Permanent Housing Markets (PHM)

Kevin Cox
4 min readMar 8, 2024
Figure 1 — an incremental home market

In Australia today, an average-income person cannot afford the loan repayments to purchase the average house. Permanent Housing Markets make housing affordable by creating permanent local housing markets where buyers purchase and sell their houses incrementally by selling shares. Cameron Murray outlines the idea in Chapter 2 of The Great Housing Hijack, where he writes.

Although the logistics would be insurmountable, it is technically possible for property owners to collectively decide to incorporate a company that owns all their property and convert their part location-ownership share to a part percentage-ownership share in the new company.

The following outlines how to overcome the logistics problems and how small groups can set up small companies with the assistance of Banks to scale the approach across Australia.

Figure 1 illustrates how it occurs. Instead of buying and selling homes each month, shares in every home in the market — including those fully paid and owned by occupiers are purchased or sold. This removes the cost of the interest as the set of houses in any market as the houses are purchased and sold incrementally “

Putting houses in a shareholder company or cooperative vehicle gives home buyers and sellers the same advantage that companies enjoy of zero-cost transfer of capital within the organisation. Read more at Increasing Productivity with an Efficient Financial System.

The main barriers to establishing a PHM are social and regulatory. The financial world is designed around “money makes money”. Money only makes money when invested to create a surplus through trading. The Financial System is a human system that allows money to make money when distributing the surpluses (capital) created by exchanging real goods and services. Unfortunately, the financial system distributes surpluses mainly to those who already possess money. The following shows, for housing, how to either not create a surplus when distributing surpluses or share the surpluses equitably across all parties.

The Benefits of a PHM

The Reserve Bank licenses banks to create new money by lending new money. The borrower has to pay back the money and interest (surplus), and the borrower does most of the work. Eliminating the need for new money eliminates the cost of interest. The savings are a productivity improvement because the PHM must use a financial body, like a Bank, Credit Union, or Mutual Society, to hold the money. The productivity improvements are large, and the longer the assets last, the greater the improvements.

Investors will likely get a 12% indexed annuity for 20 years that lasts at least twice as long as a superannuation-indexed annuity. Buyers save from 35.77% to 73.78% on bank loans. The distribution of the savings is up to each PHM.

Banks can achieve the same result today by charging interest but taking the interest paid off the amount owed. Sharing interest with the borrower is the quickest way to improve the productivity available to any country. If banks become shareholders or sponsors of these organisations, the companies will automatically become part of the financial system under the control of the Reserve Bank.

Who Benefits from Joining a PHM

If you are a new home buyer, you will not require a deposit, and you will be eligible for PHM money with yearly repayments of a maximum of 25% of your income or 3% of the PHM money.

If you are in a shared house, you can combine your payments to get PHM money to buy a house.

If you are in an apartment block, you can work with others to purchase your apartments as a group and to represent you on the body corporate or to replace the body corporate if all owners join.

If you are a seller, you can list your home with PHMs.

If you have a mortgage, you can get a PHM to replace your mortgage, provided you allow occupiers to purchase the home from the PHM.

If you own your home outright but need money for repairs, extensions, or other purposes, you can join a PHM and obtain funds you repay over time.

If you own your home but are looking for a high-paying annuity, you can join a PHM and obtain a better annuity than any superannuation fund.

If you take old houses and refurbish them, PHMs are a ready market.

If you are a small developer/builder/architect, PHMs are a ready market.

Who does not Benefit from Joining a PHM?

Landlords and Developers who receive profits, including Capital Gains greater than 12% of their Capital.



Kevin Cox

Kevin works on empowering individuals within local communities to rid the economy of unearned income.