Property lobby demands migrants NOW!

Anybody denying that Australia is the property equivalent of a Narco state only needs to read the comments from the AFR Property Summit with respect to immigration:

“All property sectors for the past 50 years, [were] driven by overseas migration, whether it be the population [or] the talent that’s coming in,” [Dexus chief executive Darren Steinberg] told The Australian Financial Review Property Summit.

“That migration has underpinned every property sector for 50 years, and it needs to continue not just for real estate, but for the entire Australian economy”…

“We need immigration now more than ever before,” [Veteran developer and builder Harry Triguboff said]. “Don’t worry what the politicians tell you. That’s what we need”…

“We need net migration to cover up the and fill what I call the COVID hangover when government stimulus has gone and the economy’s got to stand on its own two feet” [Charter Hall Group CEO David Harrison said]…

To translate, the federal government must flood the nation with hundreds of thousands of warm bodies every year so rentiers like Highrise Harry can get even richer. Meanwhile, ordinary residents will have their living standards eroded as they are forced to live in increasingly crowded cities and smaller and more expensive housing:

Sydney dwelling composition

Houses only for the rich.

Seriously, what is the point of building all of these homes if they will simply be ‘filled-up’ with migrants? How does this benefit existing Australian residents? The short answer is that it doesn’t.

Mass immigration led development is the ultimate Ponzi scheme, with property industry parasites like Highrise Harry privatising the gains while the costs are socialised on the existing population through having to fund the increased infrastructure needs (water, power, transport, recreation facilities etc), paying higher housing costs, as well as suffering the downsides of increasing congestion. None of this registers with the property lobbyists.

A return to the broken economic model of the last cycle is precisely NOT what Australia needs. It drove property prices and rents higher marginalising youth. It corrupted our university standards and introduced deeply undemocratic CCP influences on campus. It corrupted our politics and jeopardised ANZUS. It drove down wages as poor foreign students and temporary migrants poured in. It lowered living standards across cities while enriching only a very narrow set of billionaires like Highrise Harry.

Australia needs instead is to leave those migrants at home where they can develop their own economies and export our expertise to them there.

The housing industry should meet the needs of Australians. Not the other way round.

Unconventional Economist
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Comments

  1. Brave CVP (Corona Virus Party) has proven that the Australian economy, although celebrated worldwide for its multicultural vibrancy and Ugandan levels of sophistication, works fine on zero net migration. But you can’t vote CVP, come May. The dull-witted alternative is treasurer Jim Chalmers, whose PhD in economics directs him to mass migration every time.

  2. Great post UE. People are getting angry with these turds. Your message is getting through the self serving lies in the MSM.

  3. WhatcouldgowrongMEMBER

    The good thing is that the break actually exposed some of the issues with the ponzi and these were fairly widely reported. There appears to be a shift in public attitudes towards our current model, so it’s going to be increasingly harder to deny that this process is purely for the wealthy and not to increase diversity and vibrance.

    • Totes BeWokeMEMBER

      I agree. Now we need to take action and wipe LNP and Labor out.

      I fear too many Australians erroneously see Labor as a solution.

      The cycle needs breaking to save our kids futures.

  4. reusachtigeMEMBER

    Instead of being racialist and whinging about migrants how about youse all learn to profit from them! That way you too could eventually live in a house in the burbs instead of your share accommodation.

    • The Traveling Wilbur 🙉🙈🙊

      And maybe able to install aircon instead of having to spend all day at the malls too?

    • Arthur Schopenhauer

      There’s a shortage of PhD data scientists with 10 years of experience, willing to work for $54,000 per annum too.

      A frustrated senior executive recently lamented over lunch.

      • Display NameMEMBER

        And that’s it. No labour shortage, just a shortage of people that can be easily extorted.

        The insanity is after a decade of >200+K NOM per year and 500-900K of international students a year many with a path to residency, we have a skills shortage. If that was really the case then clearly the Uni and migration systems are not fit for purpose. Cannot have it both ways.

        • Arthur Schopenhauer

          Soon after that lament, I received an earful about software projects failing. Idiocracy writ large.

          • Display NameMEMBER

            I have seen many software projects kicked off without a clear understanding of the requirements and/or un reasonable expectations of benefits. Unless both of these items are clear up front, no amount of lipstick on the pig is going to work.

            My wifes company is going through a revamp of systems and the vendor is to my mind, having seen their documentation, scarily inept. Her company do not have a clear view of the requirements and the vendor does not realise they cannot have a successful project unless these are clarified up front. My guess from what I know is that what they need is fairly simple not the multi million dollar solution being proposed. But as they do not have requirements, there is no way to guide this process. Just a cluster waiting to happen. Personally I would prefer a 400K project that was successful rather than 2.5M one that is a mess.

          • kierans777MEMBER

            @Display Name.

            Vendors love that though, because they can develop crap, blame it on the client and then get more $$$ in contracts to fix everything.

          • Most SW projects would never start if there wasn’t large doses of false optimism in the business case. Sales reps are paid to sell the stuff and as such will create a narrative the business sponsor needs to here in taking the proposal up the line for approval.

      • blindjusticeMEMBER

        Casual or on a contract basis too. My phd other half and the rest of her colleagues find out every year whether or not their contracts get renewed just before Christmas . It’s also a couple of weeks before the contracts expire. One year they went back after Christmas assured they were being renewed but without anything solid.

        Great for morale , great for loyalty, great for research outcomes, great for Christmas shopping, great for buying a house….

      • True definitely true, but what does it mean when the real world value of the labour of this person is actually less than $54K, what happens if $54K is the most that any business employing these people can afford to pay?

        That’s the problem we have today, that’s it in a nutshell.
        I can employ draughtsman and fully qualified engineers in Bangalore to flush out engineering drawings and check compliance with Australian regulations, or even design entire sections of a bridge / dam / road / machine / coal loader / train …(you get the picture) and I can get good people to do this for $54K per year.
        What happens is that the local engineer finds themselves doing the more mundane and hands on tasks that simply can’t be exported. The local engineer either morphs into expert in large project management or the local engineer becomes the trusted interface to the Tradies and equipment installers.
        When the economics of the project demand that savings be found, it doesn’t take long before these locally focused jobs are the only jobs that local Engineers can get. Which is to say that these are the only Engineering job functions that can be rewarded with pay in excess of $54K.
        When this foreign qualified engineer bemoans the fact that he can’t get work as an engineer in Australia, what he is really saying is that his/her skills do not qualify them for the two remaining local Engineering job functions.
        If this were a perfect world than $54K would be an acceptable upper middle class salary and your Data engineer with a PhD would find this perfectly acceptable and get o with their life. But in Australia (especially Syd/Melb) this employment market is not perfect, this market is so distorted that nothing makes sense anymore.
        I know of fully qualified Engineers with Masters from a G8 Uni that are being asked by their employers to get their Electricians / Plumbing certificate. In what world does this make sense? In what other country would this stupidity, pass for logic?
        Trust me on this, I’ve worked in other countries where Engineers are scarce and valued resources. In these countries the management is always on the look out for Certificate / Diploma trained staff that they believe to have the right stuff to retain as Engineers. Yet we do the opposite? Huh why the F does Australia do the opposite?
        We all know the answer to this riddle. It’s as simple as saying that truly local industry is protected while anything that can possibly be off-shored is open to global competition. This one admission is the key to understanding Australia’s weird employment pyramid. It’s all you really need to know, the rest is a consequence.
        When an Australian Occupational Therapist is payed over $110Kpa yet we offer the PhD data Engineer $54K we shape the market, we shape the choices that Uni students make, we even shape education decisions that happen as far back as 8th and 9th grade.
        The only good news in this whole discussion is that history has shown, time and again, that societies which go down this pathway are signing their own death warrant.
        It’s all just a matter of time before the wheels fall off …and that’s the good news.

  5. Totes BeWokeMEMBER

    Ditto public housing. What’s the point of it, if it doesn’t benefit our kids futures?

  6. Arthur Schopenhauer

    Labor voted earlier this week with the LNP to hide political donations. They are also fused with the Ponzi promoters too.

    Liberal & Labor have also just voted against disclosure of political donors paying large ticket prices for private dinners with Ministers and influential MPs (one of the key seedbeds of political corruption).

    Senator Rex Patrick

    https://mobile.twitter.com/Senator_Patrick/status/1465950807476486148

    Good on you Rex.

    Be Independent. Vote Independent.

    • Totes BeWokeMEMBER

      Way way way way bigger issue than an ICAC.

      A quarter of a BILLION between them EVERY YEAR.

      It drives EVERYTHING they do.

      • Arthur Schopenhauer

        Yep. Donations have to be restricted and completely transparent before anything Leith and David write about will change.

        Be Independent. Vote Independent.

        • The Traveling Wilbur 🙉🙈🙊

          True. It’s sadly ironic that most Australians can’t even spell it though.

    • Yous could get dramatic reform of political donations laws, but, again, you’d have to vote Greens.

  7. TheRedEconomistMEMBER

    Plus don’t forget those students who complete their degrees here and stay on to build a career or business also import their attitudes towards workplace where underpayments and exploitation are accepted as near normal.

      • Arthur Schopenhauer

        The attitude has infected Australia’s biggest companies.

        Import people and you import their culture. If your culture is weak, and without strong social norms, it will struggle to maintain its previous standards.

        • LOL.

          Yeah. We “imported” a culture of labour exploitation. No history of it in the country at all before the 2000s mass immigration policies.

  8. Jumping jack flash

    They’ll be living 20 to one of Harry’s tiny apartments because they’re all being imported for slave labour.

    And the ones that supposedly arent are still used to bring wages down or at least stop them from rising significantly.

    So we have this dichotomy where on one hand we have business owners and executives lobbying for cheaper and cheaper labour, and on the other hand we have forever rising house prices powered by forever growing debt and nobody uses real money to buy houses anymore (except maybe criminals) so for that to happen, we need forever lowering debt *eligibility*. Or price and wage inflation, but there is severe resistance to that it seems.

    In the age of zero bound interest rates banks can’t very well lower interest rates (unless the RBA pays them the difference) so eligibility standards can’t fall by too much anymore.

    One can hardly expect that imported slave labour is going to be eligible for the growing amounts of debt required to buy one of Harry’s skyboxes, but maybe if we get 20 at a time on the mortgage application… i guess at the end of the day he doesn’t care what happens as long as he makes sales.

    • Display NameMEMBER

      All parts of the current equation are unsustainable. High house prices create instability; they can only be sustained with ever larger mortgages which in the current environment means ever lower interest rates when means Net Interest margins at the banks get crushed. Nothing has any long or medium term sustainability about it. Solutions so far have been temporary, avoiding root causes, sticky taping another few months or so of survival to a system that is limping to its death. High House prices kill everything in the economy.

      • Jumping jack flash

        I would argue that it isn’t the house prices’ fault and they are just a symptom, as many things we experience these days are symptoms of a fundamental problem. In my opinion it is fundamentally the debt – that has been used to inflate the prices that is the problem. Consider that everything becomes affordable at any price when the bank is allowed to hand over the correct amount of debt to make it so.

        The age of finance has surely become a global economic sugar hit that certainly isn’t a good, healthy and sustainable option long term, but all us kids are running around screaming and having a wonderful time dosed up on debt. Nobody cares about the financial diabetes that is certainly inevitable.

        But my point is how can we have ever-growing house prices and ever-shrinking wages when debt eligibility is as loose as it can traditionally get? The banks are certainly not going to cut margins unless the loss is paid back by the RBA, as has what happened previously, and probably still does.

        There are quite a few options, sure, but nobody [important] has really embraced any of them yet, much less spoke of them, even in whispers.

        • As I said above, History has many examples of societies that have fallen into the trap of maintaining local labour value with the real cost of this decision paid for by the countries export industries.
          At first everything appears to be OK because as a country they can borrow the money needed to maintain their standard of living and generally they have one or more monopoly style advantages which more or less underwrite the borrowings. But this does not last, this can not last. It’s like Australia’s Pilbara Iron ore, in the cold hard calculus of international finance the absurd ask price for Syd/Melb houses is backed by Pilbara Iron ore. One day we’ll all discover that either China doesn’t need our IO or they’ve opened another better (read cheaper) mine somewhere else. At this point, every lender in the world will re-examine their Australian exposure and all will more or less come to the same conclusion at the same time. It’s called a liquidity crises. It happened in Argentina in the 1970’s/80’s, it happened in Ottoman empire a hundred years earlier, the circumstances differ but the pathway is the same.
          Sometimes change comes by way of external influence but more often it comes by way of internal division.
          As an aside, I recently read a paper that is trying to apply modern Economic Complexity Analysis to failed economies, you’ll never guess what they’ve discovered. Somewhat predictably the first sign of collapse is extreme narrowing in industrial / export industry focus.

    • blindjusticeMEMBER

      Unfortunately you can see the next steps in some other western countries. People like Harry drip feed the market and rent more. Funds, banks , wall St etc buy up entire apartment blocks and swathes of new housing.

      • Jumping jack flash

        Yes this certainly makes more sense than expecting our imported slaves to actually buy these houses.
        Stolen wages are used to buy them, and then they’re rented to the slaves. Its much more savvy that way.

        Unfortunately 2019 showed us that using stolen wages to grow the economy and grow the debt simply isn’t good enough to prevent collapse, and we must have everyone, including the workers able to contribute to consumption and demand for debt.

    • Strange economicsMEMBER

      They don’t buy, but putting 6 students in a 2 bedroom at 250 a week rent, supports the ridiculous prices of 1.5 million in central city 2 bedroom apartments in Sydney to get a 3-4% yield !.
      Apartment owners are just hanging on, till immigration restarts.

  9. Did you read their editorial yesterday? Jesus christ, carrying on about like immigrants coming here to build and live in apartments was innovation. This country.

  10. TheRedEconomistMEMBER

    If you want to see why Harry is shouting out loud that we need to open the floodgates again.

    Check out this footage of the current skyline of Parramatta.

    There are couple of massive Meriton skyboxes being built.

    https://youtu.be/KAShHguSvto

    Check some of other clips this guys has done of surround areas in Castle Hills and Norwest.