Dig into Barnaby’s latest clunker and you’ll find that when it comes to housing, the government’s cupboard is totally bare.
I wonder if everyone caught the latest effort last week from wonderkid, Barnaby Joyce:
“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.”
I don’t even know where to start…
My first thought is, how can you be so stupid? What politician has ever made any mileage by telling people who think they have a problem that they don’t actually have a problem?
“It’s all in you head, kids. You’ve just set your sights too high. Just accept it.”
Seriously, that’s got to be Politics 101, doesn’t it? On any issue the correct answer is always:
“I understand how tough it is. I emphasise. I’m working on it. We’ll be releasing an comprehensive, appropriate solution at the appropriate time.”
It is never, “You’re having a whinge, get over it.”
That’s a general rule. But is there any hotter button in Australia right now that housing affordability? Seriously? Baranaby can hardly claim that he was blindsided by that one, right?
“Yeah, sorry Malc. They just threw this question on ‘housing affordability’ at me from out of left-field. Who saw that coming? But I thought I handled it…”
And seriously, what planet is he on if he thinks that housing affordability is only a problem for people who want harbour views.
This is CoreLogic’s lastest heat-map of Sydney:
There’s isn’t a suburb within 20km of Sydney CBD where the median value isn’t north of the million dollar mark.
And ok, I’m in the property game so I’ve got a better handle on prices than most, but still. This is hardly a new issue. Negative gearing was one of the defining battlegrounds of the last election.
Here’s a tip for you Barnaby. If they’re asking you about an issue on national radio, it’s not because there’s a handful of disgruntled hipsters in Mosman.
It affects everybody.
Barnaby and co. still seem to be operating on the idea that affordability is just about fussy millennials wanting it all.
It’s not. It’s about people with good jobs who can’t afford to live close to work. It’s about retiring parents being forced to chip in for their kids deposit. It’s about business owners having to pay through the roof for staff because anyone on an entry-level wage can’t live within 20 k’s of work.
Seriously guys. Wake the F up. People are pissed.
Now maybe you have some ideas about what should be done. Maybe you are determined to do absolutely nothing (certainly seems that way).
And that’s ok. But you can’t go around telling people that there isn’t a problem.
It just looks like you’re living in la-la land.
You can’t tell people struggling to buy a unit in Strathfield that maybe they need to give up on the need to have a view of the bridge.
It’s like Joe Hockey’s call last year that people just needed to “get a good job and then get a bank loan.”
Can they really be that out of touch?
In a way Barnaby started out on the right track with his line of thinking.
Part of the problem is that everyone wants to live in Sydney. But then that’s not about views, that’s about jobs.
So that opens the way to any number of solutions if the government was serious about it.
Houses are expensive in Sydney. They’re cheap in Tamworth. Therefore…
… we’re funding regional business infrastructure
… we’re building a high-speed rail network
… we’re building a world-class data network
… we’re going to build a 200m tall pork-barrel in the middle of the Darling Downs.
Whatever, you guys are the politicians. Come up with some solutions. That’s your job.
But, “…we’re going to tell people to harden up and move to Tamworth” is not a solution.
But we keep getting brain farts like this because on housing affordability – one of the hottest topics in the country – the government really has nothing.
Scott Morrison just came back from a junket to London. He went there to learn about housing affordability from one of the most unaffordable cities in the world – another global city that has totally failed its citizens.
And what does he come up with? Nothing. Just a partisan dig at Labor for wanting to look at negative gearing.
“We are determined to do nothing.”
Brilliant.
I’m used to governments having nothing to offer on housing affordability. It’s been that way for 20 years. And I do get that the politics is tricky. People want housing to be cheaper, as long as that doesn’t include their house.
But man, these guys are making a total meal of the politics. And it’s not that hard to find a line and stick to it – even if that line is, ‘we’ll have another useless inquiry and get back to you’.
But really, it does make you wonder… We’re not in a safe pair of hands here.
What did you make of Barnaby’s bluster?
Ruth says
As the former RBA governer said, it is supply and demand that determines house prices.
If the population doubles, and you also have foreign investment, what can you expect to happen to demand?
The best solution is probably smaller developments, and that seems to be happening
Harry Myers says
I think Barnaby has a more successful political career than Jon so I think he would be better qualified to know what the appropriate thing to say would be.Barnabys plain spoken comment is actually right on the mark – the problem from the whingers is their unrealistic expectations. Jons comment is just the standard claptrap a do-nothing politician would say. Please Jon stick to property blogging, political commentating is a stretch too far for you.
Hamish Blair says
Barnaby’s on the money. They aren’t making any more land, so as the population and incomes grow (AWE up 2.1% in the 12 months to May 2016 per the ABS), so too will property prices. Plus the structural shift in interest rates over the past decade has reduced the cost of capital and pushed property prices up further.
Solution: smaller lot sizes, medium and high density developments etc. Something many Councils oppose.
Stuart says
Barnaby’s on the money? Really? Jon’s points were valid: 1. prices are expensive in most of Sydney, and a long way from the harbour / bridge views. And 2. what jobs are available in Tamworth, Toowoomba, etc where this wonderful cheap housing exists?
PS Many councils oppose high density developments? Not many! (as it means more rates they can collect). And councils are often over-ridden by State Gov legislation anyway (such as within a certain distance of train stations, developers can go nuts, e.g. St Leonards in Sydney, where council height limits, etc are thrown out the window).
Kathy says
Haha, totally agree Stuart. Our Councils and state governments are only seeing dollar signs and salivating at the thought of all that revenue from stamp duties for the state government and DA fees and more rates from people crammed into poorly built, investor quality block after block of dreary flats.
You can add pretty much most of Brisbane, Redlands, Gold Coast, Sunshine Coast, Moreton Bay, Ipswich, heck, pretty much all of South East Qld to St Leonards in Sydney, where things like density and height limits are mere suggestions, not restrictions in a Local Area Plan or anything like that. And don’t let things like heritage listing or environmentally significant sites or waterways stop demolition and development! Of course once a precedent has been set, it’s open slather for everyone else.
But don’t worry about planning for things like extra schools, parks, green space, roads, critical sewerage or stormwater infrastructure and stuff like that. That can be the problem for the next Council administration and state government. Big donors and friends of Councillors, Lord Mayors and state MPs need to be looked after NOW, not later.
Hamish Blair says
Clearly someone is buying those expensive properties. Generally the highest bidder is the purchaser.
alex says
another whinging Gen Y – go out and work! stop expecting the government to solve your existential crisis! at least banks loan money to ordinary people these days!
if i look at the “deposit” we paid on our 1 bedroom in todays money it was $150,000
Ian says
John, for once you are a wanker. it is not the govt responsibility to solve all the problems – and its not possible. The Govt has been improving rail services and promoting decentralization but it hasn’t made a big impact. Go to Rome London Paris or New York and the prices are even more unaffordable than Sydney and Melbourne (and we have 2 of the worlds most liveable cities.) And John – you are a spuiker of property seminars all over the country getting people to invest in properties – which adds to the problem – so you are part of the problem.
Kerrie Randell says
“Scott Morrison just came back from a junket to London. He went there to learn about housing affordability from one of the most unaffordable cities in the world – another global city that has totally failed its citizens.”………..hahaha – i almost wet my pants laughing so hard!!!!! Now that i have picked my self up off the floor, after falling off the chair due to laughter…… well – i moved to Tamworth two years ago due to housing affordability. The entire scenario cost me my deposit, in moving and in renting – looking for work that is darned near impossible to find. Add to that problem the dilemma of a small country town mentality of needing to be a long long long long term LOCAL to even get considered for putting in your resume….. needless to say, i had to move closer to a big city for the availability of work – which is still no easy task to secure!!! I am looking at never owning my own home after paying tax and food and car and and and….. most will get my drift. LOL. I am no young millennium child either – i come with a wealth of experience in the work force. sigh…… Barnaby Bear was right in one sense – no affordability in housing if you want to be close to where you work. Yep he sure was right. So what do we do???? I dont want to stare at the ugly old Sydney Harbour Bridge (even if it considered a national treasure) – i love the country – but “I aint no farmer”….. so what on this earth do you do???? I would love to see businesses have their offices OUT at Tamworth (eg) hahaha – as if they could – one of the reasons they are in the cities – is due to making money from the population!!!! Geesh – this is a round-a-bout, whirling gigy-thing we could ride forever. By the looks of the gov – we probably will be!!!!
Dorothy Pilgrim says
Kerrie Randell I hear you. I went to Country Victoria some years ago. Put my resume in for every job I was qualified for… and over qualified for.. trouble was I was not a local. I would get to the last interview…But just had not been in the area long enough… Tough yes… But I found a job being a rep for a company in the city.. and they drove me to broke… fuel etc… they had no idea.. and would only allow a certain amount for fuel… so 800km a week?? Not a chance. So Really perhaps some of the solution is to move some departments out to the country, and give companies incentives to move to the country…Makes more sense than people commuting 3+ hours everyday… so they can live and afford a house.
KiwiAl says
Kerrie & Dorothy,
Your comments regarding the refusal by local employers to employ non-locals – extreme prejudice and parochialism – is obviously a major part of this problem. If people can’t get employment near where they live (for whatever reasons), they are forced to commute. There is something very wrong with that picture – one which we don’t have to any major degree here in NZ. Obviously, there’s no point living out in the bush, miles from any employment unless you have an Internet-based business (and a reliable connection), but many NZ employers choose to locate near where their workforce is. I believe this is part of the same issue – if residential real estate is unaffordable, likely so is commercial real estate – or, at least, it’s a much higher cost for CBD businesses than more “suburban” ones, potentially making suburban ones more profitable. But I guess this is all to do with town planning. If the right land is not zoned for business, they won’t go there.
Anyway, many people in NZ find they have a much better lifestyle living in secondary towns and cities – cheaper houses, negligible commuting costs, decent neighbours, etc, etc. And I have not heard of this parochial attitude except in the deep south – your equivalent of Tasmania.
Considering Australia’s much larger population, I’m very surprised to hear about this backwardness.
You ladies might like to consider moving to NZ! Just don’t think or act like a typical “modern” Kiwi female (superior to men, and therefore rejected by them). If you’re efficient, hardworking, a bit friendly and outgoing, and easy on the ear (not too strong an accent) you’ll probably do fine over here.
Actually, I worked (briefly) for an Australian company here in Auckland a couple of years ago. It was an extremely unpleasant experience, and I would never want to work for an Aussie company again. They were so entrenched, so riddled with Peter Principle employees, and brutal, mercenary and inhumane. I feel truly sorry for other people who have fewer choices and have to keep working there. NZ employment rules are much kinder than Australian. Unskilled wages are low though. But give it some thought.
Alex Cook says
One thing is for certain….people get fired up over property! I am still of the opinion that the issue is simply supply and demand. We import over 300,000 people annually into this country, most of them settle in Sydney and Melbourne. We don’t build anything like the number of new dwellings that we need – ok, things have doubled in the last few years but they have a long long way to catch up. Most of the building is at the luxury end of the market, where the market is very small. Who wants a million dollar apartment in Rouse Hill? Students can’t afford it, the retirees who have money don’t want to live in apartments, its a difficult way to bring up your kids if you have a young family. What they need to be building is cheap apartments, not luxury ones.
Could it also be that our state Gov. is now so dependent on stamp duty and land tax from investment property and high prices that they don’t want the prices to fall? They must be making a killing! I would like to live with an ocean view too but made the decision to buy land in Western Sydney many years ago because I liked the lifestyle. As it turned out, it was also a sound investment.
As for Tamworth, well yes, I have investment property there too. Rental returns are very high and land prices low….. not a lot of work and if you don’t like drinking beer, not a lot to do otherwise!
As a side note, part of the problem of urbanisation in Australia is the piss poor state of our telecommunications system. The NBN was an opportunity lost as far as I am concerned. Running high speed fibre to country towns will allow businesses to migrate there staff, reducing travel and costs for business at the same time as providing better lifestyle for people – and will reduce housing prices. We as a nation have allowed Mr Turnbull to water down the NBN into a less expensive system that does not work – Great! an opportunity lost!
I live in the largest city in the country, inside the metropolitan area and despite having 3 independent internet connections at considerable expense, I still suffer from speeds that are less than 200 kbytes/sec. That’s disgraceful! Do I really need to move to Tamworth to get a decent connection?
Sally Martin says
Great article, couldn’t agree more. The issues with housing affordability are very real for double income and no children households! Don’t get me started on what that means for single mothers post divorce with young children in tow, inability to earn a full-time wage (unless fortunate enough to have exceptional support network and held onto career during child rearing years), and even then, no borrowing capacity as a bank won’t look at them. Full time secured employment seems increasingly more difficult to find, especially if you’re from a mining or construction background or related industry that relies on these sectors thriving. Precarious times all round. And as for small businesses, it couldn’t be tougher. Here in WA commercial leases are ridiculously high, and wages make it almost impossible for start up businesses unless they’re coming in cashed up with all the bells and whistles. There’s very little opportunity for social migration, so those less privileged find it increasingly more difficult to change their circumstances.
I do live in a ‘regional’ area and housing affordability is still a huge issue. To move more remote would mean no opportunities for employment, so it’s all relative. That’s why housing in the sticks is so damned cheap, because there’s no way to earn a decent living there!
For such a heavy and emotionally charged topic, can I just say how entertaining and ‘real’ your article was to read. It connected with me. Thank you for the honesty, and no sales pitch or optimistic BS about the housing market.
ronald goddard says
hi jonno, nice words (of yours). barnaby was perhaps simplifying the problem. but, there are a few factors at play here. one is that negative gearing or any sort of gearing is gonna raise the bar on house pricing; its axiomatic. now when the pollies were discussing this issue months ago the general consensus was that the mums and dads were the problem (by investing in housing). they were the greedy ones pushing up the price of housing. and it must be true because malcolm said so. but i am afraid he speaketh out of two mouths. hypocritically it is of ‘record’ (nice word eh?) that 98% of neggie geared properties are owned by big(huge) conglomerates and they wanna lose lotsa dosh (money) in interest cos, golly, capital gains will cover that little incidental .and that leaves the mums and dads carrying the can of the interest factor. jonno, i think that you covered this stuff a few weeks ago.
now the greed (insecurty) factor. as we all know 2 +2 = 4. thats the way it is. but some of us want 2+ 2 to = 10. that is ‘unsustainable’. in fact its downright stupid. but thats the mindset amongst us. (belief system) that runs our lives. like the proverbial rats on a treadmill. now i have come to the ‘orrible conclusions that
1. our western society is out of control.
2. politicians are arseholes on a free ride
3. we have become almost a ‘police state’ (america already has).
4. we have too many ‘homes’ in the wrong hands.. where i live in attadale (perth) i could, in 5 minutes show you at least a dozen ‘homes’ that are vacant forever. owned by absentee owners. and that is in an area of 800 homes. saying that at least 1.5% are forever vacant.
5. single entities; men and women living alone by choice. over 30%!! now if these ‘singles’ could somehow get to like living with someone of the opposite sex (oops..maybe same sex) then wallah! problem solved. as it is of ‘record’ that there is 70% ownership of homes in oz, the other 30% are living out of a suitcase as it were. is that civilsed?
6. charles darwin was a dickhead. he had a theory about evolution of the species; dog eat dog.etc. sir isaac newton was a genius. his ideas were diametrically opposed to darwins, but he lost the battle. the forces of darwinianism appealled more to the overlords and we became a western world of butchery and savagery as we see it today. no believe? try telling the people in iraq, libya, ukrine, vietnem, korea, oz,(pre1788), china 18th century. etc. etc. etc. that it isn’t. i say this because i believe that we could all make a contribution to humanity by being humble.
cheers, ron .
Michael Palmer says
As a very long qualified Real Estate Agent and Real Estate Valuer Barnaby is Completely CORRECT.
Politics could reduce Negative Gearing to ONE property,
but LET THE MARKET DECIDE ON VALUES
Thomas says
Most investors only have one property. Perhaps not the impact that is expected.
Heather Smith says
Hmmm, so no knowledge of the Sydney market here. But I have lived in plenty of rural, actually remote areas for the past 20 years as a white collar professional and have had no issue getting jobs that paid me enough to save money, buy a home and go on to buy investment properties. Were they Sydney equivalent wages, no, not within a bulls roar of it. My salary never breached $100k pa, but my costs were much lower and I drove an older car. Sure some will say they want to live beachside, or want to have culture and restaurants on tap. But who, if they are genuinely caught up in the housing affordability struggle has the time or money to live that lifestyle on offer just out their front gate? Go west, save the cash and twice a year take your 2hr plane flight back to the big smoke and indulge in all the great stuff you never used to. Rural communities are screaming for knowledgable skilled workers and people to take over small businesses. As communications improve there are increasing opportunities to work from home as I have been doing for the past 18 months. Towns like Toowoomba, Tamworth, Armidale are genuinely beautiful towns with a lot to offer and their ability to offer more in the cultural space will only improve as their population grows. Gosh, It’s only just over an hour’s drive from Toowoomba to Brisbane and now there’s direct flights to Sydney. If you live in Roma there are 6 flights a day to Brisbane and Mt Isa has at least twice daily flights to Brisbane that take 2 hrs. Or Moree, I drive 180km to Moree then catch a 1hr flight into Sydney for $90.
Sadly most people are not prepared to investigate the opportunity much less to make those changes and step into what is a vastly different world.
Most certainly most certainly the government could help a lot by upgrading our road, rail and communication infrastructure, by supporting business relocation and by decentralising their own offices. So yes, they too can get off their butt and try a little harder.
steve christo says
I wonder if … Barnaby, Jon and most of the commentators here are ALL somewhat correct. I wonder if it’s a good thing that Sydney and Melbourne are two of the most expensive cities in the world.
I wonder if it actually means that of ALL the cities in ALL the countries on this powder keg of a planet that we are currently living on, that maybe .. just maybe … this is where the smart money is wanting to live or wanting to invest.
Perhaps europe and its geopolitical upheaval, the middle east and its wars, africa and its raped resources, USA and it’s … everything … perhaps these are the reasons that Australia, New Zealand and a few other countries are thriving in this sector. I’m sure there are other sectors within the Australian economy that are NOT singing Joy to the World from the mountain tops.
Perhaps this is the rationale for business people from all over the world (not necessarily billionaires but just plain simple ordinary business people) who have decided to move either to 4-seasons-in-one-day-but-generally-cold-and-cultured Melbourne OR crazy-busy-but-prosperous-with-warmer-weather Sydney.
Perhaps I’m being too simplistic. Perhaps I’m partly correct. I don’t have the answers.
What I do know is that my five trips to china in the last 3 years have deepened my pride in my country and the fresh air and clean water we enjoy every day. And when I make the time to take the kids to the beach and enjoy a real gelato … bonus.
What I also know is … some mornings I wake up and check my emails … get on the phone to customers … check my bank account … and I’m quickly brought down in energy about the state of my own business, the economy, taxes, my grumpy neighbour, my ex wife and everywhere I look I feel like giving up and a sense of helplesness. Other mornings, things seem to be organised for me by the universe and they just click into position. I’m not arrogant enough to think that my hard work and planning makes all that happen but I do have a little luck dropping into my life every now and again.
And that’s all I need. I wish those of you doing it tough in the country got a little luck going your way every now and again. It restores hope and faith.
I wish the system was fair. I wish there was more work out in the country. I wish parking in Sydney wasn’t such an expensive nightmare. I wish I didn’t have to drive 1.5 hours every morning and afternoon to be able to live in “the shire”. I wish organic food wasn’t so expensive. I wish salmon and other fish were ‘real’ and from Australian waters and not farmed and fed rubbish. I wish people wouldn’t drive and text. I wish I could provide more ‘experiences’ for my children and get them un-hooked from retail-therapy, fast food and wanting ‘stuff’.
I’m glad I’m an Aussie and I’m glad I’m free. I’m glad it’s expensive here and for once ‘they’ need to pay to enjoy the luxury of living in the best cities in the best country on the planet. I’m also mindful of the fact that everything is relative so whenever we need to (or want to) sell up, we will have more of the green stuff to buy elsewhere (anywhere on the planet) and carry on with life.
In the meantime, blessings to you all as we each do our best to navigate the waters of these turbulent times. I believe a big correction in the market is coming (everything runs in cycles) but I’ve heard that it’s a few years away, so … as the Looney Tunes jingle goes …”on with the show this is it.”
jenni radke says
Yes Barnaby was oversimplifying … and Jon is right in saying politicians should offer solutions. Australia has so many wonderful places to live that have been ignored for decades by the government. Decentralisation is essential … NBN, high speed rail, incentives to rural/regional businesses to employ fulltime workers. I live in a rural estate behind Cool um, Sunshine Coast. A third of the residents work/run businesses from home with many contacts in the cities. Much cheaper and delightful lifestyle. It is possible! Oh and country views are much more interesting than the blue line of the ocean!
The other, often ignored, factor re affordability is lack of permanent, fulltime jobs. Our employment statistics need to be scrutinised. Can’t blame the banks not wanting to lend to those with job insecurity. Again, where are the solutions from government? More casual/contract work?
Tim says
How can you make land cheaper?? You’ve got to crash everything for that to happen. Barnaby is right. You’ve got to be stupid to try and make housing affordable in Sydney. As if that will happen. You have to be stupid to think that will happen. How on earth can you make land prices go down. It won’t go down, it will rise in value forever. Look at the last few decades, yea centuries.
Roger says
Here is the answer. Move to The Sunshine Coast. The latest ABS figures show unemployment at 4.7% and youth unemployment at 9.8% both significantly under the national averages. Plus 92% of businesses on the Coast say they expect to maintain or increase their staff in the next 6 months. Add to that, friendly people, magnificent beaches, spectacular hinterland scenery and world class food production all with a median house price under $450,000 and it is a no-brainer. The following is the latest Council update on the state of our region;
The Sunshine Coast is rapidly becoming one of Australia’s leading city regions, providing an outstanding location for innovation, creativity and entrepreneurialism.
“Our region is already seeing some fantastic results, being recognised as one of the strongest performing regional economies in Queensland and a record decline in unemployment to below the state and national averages.
“Sunshine Coast Council had the busiest year on record in 2016 in terms of development, including issuing $1.28 billion of building approvals, the highest value of building approvals in seven years.
“So we’ve put strong economic foundations in place and more than $10 billion is committed or in the pipeline in major public and private investment across the region.
“We are developing Australia’s only green field CBD at Maroochydore as Australia’s first truly smart city, with work already underway and forecast to contribute $4.4 billion to the local economy over the life of the project.
“The $1.8 billion Sunshine Coast University Hospital – the largest health infrastructure project in Australia at this time – is due to open in April this year.
“On top of these game-changing projects we have seen the $3 billion Palmview master planned community and the $400 million redevelopment of Sunshine Plaza recently commence.
“The Sunshine Coast Airport Expansion Project also now has its approvals in place and construction will commence this year, with the expanded Airport contributing $4.1billion to the region’s economy through to 2040.
“The Sunshine Coast is also driving the development of seven high-value industries identified as having the greatest potential for success and well placed to service demand from domestic and global markets.
“In short – our vision is a healthy, smart, and creative region that has its own identity and is intimately connected to the world. Come and visit us, ALL WELCOME!
tim says
Sounds like I be investing in sunshine property next 😀
Sammy says
I believe it’s a matter of perspective – rather than focusing on making housing more affordable, why don’t we focus on making people richer and lower the barriers of entry to the housing market?
If I was the NSW government, I would pull a few levers:
1. Remove barriers to entry – completely overhaul stamp duty or better yet abolish it for NSW residents – what is “stamp duty” anyway?! Introduced in the 1800’s, was meant to only be around for 3 years, and never abolished. The formula for calculating stamp duty also hasn’t been changed since 1986, 30 years ago! Now the median house price is $1 million, we are talking $50k plus just in stamp duty you have to raise ON TOP of a deposit. And I just really want to know, do they really stamp something?
In addition, what about lowering deposit requirements for the bank, 10% rather than 20%?
2. Lower taxes – including income tax and capital gains taxes, more money in people’s pockets means greater spending and a strong economy, and greater turn over of investment
3. Transform our transport network, rather than replicating – new technologies such as Tesla’s hyperloop could be the answer to connecting regional areas to cities, how about starting with connecting Western Sydney Airport with this technology or high speed rail to employment centres, rather than building a light rail in the Sydney CBD that replicates an existing train line and causes havoc for the road network.
Is it rocket science? Really? It’s just a bunch of politicians who know what the answer is but choose to be ignorant to stay in power rather than do what’s really needed because it’s too hard basket.
Sammy says
Jon – I give you permission to use these ideas – you just better credit me in your next post !
Thomas says
Any infrastructure or improvements will always materialise into the value of land (enclosure of economic gains), that way it can be traded as higher land prices. It is the way it has to be, it can’t be any other way, unless of course the government switches it’s revenue model and taxes the land value (and remove almost all other taxes). Should they do that then all of the citizens of this country can enjoy the economic gains of higher land values. But that won’t happen as it would most certainly make government as we know it redundant and the propaganda machine will spin it as a negative tax grab to make it unpopular.
Any measure or tweaking will simply drive up land prices. The system is not designed to make housing in capital cities affordable for the lower income earners.
The whole process is driven by credit creation over an 18 year cycle. The downturn that began in 2007 was just history repeating itself, the cycle from 1992 -2010 is over and the next real estate cycle will run to 2028.
This isn’t taught in schools or universities, you have to research it yourself. Do yourself a favour and Google the economist ‘David Ricardo’s theory of rent’.