about 4 weeks rent. Maintenance, it varies, but 0.5% is a good starting point for a budget or $2500 or 5 weeks rent. Then there are finance costs. I'll be kind here and presume that the landlord won the lotto, so I'll ignore that, but in reality, it's a lot, even if it is tax deductible at the landlord's highest marginal rate. And I'll also be kind and ignore the upfront $24k for stamp duty. Discounting those, do the math. Add up how much of your rent goes to parties other than your landlord? Did you come up with a number that is a little less than half your rent? Even if you discount maintenance and insurance, it is still well over a third of your rent that slips straight through your landlord's fingers. Are you getting the idea why no one blinks an eye when landlords "screw" renters? It's because they're all getting a cut, that's why. And it's why when I sat down with my accountant a discussed purchasing an investment property, I ran a mile. It wasn't a mug's game for investors when money was cheap and houses were cheap. It's a mug's game now, and that's why investors are leaving the market in droves. And if you reckon it's hard to get a rental now and that they're expensive now, just wait. In the words of Randy Bachman: "You aint seen nothing yet". Time to lobby three tiers of government rather than complaining about landlords. They're the meat in the sandwich.
Interesting in terms of describing the problem but with some omissions. One reason why rents in Tokyo have not been rising as much is because of declining population and thus declining demand. Unlike other countries, Japan strictly limits immigration, so the population continues to decline and age. Also, as other commenters have mentioned, the show omits any mention of AirBNB, which has been a disaster for housing supply. Finally, the elephant in the room, the inequality in terms of property ownership. The rich are buying up property because they can buy outright, or can afford big deposits. Of course there should be a massive investment in public housing but there should also be a wealth tax, and get rid of negative gearing.
I concur with a couple of your observations. I beg to differ on your assessment with regards to the "elephant in the room". It's population growth. Please, take the time to look at annualised data and take the time to understand just how rapid our population growth is and put it into context of the problems that we are facing with regards to domiciles. No media organisation dares to raise this as a consideration. It's a political hot potato.
As the guy suggests in the report, the majority of investors are mum and dad investors who only have one rental property. They probably spread across the top 50% of the population meaning half may not fall into the "rich or can afford big deposits" category. Or may be part of Boomer generation where house prices were say 100k not 1.5m
Yes why is this air bnb swept under the carpet. The government needs some balls and ban it. Otherwise the average Aussie pays for this by building more housing that is already here in the form of short term housing that needs to be banned. Look at when the housing crisis started it was when the trend of air bnb - even my sister in law bought a property for that specific purpose.
@@intuitivediane if there is demand for a product or service, and that product or service has been invented and can be offered with profits to be made, then that industry will indeed be created. If government interferes, an inefficiency will be introduced with incentive to create a black market for those products and services (and often only increase prices in the long term). In addition, are you happy to be controlled by someone else and be told on how to use something you worked hard for and wish to use in the way you wish ?
How many air B&B's are there in Australia? They get talked about a lot, in this context, but how big is the problem, realistically? When you take into account that a number of B&B's are holiday houses that are let out for tax purposes, and some are even primary residences, a lot of the advertised B&B's would never see the long term rental market even if laws were tightened. And I've got to say, the housing crisis in Australia was well underway before air B&B came along. It started when the Keating government cut funding to the states for public housing back in the 80's. It was aided and abetted by the Howard Governments stimulation (commodification!) of the housing sector and a 40+% population growth in the last 25 years. Air B&B's aren't the problem, nor the solution. Fixing supply and demand issues is, the latter of which, no one dares mention.@@intuitivediane
They needed to go into some of the corrupt practices being exercised by some real estate agents in Australia and the very poor quality of a lot of the houses, especially the dangerous mold issues a lot of tenants are being forced to live with. Not to mention the huge jump in rental prices...we're not talking $20-$30/week increases, some people have had increases of $200-$500/week!
Yes! Realestate agents are incredibly gross people
Mold issues come from tenants not ventilating rooms properly Time to take responsibility for ones actions
Australia imported too many foreign workers last 3 years. Non-skilled migrants. They are each where aound 370 000 according to news TV 9. They imported them for Corona Virus shortages of workers. They are staying doing nothing. The problem is that they have money. I don't know how, but they bid and increase rents everywhere. Problem can be solved but obviously this artificial increase of rents is twelcome by the government. They have issued visas and they don't send them back after Corona virus problems are over. We will see!
@@petremitrovLatin America is notorious for cocaine production, maybe that’s a possible source of their crazy income
Good, renters have had it good for too long. Just buy noobs.
It's time to hold our politicians accountable for dropping us in to un unliveable situation.
Politicians have found an easy scapegoat Landlords
hold much of the populace responsible who cheered on mass immigration and the over regulation / demonisation of landlords
Slaves marketed as that are always held accountable. Do you mean abuse and/or torture, lie about them?
This is great, we have to keep the caste system alive. Some people are just genuinely better than others (landlords vs renters). And that's ok! Diversity is a strength, not a weakness.
@@kingsimba9513 slaves and the waste humans? Government, religion and industry are fictional things.
In 1984 I lived in Randwick, Sydney. 4 of us lived in a 3 bedroom house with a big backyard and the rent was $82 a week, I had the smaller room so I was paying $18 a week. In 1991 before I finally said goodbye to Oz, I was living in Bondi sharing a very dated 2 bedroom apartment with 5 others, the rent was $240 a week. We had a change in Government during that period. In 2018 I worked with an architect to build my own home, 180 sq. meters, triple glazing, excellent insulation, 11kW solar on 1/2 acre for $500K, and yes you guessed it, it was not in Australia.
Goodness! Quite an interesting account of historical rents.
There are two Australias.
Whist I've never lived in Randwick, I'm very familiar with that suburb, having lived in the Cross, Darlo, Paddington and Bondi for most of the period from 1972-2010, so I'm au fait with exactly what you're talking about. They were certainly the good old days.
Where did you build?
@@lilysmith9130 Many people may be wanting to ask this question, so. I live in Japan, in Matsumoto city (well, in the suburbs about 12km west of the center of the city)
Renting is the government and corporations keeping people in perpetual servitude.
Can you blame corporations if bureaucrats are easily bribed?
Yes. We can and should. If they don't cut it out, we have to use the Molotov method till their investments are ash.
You know what happens under communism the government own all property, poltical class the rich
@@MxIzmir Ah yes, burning down houses will surely lower the price of housing!
The government and corporations only do what the bankers allow them to do.
Show our politicians that it's not ok to mistreat the people with these policies. Vote against the two major parties
'Rent doesn't cover my investment'? This is the problem... Greedy people expect others to buy their wealth for them with no input from themselves. That's not investment, that's robbery. That's what is causing the whole ponzinomic crisis...
Exactly. Sell that property and invest the money somewhere else.
New homes are all luxury homes, over sized. High end furnishings: stone countertops. People aren't looking for Basic Need housing. Homes bought back in the 1950's (Basic Needs Housing) were 900 sq ft on the Average. No insulation. No AC. Single pane windows. 1 electrical outlet per room. No dishwasher. Washing machines were wringer washers used out doors. Clothes dryers were clothes lines. 1 bathroom. No garbage disposal.
i would really love to see some real journalism on this subject. This is not. Take your $450 to rural towns and cities in Australia, and whilst there, have a look at the wealth gap. Have a look at permanent caravan park dwellers, the lucky ones. Have a look at people living in vehicles who are faced with no camping signs or no sleeping in vehicle signs at every suitable location. Have a look at cashed up grey nomads camped up for days at allowed free camping spots, taking up space, breaking rules and forcing closures of these places, whilst their empty luxury homes await them. Talk to people who are forced further and further away from their home towns, only to be rejected again as they near another town. No Camping allowed, where a few years ago, it was allowed. This has gone way beyond being not able to rent a living space, it is now becoming impossible even to sleep in your car legally, as a living space. This is what you need to investigate. Get out and talk with people living like this, because a lot more people are becoming homeless and where are they supposed to go? Where is this all leading....
Peak retirement, bushfire act 2015 (no money leant for new rural builds by banks to reduce risk profile), and Boomers buying retirement homes for a slower lifestyle. Rural living is a luxury
@@stevenmartin6271 i understand that a gumtree filled rolling hills scenario is a luxury, any pretty rural setting definitely is, but lets take Mt Isa for example, no one wants to live there, its horrible and not a Tourist destination, but the council still wont allow a person to camp or sleep in their vehicle and they do everything possible to stop it. They fence off areas etc.. This is how almost every council in Australia operates. If a council does provide free camping, they generally apply rules such as "self contained only" which means unless you spent $80,000 plus on your camper or caravan, you are excluded from the facility. Again the division between the wealthy and poor and the rules imposed to exclude the poor is disgusting. A lot of area in rural Australia are definitely not considered luxury living, but still appear to be reserved for the rich.
SO MUCH this. I'm not interested in renting in London or Tokyo. I'm middle aged, will never own, am raising a family and live in fear of my landlord not renewing our lease - even though I have a spotless rental history almost 30 years long. This report isn't even close to what most of us are dealing with.
Totally. The monetization of public lands by governments will become a much greater topic in the next decade when the cost of flights becomes inaccessible to the middle class in first-world countries. But i guess these rules are designed to protect and conserve the natural environment also. "Pathing" causes dire consequences. Burn some wood here, bit from there, and bang....no top soils, and then bang, we need more carparks...but you do have a super valid point. The division is real. I cant afford to go to Dunsborough in WA camping anymore, let alone rottnest island which is a public asset with a walled garden for top earners @@BobBob-nx3yh
There are a lot of caravan parks in Australia that are now owned by big corporate companies now with big dollars behind them that have forced the prices up and also approach councils about banning sleeping on sides of roads and forcing them to only stay at caravan parks owned by them.
Surprised that a Canadian city didn't get a comparison as it is a place often compared with similar quality of life to Australian Cities. Vancouver and Toronto rents are eye watering. Vancouver has just breached an average rent cost of $3000/month for 1 bed apartments.
Just came back from Vancouver, on paper it feels similar but so different. I felt more people are struggling there than here in Australia. Like waaay more. A lot of my family have two jobs and multiple incomes to keep their head above water and not be homeless. The Canadian situation is dismal. Watch Vancouver/Canada is dying.
I moved to Vancouver a year ago and although I've been fortunate enough to work in an industry that can support the cost of living here it is still a challenge. From what I understand land speculation occured very early. Yes you're right there is a lot struggling here, more than what I've seen in a city like Brisbane.@@friedricey
I lived in Vancouver in 2005, for a year (I’m from Melbourne). Gorgeous place, amazing actually, but today it’s simply overrun and locals suffer from homelessness and despair at the hands of wealthy Chinese who buy up everything. Australia is following suit at a rapid clip. Our politicians allow it - as do theirs.
Only it's not foreign investors in Australia, the majority of investors are Australians. @@thedownunderverse
ABC can't afford to get a correspondent in Canada...
essentially ALL the 'pandemic' money (uk, usa, australia, canada et al) ended up in the pockets of the richest folks on Earth (shareholders of corporations). Due to low interest rates they then used these massive windfalls of printed money to buy assets...including Australian housing stock, which, unlike American and Canadian housing is wide open to all foreign buyers.
many policymakers are also property investors (directly or indirectly) so the current situation benefits them
How does it benefit property owners? Rents haven't kept up with inflation over the last 10 years Land taxes and skyrocketed enriching governments at the expense of landlords and ultimately tenants
@@zoricazorica5752 yeah that’s right bud, property investors are doing it SO tough 😓 I mean, look how poorly their property portfolios are performing 🙄 it must be so fricken hard.
100% vested interests. They are. Looking after the price of their own housing stock not housing people.
In the US ppl buy a house, do some upgrades to increase its value, then use the increased value to finance another property. This creates a glut of unaffordable housing and pushes non investment buyers out of the market.
Yes ; and the investors buy several homes to keep as rentals, buy in cash so that first time buyers cannot compete with that. It sounds like Australia doesn’t have that issue.
You get screwed when you buy a fliphouse, 90% of the time flippers have no clue what they’re doing and upgrade the home as quick and cheap as possible. If you considering buying a flip home, you better get it inspected.
So many empty houses in the US, not enough tenants, while it's the opposite in Aus where greedy sellers are rampant. What to expect, common Aussie trait.
Should slaves and their behavior their forced to perform be marketed with the fiction you shared there?
"the rent doesnt cover my investment at all..." Surely if the renter being able to cover your mortgage, its not the renter not having enough money to afford a home is the issue... The whole system is a way of extracting money from the poor. You cant afford to pay your own mortgage, but you can afford to pay for your landlord.
If your investment in a rental property doesn't return enough, then maybe you invested your money in the wrong sector. Get a term deposit or buy some shares.
Idk too, for me personally, the human cost is hard to ignore. I hate when I have to see renters debate landlords online. The landlord is arguing how about investments, matinence costs, and bad tennents justify the cost of rent. But Like, the renter is literally being made argue over wether or not they are deserving of shelter 💀✋ A lot of people don't take care of their rental units when they see that the landlord ASLO doesn't seem to care about the conditions 🤔
I think its disgusting that people are having to live in share houses/dorms for adults, and are paying a substantial amount to do so, when there is so much capital floating around that could be invested in new apartments - so long as the investors realised it was a LONG term investment, of 50yrs+
The greater the automated income you can build, the freer you will become. Taking the first step is the hardest, but 5 houses later living off automated income since July 6, 2016. You've got to start taking steps to achieve your goal.
What kind of investment would you advise? And what is the best way to follow it?
Gregory Thomas Patchak is the best in this space, I'm happy to come across these recommendations. I have worked with him and I am impressed with the thoroughness and professionalism of the investment diligence packages he provides.
You invest with Gregory Thomas Patchak too? Wow that man has been a blessing to me and my family
Yeah, that's easy to say when you start off with more than 3 digits in your account. Saying stuff like "just diversify your income, automate it, invest," all that comes from a place of economic privilege. Living off a pension makes doing such 10x harder, especially when you have disabilities and an executive functioning disorder.
Yeah this is all great information, but to those of us who have no savings or money to spare, investment is not possible. Also many of these investment situations are just pure scams. So you can win or lose.
The rental market is not broken, rather it is right where the LNP wanted it to be.
Both sides of politics have adopted the same policies. Our Labour government has been talking about planning for the next 40 years. How didn't they see this coming 2 years ago. They have exposed us to International competition by bringing in 400 000 wealthy, hardworking Indian immigrants per year. We are being replaced.
Why didn't labor keep LNPs tax offset for those renters......😅
@@ConstructionHoney Because it contributed to our inflation crisis?
I disagree. Yes, it is going the way they want, but it is not quite there yet. They'll only be content when they own everything at the expense of everyone else.
@@anonmouse15 extreme inequality is bad for the rich and poor. It leads to widespread homelessness and crime.
Rapid gains in rents and - until this year - housing prices across the developed world reflects a common shock - unprecedented easing of monetary policy in each country. I'm surprised this point was only indirectly mentioned in a report lasting almost an hour.
@dweller6065 The wealthy are protected by the government and the media and you are surprised? Where do you think the wealth comes from? 🤣
Cheap money was certainly the underlying reason for the sudden gains in prices. In Australia housing investment also sky-rocketed thanks to the (almost) unique tax advantages in this country. However, this has been increasing incrementally for many years now. In 1993 18.4% of our population were renters, it's now just under 33%! Since 2000 one million additional investors have entered the market taking our total to 2.5 million investment rental properties in Australia. So that's 2.5 million abodes out of total housing stock (including units etc) of 11 million. This HAS to be a significant factor in house prices rising to the ridiculous levels they are now. The Labor Party tried to do something about this during the run up to the 2019 election and the 'punters' said "no way". Now look at the bloody mess we're in...we've effectively locked a generation out of the housing market....(and I'm a 66 year old boomer by the way).
@@LMatters1 Agree fully. As a boomer myself, I look with dismay at the policy stuff up that has led us to this situation and recognize that it is our generation that has let down our young.
Yep, and the US is mostly responsible for flooding the world with their printed dollars.
Negotiating for a room with a fridge. When an agent tells you the main feature is a window you know we are better off dead lol
Great reporting with many interesting points. However, I believe this story, like many others, overlooks the main issue with the property market in Australia: the significant number of vacant properties that have been completely ignored. Many journalists and politicians seem to be confused by the rental vacancy rate, as it doesn't encompass empty properties whose owners don't intend to have a tenant. If you're searching for the closest thing to a silver bullet, preventing empty homes and rooms by offering taxation incentives would likely be the most effective solution. I'm just an ordinary person on the street, but some solutions could involve taxation incentives: - Making it uneconomical to own an untenanted investment property - Encouraging boomers to downsize - Encouraging people with spare bedrooms to rent them out - Temporarily filling empty homes awaiting development and permits While Airbnb rentals and new building supplies are part of the problem, my impression is that unutilized rooms and homes are at the core of the issue.
Airbnb are a huge part of the problem
Absolutely agree but you actually care about finding a solution to the problem many politicians don't
Population growth is the problem. Please, have a look at the available data on Australia's population growth, year by year and become aware of just how significant this issue is.
@@davidbrayshaw3529yes every demand factor is part of the problem. My point is that there are fast acting supply options that aren't even being considered by politicians or journalists.
@@michelledavies2197On Sensis night there were 1m empty properties. How many Airbnbs are there?
The short stay vacation rental properties is a major concern.
I don't see how it is remotely possible to get rent that is only 30% of your income. Usually it is about twice that - about 60%.
Yep and I never know if they mean gross or net. My costs are 60% now, and I’m in Western Sydney
Wanna fix the rental market? Make sure no person can own more than two houses and/or certain amount of land for housing.
that will help buyers but NOT renters.
Watching this excellent piece from the driver's seat of my car - my home for 19 consecutive months, as of tomorrow, and no real plans to buy, ever. Am sick of the horrendous gouging in "the market" - there should never be "a market" for a common roof over one's head. Cannot do the higher level productivity when you don't know where you're sleeping that night, or if you'll get a knock on the window asking you to move on.
$400-600 a week for rent is madness. not realistic!
Build to rent is FAR from a solution - it's literally a mortgage with a catch in which large corporations can exploit renters longer-term. Literal slaves
So what can be done to ease the situation? More affordable housing, subisidised by the government and regulated by the government. Cutting out private landlords.
@@desertmandan123 Yes, it's exactly as you said... "to ease the situation? More affordable housing, subisidised by the government and regulated by the government. Cutting out private landlords. .."
@@desertmandan123 I think that their plan. The mortgage interest they are paying via ATO Business Claims as refunds is going to be huuuge. But add to that more of them claiming more of incentives and at State Concessions and Local Government Rates etc means we have exponentially exploding Property Investor claims...they won't tolerate that for long. Add to that voters are white hot with rage and we have ourselves a powderkeg. IGR aside, National Cabinet on housing affordability are doing nothing on go slow till 2026-2029 and I don't expect much beyond the 30,000 discussed. 1.25m homes is a pipe dreamwhen defence spending is staying at 3% YoY.....nah, we need to pick the high hanging fruit and let the 15% squeal....start with those with 2+ houses....oh I cannot wait to see them compulsory acquired in a mortgagee sale....
The government doesn’t subsidise shit. It redistributes your hard earned. Most of it is squandered.
Nice idea, but the government would bulk at doing enough to make the necessary impact due to the massive increase of taxes to provide that housing (and loss of land tax becuase the government is providing the house rather than the landlord).
Unfortunately, this is bad journalism. The problem is NOT caused solely or even primarily by supply and demand. Unfettered capitalism, and more specifically, greed and corporate ownership of housing has been steadily increasing the cost of housing in all categories for more than a decade. The population increase does NOT cause increased demand because there are, for example, 8 million empty houses in the USA, and only 1.5 houseless. The problem is pricing people out of the market. They can no longer afford it. In the US most people pay between 40% and 50% of their monthly income on rent or housing costs. Next time dig deeper.
Exactly. You nailed it Sir. It is the inevitable result of unbridled capitalism. The younger generation realizes it. 🎉
Australia is not America
@@reinhlr6216 duh, I clearly stated that the problem is unfettered capitalism which is happening in Australia. Then I expounded on that with an example from the US where it is already a bigger problem than in Australia. I never said the video was about the US, it's about the rental market which is identical to the USA
@@ErikBlair duh, but there are so many other factors at play in America using it as an example is really not appropriate
@@reinhlr6216only in a feeble mind can one make the assumption that using examples must only be limited to what some deem worthy.
Love how the Sydney real estate agent calls the first apartment 'really modern' - while showing of 1990s decor and fix and finish.
Slaves marketed as real estate agents, Realtors, etc. actually get paid more but shown no pay for blocking human slaves, which are often marketed as citizens, from living in the area. Ask about it. Im their owner.
JUST TO SAY, i LIVE ON THE FAR NORTH COAST OF nsw, BYRON BAY WILL CHARGE BETWEEN 800-1900 A WEEK ON A TWO BED ROOM HOUSE, AN IN THE AREA OF TWEED HEADS TO BALLINA THERE ARE A REPORTED OF 57,000 HOMELESS, THOUGHT I'D LET YOU KNOW.
Some of those people were flooded out of Lismore earlier.
The more we pay in Rent or Mortgages the less we put into the economy, we buy less products, less services, meaning less taxes going to the state, i don't know how governments don't see that this is a major problem long term if it continues like this. We need to build more and assure that certain groups or individuals can only buy a certain amount of property.
Look at country with higher taxes in Northern Europe and tell me how that works sales shit.
All this show did was make me feel worse about how much rent I pay.
Pro tip, don't rent.
@@hannesRSA Yeah right ... I take that 1 million I have stashed under my mattress and go and buy a house with it right now! DUH ...
@@Peekaboo-Kitty that's too much, buy a cheaper place, maybe a 10sqm flat, with a 95% loan. Then you have 50 years employment ahead to sort out the rest.
@@hannesRSA You put the classical philosophers to shame with your concise and brutally minimalist appraisal of the human condition. Profound, yet wildly simplistic. Nothing short of a radical new approach to thought itself.
If the free market cannot provide for the people perhaps there is another way. Houses should be for people not wealth extraction.
Can rental and housing affordability be fixed ? Yes Will it he resolved? No Why? Because if prices drop it will effect the money the government gets through taxes...they need that money so instead of finding other ways to tax people upsetting others they don't wanna fix it So how can they fix it? Sure build more but the easiest fix for this is to heavily tax those who hold multiple properties for personal and investment purposes.
As a landlord I'd say like John hewsons birthday cake. Rents are made up from the expenses of the landlord first and foremost. The insurance rates and land tax and bank loans are priced higher for landlords this inevitably is added to rental prices. By the far the biggest problem is because single or small portfolio investors chase an investment dollar in property they take large loans without the same considerations to pay it off. Particularly acute because the higher interest and the exaggerated influence of federal interest tax offsets. Basically renters are paying the inflated debt interest repayments of landlords who can't really afford the investments. Are paying lawyers, trades, state and local councils inflated bills that the landlord endures. Whenever I get two trade quotes for work such as plumber One in my residence and one a rented property. The rental quote is often as much triple the price for no reason at all. "Because it's deductible" one will say to me.
heavily taxing rental owners will cause rents to skyrocket further. Adding gov't regulations such as rent control, lack of quick and low cost evictions for non payers, etc, will cause rents to go up to compensate and drive reasonable cost rentals out of the business.
@@musictosoothe not just taxing rental owners my friend. I think we should tax the mums and dads and business owners who hold multiple properties as their weekend getaways. They don't really need them. Look at the politicians who own their 2nd properties setup as an airbnb's and then used tax payers dollars to book their own work trip stays in their own homes instead of a hotel.🤦♂️ it's basically double dipping and the money 💰 doesn't go around full circle to the economy to pay business's to then pay for their employees. Let's be frank people who did this could charge whatever price they wanted and get their employer/payroll to reimburse them back paying off their mortgage.
@@musictosoothe noone suggests rent caps, however if a landlord is relying entirely on rental income to cover their entire monthly expenses every month, then they should no longer be owning that property. If income in $1000 and expenses is $1100 that is not the renters problem to pay for in higher rent, the landlord should wear that because that is the bed they created.
A lot of politicians own investment property too. They will never build the numbers they promise. I did the math, one promise is to build homes for $150000 each for families. That's not happening so 🤔
So lettuce can double the price but rent cannot increased for 30%? Maybe i should invest in consumptions and increased it for 500%.
Felt like I was watching a travel show with no proper questions asked into this mess... - 2020 Was the start of the biggest generational wealth transfer with money "printing". Impact? - Comparison of tax incentives in each city. Impact? - Number of foreign investors and estimates on the value of property they own? - Number of empty houses in each city? - Government responses or policies in each city including immigration? - Number of short-term accommodation (Airbnb) in each city? Anyway, when you want to waste taxpayers money to go on holidays and call it investigative journalism please let me know as well as I would like to sight see one of the most populated country in the world (China) off the back of taxpayers and answer how they have a surplus of supply property vs demand which will at least be of some benefit...
Spot on - I don't get why they glossed it over with band aid suggestions rather than address the true reasons why we are in this mess - market hijacked by speculators and foreign landbankers (many laundering money) who have forced many prospective home owners into permanently renting due being outbid by this group who often leave these home empty (60,000 plus in Sydney at last count) along with the Ponzi immigration scheme just to put the icing on top... Whole thing sounded like it was an infomercial written by developers....
Agreed. I’m about 3/4 of the way through this program and still waiting for some mention of information like this including AirBnB.
@@timsaxon5825 I'm thinking that it has to have been a strategic choice not to mention Airbnb. Money talks. Either in the form of a generous donation to the broadcaster or as the threat of legal action. There's just no way the producers simply forgot to include something so significant.
I live in a dump but I only pay 408 a month. Better than being homeless. I pay 30% of my income. Using a voucher . No way I could live with others.
Lucky you! I pay $1260 per month. That's 65% of my DSP just on Rent. By the time I pay for all the other Utilities, I am left with $300 to live on every month for me and my pets!
I hate the propaganda side of this. Comparing to other super expensive cities where they don't have the same factors as us here in Sydney. It's pretty clear, like all other comments mentioned, high immigration, more int students and non exisiting national rental policy.
Other countries don't have problems lol 🤷🏻♀️
@@resolecca Genius comment tbh. Thanks for the enriching contribution.
@@ms-mousa well the rental problems you mentioned exist is almost all western countries so other countries do infact have the same factors as Sydney
@@resolecca Same outcome doesn't necessarily mean same reasons. I don't follow your logic here
Other countries have less taxes tho , Copenhagen & Berlin more expensive than Sydney taxes higher
the problem is not the rent, but people salary. the cost of living is ridiculous. all things go up but our salary is the same.
You can't let Australians build houses near commercial or even entertainment premises because they'll use the noise regulations to ruin those pre-existing industries if you do. I don't think you can move away from Euclidian planning without seriously reviewing the power that noise regs give to residents
I live in Melbourne CBD, and it's only really noisy on weekend evenings, and even then it doesn't affect my sleep.
I’m a bit surprised that the piece doesn’t even mention one of the best ways to deal with the problem. The co-op. It’s bloody simple: 20, 30 or whatever the available land is good for, future owners set up a co-op and the co-op’s board. Guided by the local municipality, of course. Then the board hires an architect to come up with preliminary study including, amongst other things, the construction cost. Then the board applies for a bank loan, with the local municipality acting as a guarantor (who, by the way, also conveniently supplies the necessary building permit). The construction starts shortly thereafter and when two or three years later is finished, the owners move in. The whole process is a non-profit, hassle-free, highly efficient enterprise. The owners pay off the loan, the board looks after day-to-day maintenance, etc. All that it requires is an honest, run by professionals municipality that is free of the pesky, greedy, Ferrari-driving developers.
another clueless socialist
They should look at turning office space into residential
I agree. But ceos insist on abolishing working from home and having workers back in the office, so they wont giv3 that away......
In most instances this is not practical. Floorplates are too large, and it is often cheaper just to knock down and start again.
Apparently amenities would be an issue, especially plumbing
@@MsRubyet I worked in commercial and residential architecture. It can be done. A lot of offices already have multiple toilets and kitchens.
@@imhamish there are people in tents and mobile homes right now. I don’t think the floor plates would be an issue. Besides I worked in architecture and there’s so much you can do regarding adding walls etc. I really can’t see how knocking buildings down and rebuilding could be cheaper.
A non existent national housing policy, increasing interest rates and a massive influx in immigration, those are the main reasons. The solution is, ensure annual population growth + immigration is less than annual housing supply growth. To do this you need the government to build housing, and to disincentivise building of mansions and expensive properties, this ties into foreign investments, negative gearing and lack of builders. The truth is there are many solutions to this there just isn't political will to deal with it.
Mansions are being owned by people trying to hide wealth from the Centrelink Aged Pension Asset Test or Jobseeker so they can line up for $1million in aged pension etc for 20 years minimum. That should make you incredibly angry....that doesn't include fact that entitles them to a healthcare card so they get 50% off council rates and car registration which is why they buy a new car on the renters rent and then get discounts to run it....GenX here and my cricket bat is out for them🏏🏓. We are all gonna need to vote to change that system.....thanks RBA for the floorshow, now it's over to us to target Fed & State Concessions to stop their triple dipping greed on younger generations. Tried to get their tick out during Abbott & Morrison and now under ALP if they do not stop this intergenerational theft. Want heads on a plate now.
I'll readily admit that I don't know a whole lot about this particular topic. Also I am Canadian so therefore the specifics of the "housing crisis" here will be slightly different from that in Australia. I definitely agree with you that if the political will were to exist, then we would actually be able to build enough homes for everyone! It's a sad reflection that for whatever reason we lack the political will to provide humane and affordable housing to everyone in our society! I'd actually be interested in hearing your thoughts on the lack of builders and some ways that might be dealt with. Again I'm NO expert on the subject, but it seems to me that not having the builders would be the biggest stumbling block, because even if we sort everything else out we still can't start building anything *at the scale we need to,* if we don't have the work force to actually build it. I'd genuinely be interested in hearing your thoughts. If anyone else in the comments has *any ideas of value to add (this is KZhead after all)* then that would also be appreciated and hopefully we can get *a constructive conversation* going!
Can you name me one place in the world where socialist housing schemes haven’t produced poor quality products?
if housing is considered an essential service (as the host said) like healthcare or police, then it should be fully paid through taxes and enough supply maintained to ensure need (3 dependents vs single person) and first-come-first-serve. I'd pay higher taxes just to not deal with the stress of losing a place because of losing my job or financial emergency. Imagine if we treated policing like we do housing. Needing to compare police officers and stations for the best price and there never being enough police officers for everyone to be served. And police officers charging for their services (more and more).
The system is working perfectly, if you view it from the landlord's perspective.
It started with “The Block”.
Yep, that certainly made things worse.
It is pure greed greed greed! The love of money 💰 things need to change. And right now.
Frightening how bad it’s become. Agree having a home is an essential necessity. Next fire flood and pestilence
Lucky you dont earn nz wages haha
Lol. Seriously though. This season's fire risk is massive after several years of rain and floods. No one is prepared
Bad for you, good for those that made the smart investment to buy 😤✊️
It's likely those in a position to change anything are quite happily collecting rent, not paying it.
airbnb thats the problem
🐘
As a recent retiree who's been travelling a lot in SE Asia for much of the last 3 years, I appreciate the affordability of properties (and life generally) here. Currently in a 3 bedroom 2 bathroom 20th floor apartment in Penang Malaysia, paying approx $1350AUD per month, which includes water, electricity and 100 Mbps internet. My last (studio/one bedroom) apartment in Chiang Mai, Thailand was about $1000AUD per month, and many would pay significantly less than that. Not for everyone, obviously, but it's a stark contrast to what's available back home (Melbourne, for me).
That's affordable for you, but for the locals earning local wages how affordable is it for them??
@@resolecca Not sure, but I've not noticed a substantial rise (in Thailand & Vietnam accom costs) since I started traveling in early 2020. I doubt there's a significant overlap between where I stay and where locals stay though. I mentioned my experience purely to put an option on the table for (some) Oz retirees.
That's a good point, however both Penang and Chiang Mai are effectively country towns and not major metropolises.
@@TassieLorenzo Mmmm ... Penang pop 1.8 million, and Chiang Mai is 1.2 million. But maybe country towns need more attention in this debate too, as residential options for retirees like me. Or with better transport as commute options for city workers. My travelling days won't last forever, and I'm damned if I know where I can afford to live in Melbourne. Certainly not near my kids and grandkids, the way it's looking. It's a bugger of a situation.
@@TheWanderingPensioner I'm from Adelaide, which is also effectively a country town compared to the larger cities! [With housing prices a mere fraction of Melbourne or Sydney, consistent with that. It's doubtful you could rent the same size of apartment, in a similarly central location, for the same price in Bangkok, I guess?]
it's wired for my brain to hear $602. bucks a week. Here we say "My rent is 800.00 bucks a month"
Here in California where we have rent control many investors are buying up apartments and evicting all of the tenants which is against the rent control laws, to rent to higher paying people often times doubling the cost of the rent. And attorneys will not take these cases.
control is great for people who have a rent-controlled apartment to introduce it no one's going to build anymore
Causes- most people want to live in a major city. Lack of employment in small towns. Lack of home construction. Wealthy immigrants pricing out locals. Low minimum wages compared to accommodation.
And these immigrants shouldn't e allowed to do this to locals. We can't go to their country and do it. Canada is turning into a immigration waste land and its gonna end up only being immigrants. Locals will eventually leave then put up with the bs immigrants get away with.
How can house and rental prices ease in 2024 when the immigration flood gate are allowing several hundred thousand more people in who will need to be housed over the next few years?!
Immigration flood gate is open both ways. Retired folks can go live in cheaper countries freeing up housing for younger people
Low interest rates and cheap money of the teen years. Housing became the target investment.
They need to make real estate agents find you another house rent before they turf ppl out of their current rental cause it’s not fair they turf you out because ppl want to renovate or sell the existing rental…
At least you should be first o their list before they accep other renters
Ohhh just saw my awful typos
Life is unfair. No one owes you anything in life. I was kicked out of my rental 3 weeks before Christmas. Trying to find another place to live just before Christmas was no fun. However, it is not the job of the real estate agent to deal with my problems.
@@woox200sx no but if you ate a proven good tenant why shouldn't you go to the top of the list to be considered to rent their other stock. As a landlord I would want them to have an eye out for good new tenants if I was needing a new tenant. Better the devil you know than an unknown.. You would have a history at least with that agent or agency who selling the place you are currently renting.
@@woox200sx Incredible. You're actually running cover for the person who made you homeless three weeks before Christmas. Just to clarify: did you think there was anything unethical about the agent's decision, or were they simply acting within their legal rights?
I think a lot of it is due to cocaine money laundering, through most Western countries. Tenants aren't worth the hassle even for $3,000/month so units sit empty, month after month, taking more supply out of the market. These owners park their money in homes or buildings thinking Canadian or Australian real estate values will rise 20% a year indefinitely, but they won't. I expect housing to lose 95% of its value and that will really change the rental markets.
95% 😂😂😂
It strikes me that a report recently noted 1/4 of all properties on the east coast were bought outright in cash last year. The divide between rich and poor is astounding
And yet again, no mention of the elephant in the room, Airbnb. In the space of 6 weeks, between January and mid-March this year, no less than 6 units in the block I lived in, in Surry Hills Sydney, went from the long term rental market to the short term rental market. Over 20% of the units in the complex of 118 units were already short term rentals. The ONLY crisis that exists in the rental market is that housing has been allowed to be turned into a business for the wealthy
stop blaming the rich for your problems you wanna ban airbnb that is full on communism
Crisis is in the belief that housing should be free! Time to let go of Marxist clap trap and get back to reality
Absolutely correct. It’s no longer a wealth building path for all, but a continual wealth accumulation path for those already landed gentry
Does it really matter if we can pinpoint what broke the rental market if the will to fix it is not present? enjoy your mortgages.
That’s right. They’re going to keep on deficit spending and inflating the asset bubble.
I was ready to write this off until around the 40 min mark where you finally explained the solution. It's zoning and it always has been.
This must be why it's easier to find a rental in Melbourne CBD than in nearby inner suburbs.
and cutting immigration (demand) and building more (supply) and cutting regulations on landlords which encourages them to throw in the towel
Make more opportunities for employment in regional communities and make transport to these towns more accessible to the city Because their are plenty of potential homes out there that could do with a family or a resident moving in
The answer is having government-owned dwelling construction tied to population growth. We just pile people into the major cities and wait for private market responses...Recipe for the current situation.
Government is the problem, not the solution.
So you want communism?
So tough for renters. However, the program didn’t focus enough on balancing the rights of tenants with the rights of landlords. In Victoria/Melbourne, landlords have sold up or changed to AirBnB in droves because tenants can do as they like and potentially wreck/devalue the place with little come-back. This is seriously impacting availability. On the other hand, tenants quite reasonably, want a home not just a roof. I don’t know how we solve that dichotomy. Also, how do we address the ongoing concentration of people living in major cities? We don’t incentivise people to live in, and businesses (especially tech) to establish in, regional towns.
As a low income landlord, I can assure you that the problem lies in zoning. The market is over regulated. Landlords who don't want to expand the number of properties they have are simply conducting a process to determine who wants their property the most. More permissive zoning will assure the growth of cities and towns. Especially as intrastate competition heats up.
The main feature of the New York City apartment is the window….🤣🤣🤣
The dorms too ✋💀💀☝️🤷♂️ tf, it cost like 2400$/ month to have no visitors.
In Australia: Migration to regional areas. Debt burden impacting rents Investment properties that are not listed for rent (empty) AIR BnB
I disagree with the migration to regional areas since emigration out from regional areas has been an issue for decades. The real issue is certainly airbnb since the cost return competitiveness is too strong in airbnb favour. Particularly in tourism hotspots like cbd and metro edges. Ironically the same areas really needing workers in low paying jobs to service the tourism needs.
And what do people do for a living in the regional areas that they move to?
@@davidbrayshaw3529 medical services is usually what is focused on age care gps doctors optometry etc. Additionally food production cut picked, and school educator's, skills to support a business productiveness mechanics cleaners electricians plumbers veterinarians Tourism tourism tourism Whenever you see a derelict town empty shops everywhere, it is not usually because people don't want to be there It is because the businesses found it too slow or expensive to bring trades in, Couldn't get any staff to assist, Their customers were moving out of town. Shop owners and residents Couldn't get medical attention from day to day for self or family Their families felt or were actually not offered an educational future to their children. So the shut shop move to suburbs. There is a short lived remote city professional working craze in regional areas but unless others are there to support services to their lifestyle the remote workers will also quickly leave.
It’s called financial repression. This is why they are squeezing us. It’s all about the debt, always.
Housing is a basic human need. It’s actually all about greedy people trying to exploit others for personal profit - the private individual equivalent of imperialism.
Taxes causes household debt , more socalist country than Australia have less home ownership per capita
A Londoner here….the rents are crazy now! First, it’s extremely difficult to find a decent place and second, even lesser places are too expensive…😮
maybe its because im a londoner that i left london town
@jonathanjonathan7386 hope you have made the right choice for your situation! Personally, I like London for many reasons and for now I'm staying
have you ever owned rental properties? I retired with two after 8 years of absolute stress I sold up, never own rental properties, the problems are way to stressfull, so hard to get decent tenants , it is a waste of time !
yeh its a waste of time which is why no one invests in property.....
There is no point trying to explain to anyone the costs and stress involved in owning rental properties. They think that "their" rent goes straight into the landlord's pocket and gets spent at the Mercedes dealership, a short time later. Little do they know that the margins are small to negative on rental returns. And if you try to explain to them that $2500 of "their" money goes to the local council in rates, and another $2000 of "their" money goes straight to the state government for land tax, and that the real estate agent takes 5% of "their" money, the water provider takes another $1200 of "their" money, the insurance company... another $1500 of "their" money. Body corporate fees, levies, compliance costs and maintenance costs... even more of "their" money. Finance costs... even more of "their" money. And if there's anything left over after that, you give the federal government a percentage of "their" money at your highest marginal tax rate. Then, housing being a long term investment, when you sell the property as you move into your retirement years, you get to give the government a percentage of the capital gains that you've realised. I'm certain that this stuff isn't taught in schools as it would end investment in the housing sector and there'd be no more rentals. It's just such a shame though that tenants are so blissfully clueless as to where "their" rent money goes. And I bet all three tiers of government just love their ignorance to pieces.
@@davidbrayshaw3529 Good, practice what you preach and let someone actually own a home to live in.
I'm all for that, hence why I have advocated for a reduction in immigration and against foreign investment in the housing sector for the past 2 decades.@@anonmouse15
Well said. I would be selling my investment property now too if I wasn't keeping it for when my kids hit their 20's. I'm not sure what the property market is going to be like in 10 years. It gives me an option to help my kids into the property market or move in if it's still unaffordable.
I live (which I just inherited) in Silverlake WA and commute 2-4 hrs in one direction for work to Seattle surrounding area. I don't pay rent or a mortgage. Just property taxes and other household necessities. I purchased a EV vehicles to cut down on the consumption of gas and to help save the planet. So, most of my income is spent on my son, bills, food and investments
The average income listed for Tokyo here is off the charts high. Half of that amount is more normal, there seems to be one source for the 100k per year number, most sources half that for the average Japanese income, in fact Japan Today is quoting less than 40K for the 2019 median income. The first apartment is BS. I live around 15mins from that place and I pay around half that form a larger but very similar place. The second place is about the same size as my current apartment in Tokyo, but its 40% more expensive.
In our area (Acacia Ridge, Queensland) one single developer has been knocking buying up and knocking down single family homes that could fit a family of say 4-7 people and building single occupancy units. Every week there seems to be another one popping up. You cant tell me that buy knocking down a house that a family would pay say $400-$450 a week for is now renting at $1600 a week is helping with the housing crisis. Its corporate greed driving inflation, rental hikes and a housing crisis all in one.
not many fams of 4 to 7 ppl these days, but a lot of demand for single units
Greed and little restriction on foreign buyers! ......Especially when so many dwellings are exclusively short-stay accommodation (such as AirBnb, etc.) where the majority of the time they're empty! That of course reduces the number long-term rentals available, ..... and just as significantly there's less dwellings available first-time home buyers (regardless of their age)!
Busihfire act 2015 - no banks lending for new builds in rural areas. Plus peak retirement - rurals getting insance
@@stevenmartin6271 Plus many shire councils banning any extra accommodation being build on farm-properties!
The government greedy, lower tax country have cheaper homes duh ! Berlin & Copenhagen worse than Sydney that means more renters than home owners
Governments "we're tracking inflation, but not on societies largest expense, that doesn't count" Like it's freaking insanity that rent and mortgages are excluded from the inflation index, and if they were inflation would be at 25% a year, which illustrates the real catastrope going on in the developed world, we're getting poorer at an apocalyptic rate.
"Like it's freaking insanity that rent and mortgages are excluded from the inflation index". False. There isn't one inflation / CPI index, there is one base index and many others to track all sorts of things. e.g. Inflation + Rent, Inflation + Mortgage, and may others.
The NYC segment was a bit hard to take seriously, as no one on a tight budget would even consider Manhattan or the chic parts of Brooklyn. If your reporter had looked anywhere that tourists haven't heard of, she would have had a chance of finding something.
They literally were showing THE priciest area of manhattan. Even elsewhere in manhattan prices are quite a bit lower. Also i am not sure what the deal is with the co-living space in brooklyn. For that much you can definitely rent a 1br in Brooklyn in a decent area
No mention of short term holiday rental?? What's going on ABC?
The overt greed is going to eventually effect everyone, and as a collective, it should. This current scenario of a home being out of reach to so many is so disgusting.
The government greedy why middle class & upper class greedy in Australia private sector. You don't decrease debt paying more taxes a home owner or business owner
Increase in population, and so demand, mostly due to record immigration, and no equivalent increase in supply. This is the inevitable result.
I agree. I'm pro immigration. But here in Australia we are bringing in 400 000 wealthy immigrants per year. They are out competing current Australians.
It's not just that, but many overseas buyers (mainly Asians) are purchasing Australian properties, because even the latest restrictions can be circumvented!
It’s more than population growth. The system is also just incentivising speculation and not adequately stimulating supply. This is the chaos negative gearing partly wrought (it should ONLY ever have been reserved for investments that add stock). Add to that overly cumbersome development rules that focuses on single family housing in new areas and make it hard to add higher density developments in established suburbs, and finally throw in sudden rapidly raising interest rates and you have a bit of a disaster.
Population growth is the sole driver of housing costs. Without population growth, speculators will be much more conservative when appraising housing for investment. Without population growth, short term rentals (air B&B's) will be unsustainable. Without population growth, the laws of supply and demand dictate that inflation in the sector will be greatly reduced. But don't tell anyone. It's a secret.
@@DeftPol The pollies don't won't to change the tax-rules as many of them have considerable property-portfolios!
Would’ve been better to start with Macro policies that define the way people think about buying/renting. Monetary policy changes from 2017-2023 would’ve been one. Ability of foreigners buying up properties on cash during the 2019-2021 COVID times would’ve been another one. MP tightening in lieu of an expected global recession would be third. WFH ease for white collar work and people moving away from main cities, then WFH slowly going away and people having to return to cities would’ve been a super important point to cover, especially in places like NY, California, London and Sydney. Lots missing in an hour long video and lots of useless filler information for each city visited.
I think a big factor that's making rent unaffordable is that there are so many single parents that have to live off of one income instead of having a dual income of two parents. That says a lot about society in general.
Surely Tokyo has the advantage in that you can pay using Dollareedoos?
The politicians don't care and don't want to fix it. The majority of Australians don't care either. Renting is a mugs game for immigrants and the poor.
They'll start caring when their kids are 30 and still living at home. Because that's where we're heading.
My parents told me as such (about the latter statement), ignoring the fact that my brother, sister-in-law and nephew live in their house for the very same reason they are so pleased and supportive of. (Constant house price growth)
Up until last year, I was a renter in Melbourne. One thing that surprised me was that it was easier to find a rental in the CBD than in nearby inner suburbs. Perhaps because density of housing in the form of apartments, rather than houses, is much greater in the CBD.
There is a glut of rentals in Melbourne's CBD with thousands more coming on line. The inner suburbs are at capacity, especially medium density suburbs such as St. Kilda East, Prahran, Armidale etc.
@davidbrayshaw3529 Yes, it certainly seems like it. I don't understand why people want to live so close to the CBD but not in it. Why do you think this is?
@@GeeEee75 I was one of those people and mum, my sister and my son still are. The city is noisy, 24 hours a day. If you have to drive for work, it can be painfully slow. And unless you're spending money, there really isn't much point in being there. Melbourne's inner suburbs have park land, strip shopping centres and in the inner South East, there's the beach. There's a feeling of space. And there's public transport. You can live 6 or 7 kilometres from the city and get there in 10 or 20 minutes. And if you're a car owner, inner suburbia is much easier to deal with than the inner city. And post Covid, a lot of people work from home, the city isn't the professional hub that it was only a few short years ago.
@davidbrayshaw3529 Those are common preconceptions, but not all true in my experience. I live in an apartment overlooking the Carlton Gardens and Exhibition Building, and have stunning views and massive green space on my doorstep. I don't find the noise any more of a problem than when I used to live in Northcote. There are plenty of apartment buildings with car parking, although I don't own a car and mostly don't feel I lack a critical amenity. It's my opinion that if people actually tried it and made a careful selection of which apartment and which building to live in, they would likely be pleasantly surprised.
@@GeeEee75 I know exactly where you are, I lived not too far from there myself. Perhaps my definitions are skewed. I'd call where you live "inner urban". Yes, you can't get much "inner". But you're not in an apartment in the middle of the CBD. That is a different gig. Carlton goes to sleep at night, or at least, it used to. I'd also call Northcotte "inner urban", for that matter, now that I think about it. I don't know where I'd rather live, these days. Carlton was a bit "how's your mother", back in the early nineties. I'm in rural Victoria, these days. I'm not going anywhere from here, fast.
Sorry but the piece on Tokyo just doesn't reflect the actual rent prices. The rental market doesnt work anything at all like it does in Australia. For starters, the first payment when signing the contract is often several months rent.. for a 400pw property you would be looking for at an up front payment of about 7000 dollars with only about 1500 of that being refunded upon move out if its in perfect condition and if you re-contract you will need to pay another 1-2 months rent, tenants pay for all the insurances on the rental property, not the owner. Second, people in Japan care way more about the distance from train stations, supermarkets and convenience stores because people do their groceries in smaller quantities and more regularly. They also care a lot about the age of the building due to construction regulations regarding earthquake resistance. They also factor in security a lot more significantly. An apartment that has a front entrance to the building that can only be accessed by residents is considerably more expensive than places that don't have this. There is more but it's impossible to list it all. But the places they selected aren't actually cheap areas. They are actually highly desirable loocations. There are PLENTY of other places that are very accessible where you can get 60 square meter apartments cheaper than what they chose. I would know because I have searched for rental apartments over many years and also own one.
Why were we shown around that first London apartment in Shepherd’s Bush if it was way over budget?
What a great story, well done! Govt needs to come to the party with rent control until it is building enough affordable units each year to cope with the existing houseless and the migration taps it keeps turned on full bore. 1/3 of our people live in rented accommodation and the long term trend is this will increase. It is a crisis, and needs to be dealt to with covid level funding and action.
I really hope you young ones get out there and vote this is unacceptable you all should have the opportunity to purchase your own home and these big corporations are only in it for money and dont want you to own otherwise they can't make money and housing is a need not a want and should not be about profit.
Rent controls only make things worse. Investors will exit the market and supply levels will drop. The way to increase supply is to increase investment in new dwellings, by removing govt controls over land, construction and utilities, among other things.
@@davidg1838 Do you mean that rent controls make things worse for LAND LORDS? We are talking about tenants - where is your evidence rent controls make things worse for TENANTS?
@@markkunath8440 Rent controls make things worse for landlords AND tenants. Landlords are unable to set prices based on demand, so they move their capital out of real estate (into more high-risk investments) and tenants suffer from lack of supply. It's basic economics. The evidence is plentiful and has been well-documented by reputable economists.
@@davidg1838 That is false, as the supply, i.e. the actual asset doesn't disappear into the ether once the former investor disposes of the asset or is forced to hold it and can only recoup the now lessened income. It would force a cascade of repricings through the residential RE market tho, as highly leveraged investors would have to liquidate at a loss and likely that this would force prices down in some areas..
Build to rent is more expensive then other rentals in the same area. I looked at LIV in melbourne and it was crazy how much more expensive it was than others.
AU$ 750 per week for a studio flat here in Dublin plus monthly management fee plus car parking space ! Rip off everywhere
There's far too much focus and rhetoric around availability and prices within major cities, especially from an antipodean perspective where the cities are smaller, but we have thriving suburban sprawl in almost every direction. That's not to say that availability and pricing is not an issue at all in the suburbs and that massively scoped future planning isn't imperative, but we also need to address WHERE people are wanting to live and how that doesn't always align with reasonable expectations. We need to see huge infrastructure upgrades, encouraging growth away from the major cities, as well as a push for greater WFH arrangements to reduce that need for people to need to consider their proximity to the CBD as a factor when choosing where to live. WFH will be the greatest factor of the next decade in changing where we choose to live and shifting our focus away from one focused so exclusively on promimity to the CBD as a driving factor.
When people talk about housing, they only talk about housing. They forget about the infrastructure that goes with it. This "documentary" is another prime example of the ignorance that surrounds the bigger picture. If we need more houses, we need more hospitals, more fire stations and more police stations. We need more schools, childcare centres and kindergartens. We need more roads, more trams, more train lines and more buses. We need more sportsgrounds and sports clubs. And we need more employment opportunities in the areas in which there is housing growth. Most of all, and we wont realise it until the next drought, we need more potable water and higher rates of food production. But that's not what this discussion is about, is it. It's about industries wanting to pump their respective economies full of happy little consumers, regardless of amenity.
WOW, we need more programs like this, base the rent on what others earn.
If you mean based on what you earn not others then I'd agree
Only if you don't want the world to be the way it is now, but will be worse if there's no incentive for individuals to work hard, purchase investments and lease out.
@@TheStevo2156 Tenants have to work hard to pay the rent. After all, what bigger incentive could there be than to have a roof over your head? Not everyone is a born capitalist, thankfully.
But if that rent amount is less than expenses plus a profit, no owner will rent for that.
@@TheStevo2156 Oh geez, that's an extremely lazy judgement with no understanding of what's really going on. People with good jobs are having issues finding affordable homes, rentals included. Your argument is lazy and outdated.