Labor to unveil $6.6bn affordable housing plan at national conference

I think Labor will be our next government, this initiative from Labor is a good one and will appeal to Australians, (it does have cons - high debt levels) but essentially it addresses several issues we're approaching for next year, which are;

The housing market slowdown
Related sectors like building and renovations slowing and job losses in these sectors
the shortage of rentals

I suppose the question is will it be enough... probably not, but it's a heck of a lot more than what the LNP has come up with so far to address the mountain of debt, people losing their homes and having to rent, in addition to the job losses in the building and renovation industry that comes with the falling house prices and potentially also in the retail sector as consumers spend less.

https://www.theguardian.com/austral...ffordable-housing-plan-at-national-conference

 

I saw this and thought

“If only they could earmark at least some of this for rural areas we might get some civilised toilets out here

No, all joking aside there are indigenous communities where there is no running water or electricity to the houses. We need a scheme for these towns that not only addresses these issues but trains the local people in an apprenticeship scheme in how to be plumbers and carpenters themselves. We are grizzling about the fact there are too many migrants in the city - well then fund jobs outside the cities.

 

The Morrison government is addressing the migrant for rural areas issue, but yes I think you have a point B, since most voters are concentrated in the cities, country areas are left behind. Country Australia is Australia's cultural heart and more should be done to improve living conditions and employment opportunities.

 

OMG, the ALP has targeted investors in the housing market so detrimentally that housing prices are falling on the belief ALP are next government. A reduction in values are expected to be around 25% to 28% before evening out. New builds are reducing to levels not seen in decades simply because of the policies of the ALP.

So Channelling Keating will solve everything. Umm did everybody miss the recession we had to have and WHY we had to have it??? Perhaps the fact Keating was artificially pumping the building industry was one of the main issues. What is this policy??? An attempt to artificially pump the building markets and what is more they are using the most hated of the housing markets, the investor…

This just goes to show, when you create policy of envy that goes to detrimental economic reactions then bringing back policies of economic irresponsibility will only destroy the building industry for political expediency… I keep pointing out this person is a grub.

 

calm down Gary

What is the problem exactly, you don't like the plan or the party presenting it?

The Rudd government did very well in 2008 to prevent a recession, certainly this time around it will be much harder but that doesn't mean you should just sit on your hands. If you do, we simply sink lower and it's much harder to claw your way back. Doing nothing will cause more job losses and this will simply increase the vicious spiral down.

no not true, we're in a double housing bubble for several reasons, negative gearing is one of them but no one could have foreseen the Chinese flooding our property market with money and driving prices beyond the norm, what occurred there is an entirely new phenomenon... worldwide

 

What happens after 15 years? And 20 years ago you could rent a house in Surrey Hills for nudda. Now you are lucky to find something under $700 per week. So..... is the 20% of current rental of the day or is there a sneaky little Shorten catch in there where it is commisioned through the government at a 15yr lease to public housing at initial commencement rental, and only gaining CPI increases?

When it is too good to be true I get suspicious.

I would like to think he is sincere, but he is a sneaky little grub our Bill is, and I feel this is bubble policy. Looks good when it’s floated but then it disappears, usually just after an election. FAKE POLICY. VOTE GRAB. FEEL GOOD WANGER PULL. Whatever you wish to call it.

God I am becoming cynical it is all Malcolms fault.

 

I live rural and remote (and just about as remote as you can get and still be a Banana Bender ;p

Our wee town has people from all over the world - so much so that the local MacDonalds is known as the “Philippine Embassy” Recruiting from overseas suits us fine as we cannot give people the experience they need here as our throughput is so intermittent but we CAN “value add” to the experience they already have whilst supporting them to get a further education here. For us it is a win/win but we NEED more indigenous people trained up in basic trades. And I do mean better than the “Bush Mechanics”

 

yeah.. I'll just blame Malcolm too

I don't really know much about the finer details of the plan, however I do believe the government should have something in place, it won't surprise me if Morrison come up with a plan as well to cushion the economic domino effect from the house market downturn.

For the record I'm a swing voter, purely policy based.

 

If Daniel Andrews can supervise the rollout, it will be a success.

 

House prices are falling for quite some time now (depending on the area more or less), as a correction was needed in an overheated market.
The second reason may well be the fact, that hardly anyone sees a future in the past, and Libs/Nationals are living in the past.
They offer us the past, and no one can see a future in it, not even our school kids.
If you wish to have a steady and maintaining living standard, you have to offer a big and bright future.
With the current government the consumer confidence is gone and it won't come back.
People, rich and poor, just don't spend much these days.
The mining boom did happen (not because of John Howard), but because the Chinese demanded our Iron ore.
Labor has a good chance of winning the next election, because they look forward.
Maybe they can change our luck around with some good and fresh/new ideas.
I personally believe the future is about energy and water, and yes climate change plays a significant role as well.
It looks like many kids are smarter than their parents these days....
Reg.

 

250,000 homes in ten years....rubbish
Each investor to be subsidised $8,500 pa....yeah, that sounds attractive...
Rent to be charged at 20% less than the norm....how does that help the investor.
This whole plan is just dogshit wrapped up in horseshit...
Shorten is a grub....ooops, can I still say that....

 

Well you can say what you want.... the subsidy is really a benefit to the rent payer, the investor doesn't see it, suppose you do get higher rates of occupancy but then there are a rental shortage anyway. Certainly I wouldn't rush out to build who knows where the market will bottom out and then we'll have stagnation for several years, you could get lucky and pick up something in a good area for better value. You may be right about the dogshit and horseshit lol

 

I just cant see 250,000 homes being built in ten years..the whole plan sounds more like
a labor thought bubble...

 

You have raised an issue with the policy here. When we talk market value two things drive it. One is capital gain. When your property increases in value so does your market value rent, they go hand in hand. Somebody put their hand up if they rent a house worth a million for $300 pw. Secondly demand. More people want to live near a park than a dump. So as demand grows so does market value rent.

A few things will happen with this policy, shrewd investors will manipulate the system to build capital growth and eventually squeeze low income tenants out through natural capital growth. Secondly slum lords will have a field day buying up $hit land in bad areas and building cheap homes in order to quantity value add to portfolios. This will lead to past problems like Macquarie Fields. High volume slum cities. Have we really not learnt anything? Again the poor lose!

As much as I do not like Shorten, he is not stupid. This will be passed on to a committee, which Labor does better than anyone, and eventually canned. This is a pre determined outcome. A bubble policy.

Housing is correcting itself as we speak, if Labor leave it run its course and see what the eventual outcome is, then they will be better placed to implement an effective policy.

This has been Labors achilles heel since Keating finished up. They reach up into the rainbow and pluck out sugar coated policies, then run to the fabled money tree and feverishly pluck the guts out of it, and then sit around the empty well and lament on what went wrong.

Shorten will likely be our next leader and then he will realise, just like the last four or five pretenders, that it is so much easier to be the opposition leader than it is to be PM.

 

Yes, that is very true. However, as the IMF several other world monitory funds have comment, just as Many Australian economists have remarked, the depth has predominately been promoted by the expectation of ALP government introducing detrimental policy after next election. As commented, 25% to 28% drop should be factored and could be acceptable in economic conditions. However, policy decisions outside of the already announces policies which have direct and indirect impact on the building industry will sway further pressures on in the housing and building industry. World financial organisation have placed Australia in watch and act over housing policies.

Oh dear, you started so well but then you had to show the very premise you attempt to demean others with.

Investors live in the future prospects, not current or past. If investors are reacting then it is in expectation of what is going to happen in the next year or ten. Now if you think this policy is such a great policy for investors the poor or anybody other then trying to bolster a faltering building industry please explain why.

Umm, I would suggest you examine the very figures your trying to make your point on.

No, it happened because Howard. Howard was god in disguise… All hail the god of Australia little john Howard. Now you might think it is devil worship but I am not stupid enough to claim such…

Bawhaha, are you really trying to suggest it is all about LUCK???

Such narrow minded focus you have. I too think these things are extremely important for the future. BUT I also believe food security and humanity is the most important issues. After all you can have all the energy you want, but if you have nothing to eat, you’re going to die…

Kids are smarter in some ways so we should stop trying to tell them what to think and give them the tools to think for themselves. Stop letting teachers impress their sensibilities on our kids and start opening their mind opportunity.

It isn’t luck that creates a great economy, a great society and humanity of value. We need to give the tools to the kids and let them have at it. They are the future, not brain dead Greens\ALP\Coalition politicians who have only the interest of their career in mind, not the future of their nation.

 

Oh I certainly hope your right about the policy.

The funny thing about this policy is who benefits. Changes to negative gearing and capital gains that have been earmarked reduce the ability of lower income earners to invest in property markets and reduce the returns from doing so. Shorten often demeaned the rich high rollers as the beneficial elements but should anybody actually study this issue, they would find that after a certain level of property investment it is important and beneficial to positively gear it as no matter you have to pay for it anyway.

So how many mum and dad investors who have spare half mil or more to build new houses to rent out for a subsidy that just like the ALP’s solar subsidy be cut overnight. After all they will be living in a house themselves which is much older.

No, the subsidy will go to property developers and investment funds along with super funds and hedge funds who have no scruples to act in any other way than what you point out. After raises to rents by some considerable margin to positively gear housing a 20% cut will do absolutely nothing to help the poor or low income earners.

Should any of these policies get up, you will have crushing rent increases and more money going to the rich out of the government pork barrels. All at the applause of thoughtless supporters of class war the ALP have created.