On the Fence: A closer look at the Australian property market

The great Australian dream is now an obsession. But is it healthy?

Picture: Peter Wallis

A booming property market has helped make Australia one of the richest countries in the world but will the party keep going?

On the Fence, a new podcast series by The Australian, dives into all sides of the property debate, pitting bull against bear, Millennial against Boomer, renter versus owner and more to tackle the big issues that are central to our economic future.

Hosted by The Australian’s economic editor, Adam Creighton, On the Fence tackles the big issues central to Australia’s economic future and is a must-listen for buyers, sellers and investors alike.

New episodes are released weekly — listen on your favourite podcast platform or stream the episodes below.

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Episode 1: Millennials vs Boomers

Are Millennials the victims of a housing market skewed in favour of boomers?

According to research from Westpac the average age of a first homebuyer has increased in the last 20 years from 27 to 33, and despite the trope that Millennials want to be urban dwelling hipsters, only 20 per cent planned to buy in the inner city, with most opting for the suburbs or even house and land packages further out.

We do know that the bank of mum and dad is significant. In 2017, a third of first home buyers intended to get help from family to fund a purchase, with 13 per cent planning to ask a parent to go guarantor.

In this episode, Brendan Coates, household finances director from the Grattan Institute and child of the 80s, joins Peter Switzer, one of Australia’s most experienced finance commentators to explore whether Millennials are doing it all that tough, and what solutions exist to the challenges for first home buyers. From changes to tax and super policy, to the Manhattanisation of our major cities and the accompanying nimby-ism, this episode will grapple with either side of this heated debate.

Read also: Adam Creighton’s feature story: Heat rises in housing debate

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Episode 2: Bull v Bear

The major capital cities are seeing property prices shoot back up again thanks to interest rate cuts and an easing of lending buffers. With auction clearance rates back near all time highs, is the property downturn now well or truly over or will a new round of frenzied bidding result in more debt-fuelled instability.

In this episode, Adam Creighton, economics editor of The Australian pits noted bear Martin North, who believes property prices could fall as much as 40% against Nerida Conisbee, chief economist of realestate.com.au

Guests: Nerida Conisbee, chief economist of realestate.com.au; Martin North, principal, Digital Finance Analytics

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Episode 3: Rentvest vs Own

With prices in major capital cities racing away again, rentvesting is now returning as an alternative for those struggling to afford high prices.

In this episode we look at the property market through the eyes of some very savvy investors, one a property mogul and the other a share market whiz.

If you took the emotion out of property and looked at it from a rational financial perspective, would you buy or rent and invest?

Guests: Margaret Lomas, Destiny Financial; Steve Johnson, Forager Funds Management

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Episode 4: Downsize or stay?

There will be 5 million boomers in retirement by 2029, and 2 million will be at an age (between 75 and 84) where downsizing is a very real consideration. But where will all these downsizers go? There currently isn’t sufficient stock of appropriate housing on offer and often the sheer enormity of packing up the large family home is resulting in many people leaving the decision until it’s too late.

In this episode of On The Fence, we talk to a downsizer and a psychological expert to address the emotional challenges of moving home, as well as financial planners and policy advocates to understand the wealth implications.

Guests: Gabrielle McDonnell; Megan Soloman, General Manager, Practice, Quality and Innovation at Relationships Australia NSW; Ian Yates, CEO Council of the Ageing; Heidi Schwegler, AHS Financial

Read also: Retirees ‘upsize’ to get the pension

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Episode 5: City vs Country: housing ‘Big Australia’

With immigration continuing at the rate of hundreds of thousands of people a year, are our major cities destined to become concrete jungles?

Or should we be planning for population growth by revitalising our regional towns?

To discuss the future of our housing is Bernard Salt, Australia’s best known and respected demographer, and Danni Hunter Victorian CEO of the Urban Development Institute of Australia.

Read also: Lifestyle refugees escape big smoke

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Episode 6: Riding on the house’s back

For many Australians the surest path to wealth has been to invest in bricks and mortar. But will it always be as safe as houses? A generation of investors is now heavily reliant on property to supplement their retirement plans, and our tax system is creaking under the weight of so many negative gearing investors. Over two million Australians own an investment property, with $20 billion handed to negative gearing property owners in tax breaks in the last five reported tax years.

It’s fuelling an obsession with property, but is it healthy?

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