The government is promoting their Help to Buy scheme where they will own 30-40% of your home (instead of you). While it might sound good to Australians desperate to get into a house, the details are terrifying. One of those details that didn’t get much media attention was the structure of the mortgage. Government won’t be a co-owner of the house, they’ll be a second mortgagor. That means they are behind whichever Big Bank gives you the main mortgage.
This is bad news because if house prices go down at all (they are currently at record highs) the Big Bank gets first priority to recover all of their losses, leaving the homeowner and the government (aka taxpayers) out of pocket. That means the banks will probably be getting risk free profits at our expense. This is just one of the many problems with “Help to Buy” which means it won’t help at all.
One Nation has the real solutions to the housing crisis. Start with cutting record immigration, banning foreign ownership and letting tradies do their job, not pumping up Big Bank profits.
Transcript
Senator ROBERTS: Thank you, Minister. Just to confirm, the bank or the lender would be the first mortgagor and the government would be the second?
Senator AYRES: Yes, that’s exactly right, and there are, of course, other arrangements that people have in the private sector that that will look very similar—that is, for the participant, the relationship with the approved lender and the second mortgage will be exactly the same as other Australians have, but there will be a lower mortgage threshold and lower repayments for that group of Australians who satisfy the criteria.
Senator ROBERTS: In the event of a default or price fall, is the bank entitled to recover its losses before the government does? That would seem to be the case.
Senator AYRES: Yes. Just like in an arrangement that you might have or any other Queenslander might have with their lender, there are shared risks and shared benefits.
https://img.youtube.com/vi/gqLhhTQEDwU/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-12-10 15:52:412024-12-10 15:52:44“Help to Buy” is Actually “Help the Banks”
The Help to Buy Bill 2023, introduced by the Albanese Labor government, will make Australia’s housing crisis worse. The bill proposes to allow the government to own a significant portion of the house – 30% for existing homes and 40% for new ones. Providing buyers with an additional 40% purchasing power will only drive up house prices further, as highlighted by the Productivity Commission’s warnings about increasing demand leading to higher prices.
The bill is also criticised for being poorly targeted and not addressing the fundamental issue of housing supply and demand. The limited number of spots available under this scheme suggests the government know it will introduce inflation. Key questions about how profits, losses, and renovations will be treated are unclear. Participants in this scheme could be far worse off.
One Nation proposes a way for all Australians to be able to afford a house. We focus on addressing both supply and demand issues. These include throttling the amount of immigrants in the country from their record highs to pre-COVID numbers (for a start), banning foreign ownership of Australian residential properties, allowing Australians to leverage their superannuation funds towards owning homes, establishing fixed 5% mortgages, cutting GST on building materials and gutting the bloated building codes.
Under the government’s “Help to Buy” bill, you’ll become a slave in your own home. Under One Nation’s plan, the Australian dream of owning your own home will become a reality.
Transcript
The Help to Buy Bill 2023 is a bill that won’t help anyone. Right now, Queenslanders are sleeping under bridges and on riverbanks. In one of the world’s richest states, working families with children are living in cars. Where do they toilet or shower? It’s inhuman. Rents are skyrocketing—if a rental can be found. House prices are reaching record highs. This is a housing crisis, one of the worst we’ve faced. It’s an inhuman catastrophe.
The Albanese Labor government wants to look like it’s doing something. Enter the Help to Buy Bill. Under this plan the government wants to own a significant part of your house. If it’s an existing place, the government wants to own 30 per cent; if it’s a new place, 40 per cent—with the government paying for part of it with low-income earners. While a 40 per cent subsidy might sound attractive, it’s fatally flawed. If the government just borrows more money for this plan then one thing is going to happen. When you give people 40 per cent more money to buy a house, house prices are going to go up. The Bills Digest notes:
In 2022, the Productivity Commission concluded that—unless it is well-targeted … assistance to prospective home buyers presents too great a risk of increasing housing demand and, consequently, house prices.
The government’s own Productivity Commission warned them this plan would increase house prices. Even the Labor government recognises this. That’s why they’ve severely limited the amount of places available under the scheme—so that house prices aren’t drastically increased. There’s a contradiction right there. If the government is only opening limited spaces so there’s no impact on house prices, then it’s an admission the scheme will not help many people.
The problem of increasing house prices is one of too much demand for the amount of supply. This bill will only increase the amount of demand and increase house prices. In the absence of more supply, we need to decrease demand, not increase it. As Dr Cameron Murray from Fresh Economic Thinking accurately said:
If you want people to have cheap housing, give them cheap housing. You can go and do all the financial tricks in the world but at the end of the day if they’ve paid that price, someone’s paying the price.
This bill’s core concept and premise is flawed and possibly a lie. We can’t subsidise our way out of a house price problem.
Looking at the bill’s details or lack of details, the problem is worse. Firstly, let’s look at profit and loss and renovations. One of the most concerning questions is how the government will treat profits and losses and renovations. To these questions, this bill has no answers. How much of the profits will the government take if you sell your house? We don’t know. How much of the loss will taxpayers pay if house prices go down or the homebuyer defaults on their mortgage? Australian house prices have aggressively and consistently risen for 30 years. What if they fall? The bill is silent on how this would be handled. Would taxpayers be forced to pay for the entire loss on someone’s mortgage? The government basically acts as a mortgagor second to the bank. Does this mean the bank gets first call to recoup all their losses and the taxpayer simply has to cop the loss on whatever is left over? We don’t know.
If someone improves the value of the house with renovations, does the government take 40 per cent of the improved value while doing nothing? We don’t know. Imagine tearing up carpets, swinging hammers and sanding with bare hands for six months or a year, and the government takes 40 per cent of the profits from that hard work of yours. That’s entirely possible under the bill as currently drafted. Under the government’s Help to Buy Bill, Australians could become slaves in their own homes. We cannot wait for this bill to be passed and a minister to make a decision later down the track. These matters must be clarified and explained in the bill. Homebuyers and taxpayers deserve to know what the risk is here.
Secondly, let’s look at some criteria. The eligibility criteria are clunky and don’t cater for differences between states. The maximum income is set at $90,000 for singles and $120,000 for couples. This is despite the average house price and the required mortgage varying hugely between states and between towns. In Darwin, the average house price is $504,000. In Sydney, it’s $1.2 million, more than double, yet the same income thresholds apply. The price thresholds are not available in the bill, and it appears the government has not yet published thresholds. When it comes to the housing crisis, one size doesn’t fit all, yet that’s exactly what this bill tries to do. We’re just meant to pass the bill as a blank cheque and trust that the bureaucrats and the minister will get it right down the road—maybe.
Thirdly, let’s look at the constitutional basis. This bill is completely outside the federal government’s power. Some reviewers have said that Help to Buy is built on a ‘complex constitutional foundation’. That may be the understatement of the year. Put very simply, under the Constitution, this is not the federal government’s job. To make this bill legal, there are a huge number of constitutional headaches, state government agreements and transfers of powers. Federal parliament simply shouldn’t be dealing with this. It’s outside of the powers granted to us under the Constitution.
https://img.youtube.com/vi/FW4fzjmfTTc/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-12-05 14:05:002024-12-05 16:19:42Labor’s ‘Rent to Buy’ Plan Will Increase Housing Prices
Defence generals tell me that, despite a large number of troops being relocated to Townsville during a housing crisis, there’s no problem with finding accommodation for our diggers. This claim comes despite Townsville having a “dangerously low” rental vacancy rate of just 1%.
If you or your family are experiencing difficulties in finding accommodation after being directed to move to Townsville, please email my office as I’d like to hear from you.
Transcript
Senator ROBERTS: How many extra people have been moved to Townsville? What numbers will Townsville increase by and are there adequate homes in Townsville?
Senator McAllister: I think, as part of your answer, Lieutenant General Stuart, you might respond to the first part of the senator’s question, which was about making diggers homeless. You may wish to include a response to that in your answer.
Lt Gen. Stuart: That’s just not a factually correct statement. We’re not making soldiers homeless. We have a plan that’s been worked through with our team mates in the Security and Estate Group, who are our liaison with Defence Housing, and manage the on-base accommodation. And, of course, we have a very strong relationship with local government in Townsville. It’s a staged plan, over the next three career management cycles, the first of which is—
Senator ROBERTS: What’s a management cycle—how long?
Lt Gen. Stuart: It’s a posting cycle—every 12 months. The moves occur roughly between December, January and February. This coming posting cycle will see the first of those soldiers that have volunteered, or have been asked to, go to Townsville to have those skills that we are building in the brigade there. To go to your point about shortages in some of our numbers, we are well under our authorised strength in Townsville. So the additional numbers don’t actually fall above the authorised strength in the next two years. That is notwithstanding the fact that the rental market in Townsville is quite tight.
Senator ROBERTS: It’s tight all over Australia—almost at record levels because of massive immigration. Immigration has doubled the previous records, so I understand the dilemma. So what you’re saying is that you understand the housing pressures, but you’re managing that?
https://img.youtube.com/vi/81viFiQupe8/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-11-20 14:48:082024-11-20 14:53:17Defence Claims No Housing Issues for Troops in Townsville
Australians are sleeping on the street because they can’t afford rent or their mortgage. Meanwhile, a record 2.4 million “temporary” visa holders are in the country, competing with Australians for housing.
Transcript
Chris Smith: I think it’s fair to say to Malcolm that Australia’s immigration program is now officially out of control, and the worst it has ever been.
Senator ROBERTS: Without a doubt. Completely agree with you. We have more than 2.4 million residents, excluding tourist, residents who are not citizens. Excluding tourists. Rent is up 52% in five years. Now, just remember that the Albanese promised, after the last financial year where we got 518,000 net immigrants, by far the largest ever, almost double the previous record, Albanese commented – yeah, yeah, yeah, we’ll cut it. Well the rate Immigration is coming in this year is higher than the record from last year. Higher. These people are just telling lies after lies. Lies. And the thing is they’re hiding over a per person per capita recession. They don’t want to be the government that was in place when the recession occurred. They would rather see people sleeping under bridges, in tents, in cars. I mean, working families Chris are going home at night to their kids and sleeping in cars. Where do they shower? Where do they toilet? I mean, we got the richest state in the world, potentially in Queensland, and we got people living under bridges, families, working families. Because the government just wants to look good by lifting up GDP to make sure we don’t have a recession. We would be in a recession now without large scale immigration fudging the numbers.
Chris Smith: Fudging the numbers, that’s exactly what large scale immigration does. It’s terrific to have you on the program. Senator Malcolm Roberts, thank you for your time.
Australians are sleeping on the street and the Government doesn’t care.
Hundreds of thousands of arrivals are flowing into the country while we don’t have houses for the Australians that are here.
Rent prices are up 40% and house prices are 10x the average income, completely out of reach for most of Australians. We need to cut immigration, ban foreign ownership, give Australians more savings, introduce some competition to the banking cartel and open up construction as well.
Australians deserve their own home, One Nation will make sure they get one.
Transcript
The housing and rent crisis is a national tragedy. In Australia, one of the richest countries in the world for resources, we have working families homeless, sleeping in their cars or under bridges. In August 2020, the national average rent was $437 a week. It’s now $627, an increase of 40 per cent in just a few years. The national rental vacancy rate is just one per cent—actually slightly under that—far below the three per cent rate that’s considered a healthy market. House prices are out of control. In 1987, the average house cost 2.8 times the average income.
Today, a house costs 9.7 times the average income. This is why there are hardworking Australians sleeping on the street—families on the street. People under 30 have given up hope of ever owning a home, yet we oldies are meant to hand our young people a better life than we had.
One Nation promises to fix this housing crisis for all Australians. We will make the tough decisions that the Liberal and Labor uniparty won’t. Two point eight million temporary visa holders are in the country today, up from 2.3 million pre COVID. That’s an additional 200,000 homes needed for these new arrivals. While Australians can’t afford roofs over their heads, we need some of these people on visas to leave. An Australian can’t buy a house in China, yet foreign investors can buy both new and existing houses here.
One Nation would ban all foreign ownership of residential housing. Australians must come first. We would allow people to use some superannuation to invest in their homes. After all, it’s your money. We will ditch Labor’s facade, its pathetic, bureaucratic Housing Australia programs. Instead, we’ll use the same funds to create cheap 30-year mortgages fixed at five per cent interest to get Australians into homes.
https://img.youtube.com/vi/P3x0fzcDcxM/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-08-13 13:05:572024-08-13 13:06:02Australians Deserve Their Own Home
I called out the Prime Minister’s jet set lifestyle during parliament. Australians can see how out of touch and ineffective Anthony Albanese is as a leader.
The Prime Minister has spent too much time rubbing shoulders with pop stars, sucking up to billionaires and flying around the world in long overseas trips and too little time talking with everyday Australians.
Meanwhile Climate Change Minister Chris Bowen and his Ministry of Misery is making life harder for everyday Australians with every new net zero measure.
This is a PM who clearly cares more about globalists and celebrities than he does for the people of the country he was born into.
If ever the comparison to ‘Nero Fiddling While Rome Burned’ was appropriate for a political leader, it is Anthony Albanese.
Transcript
In a speech earlier this year, I made the point that one can judge a man by the company he keeps. I observed that one of Prime Minister, Anthony Albanese’s first orders of business was a private meeting with globalist billionaire and manipulator extraordinaire Bill Gates. And I spoke to a more recent meeting the Prime Minister had with Larry Fink, chairman of BlackRock, the merchant bank that now owns Australia and tries to control Australia.
In the break, the Prime Minister once again used taxpayers money and a taxpayers plane to hobnob at concerts, exhibition openings and attend a billionaire’s birthday soiree. In so doing, the Prime Minister has demonstrated he will show fealty to anyone he needs to, in order to keep swanning around as though the weight of responsibility of running this beautiful country of ours was somehow not on his shoulders.
It’s not the job of the Prime Minister to party at a time when everyday Australians are struggling to pay their rent, pay their mortgages, find a roof to put over their heads and pay their electricity bills. Especially because of his government’s policies. Can someone on the Government benches remind Prime Minister Anthony Albanese the word party in Labor Party doesn’t mean what he seems to think it means.
All the while, Chris Bowen MP, Minister for Climate Change and Energy, and now known as the Ministry of Misery, has been out there destroying our productive capacity, making people’s lives harder. His latest policy is a tax on commercial vehicles, including utes that tradies need to be a tradie. How can a so-called party of working Australians introduce a ute tax that will make it harder for tradies to own what is an essential tool of their trade?
Have you considered what that tax will do to housing construction? It will cut house production and raise house costs. If ever the analogy of fiddling while Rome burns is appropriate to a modern leader, it’s now: Prime Minister, Anthony Albanese. What a bloody disgrace!
https://img.youtube.com/vi/xYT_53pabRA/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-02-27 17:42:512024-02-27 17:42:55PM Partying Instead of Running the Country
https://img.youtube.com/vi/hGS82CiX3Dw/maxresdefault.jpg7201280Senator Malcolm Robertshttps://www.malcolmrobertsqld.com.au/wp-content/uploads/2020/04/One-Nation-Logo1-300x150.pngSenator Malcolm Roberts2024-02-26 08:02:192024-02-26 08:02:24Liberal and Labor Dance to Taylor Swift While Oz Suffers
I spoke in parliament about the homelessness crisis in Australia and called out those responsible.
In Labor’s urban heartland, everyday Australians are sleeping in tents. These ‘tent cities’ are forming in public parks, showgrounds and under bridges. Australian citizens are being pushed aside to make room for the 2.3 million visa holders this government has let in during its term.
What the heck is this government doing? No stunts can cover up this failure. Imagine what kind of Christmas these Australians will have? The government is sending billions of dollars in foreign aid and contributions to organisations like the WHO and the United Nations, while letting its own people become homeless.
Albanese’s government is the Grinch that is stealing the Australian way of life.
Transcript
As we go about the business of the Senate today in the Labor Party’s normal chaotic, despotic manner, out there in Labor’s heartland, everyday Australians are sleeping in tents in public parks and in tents under bridges.
Australian citizens are being pushed aside to make room for the 2.3 million visa holders this government has let in during its term. That’s 2.3 million people being brought into a country that’s only building 120,000 new homes a year. That’s 2.3 million arrivals into a housing market that was already short 100,000 homes needed to put a roof over the heads of all those who were here when Labor took office—homeless Australians this government has turned its back on.
How must these people feel, watching this one-term Prime Minister jetting around the world in style, hobnobbing with predatory billionaires at elitist events in lovely locations, dining out on the best food and sleeping in the best hotels. Perhaps the next trip this failure of a prime minister should be taking is to the riverbank at West End, New Farm, South Bank, North Quay or Musgrave Park, all in Brisbane, or to the showgrounds in Gladstone or parks in Bundaberg.
The footage of these Depression-era tent camps is running on the ABC as we speak. I suggest the government watch it and ask themselves what the heck they are doing.
Tent cities are appearing right across Labor’s urban heartland—everyday Australians unable to keep a roof over their heads because there is no roof for them.
Thanks to Labor Prime Minister Anthony Albanese and this Labor government, there’s no place in Australia for Australians. Every tent in these tent cities has a name stamped on it—the names of Prime Minister Albanese, of Treasurer Chalmers and of Immigration Minister Giles. Your heartland is hurting, and no stunts on a bill the Senate had mostly passed already will cover up your failures.
Bring on the next election, because you lot are done.
Mortgages are skyrocketing, rents keep increasing, two thirds of young Australians believe they will never own a home and it’s hard to blame them.
The housing unaffordability crisis is the greatest issue facing Australia. Australians want to have their hard work and savings rewarded. They want a place to call their own and a place they can stay to raise a family.
The median house price in Brisbane is 10 times the median income.[1] In Brisbane it would take the average income 13 years just to save a deposit.
Rents are also rising on the back of a record low national vacancy rate of 1%.[2] Experts consider a 3% vacancy rate to be tight, a national average of 1% is an absolute crisis.
Right now, many Australians simply cannot afford a roof over their head.
Like any market there are two things and two things only that affect housing prices: supply and demand. Decades of successive governments have mismanaged both sides of the equation.
This is how One Nation would properly manage our economy and deliver cheaper houses and cheaper rent:
Cut overseas arrivals, ban foreign ownership, increase supply and stop pumping up profits for the Big Banks.
Cut the flood of overseas arrivals
In the short term, we need to stop pouring fuel on the fire. A huge amount of overseas arrivals are driving unsustainable demand.
Excluding tourists and short stay visitors, there are currently 2.3 million visa holders in the country likely to need housing.[3]
These working visa holders, students and others are putting enormous strain on the rental market, fighting Australians for a roof over their head and driving up rent prices.
The arrivals that can afford it are also buying houses, pushing up prices even higher.
The Albanese Labor government issued a record 670,000 student visas in one year when we only have 100,000 dedicated student accommodation beds.
In addition to these 2.3 million visa holders likely to need housing, there are roughly 400,000 tourist and other visa holders in the country.
While tourism is good for Australia, in the middle of our rental shortage this high demand is motivating owners to take their properties out of the rental pool and convert them to lucrative, full-time AirBnBs.
That means less rental supply for people needing a place to live and higher rents.
2.7 million visa holders, more than 10% of Australia’s population, are in the country right now fighting Australians for a roof over their head.
The country cannot sustain this level of overseas arrivals. It must be cut to take immediate pressure off housing availability and affordability.
Why haven’t we cut arrivals already?
Powerful lobby groups who rely on high immigration have been able to falsely label anyone who talks about this problem as “racist”.
Talking about reasonable levels of immigration is about securing a prosperous future for all Australians, including those who come to the country. Ruining our economy is a bad outcome for immigrants as well.
As the problem gets even worse, even mainstream media is now being forced to acknowledge the huge negative effects Australia is seeing from an unsustainable amount of arrivals.
Homelessness is a scourge affecting all our cities, but it's particularly severe in Queensland. Post-COVID migration to the Sunshine State has exacerbated a housing shortage, with some cities recording extraordinary rent inflation. #abc730pic.twitter.com/yZUxW76iB0
The biggest winners from high house prices and big immigration are the big banks and multinational corporations relying on cheap labour.
Mortgages are so profitable for banks that they have become over-reliant on housing prices.
The ratio of borrowing for mortgages versus borrowing for business has skyrocketed to more than 200%, up from less than 40% in 1990.[3A]
That means the Big Banks are less diversified and will lose more money if housing becomes affordable.
As the Reserve Bank raises interest rates, the big banks pass that on at up to 7%, yet the banks borrowed long term funds from the RBA at just 0.1%.
They’re pocketing the huge difference leading to record-breaking profits.
There is billions of dollars at stake for the banks and other big businesses if housing became more affordable. The questions have to be asked whether government is putting the profits of greedy banks and multinational corporations ahead of Australians having affordable housing.
One Nation would never repeat the mistakes of the COVID period, where the Reserve Bank was allowed to create $500 billion out of thin air.[4]
That led to the inflation the Reserve Bank is now trying to fight and the tool it uses to do that is sending mortgage holders broke.
This only pumps up the big banks profits.
Ban Foreign Ownership
Finally, on the demand side solutions, we need to ban foreign ownership of Australian assets.
The government has no idea exactly how bad foreign purchases are.[5] A single real estate agent in Sydney sold $135 million in property to Chinese buyers in just six months.[6]
Australians can’t own a house in China, so why should we let foreign citizens buy property here?
Australian property is also a hotbed for suspected money laundering, with much of this happening in foreign connected purchases.[7]
We need to ban foreign ownership of Australian homes to decrease demand and give Australians a shot at owning their own home.
Let tradies build homes
On the supply side, government needs to get out of the way with their restrictive building codes, green land restrictions and a spider web of employment law.
Our tradies know how to build homes. Government just needs to get out of the way and let them build.
While increasing supply is an important part, it is important to note that supply can only be increased so much in the face of overwhelming demand, fuelled by overseas arrivals and foreign purchasers.
Australia has typically built homes at nearly the fastest rate in the world, fourth out of all OECD countries.[8]
Supply chain issues, high interest rates and rising construction insolvencies mean its very unlikely we will be able to easily build even more supply than the high amount we already do.[9]
Looking at how Australia punches above its weight in building houses and increasing supply already, it’s clear the biggest issue we have to fix is the demand side currently driven by overseas arrivals.[10]
One Nation would make home ownership a reality for Australians
A home is a castle.
The family unit and our society flourish when we have stable places to build our lives and raise families.
Decades of indifferent governments from both sides of politics have ruined this dream for many.
Only One Nation has the guts to make the decisions that will make the dream of home ownership a reality for all Australians.
Affordable houses, lower affordable rents and a flourishing economy is all possible under One Nation.
Data from Home Affairs and analysed by Tarric Brooker shows there are 2.3 million visa holders likely to require housing in Australia right now excluding tourists and other short stay visas.
Almost every Australian in a rental saw their rent increase during the past three years and around three-quarters of young Australians believe they will never be able to afford a home.
Added to these problems we’re seeing Airbnb conversions taking accommodation off the rental market.
Australia’s housing crisis is a direct result of the Albanese government’s flood of permanent immigration visa holders and tourists.
Transcript
We know that the conversion of houses to Airbnbs take away beds in which Australians could be living. The Albanese government oversaw over 5.86 million tourists arrive last financial year that. That’s creating a huge incentive for property owners to turn their houses into lucrative short-stay accommodation, making the housing and rental crisis worse. We have only 100,000 student accommodation beds, yet the Albanese government issued a record 687,000 student visas in one year. Analyst Tarric Brooker has used Department of Home Affairs data to show that there are 2.3 million visa holders likely to require housing in the country right now. This figure excludes tourists and short-stay visas.
In the past three years, almost every Australian in a rental has had their rent increased, often savagely—if they can find a rental. Almost three-quarters of young Australians believe they will never be able to afford a home. If this rate of people coming into the country is maintained, sadly, they will be correct. Australia’s housing crisis is a direct result of the Albanese government’s flood of permanent immigration, visa holders and tourists.
There are two sides of the housing equation: supply and demand. With record overseas arrivals driving record levels of demand, we will never be able to build enough supply to keep up with demand. On the supply side, barriers to building even more housing are growing. Rising interest rates are putting pressure on borrowing capacity to pay for new houses. Construction supply chains are still broken from gross federal and state COVID mismanagement. Rising material costs, combined with existing fixed price contracts, are squeezing builders, and the construction industry is facing a wave of insolvencies. The unsustainable level of overseas arrivals in our country is fuelling Australia’s housing crisis. The rate of arrivals must be cut quickly.
