Governments passing the buck for the housing crisis, blaming property investors, with Nicola...
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Published 2024-07-17
Today Nicola McDougall, chair of the Property Investment Professionals of Australia (PIPA) joins me and passionately advocates for a fair and more effective approach to social housing. You see, despite the government raking in billions of dollars from property taxes each year, our social housing stock has remained stagnant, and the number of people in desperate need of housing continues to rise.
Now, I'm not talking about affordable housing. We’ll explain the differences, but unfortunately, private investors are often being blamed for this crisis. That's not the case. Nicola will help unpack the reasons behind the housing shortfall, discuss some of the impacts of government policies, and we're going to explore what needs to be done to provide adequate housing for all Australians.
Understanding Social Housing and Private Investment in Australia
In today’s conversation with Nicola McDougall, we dive into the intricacies of Australia's social housing crisis and its impact on private investors. We discuss statistics, government policies, and strategic investment opportunities in a challenging market.
● The differences between social housing (government-provided for the most vulnerable) and affordable housing (making renting and purchasing more accessible)
● 175,000 households on social housing waiting lists, stagnant social housing stock despite 33% population growth
● Decline in social housing stock in New South Wales, Victoria, Queensland, and Western Australia
● The role of private investors in providing rental housing
● Critique of government policies, including ineffective housing initiatives and the financial burdens placed on private investors
o Anti-investor legislation, such as increased property taxes and rental reforms, and their exacerbating effects on the housing crisis
● Potential government incentives to encourage private investment in rental housing, including adjustments to capital gains tax
● Challenges faced by highly leveraged property investors in a high-interest-rate environment
● Opportunities in Melbourne's low vacancy rates and skyrocketing rents
● Importance of portfolio diversification across different states and working with wealth strategists to outperform the market
● Hidden taxes in the New South Wales budget, such as the shift of emergency service levies from insurance companies to property owners
Whether you're a seasoned property investor or you’re just concerned about Australia's housing future, this episode offers valuable perspectives and actionable advice.
Links and Resources:
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Some of our favorite quotes from the show:
“Anyway, it’s the government’s job to help the disenfranchised people in Australia, and in general, it's not their fault, so this is not a judge of people.” -- Michael Yardney
“Clearly, the government has no idea what it costs to construct high-rise dwellings. And if they do offer discounted rents to essential workers, and I'm not against the idea, I'm just saying the numbers don't work – where's the profit going to come from?”-- Michael Yardney
“But here's the problem. Oftentimes, exploiting your own innate abilities requires an enormous investment of your time before the investment begins to pay dividends. And because the investment doesn't produce immediate rewards for many people, it ends up being a problem.”-- Michael Yardney
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All Comments (13)
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Great show Michael, I am one of your mom and pop investors and I only started when I was 50. I had a light bulb moment where I thought to myself "I can't rely on the government to help me in retirement" so my wife and I bought our first investment property 2 years ago and are building our 2nd investment property in SA. I am not doing this to be rich, my wife and I just don't want to rely on the government or our children when we retire. My goal is to have 4 investment properties before I turn 55 and re-evalute our goals after that.
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I think the problem would be if investors were encouraged to hold for longer, the government would miss out on stamp duty and capital gains then there are other flow on effects for other industries such as agent commissions , writing bank loans , and the list goes on and on. The more transactions would circulate more money in the economy and more jobs ???
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greed destroys lives
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Thanks Nicola and Michael. What a smart and beautiful woman. Thank you.
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First cookie always first Michael 🍪🧱
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Great video Micheal 👍🤖
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For years, the dream of homeownership has seemed increasingly out of reach for many. But what of those who can't even afford to rent Social Housing? Waiting lists are overflowing and the number of available dwellings just needs to catch up. Today Nicola McDougall, chair of the Property Investment Professionals of Australia (PIPA) joins me and passionately advocates for a fair and more effective approach to social housing. You see, despite the government raking in billions of dollars from property taxes each year, our social housing stock has remained stagnant, and the number of people in desperate need of housing continues to rise.
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Have another world for “investors”- “speculators”. Who the hell bases their investment plan on having low interest rates. Cry me a river.
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If Landlords cared abput Australia, they'd sell ogf everything bar say 2 dwellings....so FHBs and Seniors downsizing can find a anything. But hey, I don"t mind waiting for any future Govt to strip landlords of them by replicating Victoria via National Cabinet.
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aww.. poor michael and nicola. complaining about all the taxes but not saying anything about all the capital gains they're sitting on. Did you think the government was actually gonna give investors a free pass?
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Trump the best property investor/developer of all time. Even better than buffet...Fantastic, isn't it??
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Come on michael tell the truth Why have investors raised rents so high when you all have owned them for decades and got them cheap. So why did you put rents up so high Michael ?. And get capital gains Hopefully all states go the same as Victoria like Qld mentioned a couple weeks ago.
