Australia’s Housing Crisis Gets Worse! #Finance

okay so you’ve read the title you’ve probably seen the thumbnail and you’re like oh my God here we go again there’s some more fomo here and what I want to share with you is some cold hard facts and sometimes you just need to be slapped across the head with some cold

hard facts that’s exactly what I’m going to share with you because the reality is if you don’t start making moves soon it’s probably going to be Out Of Reach when it comes to owning a home here in Australia I don’t make up the rules and nor do I drive the market a

particular way from my small YouTube channel so if you guys are interested in what my thoughts are then definitely keep watching hey guys my name’s Ravi and welcome back to personal none;">Finance with Ravi shama if you’re new here smash that subscribe button because I talk about Real Estate personal development and all things Financial Freedom now if you are watching this on YouTube you can definitely go check it out ad free on Spotify

it’s completely ad free across both platforms and I’ve done that because I want you guys to access all this free education everywhere so if you’re on the go check it out there if you’re at home check it out there and if you want to share it with someone you can share it

wherever you like now that’s probably the happiest you’ll find me in this CashNews.co because the reality is it’s a very Grim reality and the idea of a fairgo in Australia or the idea of The Great Australian dream of owning your own house it’s slipping away and it’s

slipping away a lot faster than most people think now yes you could go out and blame migration you can go and blame the evil investors there’s so many things that we can do but I want you to keep an open mind as we go through this CashNews.co because what I want you to focus on is

accountability on what you can control everything you can control control you should control everything outside of that is pretty much white noise so what I do on a day-to-day basis shouldn’t really affect you and you should go and protect your energy and time and execute with speed so you

need to go and focus what you can do right now to be able to make sure that this doesn’t happen to your family now it looks like there’s no end to the Australia’s rental crisis domain has released the September quarter rent report which contains the below chart showing this

dramatic growth in median asking rents across the combined Capital cities what we can see is the light green which is houses and then in the dark green we’ve got the combined Capitals for units what we have seen is this rapid increase in rents more recently

and there’s a couple of factors that play into that which I’m going to share in a bit but what we are seeing is a bit of a tapering off now what most people are hoping for is that this is temporary and while we think it’s temporary it does mean that rents will stay at an elevated

Pace what we could see is a little more leniency around rents and how quickly they’ve grown if we do start seeing Interest Rates cut which is a good thing now a big factor that plays into this is the Australian net overseas migration and what we can see is this period here

between the 1940s and sort of early 2000s this is normal immigration this is what we want to see however since then what we did see is higher levels all the way up until 2019 2020 then we shut off our borders and what we do see is the rubber band effect I’ve spoken about this when it comes to

Inflation and Interest Rates when you have one thing be so volatile in One Direction chances as I you’re going to see the opposite effect very quickly between 1910 and 1920 is exactly what we saw where we saw a sharp drop off only to see a big rebound now

what we’re seeing is numbers a lot higher than that and what we’ve seen is in 2020 when things got locked down our borders also locked down and post that we’ve seen the highest numbers of immigration come into Australia now what we’re seeing is projected to be a lot higher

still than normal immigration now it’s very hard to predict where we’re going to end up over the next 20 or 30 years but it’s safe to say that with the appeal from overseas people to come to Australia I don’t see the demand falling off anytime soon the world’s largest

Commercial Real Estate Group CBR projects that Australia’s rental crisis will continue as population demand overruns Supply CBRE projects Australia’s population will grow by 3.6 million to 31 Million by 2034 from the current 27.4 million now mind you when you think

about the projections experts had for the Australian population in 2024 we’ve eclipsed those numbers a lot faster so if we see these numbers yeah sure it’s going to be a bad thing but what are the chances that we see this number a lot sooner than 2034 I think it’s highly likely

now a big problem when it comes to the rental crisis is that yes we have demand but we have Supply going the opposite way where we have low levels of Supply not just for houses cuz that’s basically in the toilet you’ve also got that for apartment living now before you go jump online and

buy an apartment somewhere because you you think it’s a good investment just think about what risks you have to take when you go and purchase a unit now I’ve got a couple of units in my own Portfolio but they’re very carefully selected they’re not in a

building of 200 they’re definitely not in areas where there’s multiple towers and they’re definitely properties that are completely unique and the biggest issue that people have when it comes to investing in units or buying units is how do you know it’s not defected how do

you know there’s no problem with it because over the last 10 to 15 years we’ve seen plenty of issues because all of these bigger developers are saying well it’s a churn and burn let’s build a cardboard cut out of some place and it’s going to be literally a cube and

then we’re going to sell it for so much more money and based on affordability people can only afford these things and what you can see here is the high-rise apartment of approvals now despite so many coming out we’re still seeing this number decline year on year and that’s quite

concerning because if we are in this position now what does it look like in the next 5 years what’s crazy to see is West Australia and the gray is pretty much at the lowest levels it’s ever been at and if you see something like New South Wales where we have the highest levels of

approvals you’ve seen that decline pretty much from 2016 all the way through to now and it doesn’t look like it’s stopping anytime soon now major reason as to why we still see property prices continue higher and higher and higher is because Inflation to a certain

extent is baked into the property because when you buy a property right you’re not just buying a house where you can live in you’re going okay there’s materials that go into this the bricks they cost more more the tiles they cost more all of the other building materials that you

have are costing more over time because they’re all hard Assets derived in money which is basically useless the currency is absolutely useless so when you look at a graph like this what you’re seeing is that because the cost of a construction is increasing you’re

pretty much thinking about what the replacement cost is of that house now if you think about it and you purchase a property for say $500,000 and yes you can still find these if you finding it difficult to find investment properties like that and I’m talking about houses and Tow houses in

really good locations then definitely reach out to us at searcher.com because we move at speed and a lot faster than most people ever can now if you purchase a property for say 500k and you get the land plus the house you’ve got to think about how much it would cost to rebuild a house like

that and if you’re thinking that a house now is costing 200k you’d be pretty much out of luck the cost of building a house is increasing and that is then putting further pressure onto the existing stock and that’s not just from a Capital Growth perspective

it’s also from a rental growth perspective because the higher the cost of a house to construct means that there’s less people willing to take that on and especially when You’ got Interest Rates so high you don’t have as many people going out there getting an

approval holding a Loan for a long time and then getting approved for a Loan as well to add to this entire mess you’ve got company insolvencies pretty much at all-time high when it comes to construction companies and these could include really small

construction companies as well as really large ones you can simply go out onto Google Google and search up Construction Company collapse and you’ll see so many over the last couple of years it’s simply not viable for a lot of these developers to go and build you’ve got people that

could borrow say 24 months ago but now can’t borrow and unfortunately that puts pressure onto the stock and it also puts pressure on these larger companies that have taken out Debt and we’ve seen increases in Interest Rates so quickly now lately we had

our prime minister get to some hot water when it comes to his house and he’s purchased something for like $4 million I am not going to go into that discussion whether I think it’s a good idea or it’s not a good idea what I can comment on is one of the worst things that I’ve

seen when it comes to policymaking and Promises it was pretty much this which is the housing Target that this government comes out with saying we’re going to build 1.2 million homes that’s pretty much where the target was which is we need 240,000 every single year and I pretty much said

when they came out with it I said they’re probably going to produce a lot less than what they normally do versus they’re going to go and hit all-time highs and that’s exactly what we’ve seen when we see the target being 240 and the numbers that we’re producing are

closer to 180,000 so every year that we miss that Target it means that we kick the can down the road now what would make sense is if you’re not going to get your supply in you probably shouldn’t get your demand in and your Demand Being immigration so maybe just slow things down on that

front but no you can’t do that because then the Australian economy is going to collapse we’ve pretty much experienced a per capita recession already if we don’t have all these people coming into the country we pretty much will go down the track of of having an economy that

doesn’t have a soft landing at all and it would be a hard crash now I would go on to say they’ve managed this quite well the RBA the government they’ve worked well however there is always going to be collateral damage there are people out there making more money than ever before

but they feel poorer than ever before and the reality of Inflation is that it erodes all Debts and with Interest Rates probably coming down in the next 6 to 12 months they”re pretty much chosen their path which is let’s go and inflate

the economies let’s print more money into the economy maybe Hy Inflation is the cause of concern not so much a hard Landing over the next 36 to 48 months now as I mentioned the Australian dream of owning a home or a fair go in Australia is pretty much deteriorating and in

2023 the intergenerational report included the following chart which shows the collapse in home ownership amongst younger Australians what we can see is in the blue you’ve got 1981 in the red you’ve got 2001 and in the purple you’ve got 2021 what we’ve seen is that number

pretty much decreased all the way from anyone between 25 and 45 and then it starts shifting a little bit more from there but overall it’s a lot harder to own a house now than it has been in the past despite people coming out and saying Interest Rates were so much higher back

then and this does unfortunately mean that you need to start making moves sooner rather than later now if you choose to take on this advice and it’s free advice it’s not even advice at this point it’s just common sense if you want to take accountability for your actions go and use

your money money save it invest in Assets protect your wealth and continue rinse and repeat if you think this is all fomo and that nobody should be buying a property then you’re most likely going to let me know in the comments down below anyway but the reality is those

Commons do nothing for your own bank balance so that’s what I urge you to do is move with speed move with the right team if you need the help there’s always that opportunity to contact the best buyers agency in Australia which is search property but if you need ongoing help and

mentoring then definitely go and subscribe to this channel I’ve got hundreds and hundreds of CashNews.cos on this channel and I upload every single week I hope you guys have enjoyed this one if you have smash that like button subsscribe if you haven’t already and I’ll catch you

guys in the next one thanks guys