Housing collapse and Government complicity

PERTH WA, The Capital city of the largest state in Australia,

Suburb: ARMADALE 33.4 kilometres from PERTH City. (SNAPSHOT JANUARY 2019)


Did you know?

  • FIFTY Homes are UNDER $200,000

  • SEVENTEEN Homes are under $175,000

  • EIGHT Homes are under $150,000

SOURCE: (4) “SNAPSHOT” DATE 23rd January 2019


I CONTEND: “The Liberals” have “thrown the baby out with the bathwater


Few would argue that the “Sydney” Housing Market needed an adjustment, however, the one size fits all, is indicative of sustained “POOR POLICY” by the current Government. The “fix” has had some success “Temporarily cooling” the Sydney market, but, in doing so utterly destroyed the lives of “perhaps” millions of Australians, all over our land.


  • I am one of them. I own (sic) three properties, two in Camillo and one in Kelmscott. TWO of the THREE are worth “less” than in 2006.

  • I am a victim of the Australian Prudential Regulation Authority’ (APRA) cap on interest only loans. As instigated by the Turnbull/Morrison Government.

  • I am old, it was my hope, some 15 years ago to be able to reduce my burden to the Australian People, by providing (Largely) for my own retirement.

  • My wife and I face a bleak future, we will lose all three homes – no power exists to stop that.

  • INSTANT restoration of “interest only”, on all my properties is the ONLY solution. A solution that will allow for a “dignified” sale of all three properties over time. AND A fairly certain funding arrangement, WELL within my means.

  • IMPORTANTLY it will facilitate a dignified exit for my tenants.


Up until the end of last year, I seriously considered, ending my life, which is my choice. However, as much as I still feel this will end this nightmare, it will hurt the ones I love far too much for me to bear – the sense of hopelessness is overwhelming. I have worked my entire life, NEVER touched base with centrelink – until I applied for the OAP.


Some of you “may” say I “youshould have known just as I did”! Sadly for people like me, we don’t have the wherewithal that you have – people like me, allows people like you, the pleasure of gloating.


To use a well worn “idiom” “But there’s more”, well there certainly is. Two of my properties are rented. One by a Single Woman in her late fifties – she has lived there for almost 13 years. Her son is in Prison, she of course is devastated and NOT to blame in any way. I support her fully, as best I can. Her rent has not changed since 2009. She keeps “Her Home” so beautiful, BEST garden in her street.


The second property by a (Now) Married Couple. It was initially let to X, before her marriage to XX.

X has rather severe intellectual dysfunction, however, she IS intelligent and aware of her disorder. They want to remain, having been there for 9 years or so.


Without challenging “War & Peace’s” rather large “word count” Both these people will suffer severe disruption to their lives, when the banks order them out. There is always collateral damage – but, the mark of a compassionate society is how we dish out the compassion. There will be NO compassion from the banks – they will destroy me AND they will destroy them.



The area in which we both call home (ARMADALE WA) has been devastated (Deliberately) by both the Liberals and their underlings; the banks - (Or is that vice versa??).


A Noted “Banker” $AUD Billionaire, Malcolm Turnbull was architect, as was his underling, the (Then treasurer) “multi millionaire” Scott Morrison.


We have 10 BILLIONAIRE politicians and countless “millionaires” from BOTH sides of parliament (5)


Whilst the Liberals have used APRA; it is not without criticism. Recently, the Reserve Bank Assistant Governor, Christopher Kent blamed "unnecessary" credit tightening in December 2018 for further threatening the market. (1) AND yet credit is tightening further in 2019


The Australian Prudential Regulation Authority announced it was removing a cap on interest-only loans for residential property, on the grounds that the measure had reached its objective of curbing higher-risk lending practices. (3)


APRA said the cap had "led to a marked reduction in the proportion of new interest-only lending, which is now significantly below the 30 per cent threshold". Minister responsible: Scott Morrison MP, Treasurer of Australia (Since 2015).


ADDED COMMENT from a member of “yourlifechoices.com.au”

It was a deliberate targeting of a sector of the investing public - who were doing the right thing, providing shelter for others and providing for their own and their family's future at the same time.


APRA, the government and the Opposition knew full well that while these small 'mums and dads' investors were large in number, they would have difficulty organising themselves to protest, they had little political clout (GetUp wouldn't be representing them for starters) and both sides of politics were using them as a scapegoat. (7)


I would like to add to this members contribution:

Few would know the “hidden” role “some”, 'mums and dads' investors, play in their relationships with their tenants. I know of many and I include ourselves. I am torn between offering my example and remaining silent, for fear I may inadvertently identify my tenants. Hence I will stay quiet and err on the side of caution.


I suggest the fallout will be significant, sustained and painful for a great many people, particularly those with the least skills to navigate their way out.




  1. https://thewest.com.au/business/housing-market/another-12-months-of-pain-before-perth-property-bounce-says-moodys-and-corelogic-ng-b881066879z

  2. http://thebankdoctor.org/resources/glossary/

  3. https://www.afr.com/business/banking-and-finance/apra-removes-interestonly-lending-cap-says-its-served-its-purpose-20181219-h199rk

  4. https://www.realestate.com.au/buy/property-house-between-0-200000-in-armadale,+wa+6112%3B/list-1?activeSort=price-asc

  5. https://toprichests.com/top-10-richest-politicians-of-australia/

  6. http://www.lawfoundation.net.au/ljf/app/&id=/2FD34F71BE2A0155CA25714C001739DA

  7. https://www.getup.org.au/

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Whilst I can understand your mental distress, I have to agree with Sophie on this one. 15 years ago you went into investing in three properties each of which offerred tax saving repayments of interest only. You and you alone are responsible for that and not just once but three times.

No doubt during the years of high prices off the back of the mining industry, you were probably metaphorically rubbing your hands with glee over the high increases in value your properties no doubt provided and looking forward to your later years when you could cash in on the profit. I would hazard a guess there was little thought then even for the plight of the young who were increasingly priced out of the market by investors like you, and the fact that you would one day have to repay the full loans was not something that kept you up at night. 

Fast forward and the mining boom comes to an end, overseas and out of state buyers back off, then comes the Royal Commission into banking and financial services and the banks 'man-up' and start doing the due diligence they should have been doing all along, interest only loans start to mature reverting back to interest and capital repayments, house prices fall. Isn't that what people were crying out for?

Really this is nothing more than the life cycle of housing, a few good years of growth, followed by a pulling back and ultimately back to growth period once again. Its all cyclical.

Blaming the Government for your own business decisions is ludicrous. You are in the same position as the 'face' of the current class action against Westpac. That family did exactly what you did, took 5 interest only investment loans on a single salary (less than average). Basically they leveraged of one home to finance the next but couldn't actually pay for any of them. Now their interest only loans are up, they are in strife and crying all over TV they will 'lose the lot'. Well they only have themselves to blame. If that is 'victim blaming' well so be it. They were not complaining whilst their property increased in value, only now they actually have to pay for them.

You have made business decisions but are not conducting yourself like a business person. Having a reliable tenant is like gold (I was one for 17 years in the same unit), but that does not absolve them from having to pay rental increases as the need arises. As it is, you are likely to lose that home and she will have to ge elsewhere anyway and at the current market rate. Long term you have not done either of you any favours.

I am sorry but you are a 'victim' of your own decisions. It is not the fault of the banks or the Government (neither State not Federal) that you cannot service your loans. You cannot change what you do not acknowledge. You need to own your mistakes before trying to find a way out of them. Blaming everyone else will not help you in the medium to long term.

The best advice I can give is to go and seek help first from your doctor or a counsellor for your mental health. Then see a solicitor/financial counsellor/accountant to see what you can do to save something from your investments.

Good luck, you are going to need it.

if you had any brains, you would have put the surplus cash you made off the principle of the loan thus reducing the loan, which would have made it more likely that you could have refinanced at the conclusion of the loan. its a risk you take when you live high on the hog when things are going well instead of reducing debts like you should have. you cant expect sympathy from anybody because it is your own poor judgement that got you into this.

you remind me of an older guy who subscribed to that nigerian scam when it first started. the idiot threw good money after bad by going to nigeria, and after getting a handgun shoved in his face and told to piss off, he went to the local cops who didnt want to know about it. then he expected sympathy for the 50k he lost by being stupid. i have always maintained that people that stupid dont deserve to have money.

its ironic he criticised their dishonesty, given that the whole scam was based on them pretending to need him to help them do something dishonest. like whats up with this picture?

if the price of your houses had gone through the roof and become unaffordable to the general population, would you still feel down in the dumps?

bite the bullet and sell up. at the very worst you will end up on a pension, and most likely will still own your own home. that makes you heaps better off than many battlers.

business investments are never guaranteed, and anybody who spends next years profits to pay for last year's holiday, is always taking a risk that circumstances might change. 10 years should have been plenty of time to reduce your debts to a level where it would be easy to refinance.

i have lost on investments in the past but i dont snivel about it. i know people who have lost 7 figure amounts on what seemed like a good investment, but they dont snivel about it. one guy on a share forum invested his whole inheritance of 1.3 million in a company(UNS) which he was told by management had a bright cant lose future, but it went belly up. its a risk you take when you invest money, but i got to admit, it takes a real talent to lose money on rental investment properties. what is your secret?

Well, I have never had the luxury of owning three houses, even when "shoddy" salespeople were trying to con me into negative gearing situations. Didn't trust them or the gov. to do anything good for me and still dont.

The only time I was offered an interest only loan was years ago and that was only for three years, so I don't know anyone who would offer ten year interest only loans. Maybe I would have taken it on (ten years)but only if it was on a contract.

So house prices in WA have dropped,well didn't see that coming did we? Share markets have also dropped a few times.

Thats the nature of speculation. Is the gov going to cover my losses? I think taxpayers should reinburse me for any losses on the market , don't you agree. After all its the govs fault.

i had that luxury of owning 3 houses many years ago (owned one outright and was paying off the other 2) and had them all rented out while i travelled around, working here and there .....  mostly lived in rented roominig houses which no longer exist (but thats another story)

not realising how well off i was i foolishly opted to get married

marriage will usually cure affluence in most situations ...

now i am retired and own my own house in an inexpensive area and have a few dollars tied up in shares.

my part pension plus my share dividends gives me a modest existence but i feel for youngsters who cant even find a job let alone buy their own home.

western aussies are lucky to have falling house prices, because it means their youngsters can afford to buy their own homes. try living in sydney or melbourne or even regional nsw and see what its like. youngsters now have to queue up to find rental accommodation let alone finding a couple of hundred thousand to use as a deposit to buy a unit or a house. 

if your house value has dropped so what? it will still keep the rain out and do all the things it did when it was overpriced.

its real value in having a stable home is still intact. if it increases in price by 10 thousand percent, it will still only do the same job it is doing now, although your council rate will sky rocket of course. and if you sell it, its odds on that the next place you buy is also overpriced, and not only will you pay a fortune in stamp duty for the inflated value, but unless you downsize, or move to a cheaper area, you will still have to pay top dollar for the next place you buy, and will be no better off.

if you are a speculator you might have a few problems though .....

the nsw govt has had a financial bonanza from rising house prices due to the outrageously expensive stamp duty rates. but they keep finding hair brained schemes to squander the money on and need to keep selling off infrastructure to "free up cash".

personally i see falling house prices as a good thing, but i guess it depends on your own personal interests for most people.

People live where they want to live.  For most that means Sydney and Melbourne.

If we did not have a (claimed) refugee invasion we would not have city congestion and we would not all be forking out hyge sums of OUR money on doubling infrastructure and social security.

Oh by the way....has anybody heard Sydney has a water problem?  Funny that.  Clearly nothing to do with over population!

So who controls politicians?  Their consciences, voters or the top end of town? Pretty damn onvious and we need to ask why 'POPULATION' discussions are shut down by the media.

Stick to the topic Mick

The topic is how the Royal Commission has destroyed house prices, and those who have lost moeny should be compensated by labor and the Greens for creating the biggest loss in wealth for the average Aussie in decades

Stick to the topic Mick

The topic is how the Royal Commission has destroyed house prices, and those who have lost moeny should be compensated by labor and the Greens for creating the biggest loss in wealth for the average Aussie in decades

Your fingers as sticky as Adrianus, posting twice ??

Go away you silly bitch 

HAHA, looks like you've hit on a velly velly raw nerve Abner, LOL

MICK, Bill Shorten and Chris Bowen will disagree with your view that population growth has pushed up prices.

They reckon that real estate buyers need to be taxed more to stop people from buying houses which will drop the prices, thereby allowing refugees with a small deposit to buy their own home.

Apparently its just the wrong kind of people buying houses. People like Labor supporter Realist as an example. Labor are busy concocting a way to get Realist and his mates out of the housing market.

Plus Bill is planning to build 250,000 houses to accomodate the homeless and hide the decline in construction.

Yep, you take another $200B out of the economy and put it back in for a short term fillip. A 3 year plan sold as a 10 year plan.

If we leave Bill and Chris alone to do their own thing for too long, we will all be working for the government and Venezuela will look like a holiday destination.

if it wasnt for "refugees" and other illegals (aka "asylum seekers") the govt would simply ask people from fast breeding cultures such as african or polynesian,to emmigrate here legally, just like they do with the chinese. their insane urge to overpopulate australia is the driving force for all this crap, and both major parties are to blame. anybody who opposes it gets branded a racist, but you are right, this is the driving force of artificially inflating the price of housing to the stage where local youngsters cannot possibly save up for a deposit in many areas like we could when we were young. the only people who can afford to buy in places like sydney or melbourne, are foreign investors, especially the chinese who can get interest free loans from the chinese govt.

personally i would like to see house prices go through the floor so our youngsters can afford to buy their own place. many poeple however, think it is their divine right to own several houses and collect rent instead of majority of people owning their own homes like they did in the old days.

Nothing wrong with that, in 50 years time, most marriages will be interracial. Nice tanned kids running around this great land of ours.

I look forward to a new day in the history of Australia when nearly every home will be having, curry, chow mein and halal kebabs for dinner, and no Pauline Hanson in sight!


mick posted

"So who controls politicians?  Their consciences, voters or the top end of town? Pretty damn onvious and we need to ask why 'POPULATION' discussions are shut down by the media."


like in virtually all western countries, 95 plus percent of the resources are owned and controlled by less than 5 percent of the population.

these are the people who own both major parties in australia and in pretty much all western countries, and these same rich assholes own and control the media and in more recent times,l the unions.

the media in turn tells us how to think  and who to vote for. most times they get their way.

nowadays those same rich assholes virtually own the unions by corrupting their leaders and have done so since hawke became prime minister. (remember the "accord"?) the unions have deserted the australian workers via the "accord" dreamed up by a traitorous scumbag named bob hawke.

 one of the side benefits for the goverment of mass immigration under the guise of "multiculturalism is to create a deivided australia. to do what they did to the austdralian public would have been a lot harder, if not impossible, against a united australian public.

"multiculturalism" is a polite word for "disunified masses" which makes it childs play for both liberal and labor govts to screw the australian public on behalf of their rich owners.

we pretend we have democracy but that is an old wives myth. majority of people didnt want gst but we were still blessed with it. the majority of people were totally against selling off public assets such as telstra, commonwealth bank, general infrastructure etc, but were still overruled by both the major parties with the help of a bunch of scumbgags who were going to "keep the bastards honest".

bottom line is that voters have no say in what happens except to choose which party of scumbags to get screwed by.

even pauline hanson who once tried to represent the wishes of australian people has lost interest as has bob catter. clive palmer is a total prick acting on self interest so i wouldnt expect any help there.

sorry to dissillusion you mick but you, along with the rest of us, are at the mercy of the rich assholes who own our corrupt political system and the media.

short of a civil war, i cannot see that changing, and even if we did physically fight to overthrow these assholes, we wouldnt win because we would be too busy arguing among ourselves. ever notice that most political discussions are about winning a debate rather than trying to come up with a viable solution to political problems?

Once again, to apply Occam's Razor, the government does not have its own money.  The money comes from taxpayers.  This is Shorten and left dominated Labor demanding a very large sum of money in advance for vague promises to rationalise a big spend to come and a return to a big debt for our children and grandchildren.

Bill Shorten and Labor are already admitting that they cannot live within their means, within the Budget, and they are not even in government yet.  They have no intention of cutting back expenditure elsewhere through savings and tightening the belt if another promise of expenditure is proposed.  This will be another big spending Labor government that focusses on the social reengineering of cultural Marxism and forgets the traditional Labor supporters.

However, the very same Canberra politicians are not behind in telling the public to suck it up, to tighten the belt, to kick the can and, 'If you disagree you can always vote for someone else'.

The big new taxes on Labor's milch cow of residential property, its rejigging of 'negative gearing' and increased capital gains tax on sale, will force up rents.  It will also force the small guys, the aspirational mums and dads investors out of real estate.  Shamefully, Bill Shorten's Labor is so ideologically biassed against its own supporters who have been investing in real estate that Labor plans for 'large institutional investors', for example the global insurance companies, to take over and dominate the market.  Trust them?  Yeah, right!  No problem either for Labor when the profits go overseas.  

some idiot posted 

I look forward to a new day in the history of Australia when nearly every home will be having, curry, chow mein and halal kebabs for dinner, and no Pauline Hanson in sight!


well dont hold your breath because because when we become majority black, the majority will be too busy eating each other to learn how to cook ethnic food.

anyway it wont be the blacks taking over. it will be either the muslims or the chinese, and majority of muslims probably qualify as caucasion.

it probably justifies chinese takeover of australian , because if we have to surrender our cultural values and our way of life, i am thinking that living under chinese rule will be less abhorent  than living under islamic law, especially for females.

wouldnt it be easier and less complicated to simply close our borders to further immigration, and deport all foreign born felons? the austraphobics could then  simply leave and carry a criminal under each arm on their way out. NOW THERES A PLAN!



probably be for the best if we become another "third world" country like the ones so many are supposedly escaping!  once we no longer have reliable services, transport, electricity etc.  no longer any beef industry, living on grass and rubbing two sticks together..then the do gooders will be happy!

shit i remember when i left school in the mid sixties and everybody had a job and heaps of overtime if they wanted to get ahead. i couldnt understand why so many idiots rented instead of buying because it was cheaper to pay off a house in those days than it was to rent.

the cunning people, mostly peasant immigrants, bought an extra rental house every few months.

you only needed 200 dollars deposit in those days and repayments were really cheap. base wage then was 40 per week, but with overtime you could get between 50 and 60. as there were heaps of jobs available, it wasnt uncommon for working couples to be able to save one wage packet so you can see how easy it was to get a house deposit together. unless of course you preferred to save for the deposit on a car which would lose value faster than you could pay it off, which surprisingly, many people did, rather than buy a house. (you cant get to work in a house right?) 

ok lets compare prices then to today;

on the south side of sydney you could buy a house for 6 to 8k - average about 7.5k. average wage without overtime for most workers then was about 1.00 to 1.30. say 40 pere week, about 2k per year. so with 4 years wages without overtime you could buy a fairly good house. lets compare that to today ..

the same house toay costs between 1.5 mil to 2 mil - lets say 1.5. minimum wage is about 18 per hour but lets say the 1 dollar an hour labourer from the sixties now gets 25 per hour. so without overtime 1k per week. thats 52k per year divided into 1.5 mil so today you need about 28 years wages to buy a standard house in the western suburbs of sydney instead of 4 years wages. and thats stacking the figures in favor of todays buyers.

its our generation that allowed all this shit to happen, and we wonder why our youngsters have no ambition and would rather do drugs than try and build a future.

i feel so sorry for our youngsters and am ashamed of my own generation, although if i were running things i wouldnt have let this bullshit happen, despite the nagging from the pc assholes who supported this crap.

so next time you see a young tatooed junkie spraying graffiti on your fence or wall, just remember that it is our generation that subscribed to this massive unemployment policy "in order to create a healthy economy", and turned our youngsters into parasites.

and anybody who believes the unemployment rate is only 3.5 percent as stated by the govt, please contact me as i have a bridge to sell you, which spans a popular well known harbor, and the only competition is from the local ferry service.

i feel so sorry for our youngsters and am ashamed of my own generation, although if i were running things i wouldnt have let this bullshit happen, despite the nagging from the pc assholes who supported this crap.

Ashamed?  Not me, so sorry for your sad life, not exactly an Aussie patriot are you?

unemployment rate is 4.9%...they never said 3.5%

from SBS March this year.

"Australia's unemployment rate fell 0.1 percentage points in February to a seasonally adjusted 4.9 per cent, but the number of people in full-time work fell.

Part-time employment drove an overall increase in the number of people with jobs during the month, but data from the Australian Bureau of Statistics showed a 7,300 drop in the number of people employed full-time."


govt unemployment figures have always been bullshit. they doctor them up with "seasonally adjusted figures" which can be anything they choose to invent at the time. (did you know that 87.8 percent of statistics are made up on the spot?)

they never mention the hidden unemployed, such as people on idiots pensions, even though almost all of  those people are perfectly capable of working.

they dont take into account the people who have "jobs" BECAUSE of unemployment. foreign owned "job providers" which are on extremely lucrative contracts who arent even needed, as employers could easily find workers simply by advertising or putting a sign out the front of their business stating what type of workers they need.

extra police and prison workers are part of the hidden unemployed as many people who become prisoners are mainly that way because of too much time on their hands from having no job. then there are the social workers who are practically one on one for each person on an idiots pension.

then there are the legal aid lawyers who have to represent the people on idiots pensions, as well as the bored youngsters who take up crime as a hobby to pass away the time they would normally spend working.

lets not forget the parole officers and social workers who get paid to breast feed prisoners after the leave jail, and the lawyers who get paid handsomely to represent them when they re-offend. guess who foots the bill for all this?

then there are the govt sponsored churches who are "needed to cope with the deluge of needy people"

then there are the social workers and lawyers who are paid by the govt to represent "asylum seekers" in order to get them citizenship so they can inflate the work force thus helping to keep the unemployed numbers high enough to support all the parasite industries i just mentioned.


its a mess huh? i am surprised australia isnt bankrupt. instead of fixing the problem they speculate as to what a "drain on the economy the ageing population is via centrelink"

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