Barefoot Investor’s radical fix for ‘dumpster fire’ housing crisis

There are too many women living with violent jerks because they can’t afford to move, says Barefoot Investor who has a bold three-step plan to ease the nation’s housing crisis.

Scott Pape is The Barefoot Investor. Picture: Jason Edwards

The Port Arthur massacre, in 1996, shocked our country.

A crazed gunman killed 35 people and wounded 23 others.

In the days following the tragedy, we were collectively shocked, devastated and outraged.

And our politicians heard us: in less than two weeks they unveiled a policy so big and bold – banning semiautomatic weapons and locking down guns – that countries the world over still point to it today.

The level of emotion over the last few weeks about family violence has been Port Arthur-like.

And this isn’t a one-off event: a woman is killed by an intimate partner every four days.

I look at the photos of these women and imagine the horror of their last minutes on earth. I think about how I’d feel if it were my sister. Or someone I work with. But most of all I think of the scared and scarred little children who have lost their beautiful mum.

Police are currently being called out to a domestic violence event every two minutes. One in three women has experienced physical violence since the age of 15.

We said ‘enough’.

A roundtable summit was called.

Now was the time for the Government to lead and be bold.

And Albo strode out of the summit with … a reheated Scomo policy?

Morrison had the Escaping Violence Payment, which offered up to $5000 for women, and Albanese has the Leaving Violence Payment, which does the same thing.

Now it’s better than nothing.

Yet it doesn’t come close to tackling the big issue: our housing market is a complete dumpster fire.

Many years ago politicians decided it was a better vote-grabber to give tax breaks to investors to provide private rentals, rather than build more public housing.

It’s time to admit that it hasn’t worked.

There are way too many women living with violent jerks because they can’t afford to move.

Last month Anglicare found that, even for educated women earning a higher salary (think teachers or nurses), just three per cent of the rental properties are affordable. And those cheap rentals have eager-beaver applicants lined up around the corner.

“We’re giving out blankets to women to sleep in their cars”, Anglicare told me this week.

And Homelessness Australia found that just 3.7 per cent of women who flee domestic violence are able to secure long-term housing.

We’re better than that.

So, how could the Government really address it?

Well, let me suggest three ways.

First, by temporarily limiting immigration while the rental market is in crisis.

Second, by cutting negative gearing and the 50 per cent reduction on capital gains tax (CGT) for investors.

And finally, by funnelling those tax savings into building public housing that looks after the most vulnerable people in our society – women and their kids who are fleeing family violence.

That sounds pretty bold to me, Albo.

Tread Your Own Path!

Homelessness Australia found that just 3.7 per cent of women who flee domestic violence are able to secure long-term housing.

What To Do If You Know You Want To Leave

A woman came to me this week telling me she was contemplating leaving her partner after years of abuse that had, in her words, “totally shattered my self-confidence”.

Here are the exact steps I gave her.

First, safety is your priority

If you’re living with a controlling bully, they may suspect you’re thinking about leaving. That’s when the threat of violence can really ramp up. You need to protect yourself. So, reach out to the wonderful people at 1800RESPECT line on 1800 737 732 and let them know your situation. They’ll give you advice on entitlements and may be able to find temporary accommodation in the event you’re forced to flee.

Second, put a lock on everything

Change all your passwords and PINs (especially on your email), and, importantly, lock down your phone’s privacy and location-tracking settings. Women are being tracked by their partners like never before. Don’t assume it’s not happening to you.

Third, call your bank’s hardship department

Explain to them what’s going on. They’ll open a bank account in just your name that he can’t access. And the best banks will even provide some ‘getaway money’. I know I’m tough on the banks, but they really do want to help.

Fourth, get digging

Go through any files (either paper or on the computer) and find as much financial information as you can. You’re looking for copies of your marriage and birth certificates, your mortgage or rental details, and any information on shares, property or superannuation.

Finally, go and see a family lawyer

The first meeting will be free, and they’ll explain that you’re entitled to a share of the assets. Many controlling men threaten that they have the financial power in a separation. Your lawyer will call their bluff.

Barefoot has a five-step plan to follow if you have to leave an abusive partner.

A Helping Hand

Hey Scott,

My name is Hepa. I’m just responding to that question last week from Sarah the freelance graphic designer. If it’s all right with you, could you please pass on my contact info to her. I’m also a freelance graphic designer and I make between $100,000 and $130,000 a year. I am happy to help her by showing her how I find clients and how to charge more for her projects, and maybe even get her to help me if I ever get more work than I can handle. Sad to hear how much she’s struggling. I grew up with a single mum in the same situation so if there’s anything I can do to help, I’d love to.

Hepa

Hi Hepa

You’re awesome.

In fact, the entire community of Barefooters is amazing. This week I was flooded with emails from readers wanting to help Sarah (who is paying 85 per cent of her income in rent!).

What I love about your offer is that it’s a hand-up rather than a hand-out. Everyone needs a mentor. Everyone needs someone who believes in them. I’ll put you guys in contact.

Thank you so much.

I Turned $15,000 into $8 Million

Hi Scott,

I don’t have a money question to shock you, but more a story you’ll probably shake your head at. Many years ago, I turned $15,000 into $3.2 million in crypto. It took just over two years, and when I got there I was clueless as to what to do with that much money. I had every opportunity to turn it into real goods and services here in country Victoria. But, because it was the start of a bull run and YouTubers were saying it was going to go way higher, I held on to make more money. In fact, I locked the funds away in a smart contract where I could not access them.

Then the ride really began. The feeling was incomprehensible when it hit $8 million … saddening back at $6 million … sickening at $4 million … total denial at $1 million … and I stopped looking below $500,000. I felt embarrassed. Ashamed. I went on an emotional rollercoaster I never knew existed.

Over time I forgave myself for not being content with $3.2 million and for getting caught up in FOMO. Today, I rarely recommend crypto to people I know. I feel like my experience is similar to the time I got pummelled by the ocean thinking I was better in the surf than I actually was.

John

Crypto has taken investors on a wild ride. Photo by JACK GUEZ / AFP

Hey John,

As they say in therapy, thank you for sharing.

It shows real insight and wisdom that you were able to forgive yourself.

So here’s another way to think about it: if you wrote to me saying you’d turned $15,000 into $200,000 (or however much the crypto is worth now), I’d say you were the luckiest man around.

And I’d focus on the big jackpot you’ve got sitting in your lap right now … in 25 years’ time, you’d give up all your money to wake up and be the age you are right now.

It’s time to create your own luck.

Should I Pay $2000 for Two Zoom Meetings?

Hi Scott,

My husband and I were referred to a financial advisor by a friend. The first Zoom meeting was a free introductory session – the next covered how they wanted to invest our money and what their fees were. We decided their fees were too high ($27,000 per annum!) so emailed to say “thanks but no thanks”. Now they have now sent us a bill for $2000, which we don’t want to pay. We haven’t signed anything, so I’m just wondering if this is normal for a financial advisor to charge.

Denise

Hi Denise,

Tell them to stick their bill up their Zoom.

You didn’t agree to it, and you haven’t signed a contract.

Fuggedaboutit.

DISCLAIMER: Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.

Originally published as Barefoot Investor’s radical fix for ‘dumpster fire’ housing crisis