Scott Cam’s heartbreaking admission about his son’s property dreams as The Block star says young Aussies ‘can’t buy anything’ after negative gearing change
The Block host Scott Cam has delivered a grim assessment of Australia’s housing crisis.
The Channel Nine presenter has revealed that his three adult children – Charlie, Bill and Sarah – are among the growing number of young Australians struggling to break into the property market.
The veteran builder and television personality, 63, said the path to home ownership is dramatically different from when he and wife Ann bought their first Sydney property more than three decades ago.
The couple purchased a ‘beautiful little terrace’ in Sydney’s inner-city suburb of Zetland in 1994 for $200,000 – a purchase that helped launch a property portfolio reportedly worth up to $25 million.
But as their children attempt to buy homes of their own, Cam said the outlook could not be more bleak.
‘It’s really impossible from the beginning,’ Cam recently told realestate.com.au.
The Block host Scott Cam has revealed that his three adult children – Charlie, Bill and Sarah – are among the growing number of young Australians struggling to break into the property market. Pictured with his children
‘You can’t buy anything now.’
The TV star revealed one of his sons had initially been pre-approved for a loan of $800,000 before his borrowing capacity was dramatically reduced.
‘The (Federal) Budget was supposed to help young people, but the bank re-established his loan to $510,000,’ he said.
Cam explained his son had been hoping to purchase a property valued at just under $1 million, but the revised lending figure had effectively derailed those plans.
‘That’s based on the negative gearing factor,’ he added.
Cam said that his children have faced ‘far greater’ challenges in the housing market than he did at their age.
Away from concerns over affordability, Cam also warned struggling homeowners about the costly mistakes many make when renovating.
‘I think most of the time the mistake they make is their budget, and underestimating costs, therefore jobs don’t get finished,’ he said.
‘Underestimating the timeline as well is a big, big mistake. You’ve got to find the good trades, the right trades too.’
As his children attempt to buy homes of their own, Cam said the outlook is bleak
‘It’s really impossible from the beginning,’ Cam said
The long-time builder also stressed the importance of conducting building and pest inspections before purchasing a property, particularly older homes.
‘Pest control is a really big one — it’s essential,’ he said.
Property costs are less of a concern for Cam, who earns an estimated $2.4 million per year as the host of Channel Nine’s The Block.
This salary brings him around $48,000 per episode of the renovation reality series, making him one of Australia’s highest-paid television stars.
Cam’s grim prediction follows last month’s shock news, in which it was confirmed that negative gearing is now officially dead in Jim Chalmers’ Federal Budget.
Under the new budget, unless you buy a newly built house or apartment, you must already own your negatively geared older property in order to benefit from the tax deduction.
Future investors will be forced into buying new properties, if they also want to benefit from the tax break.
The new build needs to add to supply – a like-for-like new build doesn’t do that.
Cam and his wife Ann (left) own a property portfolio reportedly worth up to $25 million. The couple first purchased a ‘beautiful little terrace’ in Sydney’s inner-city suburb of Zetland in 1994 for $200,000
If the block is subdivided, or turned into apartments, that’s when the purchases that follow can be negatively geared.
Prime Minister Anthony Albanese defended the U-turn on his election vow not to change negative gearing, which is now set to be overhauled along with capital gains tax (CGT) policy in this year’s Federal Budget.
Before the last election, Albanese snapped when he was asked whether he would touch either of the contentious housing policies – denying he would: ‘Yes! How hard is it? For the 50th time.’
But on ABC Radio National, Albanese had changed his tune, saying his government will ‘respond to the circumstances that are here and now when it comes to intergenerational equity’.
Pressed on what exactly had changed since his government ruled out touching negative gearing, Albanese said the lack of progress in housing affordability had prompted a rethink.
‘How they are different is that they continue to be entrenched without reform, and that’s the point,’ he said.
Albanese said the situation in housing had not sufficiently improved in the previous 12 months.
‘For a long period of time, young people have tried to save for a home,’ he said.
‘Another year has passed since the election, and not enough has changed.
‘So many people have had another year of missing out at auctions, of renting and paying someone else’s mortgage, and too many young people are close to giving up on the opportunity of owning their own home.’
