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Introducing the White Australia Real Estate Policy

James Campbell

by James Campbell

25 Apr 04:59am

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Filed under: Housing, Immigration, Property, Real Estate

88 comments

As you get older and more cynical it gets harder for governments’ mendacity to surprise you.  But yesterday the Rudd regime announced a plan so creepy and ill-thought out that it made me want to vomit.

Campbell's 1936 cartoon from The Argus deriding the dictation test in the White Australia Policy, Source: National Archives

Responding to concerns over skyrocketing house prices which are - in my opinion - primarily a result of its own immigration policy and its refusal to do anything about the rort that is negative gearing, the government annouced it was reversing its 2008 decision to liberalise the rules for foreigners who want to buy property in Australia.

Those rules had been relaxed during the GFC panic and had - allegedy - led to an influx of foreign buyers to Australia, driving up house prices and forcing decent Australians to sleep eight a room in conditions not seen since the dark days of the 1930s. Or something.

Anyway finding itself struggling on a number fronts lately - from disasters all of its own making - the government decided yesterday to reverse the decision.

As someone trying to buy a house I support, no I applaud the move. I’ve been hoping for a while they would do something like this months.  No, the nauseating part of the announcement was Senator Nick Sherry’s accompanying plan to create a hotline to encourage people to ``dob in foreigners they suspect of breaking the rules,’’ the Herald Sun reported.

According to the report the government is ``concerned by anecdotal reports that foreigners are ``‘collecting’’ hosues, often in the same street and leaving them empty when there is a shortage of housing.’‘

``Anecdotal reports’‘, like its cousin ``anecodatal evidence’’ is a lazy journalistic device which means ``we hope this is true, we reckon it might have happened somewhere once but we can’t find where’.’ It means the reporter was in a hurry and there were a lot of pages to fill. It’s not good but it happens.

And I honestly thought I would never live to see the day when we had a government so useless that it would actually base an important economic decision on something so flimsy as ``anecdotal evidence.’’ Do you honestly think that if this street actually existed somewhere that a newspaper or television crew would not have found it by now?

Every newsroom has been chasing this story for months. You talk to people in the Real Estate business but no-one can ever point you to an example of this pernicious practice, probably because it isn’t happening.

And can someone please explain WHY these foreigners are ``collecting’’ houses and leaving them empty?

Is it a strange celestial custom to leave property unrented in a housing shortage? I have heard many things about foreigners over the years but never that they are so stupid as to leave assets sitting around earning nothing.

And as for this hotline, how are we to know if the people buying houses are foreigners inelligible to buy a slice of Australia?  If next weekend I am outbid at auction by someone of Asian appearance I think I might just call up Senator Sherry and get him to check out if the dastardly celestial is entitled to buy.

Will everyone with a Chinese or Indian name now have to produce a passport when buying land? Every crank and racist will have the hotline on their speed-dial, you can bet on it.

The Herald Sun also reported yesterday that ``Treasury is invesigating 50 suspicious residential buys by foreigners in Melbourne.’’ What does this mean? How are they suspicious? If they were made under the old rules then surely they are legal?

It is an obvious question but I suspect that it is one you are going to hear asked more and more frequently with this government, but can you imagine the reaction there would have been if John Howard had done something like this?

The same was true of the government’s asylum seeker policy. Having made a complete bollocks of the boat people issue but being reluctant to admit so, Rudd’s government has instead adopted something infinitely worse than the temporary protection visas Howard employed. Now people from Afghnistan and and Sri Lanka stuck in a limbo in internment camps on far-flung islands with no guarantee their claims will ever be heard.  And the left used to whine that Howard was cruel!

I predict that as time goes on more and more people will be able pinpoint the moment at which they finally admitted to themselves Rudd’s is the nastiest and most incompetent government Australia has ever had. For me that moment was yesterday.

- Today (Sunday) from midday join the Sunday Herald Sun’s James Campbell and Vexnews Editor Andrew Landeryou and host Glenn Ridge on Melbourne Talk Radio at 1377 on your AM dial or online at http://www.mtr1377.com.au/index.php”

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Most commented

349"Gifting", "journey" and other words we hate
295Thomson didn't answer the question everyone is asking
24612 bigger issues than gay change and climate marriage
245A big day for Thomson, who thus far is guilty of nothing...
241They must pay for one's bitter disappointments
224Punch on: Open thread 17/05/2012
224The most laughable, err, spoof since Einfeld
215Punch on: Open thread 18/05/2012

88 comments

Show oldest | newest first

    • Juanita Hall says:

      05:45am | 25/04/10

      i have never seen a Government before have to backflip and revert back to almost all of a Previous Governments policy’s before. And any policy they have implemented has had to be scrapped. “Clearing the decks” is one thing but just in the last couple of weeks admission of failure has been unbelievable. Rudd wanted to leave a legacy, well he certainly has achieved that. How anyone can defend or vote back in the Rudd Government after what we are witnessing is beyond comprehension. The Rudd Government are a disgrace.

      Reply

    • Wayne Fehlhaber says:

      10:21am | 25/04/10

      Juanita :  Well said and spot on !  Policy failure , non-delivery programs and record debt , will be the legacy of the Rudd govt. Mismanagement is rife among the Federal Labor Ministerial line up of neanderthals who should never have been elected in the first place.Policy between the two sides has been redefined since Tony Abbott was elected leader of the Liberal party . History can be made in thecoming 2010 Federal election by ridding Australia of the worst Federal Government since the days of Gough Whitlam.

    • persephone says:

      08:51pm | 25/04/10

      Obviously you two weren’t around during the early years of Howard, when back flipping was the name of the game.

      And all the polls still show the ALP is sitting at 54%.

      Of course, that’s likely to improve once Tony’s full suite of policies roll out, that’s assuming, of course, he can actually stick with one for more than 24 hours.

      In the last couple of days, Tony has added at least a billion dollars to his promises list - new defence aircraft, sending more troops to Afghanistan, new subs - without identifying a cent of savings.

      Add this to his other policy announcements - billions on his ‘Divert Attention from Climate Change’ plan, billions on parental leave - all without identifying balancing cost savings, and in Barnaby speak we’re talking Brazillions of dollars.

      We will one day find out how Tony intends to pay for all this. When we do, watch his presently poor polling become even more dismal.

    • Bruce says:

      09:26pm | 25/04/10

      Juanita: I have not seen a politic party that has not back flipped on a policy at some stage during their term. I could list them a mile long both Liberal and Labor. Its more about trying to gage the mood of the electorate, its about votes, nothing more. I am not into the “oh but what about the previous government”, “they did this, and they did that”. Its not the point being argued here. In regards to the writers comments about foreigners collecting and leave properties vacant, it maybe should read, “foreigners who buy and live in an Australian property fo 2 months of the year, then leave it vacant, then go and live overseas for 10 months of the year”.

    • Goffy Goober says:

      11:12am | 27/04/10

      @persephone - ALP communications department in full swing.

      Tony Abbott will have to try hard to find a red cent in the Australian coffers since KRudd already raided the kitty, waht does have to show for it , NOTHING!  Sink your ALP paws into that.

    • Jack Thomas says:

      12:05pm | 27/04/10

      Sorry persie, when was Abbott responsible for government policy?

      You fool, trotting out the party spin.

      Abbott could come up with a policy making us all millionaires and it still wouldn’t be any good because (dah dah dah!) he’s not the Prime Minister.

      Unless you want to allow the Opposition to bring in policies then I’m sorry but your waffle doesn’t work.

      Defending another broken policy and backflip by Rudd woudl be funny if not so terrible for all of us, and tragic for some.

      Watching 4 Corners last night was so sad when the parents of the installer killed talked about how Kevin sat next to them and didn’t even say sorry, just talked some policy waffle then left.

      Have you noticed how he always runs away and let’s junior Ministers eat the sh1t sandwich in front of the media too?

      Rudd was hiding in Tassie when this latest “policy” announcement was made by someone else.

    • Jack Thomas says:

      12:36pm | 27/04/10

      Here’s a list of Rudd’s most recent backflips and how each time he runs away:


      SUSPENDED the processing of asylum seeker claims for people from Sri Lanka and Afghanistan.

      Announced by Chris Evans, Stephen Smith and Brendan O’Connor.

      AXED the new roof insulation rebate due to start on June 1 because of problems caused by the bungled former scheme that was axed in February.

      Announced by Greg Combet.

      BROKE an election promise to build 222 childcare centres.

      Announced by Kate Ellis.

      ORDERED a $14 million inquiry into possible rorting and overcharging under the Building the Education Revolution scheme.

      Announced by Julia Gillard.

      CALLED a $4 million audit of the green loans scheme to look at allegations home energy assessers have been making fraudulent claims.

      Announced by Penny Wong.

      REVERSED softer rules for foreign students and temporary residents to buy Australian property.

      Announced by Nick Sherry.

      WALKED AWAY from moves to create a Human Rights Act.

      Announced by Robert McClelland.

    • Andy says:

      06:23am | 25/04/10

      How Rudd can look down a camera and say “another policy on the run by Abbott” is amusing. Considering all Rudds policy’s have had to be changed after they were announced and implemented. He is the King of “policy on the run” and the results are for everyone to see. Also it’s a bit of a hollow argument when Abbotts announcements so far have been “considerations” not “policy” announcements. Rudds claim to fame with his “historic Health reform policy” is no doubt going to finish up in the same basket. He already changed his “historic health reform policy” 7 times in 7 days. Fair Suck of the sauce bottle Mr Rudd.

      Reply

    • BensonBird says:

      11:00am | 25/04/10

      Abbott has no policy just alot of ramblings, hes to busy cycling around and posing in his pink budgie smugglers to get to work on Policy

    • persephone says:

      11:05am | 25/04/10

      So Abbott lacks the guts to come out with a real policy?

      Which means we can’t tell if he backflips, because he hasn’t made any kind of commitment in the first place.

      Rudd not only has the courage to make calls, he also has the good sense to reveiw them and make changes when necessary (which also requires courage, btw).

      Whereas Abbott rarely has the guts to make a call or to change the ones he has made when they’re shown to be flawed (such as his parental leave plan).

      But I suppose he’s a bit of a weathervane…

    • Lenny says:

      03:28pm | 25/04/10

      I know it’s good eh persephone LOL Don’t worry yourself too much about Tony’s policy’s, they will be out in time for the election. I understand your and the Governments frustration at not being able to pull them to pieces, but thats politics my friend.

    • Marcus says:

      03:53pm | 25/04/10

      Oh Persephone your starting to sound as desperate as Kevin Rudd now. We have Swan and Rudd hiding the Tax review for the same reason Abbott won’t release any policy’s. Swan will now release the Tax review one week before the budget. Now thats what I call courage, and Kevin Rudd can only announce the good news and not the bad news, courage again. You say Rudd has the good sense to review them and make changes when necessary (I almost choked while reading that bit). I would hope that being the Federal Government they would do their homework first “before” implementing their policy’s, instead of down the track backflipping all the time and costing the tax payer millions of dollars investigating and reviewing everything they have done. It’s called mismanagement.

    • Amused says:

      05:47pm | 25/04/10

      @persephone:

      When in opposition, dear persephone, you are under no obligation to release any ‘policy’ until an election has been called.

      Doing so any earlier gives your opponent a chance to steal and implement that policy as their own, which is something KRudd, Swanny and Jooools could really use right now considering NONE of their policies have worked to date!

      Kevvy probably goes to bed praying that Abbott slips up and gives him some decent policy to work with!

    • Overflow says:

      05:56pm | 25/04/10

      Persephone & Benson, given that Labor provided very little if any policy prior to the last election campaign and in fact released the majority of their policy in the last week of the campaign without funding scrutiny one might be forgiven for calling you both hypocritical.

      Secondly, how many of Rudd’s policies have been implemented on time, on budget and actually delivering the intedned outcomes??  I will not waste my time listing the failures but please give me some examples of pre election commitments that have actually been delivered.

      P.S.  I would try to give you a hand but someone has taken all the policies off the Labor website. wink

    • persephone says:

      10:30pm | 25/04/10

      I would have thought that both parties - and their members - would claim to be governing for the good of Australia as a whole.

      So if the Opposition thinks they have an idea which is better than the government’s, then they should put it out there. If the government ‘steals’ it, then the Liberals at least know that they have contributed to the Common wealth.

      Labor did flag its policies well out from elections. The Liberals stole some of them - adopted some of the rollback ideas for the GST, changes to politicians’ superannuation, two that jump to mind, but I know there’s a heap more.

      I think the ALP politely pointed out at the time that they were their policies that Howard was putting into place, but that didn’t stop them putting out more policies.

      So far, of course, Tony’s policies have either faded away very quickly, because they were getting embarrassing or have been disowned before they were really even out there, so on current form even he wouldn’t steal his policies.

      Don’t worry, I am very very certain that, when the full glory of Abbott’s policy platform bursts on the voting public, they will crash and burn.

      After all, in the lead up to the last election, he was going to produce a health policy…..and we’re still waiting for it.

    • Drewboy says:

      12:55pm | 26/04/10

      Nice to see you working on a public holiday Persephone? Is it a bit quiet in K Rudd spin office today?

    • Brett L says:

      06:25am | 25/04/10

      I guess what the author is forgetting with his attention seeking headline is that 30% of Australia’s population trying to get into the housing market are not white at all. While I agree we now have the most incompetent government in power since I can recall, don’t be fooled to believe our generous (stupid) policies are not exploited by foreigners.  Whether it be immigrants reuniting family in Australia then returning to their homeland on a full Australian pension,  or buying up property in Australia, it happens daily.
      We have a new generation of Multicultural, Multiracial AUSTRALIAN young people who are never going to get the chance to buy their own home. A country the bread of Australia and yet median property is 10 times the median salary. That is a gluttonous disgrace by World standards.  The few elite in Australia control us, the last thing we need now is to import more foreign elite who don’t even contribute to our community to punish us more. If you are not an Australian citizen then you cannot buy domestic property in Australia.

      Reply

    • marley says:

      12:44pm | 25/04/10

      Ohh, hang on a minute.  Are you saying that permanent residents shouldn’t be allowed to buy property?  When I migrated to Australia, I bought a house.  I didn’t feel like wasting money renting, especially in a rising market, and I thought I’d rather put my money into bricks and mortar than Telstra shares.  Are you seriously suggesting that I shouldn’t have been allowed to buy property here until I became a citizen?  How does that help to integrate permanent residents into Australian society and the economy?

      More to the point, how does it make housing more affordable for your young family?  If all non-citizens are forced to rent, then it creates an even bigger demand for investment properties.

    • Brett L says:

      03:45pm | 25/04/10

      Yes, that’s exactly what I mean. BTW why haven’t you become an Australian Citizen?

    • marley says:

      05:35pm | 25/04/10

      I assume you were born here, and may not appreciate the mental and emotional issues new migrants have to go through, even before setting foot on Australian soil.  Not only are you leaving behind your country of birth, your family, friends and a lifetime of memories, but you’re coming to a new country with a different history, different social rules, and a whole set of challenges, from finding employment, establishing a credit rating and locating a GP,  to learning the rules of the road and navigating the nuances of the taxation system. The expenses involved in migration are considerable - basically, you’re starting your life all over again.  You need to acquire furniture, transportation, appropriate clothing, a plethora of things.  The whole experience is confronting, and rather daunting.

      To be told, on top of that, that migrants are not equal and cannot own property, when we have made the momentous decision to move here, is simply “not on.”  We weren’t lucky enough to have been born here, but we have consciously committed ourselves to Australia; Australia ought to respect that commitment.

      By the way:  I AM an Australian citizen.  Became one 3 years and 8 months after migrating (hard to do it much faster, given the process involved).

    • Brett L says:

      06:53pm | 25/04/10

      Your are right, I don’t appreciate what you have been through, and quite frankly I don’t want to either. If we keep allowing the massive influx of migrants to our country we will become no better then the country you left. You consider the reasons you left your country. In 60 years from now how will this country be any different? And before you claim racist, take a look at look at your home countries attitude to foreigners.

    • Ryan says:

      08:40pm | 25/04/10

      I agree with Brett L 100% ONLY citizens should be allowed to buy property, furthermore its about time Australia stopped accepting dual citizenship also.

    • Trent A says:

      10:25pm | 25/04/10

      Just like the rednecks in America, its always the immigrants to blame… taking our jobs and houses. No it the fact you’re too under educated, under skilled and financially inept.
      You’ll be sorry to hear this Brett but I’m currently buying a property in Balmain to add to my two other investment properties. Next year i’m moving to Spain to buy a house to live in as a Permanent Resident. Its people like me who are driving up the prices, not immigrants. Furthermore there is nothing you can do about it, I was born here.

    • Russell says:

      07:54am | 26/04/10

      I am not and Australian citizen, but I have the great advantage of escaping Brett L and Senator Sherry’s property Stassi agents by being white. I have lived here for 40 years and raised a family. Who do I hand over the keys to my family home to, Brett?

    • Jane says:

      01:43pm | 26/04/10

      Russell, this is a genuine question.

      You have lived in Australia for 40 years and raised a family here yet don’t feel the need to become an Australian citizen

      Do you vote in our elections, if so, why?

    • Brett L says:

      03:42pm | 26/04/10

      My I please answer to Trent A. I’m sorry you feel the need to make a personal attack and then boost your own ego but your claims of housing investments. I’m have neither of the characters you described. I have 1 house, a very big one on the water. I make my money from the business of selling industrial consumables. I’m not in the business of buying out peoples dreams of owning a home and then renting it back to them while claiming tax benefits. You are making your money from stealing dreams from new home buyers, artificially inflating the market and robbing the taxpayers while doing it.

    • Ricky says:

      06:33pm | 26/04/10

      Absolutly spot on Brett L.You have summed it up perfectly.And Russel, you have been here 40 years & are not an Australian citizen?says it all really….

    • Russell says:

      06:36pm | 26/04/10

      @Jane. No, I’m not eligible, so I don’t vote. (my family all do) And I’m just really uncomfortable about issues of race being linked to nationalism and perceived economic grievance, as it is here. Its a slippery road, and one I hope Australia never travels down.

      If it ever does, I’m outta here, and back home…

    • Nigel Catchlove says:

      08:17am | 25/04/10

      Absolutely agree with the tenet of this article.  I think people need to understand just how regressive this policy is.  The policy that dictated the screening of foreign investors for property aquisitions began in 1989 under Bob Hawke.  I’m unsure what policy existed before that and if any of the sensible posters know I’d be interested.  That is of course different from the the usual bigotted rantings of anonymous posters who actually add little value to the conversation.

      This current policy change goes further than undoing the changes introduced in 2008 which had the intention of increasing housing supply while keeping a lid on prices.  Perhaps the intention wasn’t naive, just the application - similar to the much vaunted insulation scheme - as always the devil is in the detail.

      The latest policy change is more regressive, more restrictive and much more Stalinesque than the policy introduced in 1989 by Bob Hawke.  Is it any wonder that Kevin Rudd rarely gets compared to leading ALP figures like Hawke or Keating but frequently gets compared to the worst PM this country has ever known - Gough Whitlam.  Hopefully Rudd’s term in office will be even shorter.

      Reply

    • Brett L says:

      12:43pm | 25/04/10

      Well Nigel, lets see which political fundraising the Chinese Nationals attend this year. With a table costing around $15,000.00 to get 10 minutes in the ear of a minister can be good value for a wealthy foreign investor. You may vote Labor yet?

    • Sherlock says:

      08:19am | 25/04/10

      Hey I’m up for a good Rudd verbal bashing anytime. However, it’s not unusual for governments to impose restrictions on non-residents purchasing real estate which unfortunately makes this column little more than a beat up

      Reply

    • Adam Diver says:

      11:09am | 25/04/10

      Did you read the article?

    • Rob r Charteris says:

      08:28am | 25/04/10

      Yet another sniveling Lib spewing dribble…... yawwwwwwn!!!!!  I also think your title for your article is little thought out even racist. Do you think indigenous people will also need to prove citizenship??? or have you complete forgot about them, typical of a Liberal stooge

      Reply

    • Ben81 says:

      01:02pm | 25/04/10

      Why, what did the white Australia policy have to do with Aboriginals?

    • marley says:

      01:56pm | 25/04/10

      Maybe I missed something.  I thought it was the ALP, not the Libs, urging people to dob in a foreigner (now that really is snivelling, not to mention racist).

    • TC says:

      03:35pm | 25/04/10

      Have you been drinking Rob? You’ve got it backwards sport

    • Wayne Fehlhaber says:

      06:48pm | 25/04/10

      Rob r Charteris :  Hmmm and yet another Labor contributor races to the keyboard shouting rascism whilst feining boredom. Pardon me , Rob but your slip is showing.
      Never mind old mate , the current Rudd backflip on major policy and stimulus programs should keep you busy in defense of the indefensible
      rather than running in a circle and playing the rascism card.

    • Luke says:

      08:37am | 25/04/10

      I can see the Libs campaign already, it won’t be difficult for them.
      We will have clips of Kevin Rudd announcing his policy’s followed by clips of he and his Ministers announcing the flip flop back to Howards policy’s and all in their first term. They don’t seem to be able to return to the Howard Government stance on almost everything quick enough, including the return to the Howard Governments foreign investments rules that it changed in 2008 as mentioned above. How Kevin Rudd can seriously sell himself and his promises again in the up coming election campaign will be cringe worthy to watch.

      Reply

    • John A Neve says:

      08:54am | 25/04/10

      James,

      I find it funny sick, that any one associated with the media would oppose the use of “anecdotal reports”, or that other well known term “a reliable source”.

      The three main reasons for high house prices are:  Negative gearing, the first home buyer’s grant and developer’s greed.

      Until we as a nation realise this fact and do something about all three, the situation will not improve.  The % of accomodation bought by overseas interests is minimal.

      Reply

    • mickey_maoist says:

      11:30am | 25/04/10

      But John,  what have facts got to do with it?  This “policy” is just about appeasing “the real orstrayuns” in the western suburbs.  It will play well in the local pubs and around the barbies of the metropolitan fringedwellers

    • marley says:

      03:51pm | 25/04/10

      mickey maoist - what you’re saying is that Rudd is pandering to “Howard’s battlers. ”  Politics have come full circle, haven’t they!

    • John A Neve says:

      04:46pm | 25/04/10

      Mickey-Maoist,

      Don’t ever take my word for anything, do a little research. Look at prices pre negative gearing, pre first home owners grants and note the trend in the UDIA’s comments on council’s charges.

      Now tell me what you think?

    • mickey_maoist says:

      10:06pm | 25/04/10

      Marley.  Yep I am saying exactly that.  Its a travesty, but all politicians now seemingly feel the need to pander to these loons. 
      John A Neve.  I agree 100% with your analysis.  My point was that the facts won’t win votes with the “Howard battlers” aka “ordinary orstrayun working families” aka “metropolitan fringe dwellers”

    • Russell says:

      08:03am | 26/04/10

      What is the difference between “developer greed” and property owners boasting around the dinner party how much their house is worth, and what so-and-so got at last weeks auction? I hear rather a lot of that in my neighbourhood, and it bores me senseless.

      You are talking about capitalism, John A Neve, and its inherent right to own and profit from property, or anything legal.

      If capitalism is what you want change/abolish, then fine. There are still Maoists around, apparently. Though maybe not in China.

    • John A Neve says:

      01:05pm | 26/04/10

      Russell,
      I never raised the issue of capitalism or offered a comment on it. So what is your point?
      Regarding your “neighbourhood”, maybe they don’t like you either!!

      To be frank Russell, I don’t understand your contribution to this debate at all!!!! Please explain?

    • Russell says:

      09:29pm | 26/04/10

      Hi John A Neve
      Capitalism is a way of organising supply and demand. Manipulating one side of the equation in the housing market (via interest rates, immigration levels, regulations about who can and cannot own property based on their country of origin) etc etc, is a distortion in the way the system works.

      Everyone involved in the housing market expects to profit in some way. Developers are just players, same as all of us. The gain for most of us is not having to pay rent, and maybe having something we can fund our retirement on or to pass onto our children. Developers are no more “at fault” in this than anyone who benefits from our right to own property.

      I know some (especially the Greens) regard developers as “evil”. But I am not offering an ideological position or making a moral judgement. Just stating the way it is.

    • John A Neve says:

      08:53am | 27/04/10

      Russell,
      All you have done now is to confirm what I said in my very first post (see above).
      All I was doing “was stating the way it is”.

    • Peter says:

      09:03am | 25/04/10

      This hot line is rubbish. It makes us look like a nation of dobbers. They should not have introduce foreign ownership in the first place. This government backflip on this policy reeks of racism, and serves only to domenstrates that our government are incompetent rednecks.

      Reply

    • Rob r Charteris says:

      09:48am | 25/04/10

      And who is calling who a redneck, I bet you have a mullet and all.

    • persephone says:

      10:22pm | 25/04/10

      We did have a terrorist hotline too you know - this isn’t a first.

    • marley says:

      11:43am | 26/04/10

      Persephone - yeah, but this is even sleezier.  Dob in a homebuyer?  Come on.  It’s appealling to the absolute lowest instincts - envy, resentment, xenophobia.  The ALP should be ashamed of itself.

    • pete says:

      09:36am | 25/04/10

      James Campbell, white homelessness rose significantly under Howard and is rising under Rudd… maybe it’s just that the political two-party/ mental health system is busted? Abbott doesn’t have an affordable housing plan either… he just thinks he is entitled to power.

      Reply

    • Brett L says:

      09:43am | 25/04/10

      You think it is “anecdotal reports”. Do some research the foreign investment in private dwellings is huge. And it is encouraged by Real Estate Agents.
      “We have also welcomed with open arms investment in Australian real estate by foreign nationals.” Quote Real Estate .com.au
      “Thirdly, there are the lock-up and leave purchasers. They buy property here to use as their private holding home.” Malady says Quote RealEstate.com.au
      It’s rife, it’s all over Australia, and it’s squeezing out the people who contribute most to this failing country.

      Reply

    • Rich says:

      09:55am | 25/04/10

      Seems like all Kevin Rudd has done is introduce bad policy, changed it back to how it was before and then congratulated himself on all the revolutionary changes he thinks he has made. Meanwhile half of the population hasn’t got a clue and just nod in agreement.

      I support this change as there are more rich Indians and Chinese than there are Australians. I would go even further and not allow anyone who isn’t a permanent resident or national to buy property. This is because the fees of international students get paid for by the property their parents buy for them over a period of 4 years. So really they get a free education and an investment property while the whole idea behind international students is that we get their money.

      Reply

    • Bob says:

      06:26pm | 26/04/10

      Whats wrong with rich Indians and Chinese? You jealous ? Most indians here are Citizens if you actually talked to any Indians most of them want to be Australian Citizens.

    • Eric says:

      09:56am | 25/04/10

      Clearly the Labor Government is dog whistling to its racist, xenophobic redneck supporters. Kevin Rudd should from now on appear in public dressed in a white hood, and speak only with a thick Hollywood German accent.

      Reply

    • shane says:

      10:08am | 25/04/10

      I’d be surprised if the reinstatement of the policy had any discernable impact on the current stupidly high housing prices. Politicans of both parties will attempt to “prick the bubble” with minor, moderately painless policies designed to look like they’re addressing the problem, while not actual doing much at all. Ultimately, bubbles all end the same way…...

      Reply

    • Cecil says:

      11:05am | 25/04/10

      Attack attack attack!! Shame when it comes to war The liberal want to commit more Aussie boys to die but are cowards about going themselves. How many good Liberal boys will volunteer to go to Afghanistan when Abbott commits more troops? Is Tony Abbott going to cycle across in his lycra tights and pose for the cameras as they die?

      Reply

    • Anjuli says:

      11:21am | 25/04/10

      The policy makes no sense as Australians also own homes abroad There just could be a back lash from this.
      The negative gearing needs attention I know of a person who has over 20 homes ,one has to ask can over seas people do this too.

      Reply

    • Pete says:

      11:28am | 26/04/10

      Here are the rules concerning foreign ownership in China:-
      ‘The opinion has one limited exception to its no foreign ownership rule and that is for residential real estate as a personal residence.  This exception is limited to Representative Offices or to foreign individuals who have been legally resident in China for at least one year while employed or as a student. These foreign individuals are limited to one residence.’
      And the foreign ownership of property In India is covered by the following laws:-
      “A foreign national of non-Indian origin, resident outside India cannot purchase any immovable property in India”.
      Hope this helps Anjuli?

    • jed says:

      11:42am | 25/04/10

      Holy hell we’re heading back to the dark days of…. oh 2008?

      I’m all for the reversal because we know the reasons why they loosened the restriction in the first place (and doubling the FHOG) because house prices looked like they might fall, so they instigate these schemes to push more money into the market and now they’ve overcooked it.

      If house prices have to fall they have to fall, the government shouldn’t be sticking their nose in, they didn’t use tax dollars to prop up the share market. The hilarity now is waiting to see what happens next because they’ve pushed the market up with first home buyers - GONE; foreign buyers - GONE and now interest rates head up.

      Because they intervened there might be an even greater fall out.

      By the way, you didn’t make a great case with your ‘anecdotal evidence’ spiel. You might have highlighted why they’re being so inept to rely on anecdotal evidence - because they were too stupid to actually keep statistics. And you’re not going to get a straight answer from anyone in the real estate industry - if they’ve got a golden goose laying eggs are they really going to tell you - ‘Australians are passionate about property, they love their debt’ would be their most likely response.

      Reply

    • Max Power says:

      12:30pm | 25/04/10

      Non-Australian citizens should not be allowed to buy houses or land full stop. Why should Australian citizens miss out or be forced to pay higher prices so foreigners can buy up our land and houses. This also should apply to our resource sector. If the the Federal Govt bought the shares in our rescource companies instead of allowing Chinese Govt owned companies to buy them, perhaps we would have a better health system, education system, infrastructure, as all the profits stay here. Maybe the Federal Govt wouldn’t have to increase the taxes paid by mining companies to help pay off their massive debt. Better still, maybe we wouldn’t have this massive debt because we wouldn’t have had to borrow so much money.
      I am sick of Australian’s and Australia being put behind the interests of other countries and foreigners.
      Australian’s and Australia First!

      Reply

    • Anlee says:

      12:36pm | 25/04/10

      What makes me sick is the cowardly accusations of racism anytime residents assert any right to determine their society and the future their children will inherit. I couldn’t care less if the foreign owner is from Sweden or Sri-Lanka, foreign ownership is wrong and inflationary and contributing to a loss of social mobility.

      We have already crossed a threshold that will see future generations that are born poor have no hope over improving their social condition. They will be born and die in soul destroying ghettos. We are headed towards a downward spiral in societal harmony all so a few greedy people can make money or score political points today, while avoiding all substantial scrutiny behind lies of racism. Look to American ghettos to see what Australian cities will be like in another generation.

      Reply

    • Anjuli says:

      12:59pm | 25/04/10

      There are Australian who own homes in other countries ,and are they going to not let other foreign investment in ie mining, or is only for the very rich.

      Reply

    • JJJ says:

      01:17pm | 25/04/10

      Well, one thing is for sure… if they actually do introduce the ‘dob line’, then they will be creating lots of jobs for people to investigate the validity of the numerous claims that are bound to be made against people who “aren’t white” or grow a suspicous number of veggies.

      Reply

    • Twerper says:

      01:45pm | 26/04/10

      It’s ironic that you obviously can’t see the racism in your post and doubtless don’t consider yourself racist at all. In fact this entire discussion is based on an extremely offensive and racist premise that 1) Australians are white, 2) Whites are racist, 3) Every political view formed by Australians is motivated by racism and 4) White Australians don’t have veggie gardens.

    • Joe Bloggs says:

      01:28pm | 25/04/10

      Agree somewhat with the author - a policy back-flip designed to soothe the anger of a major fraction of Rudd’s constituency - the young would-be FHB.
      However, while it adresses the hysteria that is symptomatic of an increasingly out of reach aspiration for many, it does not address the real factors that are driving up house values. And it is pretty obvious why that is.
      Labor used to be a party of reform that turned out policies to aid the least influential and wealthy people in our society (like the young FHBs). Used to be the party with balls that forced the electorate to take a strong dose of medicine when required. Those real Labour virtues are now evidently history. Maybe a reflection of the easy good times that the governing generation has enjoyed for all their lives. Oh well - times are a-changing -  maybe we will see the return of the REAL Labour party soon enough.

      Reply

    • Marion says:

      01:28pm | 25/04/10

      I agree with John A Neeve, James’ objection to “ancedotal evidence” is odd.  Ancedotal evidence is often the trigger for a more thorough, systematic investigation into dodgy practices and situations, so why does James object?  I can tell you that anecdotal reports *abound* in Melbourne about foreign non-residents buying up houses at auction - particularly in Melbourne’s posh inner east and in middle-ring suburbs such as Burwood.  Without all of these ancedotes, most of us would be oblivious to what has been going on.  I don’t object to the government taking heed of all the ancedotal evidence.  What I object to is the fact that they removed the official approval and reporting requirements in the first place, hence forcing us into a situation of relying on the anecdotal evidence alone.  This is where the true scandal lies.

      Reply

    • stephen says:

      09:52pm | 25/04/10

      Anecdotal = probable.
      If you don’t want foreigners in your area madame, just say so.

    • Tom says:

      01:39pm | 25/04/10

      I agree with this article. Are there any figures for the proportion of houses owned by foreigners? My guess is that the number would be negligible. Hence, to claim that foreigners are having any significant effect upon house prices is a nice populist rallying cry, and may win a few votes, but ultimately it will not make one iota of difference to house prices.

      On the other hand, house prices are certainly being driven up by property investors negatively gearing their properties. However, many of these people are mum and dad “working families”, hence any action to reverse the ridiculous subsidy the taxpayer gives to property investors will almost certainly lose votes.

      Reply

    • jaystar says:

      02:11pm | 25/04/10

      I am 25% asian and 3X25% western european nations that have hated and killed each other over the years, even I get racist sometimes, in order to complain about maintainence of the nation we have built & love together

      Reply

    • Joan says:

      02:58pm | 25/04/10

      Like the pink batt scheme, yet another scheme not thought through, counting on `dobbers` for its implementation. Real professional government here.  Foreign means anyone that`s not an Australian resident- that is not racist in itself , but Sherry`s language infers a racist element.

      Reply

    • Bethany says:

      03:52pm | 25/04/10

      Totally agree with you on negative gearing. Not a big vote winner unfortunately.
      On this, however:
      ‘... government so useless that it would actually base an important economic decision on something so flimsy as ``anecdotal evidence.’’’
      It’s not being based on anecdotal evidence. Like all this government’s decisions, it is designed to appeal to the shifting tide of voter opinion.

      “Will everyone with a Chinese or Indian name now have to produce a passport when buying land?”
      Everyone buying Australian land should have to prove they are permanent residents of this country.

      “...can you imagine the reaction there would have been if John Howard had done something like this?”
      Quite. And yet, how statesmanlike he appears compared to the agile Mr Rudd. ‘We will decide who comes to Australia and the circumstances in which they come.’ Come back, John. All is forgiven.

      “...more and more people will be able pinpoint the moment at which they finally admitted to themselves Rudd’s is the nastiest and most incompetent government Australia has ever had. For me that moment was yesterday.”
      Mine was when Mr Rudd went on national TV and, in a barefaced lie, said that the ‘asylum seekers’ of the Oceanic Viking were NOT given a special deal.

      Reply

    • facepalm says:

      03:56pm | 25/04/10

      Way to drum up xenophobia, Mr Campbell. And on ANZAC Day to boot. Funny how the Liberals were cheering the housing bubble on (and in fact gave it a big helping hand) when they were in power, and now they’re in opposition in an election year and trying to blame it entirely on Labor “selling us out to foreigners.” The Rudd government’s foreign investment scheme may very well be the prick that bursts this ugly bubble, but it is entirely disingenuous to blame Rudd for a time bomb that has been ticking for quite some time now.

      Wake up, Australia - distinguishing between the two major parties on economic policy is like trying to tell the difference between horse manure and donkey manure. Doesn’t matter which one you pick, they both stink.

      Reply

    • Bigos says:

      02:55pm | 26/04/10

      Indeed facepalm. I just wish the government stopped trying to save us from ourselves. All that needs to happen is ... Residential property ownership should not be available for foreign investment. Only people who stay in the country for a period longer than 5 years/citizens/PR, can invest. Negative gearing/FHOG abolished. Let the asset bubble pop and then the free market can establish a fair price for rent and property value. All the government does is distort the market in the name of “fairness” which is rubbish. No government policy is required at all.

    • Rationalist not Racist says:

      04:18pm | 25/04/10

      I think Kevin is now rudderless but revising the foreign investment allowances, which he allowed, is one of the better decisions he has made.  Otherwise we might as well just have open borders and sell up to the highest bidder and let young Australians live in tent cities.  The author needs to think a bit more rationally and take off the rose coloured glasses which are obviously being worn.

      Reply

    • jed says:

      07:53pm | 25/04/10

      nothing has changed!! as usual it’s rudd telling lies. sure there’s a whole lot of bluster in the announcement but they didn’t reintroduce the key 300k limit for students. might want to have a look into this one again guys it seems the real estate industry is very happy and it’s business as usual.

      Reply

    • jane says:

      08:31am | 26/04/10

      there are 3 empty houses on my street. there are in good condition. i know that at least one house in owned by asians

      Reply

    • jason says:

      12:03pm | 26/04/10

      The whole announcement was pure racism, along with the population debate i am really getting disgusted in labor.

      Reply

    • Matt M says:

      12:10pm | 26/04/10

      I would like to comment about the author’s statement “the rort that is negative gearing”. I find it quite amusing that there is a belief by a number of commentators that the evil property investors are causing house prices to artificially increase and therefore keeping first-home buyers in rentals. Can you imagine the public housing disaster if the 1/3 of this countries’ residents had no houses to rent because it wasn’t worth it to investors?
      The entire idea that a property investor should not be able to claim a tax deduction for yearly losses incurred in the pursuit of a long-term gain (on which he/she is then taxed) goes against the benchmark of all other investment types.
      Do you believe that a shareholder should not be able to claim interest on a loan to buy shares?
      Do you believe a small-business owner should not be able to claim interest on a loan to fund his business?
      The list is long, but in all cases, an investor is taking a risk on the basis of a long-term capital gain. Of course, the ability of investors to borrow (and claim the interest) naturally contributes to the inflation of prices - but this happens in ALL asset classes, not just housing.
      What are you suggesting - banning all debt to reduce inflation???

      Reply

    • marley says:

      03:36pm | 26/04/10

      I’m just curious, Matt.  Australia has one of the most unaffordable housing scenarios, and also by far the most generous negative gearing policy for housing of any developed country.  Is that entirely coincidence?  Negative gearing is not entirely responsible for the problem, any more than immigration is - I personally think rigid land release policies combined with cumbersome and restrictive development regulations have more to do with it - but I don’t think it can be entirely discounted as a factor, either.

    • Matt M says:

      08:31pm | 26/04/10

      Thanks for your comment Marley.
      I agree that cumbersome and expensive land release & regulatory charging policies are a major contributor to housng prices. But these are just some of the many factors. The point I was making was that whilst negative gearing has contributed to housing prices, so too has debt funding contributed to the rise (and fall) of ALL asset classes. Any talk of removing or restricting it is a simplistic and ‘knee-jerk’ reaction.
      Interestingly, ANZ Economics released a report last Thursday which said, amongst other things:
      ** Much talk of housing ‘bubble’ - but fundamentals sound
      – Record population gains & inadequate supply growth
      – Critical housing shortage worsening/demand momentum strong
      – FHB replaced by investors, upgraders & offshore buyers
      – Conservative lending/low delinquencies/no sub-prime/full recourse loans
      ** Household sector well placed
      – Economy & labour market solid, unemployment falling – no forced sales
      - Low delinquencies reflect comfortable debt servicing
      - Solid gains in real household incomes
      - Growing skilled labour shortages/upward wages pressure
      *** Tightening demand/supply fundamentals and a healthy economic outlook are positive for housing
      ** 2009 price momentum very strong
      - Low interest rates
      - FHOB
      - Tightening demand/supply balance
      - Relaxation of FIRB restrictions
      ** Early 2010 very solid but prices will decelerate…
      - Rising interest rates
      - Exit (temporary) of FHB
      …but price gains will remain positive
      – Market momentum strong/supply limited
      – Improved economy/labour market/sentiment
      – Foreign demand
      – Housing shortage will get (much) worse, vacancies tighten, rents
      re-accelerate & affordability will deteriorate
      ** Australian, US and UK residential property market fundamentals have very little in common…
      1. “It’s the economy stupid!”
      2. Australian population growth the strongest in the developed world
      3. Conservative lending/no sub-prime = low delinquencies + few forced sales……consequently, Australian house prices were
      remarkably resilient cf. other developed nations
      Moreover, house prices rebounded remarkably strongly in 2009-2010 in most capital cities
      House prices have tracked incomes since 2004
      Australian population accelerated to record highs while home building weak
      The housing shortage has already reached unprecedented levels – and will get worse!
      Shortage of housing forcing an involuntary rise in persons per household
      Vacancies remain tight (despite FHOB) and will tighten further in years ahead
      First-homebuyer demand falling sharply following expiry of FHOB and rising interest rates…
      …but population growth should prevent a deep, protracted downturn…
      …moreover, investors & upgraders replacing FHB demand

      I could cut & paste all night, but you get the drift - there are many, many factors…

    • A Stewart and a McDonald says:

      05:38pm | 26/04/10

      I never realised ‘foreign’ was a race.  I think you’ll find this is a nationalistic policy, not a racist one.  Learn the meanings’ of words.

      Never Trust a Campbell

      Reply

    • marley says:

      07:06pm | 26/04/10

      If you read some of the comments above, you might think that, indeed, “foreign” is a race.

    • Ryan says:

      01:58am | 01/05/10

      It appears that “foreign” is a race when you want to pull out the ole’ racism card to accuse average hard working Aussies just trying to buy a home of being racist rednecks.

    • Shockadelic says:

      11:47pm | 26/04/10

      “I have heard many things about foreigners over the years but never that they are so stupid as to leave assets sitting around earning nothing.”

      Well, I know of one example, only because I happened to cross its path.
      I was considering renting a shop that had been vacant for years.
      The owner is Chinese, can’t speak a word of English, uses a lawyer to handle her affairs (not the real estate agent), and nips of to China for weeks while I’m in the middle of trying to negotiate an agreement (her lawyer couldn’t contact her)!
      Now I know why that shop is still vacant today (3 years later!).

      Reply

    • jobnews daily conclusion says:

      06:24am | 28/10/10

      Wild Hot,those owner ensure tomorrow than live medical turn confidence according such past county could because hotel comment standard laugh domestic wonder growth because sign community call hardly existing wage cross transfer both pool mechanism progress let mine consequence congress tool settlement girl set secure copy sequence onto construction stand growth look concept rise proper final empty out evening finish care anything please shut tomorrow much certain cold book process steal girl certainly servant group look presence husband council choose stick half sea equal issue press wish

      Reply

    • Ted F. says:

      01:17am | 14/03/12

      I don’t think prices are too intense here in America. In fact, there’s stories about some Long Beach real estate prices coming down so much that even immigrants can afford to get into a home. Come over here and buy, people!

      Reply
 
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