Latest news with #RossHamilton
The Guardian
4 days ago
- Business
- The Guardian
Great job, good education, no home: is Australia's bloated property market destroying the middle class?
Ross Hamilton spends his work days in a laboratory developing treatments for fibrosis. At home, he sets aside as much time as possible to be with his partner, their four-year-old daughter and their baby boy, who was born just a few weeks ago. The 43-year-old is well educated, works in a cutting-edge industry and is part of a dual-income household. But despite this, the couple cannot afford a family home anywhere near his Sydney workplace or prospective schools as property prices increase at a faster pace than the family can save for a deposit. 'It's just capitalism gone crazy. A house is no longer a domicile. It's an investment, and it's pushed people out who just happened to be born later. That's all it is,' says Hamilton. 'There's a huge population now that had a bit of wealth years ago, and they bought property, and then it's gone up dramatically since then. 'I don't blame the players. I blame the game.' Backed by favourable tax arrangements, property has been such a lucrative moneymaker over the past quarter century that affordability has deteriorated faster in Australia than in almost every other comparable country. While the Reserve Bank held rates steady at its last meeting, borrowing costs have been falling this year, and there are expectations of more interest rate cuts to come, adding momentum to property prices. Home prices in Sydney, Brisbane, Adelaide, Perth and Darwin are at peak levels, while Melbourne and Hobart are also rising. Investors who have already built up equity in their housing portfolios are routinely winning bidding wars against first home buyers in a tight market, expanding the wealth divide that is fraying relations between the generations. 'The reason why it's so frustrating is you are taught at a young age to get your education, get your career, and then at some point, you will be able to buy a home for your family,' says Hamilton, who was born in Ireland, studied overseas, and then came to Australia through a program designed to build the country's research capabilities. 'I've worked hard, I have a PhD, I've got a career in a leading industry, and yet, despite all that, I still can't get to that next level. 'It's out of reach entirely.' There have been some curious changes in the rental market in recent months, with some city suburbs recording falling rents even as property prices take off again. While this trend might sound like a positive development to address cost-of-living pressures, it does come at a cost. Anne Flaherty, a senior economist at REA Group, says investors are targeting the same sorts of properties as owner-occupiers leading to an influx of new rentals in sought-after locations. 'It makes sense that if there's more investors, that increases the total supply of rental properties,' says Flaherty. 'The flip side of that, of course, is that it's increasingly hard for people to transition from becoming renters to owner-occupiers and they are kept in the rental market.' Over the past five years, investors have increased their share of new home loans from 28% to 37%, according to Australian Bureau of Statistics data, while owner-occupier levels have fallen. The change is in keeping with longer-term trends, given the proportion of housing stock owned by investors has been rising for decades. 'It's got to the point where there's such great incentives to invest in property, it's cannibalising the owner-occupier market,' says Michael Fotheringham, the managing director at the Australian Housing and Urban Research Institute. 'It becomes easier to buy your second, your third, your fourth property than it is your first one.' Those incentives have left many people clambering to get on to the property market, with strategies like 'rent-vesting' (whereby a person rents one property while buying a more affordable one elsewhere) now seen as normal in Australia. Australian house prices started to decouple from wages in the late 1980s, before a surge in the 90s and early 2000s propelled the country into an epoch of unaffordable housing that is only getting worse. The Howard-era decision to halve the rate of capital gains tax made dwellings even more attractive to investors, while a string of state and federal governments failed to plan for supply shortages. Investors have also taken full advantage of negative gearing, which allows the owner of an investment property to deduct the interest payments and other costs against their income. While Labor under Bill Shorten tried to tilt the tables in favour of owner-occupiers by tightening negative gearing and the capital gains tax discount, the measures proved unpalatable to many voters. The policies, which were never implemented, were also designed to push investors towards new builds with the aim of increasing supply. Fotheringham says there are still feasible ways to curb tax incentives for investors, such as capping the number of properties that can be negatively geared. 'If you start to rein it in you could get it to a point where it's a controlled measure. At the moment, about half of all rental properties in this country are negatively geared; that was never the intent,' he says. 'It took us a long time to get into this hole, so it's going to take us a long time to get out of it.' Analysis by Treasury has found that nearly 40% of tax breaks to landlords went to the top 10% of earners. Many affordability advocates have given up on genuine tax reform in Australia and are instead focusing their attention on rental rights. The thinking is that by improving tenancy rights, investment properties become less appealing, freeing up stock for owner-occupiers. This would also make renting a more enticing option for households, as it is in some other countries such as Germany where many households prefer to rent. Housing pressures are building across the country, with Adelaide, once known as one of the country's most affordable cities, now among the least accessible for prospective homeowners with the city's dwelling value to income ratio sitting at 9, according to Cotality data. Sydney remains the most unaffordable among Australian state capitals, with that ratio at 9.8. First home owners have been largely locked out of the market this year, according to Equifax analysis of mortgage demand, due to high property prices. While there is an expectation that falling interest rates and upcoming government measures – including Labor's policy to allow first time buyers to purchase with a 5% deposit – will entice more owner-occupiers into the market, they could be entering with home values at extreme levels. Government plans to support the construction of 1.2m homes and 55,000 social and affordable homes by June 2029 are also behind schedule. Hamilton says he fears the gulf between the generations may be too great to ever rein in. 'Whenever you've incentivised this kind of behaviour with negative gearing, and tax incentives, it totally would make sense to do it. Everyone wants to feather their nest as best they can, but it's just got to a point now where I don't even know if it can roll back,' he says. 'I just want to buy something that we want to live in, and just be at peace with it, but the middle class is gone.'
Broadcast Pro
10-04-2025
- Business
- Broadcast Pro
Space Network launches African Hub to drive space growth
Educational initiatives from primary to professional levels developed in partnership with Nova Space. Space Network, one of the fastest-growing global platforms for space professionals and companies, has launched Space Network | Africa, an initiative aimed at accelerating Africa's role in the global space industry. The announcement was made during the Space Symposium held in Colorado Springs from April 710. With Africas youthful, tech-savvy populationover 60% of whom are under 25Space Network | Africa seeks to harness the continents untapped potential in talent, innovation and natural resources. The initiative will support economic development, technological advancement and education, positioning Africa as a competitive force in the global space economy. Ross Hamilton, Chief Operating Officer of Space Network, said: 'Launching Space Network | Africa will be transformative for the continent. By uniting talent and resources from across the continent, we aim to cultivate a vibrant, sustainable, and impactful space economy. Africa is ready to become a global leader in space-driven initiatives from agriculture and telecommunications to climate monitoring and equatorial launch.' The initiative plans to establish dynamic marketplaces that connect African universities, startups, research institutions, investors and space agencies with global partners. Key components include a Pan-African Space Incubator, regional innovation clusters and strategic collaborations with international organisations. Space Network | Africa also aims to strengthen ties between the Global South and North, bridging innovation and investment. Thabo Kupa, the newly appointed Hub Manager of Space Network | Africa, stated: 'Our ambition is bold, but our approach is focused. By establishing Space Network | Africa, fostering regional clusters, collaborating on policy and regulatory frameworks, and attracting global investment, were dedicated to accelerating Africas commercial space capabilities.' In addition, Space Network | Africas educational initiatives will span primary education to professional development, aiming to create a continuous pipeline of talent. Initial programmes include online education modules developed in strategic partnership with Nova Space alongside in-person pilot projects in Kenyan, Ghanaian and South African schools, and embrace regional, cultural and language needs to create an inclusive platform across Africa. Allan Okoth, Educational Programmes Lead, remarked: 'Our education initiatives aim to inspire Africans of all ages, from school children to aspiring space professionals. By connecting global expertise with local context, we're equipping Africas youth for dynamic careers in the global space economy.' Joseph Horvath, Co-founder and CEO of Nova Space Inc, said: 'Nova Space is thrilled to partner with Space Network | Africa to deliver high-quality space training and support the growth of Africas emerging space workforce. We believe that this collaboration represents a powerful step toward building a truly global space community. By working together, we can empower individuals with the knowledge and skills they need to shape the future of space.' Space Network | Africas innovation-focused programmes aim to bridge education and industry, providing practical experience through satellite builds, innovation boot camps, and entrepreneurship competitions. Notable projects include collaborations with cube sat manufacturers for a multi-country satellite design programme, a regional Space Grant Consortium, and the upcoming 'Space for Africa Challenge,' leading to pitches at the inaugural Pan-African Space Summit in 2026. Kwaku Sumah, Innovation Lead and CEO of Spacehubs Africa, noted: 'Our collaboration with Space Network | Africa will rapidly scale innovative opportunities continent-wide, driving commercial viability and inspiring the next generation of African entrepreneurs in the space industry.' The Space Network | Africa Secretariat, co-chaired by Ross Hamilton and Thabo Kupa, alongside Allan Okoth (Education), Kwaku Sumah (Innovation) and Joshua Kisiangani will steer strategic direction and program delivery. Founding Space Network | Africa Ambassadors include former Ambassador of Kenya to The Hague, Margaret W N Shava, and distinguished venture capitalist, Eric Osiakwan. Andy Campbell, CEO & Founder of Space Network, expressed his enthusiasm for this landmark launch: 'I am absolutely delighted to announce the creation of Space Network | Africa. This marks the first of many Space Network hubs planned around the globe as we strive to connect the sector, fostering collaboration and innovation for positive and impactful outcomes worldwide.'
