Realty locusts swarm into early election

Via REIA:

Australia’s housing market recorded respectable growth over 2020 and with limited stock and strong demand, 2021 should see further price increases, REIA President Adrian Kelly said.

Mr Kelly said the winding back of Jobkeeper and Jobseeker may see temporary issues for tenants in some capital cities but the trend to relocate to the regional areas currently being experienced is likely to gain further momentum.

“Traditionally there is a reduction in the number of house sales over the holiday period due to buyers going away for the festive period but due to the current restrictions people are taking advantage of the market conditions whilst they are unable to travel and looking to buy while they can,” he said.

Mr Kelly said the property sector has been crucial to Australia’s economic performance, adding that “Government stimulus measures and continued low interest rates have been, in part responsible for the resilient demand for residential property.”

“Even though growth in new dwelling investment is unlikely in the 2020/21 fiscal year, given the lags between building approvals and construction activity, the forecast for dwelling investment has been revised from -4 percent in the Pre-election Economic and Fiscal Outlook to -3.5 per cent in MYEFO,” he said.

Mr Kelly said with the possibility of a Federal election being called as early as August 2021 it was critical policy makers make measured commitments for property policy for all players in the real estate industry from first home buyers to investors.

“In May just prior to the 2019 election, house sales were the lowest in two decades across Australiawhich was largely attributed to election commitments from the Federal Opposition to abolish negative gearing and Capital Gains Tax (CGT) in their current form.”

“Given the major role investors played and continue to play in providing housing over the pandemic, it is critical that in the run in to the election that policies from all sides of politics work for all players in real estate.”

“Overall, the real estate industry looks forward to a positive year for the Australian property market with the promise of an Australian Covid-19 vaccination program allowing life to resume to a new normal.”

“For customers, whatever your objective is for this year, whether you’re downsizing, investing or making a lifestyle move – talk to your local agent about your options for 2021.”

There’s no time like the present to remind Labor that negative gearing is a sacred cow. We still don’t know if Albo’s increasingly vacuous Labor will dump the negative gearing policy it took MB ten years to build.

The last we heard from Labor on this was in November:

Mr Clare said on Tuesday night the issue of housing affordability was not going away.

“The economy is weak, unemployment is up, underemployment is chronic, part-time and casual work is becoming more the norm, and wages are flat.

“At the same time, property prices in places like Sydney are predicted to increase by up to 10 per cent in the next 12 months.

“If that happens, the gap between average wages and the cost of the average home is only going to get bigger,  and saving up to get your first home, and pay it off, is only going to get harder.”

Sitting on the fence is not a good sign when we know that Albo has no convictions of any kind regarding class politics. He already dumped the excellent franking credits reforms that wound back rich elderly welfare.

I have little faith that Labor will show gumption if there is an early election and the locusts swarm.

Houses and Holes
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Comments

  1. “Sitting on the fence is not a good sign when we know that Albo has no convictions of any kind when it comes to class politics”

    Albo won’t be sitting on any fences or in his empty chair any time soon after his car accident. The Albatross has a broken wing.

  2. The ALP appear to have bought into the right wing media narrative that they suffered a heavy defeat at the last election. Admittedly the primary vote was not great but once preferences kicked in, Labor only lost by a few seats. Accordingly given their perception that they suffered a heavy defeat, few policies that went to the last election look set to survive.
    When Labor lost by a few seats in 1969, they did not throw out their whole program for 1972. But that appears to be what Albo – Weak At The – Nese appears set to do. He has waited far too long for his moment in the sun to be burdened by any reform measures that will frighten the property horses. Small target all the way for ALP. Maybe they can “roll back” the GST on household utility bills and other grand nation building appeals to the electorate such as that.

      • happy valleyMEMBER

        Worryingly, after the next election Scotty from Marketing will likely have control of both houses and then we will likely lose further of our democratic rights.

    • kierans777MEMBER

      > The ALP appear to have bought into the right wing media narrative that they suffered a heavy defeat at the last election.

      The ALP are stuck on the merry-go-round. Try to be Liberal Lite, and the Libs get voted in. Build enough gumption to try and take actual reform to an election, get beaten, and decide to be safe and become Liberal Lite again.

      Admittedly there was a concerted effort by the MSM to demonise the ALP in 2019, with repeated misreporting on their policies, however the ALP has a way off this merry-go-round. Kill Big Australia, and take the fight to the LNP on economics (which MB and regular commentators on MB have long argued).

      If we had an honest media, the ALP would have won in 2019.

  3. Over the past year, I have not spoken to any ordinary Australian person, that remotely regards Albanese as electable. In the sealed-off world of university intellectuals and Guardian columnists, he might still have a show.

    • I know a range of Union officials, public servants and ordinary everyday folk who will openly say they are ALP inclined (more generally loathe the government) but who have simply switched off the ALP.

      There isnt an expectation they will win, there isnt an expectation they will lead on economic reform in any way, and there is no expectation that should they get a win from an increasingly despised government, they would actually do anything significant that actually addresses the concerns of that section of society which was once their bedrock. They have no plans whatsoever to return the Australian economy to a state where it has plentiful jobs of a type which will sustain households without loading them with debt, and pinned by precariousness to bullshit work. They have no plans to eliminate the energy hostage situation they have come to be in (through policy), they have no plan to reduce education costs for families, they have no plan to reduce housing costs. They have no plans to either increase wages or redress the outright managerial corruption visited on working people all around the country.

      They squirm around their commitment to Free Trade, bullshitting (when even they know it is bullshit in the most profoundly uncompetitive economy on the planet) that somehow it will produce a ‘win’ for them. Similarly they bullshit around the population ponzi with more bullshit about international obligations or of how it ‘drives growth’ or ‘is essential for the payment of pensions in the future’. They simply will not stand and fight on the economy, leaving ordinary (Labor sympathetic) voters to assume ‘well if they are bullshitting and the government is bullshitting, and we are going to be the societal collateral damage of ideology which reams us, no matter who we vote for, who is going to give us more in the here and now?’ and plausibly enough of them conclude that at least they can pocket something from whatever the NeoLiberals shit down upon them next. There is absolutely no indication they are remotely interested in addressing a present which rewards the older and the wealthier to provide a better Australia for younger or future Australians

      Until the ALP gets back into the ring to fight for progressive socio economic reform first and all other issues second it is (and explicable under the aegis of that economic reform) then they will be just back for another kicking every couple of years unless the Liberals become so odious (which happens too) that the electorate thinks they simply have to take a chance on the ALP.

      • kierans777MEMBER

        Hear, hear!! 👏

        > They simply will not stand and fight on the economy,

        I said the same thing to people in the local ALP branch months ago. The ALP needs to take on the myth that the LNP are “better economic managers”. I ironically stopped voting Liberal when, as a younger man I decided to learn economics. Since then the lies of the Libs have been awfully transparent.

      • John HitchensMEMBER

        I agree. How things change. For years i was an LNP voter, sometimes swing, now to me they are hopeless and corrupt. Labour just as bad and in my view does not represent the Australian worker at all. I have sons who are in the Construction Industry, and what they say about construction sites and safety appals me. That is where I believe Unions have a place, and they also should be fighting to bring manufacture back to Australia. yes we will have higher costs. The public has been led to a throw away society. We used to repair our Hoover washing machines for years and years. Governments seem to have forgotten Economics 1.01 and the multiplier effect.
        But who can we vote for?. All these well intentioned other political parties will achieve nothing unless they can band together and become as one, and then we still have to get around Preferential voting. The two major parties won’t change it because they know they will not be in power.
        End of rant

  4. John HitchensMEMBER

    “He already dumped the excellent franking credits reforms that wound back rich elderly welfare”. Ridiculous statement. The tax has already been paid by the Company. What would you have us do. They told us “you need at least a million to retire”, so we strived and went without to attempt to get to that figure. FOR WHAT? Returns will be lucky to be 2% in next few years. We don’t get a pension because we saved our super to be able to support ourselves, We downsized to get some cash to support ourselves. It seems the elderley can’t win. I should have bought an even larger house than I had, but try and live on a pension of $24,000 max for a single? At 71, I am really pissed off with the system.
    I agree that negative gearing should be done away with- it only benefits those with higher salaries. I see my adult children who are Concrete labourers with no hope of getting a house.

    • I should have bought a bigger house … the elderly can’t win… my adult children no hope of getting a house.

      u huh.

    • Super’s purposes is to be drawn down, not just use up the dividends or returns passing the principle to the next generation as an inheritance.

      EAT THAT PRINCIPLE and you will live like a king.

        • I should add – I agree numerous Governments have changed the rules on you and kept moving the goal posts. That’s not fair either.

        • lolololol at this: ” They told us “you need at least a million to retire”, so we strived and went without to attempt to get to that figure…..” What, you couldn’t pay an accountant to work out your cost of living to know that the 1 mil was super industry bs to get more fees? Btw, “went without to get that figure….” What a load of [email protected], BBers, and I’m one of them, haven’t gone without, they’ve had their cake and eaten it!

          • John HitchensMEMBER

            No I very quickly got the hell away from “the SUPER Industry”, as I figured i would rather do my own research, investigation, and I could lose money just as well as they could (and had), so i set up an SMSF, and my goodness the regulation and BS that involves, but at least i get to decide what is happening. I don’t know how you can say BB’s have ” had their cake and eaten it!”, and you claim to be one of us. I worked until I was over 70 plus years old, and never felt rich ever. I remember all those in housing commission houses when i was in my 20’s that drove their big V8’s cars and had Boats, and as they drove out of their street past our 11 or 12 square 3 bedroom house, i remember my wife saying “who’s the mugs”. …….yeah some cake I ate – [email protected]#t cake all my life !

      • John HitchensMEMBER

        In fact we are forced to draw down on the Super every year whether we want to or not. So much regulation it is ridiculous and keeps auditors, tax accountants and legals in jobs

        • John go and have a chat to your local member and repeat exactly what you have said here and then ask “what are you going to about it to rectify the situation “ (ask the member this) and report back with his response. I wait with baited breath..

          P.S If he/she doesn’t give you an adequate response vote the F Ha out next time.

        • Given you are complaining about being poor, shouldn’t you be drawing down even if not forced to? People like you are why it is compulsory.

      • @ Labrynth
        Do you have children? No, I thought not.

        For most people, the main aim in life from time immemorial is to care for and provide for their children. This is particularly so today where their childrens’ future is looking increasingly dire.

    • kierans777MEMBER

      > The tax has already been paid by the Company

      Because the company earned revenue, and was taxed. You’re a shareholder to partake in the profits and you get your dividend (and franking credits)

      • John HitchensMEMBER

        You clearly have no concept of Accounting or taxation or business, There are whole papers about this, I wont waste anymore time.

  5. happy valleyMEMBER

    “He already dumped the excellent franking credits reforms that wound back rich elderly welfare.”

    Yeah, wrote to Albo saying that he had “choked” in pulling this reform of one of John Howard’s many egregious and unsustainable rorts.

  6. When Labor are looking for reasons they lost, and omit immigration, lol, and extreme left policy, they’re left with NG, and franking as the reasons (which the election result map show had nothing to do with it).

    It’s dishonest Labor inventing dishonest reasons they lost the unlosable election.

    God help this country, because one of the two parties has lost it’s collective mind.