Hoarding Without Consequence

Karl FitzgeraldCommentary, Multimedia5 Comments

Hoarding Without Consequence by Renegadeeconomists on Mixcloud

Renegade Economists Show 368

As broadcast on the 3CR airwaves 5.30 – 6pm Wednesdays.
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Show Notes

Catherine Cashmore discusses the 7th Speculative Vacancy report. Beyond the staggering 64, 386 empty properties the report quantifies, we discuss some of the finer points of inefficient land use and its effects.

We also delve into real estate theory and demand assessment – how developers adjudge as to when and by how many properties they will ‘free’ in the next ‘staged release’. One developer here is up to stage 128 and has barely started. Miraculously prices keep going …..up! Somehow this is not price manipulation according to the competition commission. Adding insult to injury, the MSM blames affordability on the Housing Supply Crisis.

Of course this hoarding has little consequence for property speculators. They pay barely $1600 on holding charges (Land Tax and Council Rates) vis $60,000 in capital gains.

The burden of such behaviour is instead placed on the community, where record high mortgages (spread over 30 to now even 50 years) reduce local expenditures, sending the domino of lower local employment, increased commuting time and greater survival imperatives on a world already drowning in insecurity.

It’s always a laugh on the Renegade Economists.

Related Links

Catherine Cashmore’s Specualtive Vacancies event presentation and audio

Press release
The related media can be seen on the report page linked above.

Williams Landing investor data
Williams Landing neighborhood analysis

5 Comments on “Hoarding Without Consequence”

  1. It’s my house, it will be empty again shortly while I am on and extended vacation during the Melbourne winter and you are not entitled to it, so bud off gens x and y. Earn your money, go to your flat and reflect on where living life to the max left you, you self indulgent people.

    It is not the government’s responsibility to cover your failings complain to your parents if they care for you.

  2. Thanks Pim, you almost get it. Who else could advocate for zero income tax and zero company tax? Why us! So government could keep their hands off our incomes and instead capture some of the naturally rising value of the earth, the land. Yes let’s channel the property bubble away from pushing us all into more debt, and one that finances government at least cost, whilst expanding GDP by 20+%. How? Read the Total Resource Rents of Australia. Then there would be no need for inter-generational snarkiness and you could travel the world at ease. Perhaps you could also read this.

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