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The Land of Future Renters Down Under


One of South Africa’s 80 squatter townships for ‘whites’ 

By Dee McLachlan

Is it just me — or is there something amiss about the booming property market in Australia?

I was originally inspired to write this article when Nemisis made a comment on Gumshoe, on April 25, 2017. On the European arrival to Australia, he wrote in part:

“The original inhabitants of this land prior to white settlement, considered themselves as custodians only of the land that they dwelt on. There was no concept of ownership…

I replied (a brief extract):

“The “concept of ownership” allowed the present inhabitants of Australia to take over the land… but that very concept will be the demise for our great grandchildren.”

“Seeing as Australians put such a focus on property prices and ownership… the migration to privatization continues, as Oz continues to “sell up”… In another hundred years my guess is that Australia will be (like) a private corporation — run by a handful of people (once foreigners)… The take over of Australia will have been complete.”

“Everything Is In Place.”

On March 20, 1969 Dr Richard Day gave a lecture to a meeting of the Pittsburgh Paediatric Society — and these extracts were recorded by Dr. Lawrence Dunegan in 1991. This is what he recalled about home ownership:

“Privately owned housing would become a thing of the past. The cost of housing and financing housing would gradually be made so high that most people couldn’t afford it. People who already owned their houses would be allowed to keep them but as years go by it would be more and more difficult for young people to buy a house. Young people would more and more become renters, particularly in apartments or condominiums.”

Day was wrong when it comes property in Detroit (median home is US$39,100) — but welcome to Australia.

Property — A Pyramid Scheme?

The banking system works by creating loans out of thin air. Sir Josiah Stamp, President of the Bank of England in the 1920s, and the second richest man in Britain at the time, said:

The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented.

This brilliant deception — creating money out of thin air — has allowed the bankers to run governments and consolidate financial control over populations, capturing them in debt.

This loaning money into creation is fueling asset prices.

Why not loan millions of dollars at almost no interest (if your are a “preferential” customer) and BUY BUY BUY.

I mean — Sydney house prices soared 52.6 % over the past three years, with Melbourne not far behind.

Property Prices

I was chatting to Greg Buck on Sunday night about the housing “bubble” and what lies ahead. I am hoping to do another video with him soon, but he was essentially saying — there are only two options:

  1. The present banking and monetary system falters due to loss of confidence somewhere in the Western world — and the pack of cards collapses — bringing the price of assets down, or
  2. The status quo is propped up to allow prices to keep rising. With interest rates so low, this encourages big borrowings — so housing debt will grow. The only way for this system to keep going, is to keep interests rates low and inflation as HIGH as possible. This means that those with debt will be able to pay off that debt  — in the future — as the debt becomes less over time as a result of future inflation.

For those upper and middle classes that have assets — or passing their assets on, this seems a fine system. A house bought 20 or 30 years ago for, say, $100,000 — is now sold for $2 million. Or an investor purchasing 20 properties, with a loan from the bank, will most likely be tens of millions richer in a few years time, when he flips the properties.

But as Dr Richard Day said on Financial Control:

“One statement was, “Inflation is infinite. You can put an infinite number of zeros after any number and put the decimals points wherever you want”, as an indication that inflation is a tool of the controllers. Money would become predominately credit.”

It seems that to keep Australia afloat and functioning two things have to happen:

  1. Keep asset (property) prices rising.
  2. High inflation (to maintain debt confidence)

But for those NOT in the asset-game — it is really game over.


Salaries vs Inflation

For starters, salaries are just not keeping up with inflation.

The Business Insider, in a report, “Australian wages aren’t keeping up with inflation” claim that for employees – both full and part-time – average total weekly earnings increased by 1.3% (to $1,136.60).

But, in calculating Australia’s inflation rate, only 7 per cent of total spending by households is attributed to rent. One senior economist noted that ″Australia’s main official cost of living measure, the consumer price index, is failing young Australians by excluding home purchase costs.”

Many renters are paying 30 – 40% of their salary in keeping a roof over their heads. In fact, the Conversation reports today, that over 150,000 tenants pay more than 50% of their incomes for housing.

And the full-time jobs just aren’t there anymore for the younger generations. And what about future automation?

There are several others factors such as negative gearing and foreign buyers that raise the demand and price of property, but there is also…

Money Laundering

The real estate market has long provided a way for individuals to secretly launder or invest stolen money and other illicitly gained funds…In a zerohedge report entitled “Australia Has The World’s Worst Money-Laundering Property Market”,  Tyler Durden writes:

According to the Financial Action Task Force (FATF), real estate accounted for up to 30 per cent of criminal assets confiscated worldwide between 2011 and 2013… many such cases, property is purchased through anonymous shell companies or trusts without undergoing proper due diligence by the professionals involved in the deal.”

And even though China is trying to stop money leaving it’s shores,

“70 per cent of Chinese buyers pay in cash and they represent the largest proportion of foreign purchases in the country.”

And so, Australia’s rental market is virtually unaffordable for those on low incomes or government welfare.

Rental Poverty Trap

In an Anglicare Australia survey based on 67,000 properties, the Guardian reported of the affordability of rental properties, and that:

2.83% were affordable for someone on minimum wage,

2% of rentals were affordable for single households receiving government welfare,

0.87% were affordable for single people on a disability pension, and

0.35% for a single parent on Newstart with one child over eight.

For students and the youth, the statistics are dire.

So what happens? People are forced to live beyond their means because of high asset prices.

Let me state from the outset, I am definitely no financial boffin. These are some merely observations from an immigrant that has been unable to buy into the property game.

In the Australian they write about how many will never have the Australian dream.

“…soon, fewer than 50 per cent will own  a home.”

So for renters — soon 50% of Australians — the problem is going to get worse each year, as the price of assets (housing) keep increasing. In an article in the Conversation entitled, “Why 100 years without slum housing in Australia is coming to an end” they suggest, “A million Australians on the housing brink.”

Rent Bidding Apps

And now the odds might be stacked against them as rent bidding apps make the future rental market even more unaffordable.

A new series of apps will pit renter against renter.

Welcome to the brave new world.

Live to Work

I met with a Customer Relationship Manager at my local bank the other day. We landed up discussing the price of housing. Though she was born in Australia, she had lived in Lebanon for some of her life. She looked at me and said that she longed for the life her relations live in Lebanon. There, she said,

“They work to live. Here, we live to work — to pay the rent or mortgage.”

South African squatter home

Aussie “Camps”

I have written before (in a satirical article) about Bantustans — areas set aside for low cost, squatter homes.

“A two class system would provide an ideal future Australia. While we maintain the high standards of living for society’s crust and keep the asset bubble bubbling – the bottom feeders could retain their dignity by being free of rent, and “owning” their own home too. In fact I’ve done a quick scrap check – the average tin shanty would only cost about about $7,000 to 10,000 to build.”



  1. What will it take for the idiots to wake up to; the big globalist agenda, reality and to realise that the msm and politicians are running dogs with the totalitarian banker slave agenda.
    In NSW there is now (from 1.7.17) a fire and emergency tax on households based on the land value to replace the surcharge on insurance premiums. Of course the insurance companies will deduct the historic charge, yea right!
    So now there is a tax on homes based on unimproved values.
    Those uiv “values” (!) are going up. So vintage home owners will be taxed out of their homes and retirees are getting sfa dividends on investments as self funded retirees (independent citizens, who are a threat to the agenda) without being a burden on the taxpayer.
    Good one Dr. Day and sucked in politicians and msm, betraying Aussies and those who died for our freedoms and way of life.
    Wake the f up! Our politicians are betraying their employers.
    The msm are dispicable traitourous running dogs for the banker”s totalitarian debt slavery of the populace.
    Do not finance the msm, send the totalitarian treasonous greedy control freak traitors broke…… and piss off their political muppets.

  2. The question not asked is what role do the bankers play for us all as a positive outcome? by us the 99% and those in the slipstream of the 1% being the 5 to 10% doing sort of alright is our slavery gives us something to live for? what is that? the quest for freedom to exist from debt, if we were free? why would you exist? this problem would confront everyone and I believe that whilst each of us struggles for the dream of being free from the nightmare suicide would increase and we have become imprisoned not only in our life time but the culture passes throughout out the centuries of father/mother passes the ideology of being in a prison without bars of confinement of the mind and spirit of generation to generation, we have to thank our financiers for our living within the structure of a living nightmare without end of perpetual enslavement.

  3. I tend to agree with Greg Buck’s first premise.

    “The present banking and monetary system falters due to loss of confidence somewhere in the Western world — and the pack of cards collapses — bringing the price of assets down”.

    A “normal” income:valuation ratio used to be 3 or 4:1. In Sydney it’s approaching 12:1. Obviously a mega bubble fueled by overseas buyers/speculators bidding prices up together with our Reserve Bank lowering interest rates to historically low levels, and they have only one choice but to LOWER THEM FURTHER to keep the Ponzi scheme going.

    The RBA has no choice but to follow what the US Federal Reserve is doing otherwise our dollar would soar and whatever we export (dirt and food??) would be unaffordable.(but we could have great cheap OS holidays and buy more crap from China- at least for a bit longer) Currency wars are a bitch, and they always end badly.

    All Ponzi schemes end, eventually. Just ask Bernie Madoff.(although he did get away with it for decades) And when the current Aussie miracle housing boom eventually busts, there should be cheap houses for everyone (if they have positioned themselves appropriately) and too bad for the overseas speculators/launderers who bid the market to its present ridiculous levels. And too bad for our banks who overlent on Aussie property.(’cause houses always/only ever go up!!) Not.
    Could property prices “correct” by 50% or more?? Why not! Just ask the Japanese. The capital cities got hit much harder when their bubble burst, which is a dire warning for Sydney,Melbourne and Brisbane.


    To believe it can end any other way is utter delusion. Mind you, humans are very good at deluding themselves for long periods of time!! Maybe time’s almost up??

  4. And for the listening pleasure of Gumshoers, enjoy the “Fight of the Century”. Lord John Maynard Keynes (pedo) versus Friedrich Hayek.(Austrian economist).


    Turn it up!!

  5. The scam is being largely fueled by those who’ve been sucked into the term “home-ownership”. You don’t need an economics degree to know that the average bod with naught but a camper-van has more control over his/her immediate environment.

  6. Sadly, Dee is spot on.

    What could very easily make me very angry is the fact that so few people can control and manipulate the lives and destinies of of most of the worlds human population and yet its so, so difficult to get the wantonly blind to see it.

    Why are the elite so inhuman?

  7. They don’t care about us . They’re bringing in euthenasia injections for people over 25 years old (announced on abc news two nights ago) and not a murmur of protest from anyone anywhere . All they are doing is pumping the vaccination agenda (get an injection to stop heart disease , the latest also on nightly news) . This place is far worse than Orwells Oceania.
    Big beautiful country mostly good people , 95% living in cities cause the real jobs have been made redundant thanks to globalist free trade . Mass immigration into Sydney Melbourne etc. overcrowded and scrambling newcomers competing for minimum wage jobs . How our leaders have destroyed this nation in the past two decades .
    But ,to the powers that be , everything going according to plan.
    The CCP elite moving in with global slave labour .
    Equal opportunity and middle class , here in Oz , is history.
    The utopian “fair go” replaced by “fare go” . That is Advance Australia Fare . They’ve screwed this place big time and the smugness is clear for all to see by the smiles on their faces as they rape and destroy everything that is good here .

  8. WW3, is war on the population by establishment, this is being achieved as Gumshoe readers know by malnutrition, economic deprivation, lack of any vision for the population other than the national debt payments scam, militarism, local councils, and the destruction of moral integrity of the individual, corporation control of the public, the increase of the human battery chicken system of living in confined spaces, dysfunctional education, the general promotion of questionable activities ie gambling, the list goes on as a numerous roll call.

  9. A good article that exposes a huge problem and a problem that no one in authority today is even willing or even ready to address, as they are all too busy kicking that can down the road.

    There are many, many factors to this issue raised, not the least being land affordability that under successive governments has been allowed to rise year after year. Back in my 30s and I am now retired, one could fairly accurately equate land prices with that of buying a new car.

    Well, those days are well and truly behind us.

    Government has been locking up land as ‘World Heritage’, National Parks, State Forest or other feel good names that in effect deny land to prospective buyers the actions of which create a squeeze affect on the land market – and this is just one aspect to the multi-pronged attack that is deliberately being waged against private property rights that governments are now beholden to under Agenda 21.

    When my wife and I built our first home in 1980 it cost $34,000 with land. It was no mansion but it did us for a number of years until we could afford to get something larger. From the time of signing the contract we were moved into that house in under six months.

    The house we now live in and had contracted to build was signed for in March 2012 and at a cost of over 350,000 with land. We moved into it during April 2013, a little more than 12 months after signing that contract. So what has occurred over 32 years to warrant such a huge increase in house and land prices and delay in putting together a home that was contracted to be completed in six months?

    It is called government red tape and there is stacks and stacks of it to wade through and in place to simply justify some politician’s urge and a bureaucrat’s position.

    And there are other issues that contribute to our current housing crisis;

    a. Immigration of 200,000 a year puts a lot of pressure on all infrastructure let alone housing.

    b. The introduction of the GST immediately increased the cost of a house by 10% from which the market and the buyer has never really recovered.

    c. Foreign ownership which should never be permitted especially in a city dwelling country like Oz.

    d. Government interference into what is essentially a private enterprise of housing, via its unwarranted red tape and adherence to United Nations policies.

    e. Banks charge too much accumulative interest on an average 30 year loan (whatever that figure is today) Mortgages should be a set interest rate on the loan itself and not be accumulative which is just another way of fleecing the home buyer by the Banks and so too inflation (another Banker’s fleecing tool) cannot eat away at the home buyers finances and ability to repay the loan off quicker.

    There are other points that contribute to the overall cost of housing, but I’m sure you get my drift.

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