Home Truths - Four Corners
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Monday 2 May 2016 On the eve of the Federal Budget, Four Corners reports on the white hot issues of housing affordability and negative gearing and the generation left wondering if they will ever own their own home. "We will start it at 1.1 million dollars ladies and gentlemen." Auctioneer A house with a million dollar price tag used to be confined to the super wealthy suburbs in Australia's biggest cities. Today, properties with that sort of asking price are commonplace, even in the urban fringes, with little infrastructure and lengthy commute times. In Melbourne, the median house price is $700 thousand dollars, around 10 times the average wage. In Sydney, there are suburbs more expensive than Manhattan. It's why the IMF declared Australia one of the most expensive countries in the world to buy property in. This week reporter Ben Knight explores the housing crisis locking younger people out of home ownership and the negatively geared world of investors building their nest eggs. "It's only money!" Auctioneer He meets investors like Wayne and Karen who've created a multi-million dollar property portfolio from their dining room table. "We saw them on the internet, we actually borrowed 105% using the equity we had in our house to fund that." Wayne & Karen And the agents spruiking the investor-led property gold rush. "Why are people looking at negative gearing? Because it's generous. It's a wonderful opportunity for people to become involved in property investment. It's a gift." Real Estate Adviser With negative gearing and affordable housing shaping up as key issues in the forthcoming election, we look at the politics at work behind the major parties' policies. "Labor's reckless changes will reduce property values. They'll devalue every home, every property in Australia." Prime Minister Malcolm Turnbull The Coalition is banking on leaving negative gearing policy exactly the way it is. While the Labor Party is hoping its plan to wind it back will attract those first home buyers who feel locked out by the high price of property. "We're not looking to buy an investment property. We want a house we can live in." Jules, House Hunter But some economists are warning that there are property bubbles in our major cities which could wreak havoc on our economy. "According to pretty much any housing market indicator you want to look at, house prices in Australia are significantly over valued." Investment Fund Manager And there is worrying evidence of fraudulent loan applications which could leave banks and consumers dangerously exposed. "They're lending to homebuyers that have no ability to be able to pay off their loan and they're basically depending on the property market to continue to rise at a consistent rate." Economist While for some first home buyers, a housing crash is just what they are hoping for. "Are we all done...?" Auctioneer Home Truths, reported by Ben Knight and presented by Sarah Ferguson.
Comments
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Did you see that women buying her third home and then telling the reporter she is not great with numbers..... says it all.
I think this will bankrupt their banks. Should be good to watch -
I'll probably never get a house anywhere good.
And if it's a bubble, why the fuck won't it pop?
I don't think it will ever pop, it's to big to pop, if it pops, Australia will be a third world country.
So I don't think it will ever be allowed to pop, government will do EVERYTHING to stop it popping. -
LoL. Aussies have become so arrogant as of late. Good bye fair dinkum. You live for money, food and entertainment. After Great Britain's power was lessened, the U.S. protected your navy and waters, now you are subservient to them, and they will drag you into a war whose proportions you have never imagined. You seem rich and happy, but I pity your future.
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In January of 2009, my cousin started telling me that she and her husband were going to buy a house. I asked if she were concerned about the bubble. She said that housing prices always go up. I then asked her about the US (which was in the midst of its subprime meltdown). Her response: "We're not stupid Americans."
Yes, this is all going to end VERY, VERY badly. -
3 words:
MOVE TO BRISBANE (or Adelaide) -
A dream is just that, not reality!
Banks are private businesses, if you cannot afford the loan, don't borrow it. Hardly the banks fault. -
I wish Four Corners would post video titles that described the subject matter. Most of the titles are ambiguous.
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Same thing's happening here in Canada.
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this is why anyone under 35 who is able to are leaving the country in droves and who could blame them.......
Why do you think their are so many aussie entrepreneurs overseas who have left australia n who could blame them..... -
WOW -- SEND BUYERS TO ME -- HOW ABOUT 120,000 USA DOLLARS FOR 1500 SQ FT DOUBLE WIDE WITH ONE CAR DETACHED GARAGE AND IN GROUND SWIMMING POOL - ALSO RV PARKING WITH HOOK UP ON CEMENT - AND LARGE CAROORT LOT ABOUT 4500 SQ FT - GAS HEATER FOR POOL -- CENTRAL AIR - 90 MILES FROM LAS VEGAS, NEVADA BLOCK WALL FOR PRIVACY ON 3 SIDES -- QUIET ST , NO TRAFFIC - ABOUT 4 MINUTES FROM COLORADO RIVER - - MANY CASINOS NEARBY. 350 MILES FROM LOS ANGELES -- CONTACT A BROKER IN BULLHEAD CITY TO VERIFY VALUE -- WOULD COST CONSIDERABLY MORE THAN MY ASKING PRICE.
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We've got to get rid of negative gearing. It only makes rich people richer - http://www.abc.net.au/news/2016-03-03/fact-check-negative-gearing-scott-morrison/7180812
Decreasing house prices don't affect me. I bought one 40 years ago.
Decreasing house prices will allow my kids to start thinking about buying their own house. Not living in our lounge room. -
Disgusting
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The crash is going to be spectacular :P
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Is Australia heading towards an unemployment crisis? Not 1 comment here about that. Housing is only unaffordable to those that can't afford it. Regional areas are well affordable, unfortunately Australia's public opinion machine is driven by the arseholes who live in Melbourne and Sydney.
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"Thats not a bubble, this is a bubble" - Mick Dundee
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Brilliant vid ……..I subbed
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I can't wait for the housing bubble to burst. That's the only time I can afford a house. Lol
Let it burst!! -
Dont believe a word of this shit, ABC is govt. propaganda.
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Buy precious metals most of all silver. The housing bubble will burst and houses will be a fraction of what their worth today in 6 months.
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Its all crashing down now fucking banks give anyone a loan even if they can't afford it. Scum
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