Barnaby Joyce tells young Sydney home buyers to suck it

By Leith van Onselen

In scenes reminiscent of when former treasurer Joe Hockey told those looking to buy their first home to “get a good job that pays good money… [so] you can go to the bank and you can borrow money”, Nationals leader Barnaby Joyce has told would-be first home buyers in Sydney to move to other parts of the country. From The Canberra Times:

“I get annoyed when people talk about that the only house that you can buy apparently is in Sydney and it’s too dear,” he told ABC Radio National. “There are other parts of Australia. I live in one, it’s called Tamworth”…

“Houses will always be incredibly expensive if you can see the Opera House and the Sydney Harbour Bridge. Just accept that,” Mr Joyce said. “Houses are much cheaper in Tamworth, houses are much cheaper in Armidale, houses are much cheaper in Toowoomba.

“Sydney’s wonderful and so is Melbourne. The trouble is so many people think it’s wonderful that the price of houses is incredibly expensive. But there are other parts of Australia…

“I did move out west so I can say this – if you’ve decide you’ve got the gumption in you and you want to move [west], you’re going to have a very affordable house. If you say ‘I want a really affordable house in Mosman’, well, don’t we all.”

Message to Barnaby: Sydney housing is not just expensive near the Opera House and the Sydney Harbour Bridge, but all over. One only needs to examine CoreLogic’s latest Quarterly Mapping the Market Report. which shows the complete absence of affordable housing across Sydney:

ScreenHunter_16947 Jan. 18 15.38

For a family seeking a house to live in, they would need to stump up nearly $1 million (plus stamp duty) to purchase anything within 20 kilometres of the CBD. Even if they spread-out to within 50 kilometres or more from the CBD, they would be hard pressed to find anything that one could reasonably classify “affordable” to those on median incomes.

Sure, more affordable housing is available in the regions, but are there jobs to match [Tamworth’s unemployment rate is 7.5%]? And does Barnaby appreciate that moving requires one to become detached from their families and support networks – hardly an easy solution?

Finally, it would be nice if Barnaby acknowledged the deleterious impacts from the Coalition’s ‘Big Australia’ mass immigration agenda. Most migrants end up in the big cities of Sydney and Melbourne, thereby placing continued upward pressure on housing costs, infrastructure and commute times.

Under this mass immigration agenda, Sydney’s population is projected to rise by 87,000 people per year (1,650 people each week) to 6.4 million over the next 20-years – effectively adding another Perth to the city’s population:

ScreenHunter_15562 Oct. 18 15.29

Melbourne’s population is projected to balloon by 97,000 people per year (1,850 people each week) over the next 35 years to more than 8 million people:

ScreenHunter_15632 Oct. 23 12.16

Why is it reasonable for incumbent young Australians to be forced to move from where they grew up just so they can make way for tens-of-thousands of migrants arriving into Sydney and Melbourne each and every year?

I thought Australia’s politicians were there to represent the interests of incumbent Australian citizens?

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  1. Don’t be too hard on Barnaby.
    He represents a rural/regional constituency.

    And Tamworth is beautiful

    • Wife and I would love the take the kids rural. Smaller mortgage, less travel to work, less pollution, small town friendliness (or everyone gossiping about everyone else 😉 ). Sounds great except job opportunities for a professional with IT experience are slim, and I could take a pay cut but we’d risk being worse off, even with a smaller mortgage.

      But I suppose moving rural is easy when you’re a lifelong Nationals politician who gets plenty of travel allowance.

      • I here there’s good work in Tamworth hunting down the unlawful transport of rich celebrities’ pets. Animal control for the stars.

      • You need to think laterally Torchy. Get into politics, buy some beaten up worthless piece of land out West, do a few favours for the CSG sector, sell your farming constituency out, grant a few approvals and you’re rich. Mosman’s too cheap.

      • This. I have a telco eng background and did just that.

        Was very, very, very hard and I was lucky enough to snaffle a related job in health.

        Again, very, very, very hard.

      • Have you actually seen countrytowns (versus close to suburbia fringe)? So-called great lifestyle but I see loads of poverty unless you happen to be Agriculture Old Money.

        I’d love to live in the country too… if there were jobs, decent infrastructure, progressive thinking, decent schools and decent services. The Program of The Nationals isn’t really selling it for me either.

        I am not blasting the country or the people living there. I am stating reality rather than repeating Landline-esque imagery.

        Don’t buy the romance.

      • @AnonNL, yes I spent quite a bit of time in Maryborough when I grew up. Well aware of the levels of poverty and associated social problems (I alluded to the small town gossipers…). However the pollution in Brisbane is sometimes crippling (I’m a chronic asthmatic), I spend two hours a day commuting to work and we’re increasingly over the busyness at every shopping centre and community social event. Even in Brisvegas the population ponzi is quite noticeable.

        So happy to move, but well aware that after high school our kids would probably be heading back to the big smoke for uni or work.

      • This country desperately needs a long-term vision which includes decentralisation. Develop regional and rural Australia to become viable alternatives to settlement in a couple of landing sites. I bet loads of people are in the same boat, dying to leave the city but stuck due to the above reality. As a migrant talking to other migrants I can tell you that most of “us” do not think of settling in a busy city post migration. We head out here to find space and a less stressful life.

        Leith is bagging the Mount Barker “leap-frog” development here in SA. I think it is actually essential that that gets copied elsewhere. Mount Barker is headed towards enough critical mass to become an economic hub separate to the Adelaide CBD. There just need to be more, and spread further out.

        Main thing though, they need to be connected with proper infrastructure.

    • See my comment above. Honestly, even if you have a job the price:income ratios in rural areas can be just as bad as capital cities.

      And the influx of retirees from capital cities who are keen to spend every cent of the value of their Sydney, Brisbane etc. home so that they don’t miss out on the pension isn’t helping matters.

      • 700k for a good house on north coast in town of 7000
        Views of the pacific? 1M+

        Byron? 2-4M. 800k for knock downs.

    • Yeah Domainfax carried the stat that the second least affordable city in Australia is not Melbourne, but Wollongong – owing to Sydneysiders electing to take on huge commute over paying stupid Sydney prices and locals priced out by their much high salaries.

    • No one can take offence at Blatherby Joyce because no one can understand a word of the dialect he speaks.

  2. Centrelink must have supplied Joyce with the stats that show the number of 1st home buyers seeking to buy within 1km of the harbour, otherwise, he wouldn’t have made such an assertion.

  3. Always never ceases to amaze how out of touch our politicians are, it really is quite staggering. The self interest and lack of thought is really incredible, with people like this running the circus there is no hope.

  4. What Joyce said was only mostly stupid, not completely stupid. If enough people moved to the regions the demand would be there for all sorts of jobs and the employment opportunities would appear. But no one has yet figured out how to fix this chicken egg problem.

    • FFS.. they are not mistaken, misguided or even ignorant. They are simply evil and desire to inflict suffering as a means to an end of helping themselves and mates. Why do people keep talking as if some clever point or profound statistic will change them? I am certain they must have inside jokes about poor people. I wouldn’t be surprised if some genuinely get off on their suffering.

      They are monsters and I wish they were treated accordingly.

      • Who says Reusa isn’t 1 of them, who likes to get on MB and brag about it in public behind a persona? A really really really ridiculously good looking Persona.

      • 100% correct.
        Joe Hockey said ‘Sydney houses must be affordable cause they are all selling’
        Abbot said ‘Homelessness is a lifestyle choice’
        This is worse than the ignorance born of arrogance, there is no ignorance involved at all.

    • Canberra was your first shot at creating the jobs first, and look how that’s turned out! ( ie: When in doubt, restrict the land supply!)

    • F*ck FTAs and erect retaliatory tariff walls for imports from other countries that have similar tariffs to imports from australia.

      It would do wonders for local manufacturing and import replacement, with manufacturing made viable in small regional towns.

      It would take some time to gear-up the industry, because so much of the industrial expertise and ecosystem has been destroyed or sold overseas by our stupid and corrupt governments.

      What Trump is doing is “retaliatory tariffs” which is what i figured out australia should have been doing 30+ years ago when the first cheap import-dumping from china started forcing local manufacturers to go bust.

      FTAs only benefit the 0.01% that have bulk commodities to sell with hammered-down employee labour costs, and often foreign owned anyway.

      With higher incomes from better wealth distribution from local manufacturing in regional areas and no reliance on the immigration ponzi for income, land/house prices would fall (after cutting immigration and foreign buying).

      F*ck china, F*ck FTAs, F*ck Turdbot, vote Hanson.

      • +1000. Totally agree. I like Trump’s approach to american auto manufacturers. You wanna sell it here then you gotta make it here.

      • No. You make it here, the consumer pays 4 or 5x the price for the ‘protected’ goods. Is that progress? Protectionism ramps up costs and leads to a much lower standard of living all round. It’s the equivalent of receiving a hefty pay cut for all workers.

        This is not a point of debate. It is cold fact.

      • The dirt cheap generic crap from china will cost more, but locally produced stuff would be competitive in price.

        It’s called a “level playing field”.

    • Government should be leading on the decentralisation front. But like every other issue where they should be showing leadership (e.g. workplace bullying, health and safety, among others), they’re miles behind the ball. The private sector will need to lead the way and that’s going to be tough.

  5. Inspired advice from our Deputy Prime Minister. What could possibly go wrong with politicians like Barnaby running the show.

  6. Mining BoganMEMBER

    Are our pollies planning some sort of Brisbane Line here? Concede the cities to foreigners and oldies and the kids can make a stand from Dubbo.

  7. “I thought….politicians were there to represent the incumbent…. citizens”.

    There was a high profile election based exactly on that. Even though he won, the basis of placing the concerns of citizens as a central policy tenet was decried by many…

    this blog included….

    as racist.

    Forest from the trees.

  8. To be honest while I don’t entirely agree with him we do have one of the most urbanised economies contributing heavily to the current dynamic. If people weren’t “cramming” into Sydney and Melbourne things would be more affordable probably across the board. We have a lot of land – but we have a land shortage in the places people want to live.

    We either accept that these are the only desirable spaces to live in Australia therefore accept that there is a genuine land shortage (Sydney basin and Melbourne surrounds) and stop letting people in since this is the scarce resource that is currently a constraint. Or make ways to make the regional centres more attractive for people (i.e jobs, etc) and therefore boost the supply of “desirable useable land”. We have to make that choice; unfortunately seeing enough of low locals think I think we will choose the first option here from both the left and right of politics. In Sydney people would rather move country that move out to another country area or even out to western sydney – there’s huge post-code elitism in Australia and Sydney and Melbourne in particular and a lot of people identify with the city culture. Just the other day I heard “I can’t move further out west than lane cove” which just goes to show you.

    • “…there’s huge post-code elitism in Australia and Sydney and Melbourne in particular and a lot of people identify with the city culture”.

      According to the Productivity Commission (chapter 4), migrants are far more likely to settle in Australia’s big cities and inner-city areas than Australian born residents:

      “Immigrants are much more likely to settle in capital cities, especially in inner city suburbs or suburbs near universities, than the Australian-born population….

      The proportion of immigrants that live in urban areas has increased over time. According to Hugo (2011), the proportion of the overseas-born population living in major urban areas increased from 62 per cent to 83 per cent between 1947 and 2006 (table 4.3). The proportion of Australian-born people living in major areas has also increased, but by a far smaller amount over this period”…

      • If Barnaby’s representative of the voters of New England and Tamworth, then why would anyone, immigrant or otherwise, want to live with a bunch of dumb ingnorant fucks?

      • Wingnut,

        “..If Barnaby’s representative of the voters of New England and Tamworth..”

        He is not.

        He is just another “National Party” sell out who bent over for the Liberal Party dries to “get ahead”.

        The only decent criticism of his electorate is that they voted for someone who supports the sell off of Australia to support the lifestyle of the bubble merchants in Sydney and Melbourne.

        They will wear the consequences of that misjudgment more than most.

      • If I was an immigrant would probably do the same. After all I’m taking the leap to another country – I want to go where the current opportunities are the best for myself and my family I would imagine. I’m not going to move to a country area and “try to have a go” there when I know on an individual level I would achieve more success in an area where everyone else already is with their jobs, infrastructure (that includes educational infrastructure aka universities), etc. It’s a classic feedback loop. Not saying I agree; just saying we need to choose between the two vs just leaving things as they are and keeping immigration high. It’s not just house prices here but the fact that infrastructure at least in Sydney isn’t coping.

  9. hate the callous nature of ‘suck it up, we can’t do anything, it is a supply problem’

    getting my plans in order to emigrate to the USA, at least its far more interesting there

  10. At least none of you are talking about Centrelink – the point of this utterance.

    Oh, and above all – we have all forgotten about that “move” to Armadale….lmfao – memory hole is strong in this country.

    “Oh look something shiny !!!”

    – Crisis Averted.

    • Mining BoganMEMBER

      Hey, take that back.

      I’ve been trying to keep #CentrelinkFail alive via daily rants/links.

  11. Yeh…cool story Barnaby…except both my partner and I can’t get jobs in the country without changing industries…and then it is still a struggle!

  12. Severe unaffordability due to ‘urban containment’ … Australian Broker

    … extract …

    … The report claimed that the high level of severe unaffordability in all Australian markets was due to urban containment – the practice of limiting the development of land outside a predefined area.

    Urban containment was “by far and away” the main factor behind the country’s inflated property prices, Hugh Pavletich from Performance Urban Planning (which co-authored the Demographia survey) told Australian Broker.

    Land and property prices in these markets are primarily being pushed up as the government strangles the supply of land in capital cities, he said.

    “That’s a major problem. Authorities are not responsive enough at releasing land supply to ensure that house and land prices will not inflate.”

    Even in cities such as Sydney with physical barriers such as mountains and national parks, there was still sufficient land supply available.

    “It’s very odd. A place like Australia has around 24 million people. It is the same size as the United States which has 320 million people yet somehow Australia doesn’t have enough land to build houses on.”

    The focus on high density living also inflates house prices, Pavletich said. He warned that Australia could be on the same path as Hong Kong where high levels of unaffordability mean families live in 50 square metre shoe boxes and median house prices are 18 times the average income.

    “That’s where they’re taking it because of these failed policies.” … read more via hyperlink above …
    Demographia in the news …

  13. Legislate that no employer can prevent you from working from home, then its all good. Alternatively if country towns/regional centres had any kind of decent employment this may be an option, but I don’t want to live out my life pouring beers or as a barista. The house prices may be cheaper but i bet the price to income ratios are similar.

    The problem is that Sydney and Melbourne are now such a magnet that other states have trouble attracting any business. As soon as people finish uni in cities like Adelaide, they have to move to Melbourne or Sydney to find work. Talent drains from the regions and the cumulative cycle of decline continues.

    • reusachtigeMEMBER

      I’m with you on that law! When our manufacturing kicks off again once Ms Pauline becomes our great leader people will be happy to work in the factories knowing that the law allows them to do it from home!!

  14. Dumb arse, pure national party.

    People aren’t talking about the unaffordability of dwellings with Opera house views.

    They’re talking abuot prices in places like Stanmore, Berala ($650k+ for a 2br apartment !!!) Casula….

    People who aren’t professionals, people who work in admin, work as fabricators and maintenance workers at around the median wage or less.

    If Chinese own our luxury housing, our upper professionals own mid tier housing, our middle professionals own low price housing.. where do poor people live?

    This isn’t just glib rhetoric, this is a concept, an mental framework that politicians abide by and be held accountable to .They are not suitable for positions of governance if they’re unable to answer.

    They’re administrators in charge of looking after citizens interests. We need to undo Howard’s gun laws to fix this.

    • “People who aren’t professionals, people who work in admin, work as fabricators and maintenance workers at around the median wage or less.”

      They just need to get a better job bro!! Or forgo having children.

    • “We need to undo Howard’s gun laws to fix this.”

      Unfortunately, it is really beginning to feel that way, isn’t it? Nothing else seems to get their attention.

  15. In the US citizens seem more mobile if opportunity presents. They will move across country for a good job or an affordable house. If moving is not an option and housing remains unaffordable apartments and trailer parks rule. Some Sydneysiders need to break out of the confines of their own imagination.

    Someone made a point yesterday: Sydney is in midst of high clearance rates, demand is strong, houses are selling. There needs to be a replacement for the term “affordable housing”. In Sydney houses are selling like hotcakes!

  16. He’s copping a fair whack but there’s some merit to what he is saying. I left Melbourne because I realised as a 20-something I was basically a serf and wouldn’t be able to buy where I wanted to live (excl a dog box). Same story in Sydney. They’re fun cities, but you pay for the privilege, e.g. drink prices are crazy!

  17. According to the demographia thing you posted the other day, Tamworth has a median multiple of 5.5 which is still “severely unaffordable”. Not as bad as Sydney but seemingly few places in the world are.

  18. Y’All miss the point. Barnaby’s comments will go over a treat in the bush. Country folk are endlessly patronised by latte-sippers who think food comes from supermarkets or organic mung-bean outlets.

    These carefully-crafted remarks are directed at indigent swinging ALP/National voters in regional areas. The Nationals know their market. .

    There are no jobs for symbolic analysts in New England and that suits them just fine.

    Can you kill, skin and gut a rabbit?

    • Armidale is home to at least three academic philosophers, specialising in logical semantics; moral philosophy and environmentalism; applied and theoretical ethics.

      • Fair point about Armidale.

        But Barnaby the Brainless said Tamworth, where anybody who can read past grade four level is considered an intellectual.

  19. It will all change anyway so its not worth wasting time on his comments. Patience, the ex CEO of the Commbank is so right, we are now fully on track for our tulip moment – looking forward to it.

  20. He is kind of right though. The gig has been over for years to own a house in those major cities…….. adapt, change, evolve – get Trumpy.

  21. They continue to let the locusts snap up property like hungry hungry hippos, plus negative gearing, plus huge immigration.

    Fuck this country

  22. “I did move out west so I can say this – if you’ve decide you’ve got the gumption in you and you want to move [west], you’re going to have a very affordable house.


    From his bio:
    ‘Joyce was born in Tamworth and raised in Woolbrook’ …and educated on-campus at UNE. In what sense did he ‘move west’ ?? – he’s always lived around the area he was born and raised – which is all those who were born in Melbourne and Sydney want to do too.

  23. Modern comforts have made us soft and materialistic, but this is starting to change as we see that money and wealth is an illusion. We have allowed ourselves to become slaves of the banking cabal. Meanwhile, our leaders continue to betray us for personal power and money.

    We must learn to stand on our own feet and support each other at the local community level. Our strength does not come from big government. 

  24. Here is a suggestion, reduce federal corporate tax say by 10% and pass it on for states to collect that. From a company perspective it stays the same until states create special zones where companies can be exempted for this 10% tax, all these special zones should be in regional areas. Do the same with income tax give a portion for states to charge which can be exempted if you work out of big cities and add a levy if you work in cities to fund infra etc. I am sure they can think about more if they had a intent, for now its centered around property and how to keep kicking this can, until it changes its a moot point and click bait discussion – in short focus on how to drain the swamp.

    • Whenever you find anything about government incentives, it’s all about tax cuts.

      Never worthwhile when the australian environment is uncompetitive even if there was no tax.

      Absolutely no value for startups.

      I don’t mind paying 40% tax if land/houses were 20-40% of what they are now.

      It would work especially well if the top 1% comprising the highest tax evaders were brought into line.

  25. One of the many ironies and hypocrisies in all this, is that the urban land price curve remains approximately the same shape, and just moves up and down along its entire length as housing becomes more or less affordable.

    Cities with impressive central agglomerations, like Manhattan in New York, virtually always evolved this way when the land was cheaper rather than more expensive. The underlying evolutionary reasons for such agglomerations to form, are not anything that planners can create out of nothing. All they can do is “not obstruct”, and the two main obstructions would be restrictions on building height, and excessively high land prices. Manhattan exploded “upwards” simultaneously with New York urban area sprawling out dozens of miles at low density, and land costs remaining low. “Differentials” or “option values” mean that land WILL be cheaper in the city centre if it is cheaper at the fringe, and more expensive in the city centre if it is more expensive at the fringe.

    Planners may think they are creating these wonderful “global city” type agglomerations in Sydney and Melbourne by disallowing sprawl, but they haven’t a clue what is being foregone.

    In any case, the one most powerful correlation is between agglomeration economies and outright city population, not with form or density. Moretti et al estimated that “deflected growth” from US cities that were too expensive, was costing the nation heavily in foregone agglomeration efficiencies. Cheshire at al have said similar about London.

      • Why Do Cities Matter? Local Growth and Aggregate Growth
        Chang-Tai Hsieh
        Enrico Moretti

        Bigger cities are more productive but higher cost: what policy could do but doesn’t
        Paul Cheshire

        The book referenced at the end of that article, is the authoritative work on the subject.

      • Also relevant:

        The scaling of human interactions with city size
        Markus Schläpfer et al

        Urban America: US cities in the global economy
        James Manyika et al

        “The Economist” said about the latter work:

        “…Differences in metropolitan populations may help explain gaps in productivity and incomes. Western Europe’s per-person GDP is 72% of America’s, on a purchasing-power-parity basis. A recent study by the McKinsey Global Institute, the consultancy’s research arm, reckons that some three-quarters of this gap can be chalked up to Europe’s relatively diminutive cities. More Americans than Europeans live in big cities: there is a particular divergence in the size of each region’s “middleweight” cities, those that teem just a little less than the likes of New York and Paris. And the premium earned by Americans in large cities relative to those in the countryside is larger than that earned by urban Europeans…

        “What explains Europe’s relatively small cities? Regulatory barriers to growth may be to blame. Tight zoning rules limit housing supply and raise prices by driving a wedge between construction costs and market prices. This “regulatory tax” amounts to over 300% in the office markets in Frankfurt, Paris and Milan, according to a 2008 study by Paul Cheshire and Christian Hilber of the London School of Economics, but is just 50% in Manhattan and, in effect, zero in fast-growing places like Houston…”

    • “One of the many ironies and hypocrisies in all this, is that the urban land price curve remains approximately the same shape, and just moves up and down along its entire length as housing becomes more or less affordable”

      Not true. In Sydney and Melbourne it has steepened dramatically. As I’m sure you are aware.

    • Thanks, Sweeper. My point was really that the utopian planners seem to think they can make suburban fringe McMansions more expensive with their land-rationing policies, and yet high-intensity living closer to the centre will remain an “affordable” option.

      That is, the land price curve can be flattened as it us pushed up at the urban fringe. I was pointing out that no, the spiky shape remains and it goes up everywhere. You are correct that it often becomes even more spiky, so it is even worse than I am saying.

      There is one interesting analysis that should be better-known and I think analysis of its type should be done more often – by Prof. Philip Morrison of Victoria University, Wellington. Looking at housing options in Wellington urban area, he found that the average price increased towards the centre even as the average size fell. In Wellington, it is certainly not the case that the average size of CBD apartments is restricted to “excessively large sizes” either. Regardless of their smallness, they remain a more expensive option than a medium-size home in an inner suburb and a large home in a fringe suburb.

      Unfortunately you need to get hold of the Oxford Handbook of Creative Cities, to read the study.

      The evidence suggests to me, that the more apartments you cram in in your CBD by making them smaller and stacking them up higher, the more the price of the sites beneath them inflates. Planners are of course impervious to evidence, and have assumed forever that site prices are static and the more units you allow on a site, the cheaper the units will be. They are just as slope-browed as their ideological predecessors in the former USSR.

  26. I wet myself a little when I think about the day in the future where Pauline has enough pull to severely limit immigration, and all the negative geared leeches can’t find anyone to rent their properties out. The pollies are intent on learning the hard way.

    • As much as i would like to think she will make a difference i just cant see it.
      People desperately want an outsider to come in and take control away from the current professional political establishment, but its not going to be her or one nation.

      • Yeah I agree, the more(anti-est) support she gets, the more likely a heroic outsider is to come in and steal it away from her to carry the crusade further

      • AngryMan you’re not the only one captured by your username, there’s a quiet fury in many Australians at what’s happening to our country. There’s gonna be a hell of a backlash.

      • Andrew, the problem is that quiet fury isnt going to change anything.
        What we need is white hot rage that is public.
        In this day and age social media is to easy for the loons to ignore.
        Whats needed are phone calls.
        Dont tweet or email shit. It gets ignored.
        CALL them on the phone. Jam their switchboards with phone calls. Then the grey beard idiots will start to take notice.
        Set up a fax modem with a recorded complaint and dial and repeat dial and dial again to make phone calls all day to register your complaints. When the office phones are jammed so much that they cant use them then somone is going to take notice.
        We need a list of personal mobile phone numbers for the politicians and jam them with phone calls.
        Then when they change the numbers we need to find them and start all over again.

  27. By the way its going the Median price could hit $1.5 Million by 2025. The problem is all the small towns are so overpriced its unbelivable. A small 30 year old house in a town <50,000 with minimal work opportunities should cost no more than $100,000… thanks to capital gains tax exemptions, negative gearing, first home buyers grants, etc it blows up to $300,000-350,000

    I can guarantee these older generations that had everything handed to them would have struggled and not been so well off if a average house costs 12 times the annual wage (BEFORE TAX so its more like a 16-17 multiple when tax is included).

    To be honest im a young internet entrepreneur and am considering leaving the country because of this rip off, the south east asian islands are sounding quite nice (phuket or boracay anyone?). Australia will not be able to keep its young talent at this rate. Sydney has become a city for rich snobs with millionaires

  28. Isn’t it the Governments role to plan and create incentives to decentralise the cities? Where is the vision to create new population centres and infrastructure?

    The Government need to lead the people, people aren’t going to move to the country areas because a politicians says so.

    Secondly running rampant immigration and sourcing the majority of immigrants from countries with insatiable greed for real estate is not helping the issue either.

  29. Barnaby, the intellectual giant of the National Party who thinks a Carbon tax works simply by reducing the consumption of energy.

  30. If he wants to push people out of the cities, is he proposing a way to push the jobs out of the cities too?

    You live where you work.

    Remember “The Corridor Plan for Perth”? First drafted in 1968 and endorsed by Parliament in 1973.

    The government pushed hard to build or revitalise 5 satellite cities around Perth: Joondalup, Midland, Armadale, Fremantle and Rockingham. Three big components of the push were:

    A) the establishment of large shopping precincts meaning that residents would not have to travel to Perth so much
    B) the establishment of satellite government services (eg hospitals) with all the jobs that would bring
    C) the establishment of rail and highway linkages with the CBD

    Plenty of jobs were created by top-down decree which, in turn, attracted lots of bottom-up businesses with the jobs they brought. The policy worked well. Today, these regions are well developed and, as intended, the corridors between Perth and the satellite cities have developed extensively as well.

    Fast forward and this is now all criticised as “sprawl” and we’re told to build up not out. Supply of new land and development opportunity is severely curtailed and prices have soared.

    So there you go Barnaby, start building satellite cities complete with professional job opportunities (which means governments stepping up to the plate as first movers). Do something actively about supply or STFU and GTFO mate. The Perth Corridor plan demonstrated that you can’t rely on the private sector to just build its own satellite cities and prosper; the government MUST get the ball rolling with the initial infrastructure spend and job opportunities (the initial risk), then the private sector follows and takes things to the next level.

    Prices are all about supply and demand, so stop constraining supply with ridiculous regulations; actively support supply by building government services in satellite cities; and remove artificial boosts to demand in the form of investor incentives / tax breaks (particularly on existing dwellings).

    (On a related note, I really wasn’t kidding in the past when I suggested building an “Australian Ordos” satellite city to soak up Chinese demand for Australian piggy-banks. There’s a demand, so satisfy it with a redirection that doesn’t adversely impact real estate in places where people need to work).

    • When you think about it, Australia as a modern nation exits as a result of a Government decree when the British decided to create a penal colony on the other side of the world. If they could do that over 2 centuries ago with a handful of wooden sailing ships surely some satellite centres around our existing cities should be a doddle by comparison. It’s about time we rid ourselves of the neoliberal notion of Government impotence in all things, and get on with the job of improving our living standards.

    • Eventually things will get so bad (over-population, congestion, ‘unaffordability’, lack of scope to expand) that alternative commercial centre/s spring up elsewhere and the original heart of a city starts to die. These systems, left to their own devices, are ultimately self-regulating — it’s just they may not change at the time or pace you’d like. You don’t need government intervention, particularly as, way more often than not, they fcuk it up.

  31. I agree with Barnaby. Its not fair that only 50% of the population suffers under ridiculous land policy. I say we encourage policies that price Tamworth’s youth out of any hope of ever owning a home, or working their own land. Let the rural regions watch productive land sit idle under a cover of weeds while young hard working men are begging for land to work or own.

    I kid. Even regional areas have had some ridiculous price increases. You get more bang for your buck, but the risk level is also higher, so it evens out. Any (residential class) half-decent block within an hour of any major employment hub is quite expensive.

  32. Armidale – where New England University won the accolade of worst performing university in Australia. Only 48% of students even finish their course after 6 years. I so want my children to go there….not

  33. The price signals in Sydney are not working… or something else is going on.

    If prices are unaffordable and or wages aren’t high enough, then how is it that the population is increasing and yet wages are bullshit.

    It doesn’t make sense, unless it is somehow affordable, somehow manageable.

    There must be something for “everyone”.

  34. There are parts of Bali that are still affordable and that’s a pretty popular region of Australia