Australia housing bubble

[Polyal]

Originally Posted by FTE217

Thats nothing Daz,
My daughter inlaws Uncle had to move a month back due to Landlord raising rent by $500 !
Since I have found out my sons girlfriends parents living in rental also are moving out this weekend due to a similar rent rise, like FFS.

Thats just crazy, $500 up on an already decent amount? it is honestly criminal, go up with rates in OK but that seems to be an unfair adjustment.

[roKWiz]

Originally Posted by Polyal

Thats just crazy, $500 up on an already decent amount? it is honestly criminal, go up with rates in OK but that seems to be an unfair adjustment.

How is it even allowed.
Don't know what they're paying in $ydney but rates have increased around 3% here.

[Citroënbender]

…To think that in the middle of all this, there are still two never-occupied five bedroom houses next to me.

[roKWiz]

Originally Posted by Citroënbender

…To think that in the middle of all this, there are still two never-occupied five bedroom houses next to me.

Foreign investment. ?

[Citroënbender]

Absolutely.

Looks like Cav had a nose for the future:
https://www.abc.net.au/news/2023-05-...owth/102367580

Also, credit is due to Yellow Festiva for seemingly one of the best bottom-pickings shared on this forum with his purchase a few months back.

[FTE217]

Originally Posted by Polyal

Thats just crazy, $500 up on an already decent amount? it is honestly criminal, go up with rates in OK but that seems to be an unfair adjustment.

yes madness and criminal, I'll find out more about it and the other I mentioned.
Don't know how they get away with this.

[roKWiz]

Originally Posted by Citroënbender

Absolutely.

Looks like Cav had a nose for the future:
https://www.abc.net.au/news/2023-05-...owth/102367580

Also, credit is due to Yellow Festiva for seemingly one of the best bottom-pickings shared on this forum with his purchase a few months back.

Poor Cav, gonna hate all the slickers lining up in front of him (undecided) at the bakery.

[FTE217]

and struggle to get a car spot within walking distance
Cake pricing will increase with the growth as well you'd think.

[roKWiz]

Originally Posted by FTE217

Cake pricing will increase with the growth as well you'd think.

Can't speak for Cav but it has here. Outrageous.

[Citroënbender]

Have the holes in your pink donuts got larger, Wiz?

Originally Posted by FTE217

and struggle to get a car spot within walking distance
Cake pricing will increase with the growth as well you'd think.

I’d think some guérilla signmarking of parking bays might work, like the mobility spots but “Vietnam Veterans Only”. Council would be afraid to remove due to fear of a backlash.

[roKWiz]

Originally Posted by Citroënbender

Have the holes in your pink donuts got larger?

Pink is a premium priced flavour these days due to the "Woke."
I can only afford off gray food colouring.

[FTE217]

Originally Posted by roKWiz

Pink is a premium priced flavour these days due to the "Woke."
I can only afford off gray food colouring.

I would expect "choc" o late will be banned soon enough as well

Pink will be renamed "allgenda" pay more with larger hole

Cav will get a preffered vet boomer discount card.

[Citroënbender]

“But that’s a chocolate donut!”
- It identifies as a pink donut.

Will the real estate industry soon dream up more names to cover dodgy scenarios, in the vein of “granny flats” (which seemingly can now be two storeys, 3+ bedroom)? “Flexible living” might be a useful term…

[T3rminator]

Originally Posted by T3rminator

Lease renewal coming up in a couple of months. Property manager has suggested a modest 3% increase in rent. I said, look I don't want to burden tax payers with negative gearing in FY24, so lets bump it up 10% to help cover int repayments. Lets see how it goes.....
.

Agent spoke to the tenant for all of 1 minute and the 10% offer was accepted. Should have gone for 20%.

Supply vs demand.

[fordomatic]

Originally Posted by T3rminator

Agent spoke to the tenant for all of 1 minute and the 10% offer was accepted. Should have gone for 20%.

Supply vs demand.

I asked for my rent at one place to match the market as I knew it was cheap. Current tenants stayed and it got put up 31% of what it was.

[blueoval]

Some more pain for some of you cashed up Mexicans

https://www.news.com.au/finance/econ...83b81b53e1c24c

Victorians will be hit with a decade of Covid tax pain to help ease the state’s massive debt under Daniel Andrews’ latest budget.

The ‘Covid Debt Levy’ is tipped to raise an estimated $8.6 billion by 2026-27, and those who own a second property will be hit the hardest.

Treasurer Tim Pallas said the levies would wipe off $30 billion of Covid debt over the next 10 years, with the new Covid tax due to end in 2033.

“This has been the most difficult budget that I’ve had to frame,” he said on Tuesday.

“This is the start of a new era, the post Covid era for the state and its finances.

“While our kids will of course have memories of the trauma that was the Covid years, they won’t necessarily have to be paying for that trauma for the rest of their lives.

“These measures are temporary, they are targeted, and above all they are responsible.”

Mr Pallas added that the government thought it was “fair” to expect Victorians with multiple properties to “make a modest contribution to repaying Covid debt”.

According to the Herald Sun, those who own more than one home will pay at least $5000 over the next 10 years, with a new $500 annual tax for investment properties with a land value between $50,000 and $100,000.

The payment will increase to $975 for homes valued between $100,000 and $300,000, while an extra 0.1 per cent of the land value will be applied to properties worth more than $300,000.

Mr Pallas said roughly 860,000 landowners would be affected by the land tax change.

Meanwhile, businesses with a national payroll of more than $10 million will also be forced to pay extra payroll tax of 0.5 per cent, or 1 per cent if their national payroll is more than $100 million.

The payroll increase will impact around 5 per cent of businesses in the state, and Mr Pallas argued they were in a good position to handle the increase.

“We think big business has the capacity to make a modest additional contribution that over the next 10 years to assist in repaying the Covid debt,” he said.

Up to 4000 public service jobs will also be cut under the government’s four-year $2.1 billion efficiency drive, although some areas within the public sector, such as health roles, will expand.

But despite the strict debt repayment plan, net debt is still expected to soar to $171.4 billion in four years.

Dr Zareh Ghazarian, politics lecturer in Monash University’s School of Social Sciences, said it was always expected to be a tough budget.

“Cutting the numbers of public servants while trying to increase tax revenue suggests the government is nervous about the state’s economic situation. Politically, however, this is a good time to have a tough budget,” Dr Ghazarian said.

“It’s the first budget following Labor’s strong election result in November, and the strategy would be to get difficult and potentially unpopular changes out of the way to clear the path for more generous, and politically more popular, budgets in future years.”

It comes as radio star Neil Mitchell blasted Victorian Premier Daniel Andrews ahead of the release of the state budget, accusing him of spreading three key “cons”.

The 2023-24 State Budget will be delivered later on Tuesday, and Mr Andrews has made no secret of the tough economic conditions facing the government, variously describing the budget as “tough”, “difficult”, “challenging” and even “painful”.

The budget will include details of the state’s massive debt, which Mr Andrews has publicly attributed to a range of external factors, including the Covid pandemic and the Reserve Bank’s successive interest rate hikes.

However, the 3AW host has come out swinging, claiming Victorians are being sold three major “cons” about the budget.

“Don’t cop this nonsense about the Covid debt that you’re going to hear – the debt is $165 billion, or will be soon,” he said.

“Repayments are about, what, $8 or $9 billion a year. It’s not all Covid, they’re using Covid to cover other cost blowouts.

“Covid’s about a fifth of the debt, that’s con number one.”

Mitchell also urged Victorians to be wary of Mr Andrews’ RBA claims.

“Con number two is that the Reserve Bank is somehow to blame because Dan thought interest rates would stay down when he borrowed the money,” he said.

“That’s nonsense, even I said they would go up one day, his treasury officials must have told him the same.

“That’s con number two, it’s not Philip Lowe’s fault.”

Finally, Mitchell insisted the “debt cliff” didn’t come out of the blue.

“Con number three – this was inevitable and obvious before the state election, I said often on air and in a column for The Age, the debt cliff was coming, cuts and tax rises would always be needed, but the government dodged it, and was re-elected,” he said.

Earlier this month, Mr Andrews defended his state’s borrowings as a necessary move in a post-Covid world.

“The governor of the Reserve Bank, head of the federal treasury and every credible economist around the world said, ‘look, you need to use your budget and balance sheet to protect household budgets and business balance sheets’. So we had to go and borrow,” Mr Andrews said in early May.

“If you hadn’t done that then we literally would have made the worst of times so much worse again. That would not have been an answer.”

But one shining light for Victorians was a projected operating surplus of $650 million by 2025-26.

Mr Andrews said this predicted figure was part of the government’s plan to “stabilise” those borrowings.

“Bringing stability and, in some ways this is the most important point, a surplus. $650 million in the 2025-26 year,” he said.

“You’re not only in a better position to start servicing the borrowings you had to make, but also to start paying that down.”

[FTE217]

haha good ol Andrews.

Here's something I got not long ago via email, now here's the thing.
I've been doing business ex china (yer I know had to) for over 20+years.
Got to the point to service customers quicker I even pay for warehousing due to MOQ production runs etc.
Point is Mr China won't let me buy anything there as some know.
Yet we our Gov allows any tom dick and harry invest here be it for their student kids or business.
https://www.mcgrath.com.au/advice/ar...uyers-are-back
See above add to the hurt for 1st home buyers let alone any of us for these people have been inflating pricing here for over 25/30yrs.

[Citroënbender]

Indeed. India is the same. I’d like to see reciprocal rules, and if someone holds multiple citizenships they’re bound by the most restrictive.

[T3rminator]

Originally Posted by fordomatic

I asked for my rent at one place to match the market as I knew it was cheap. Current tenants stayed and it got put up 31% of what it was.

Nice move. Undersold myself a bit, haven't touched the rent in the 5 years prior. Problem is I want to move back into that apartment in 6 months time. Agent warned that if I went too high, and the tenant decided to walk, it would be hard to get someone in for 6 months. A week's vacancy would have taken away the 10% gain over the 6 months, then + advert costs.

Originally Posted by blueoval

Some more pain for some of you cashed up Mexicans

https://www.news.com.au/finance/econ...83b81b53e1c24c

Preparing to become the next capital in just over the next decade won't come cheap. To put into context, the new property "levy" affects 1.3% of the population. When you consider all the stuff being built, and is to be built, the majority of the 6.6m won't care. Is the levy tax deductible? If it is, then the rest of you will be helping us come end of year tax time

Levy for international home owners has doubled from 2% to 4%. Good move. Should maybe make it 10% if the property is vacant for X days in a year, would help free up more rentals.

[roKWiz]

I look at this housing lark in a more simplistic way.

I get a little sick and tired of hearing about poor investors, how if it weren't for them there would be no overpriced rentals available.

Maybe the cost of land / houses would come down if it wasn't for all the investors and pollies using tax breaks to feather their nests on multiple properties.
With that lower cost of land and housing it may allow a greater percentage of people to be able to buy their own homes (to live in)

Seems the whole thing is beautifully engineered to work the way it is working atm.

Maybe we should just hand back all the land to the rightful owners and we can all pay rent.

[Charliewool]

And people actually voted for this lying shonk?


Sent from my iPhone using Tapatalk

[Citroënbender]

And who believes it will only last a decade?

I suppose, notionally, part of the fundraising will go towards compensating the public housing tenants who were locked up like criminals.

[FTE217]

Originally Posted by Charliewool

image
And people actually voted for this lying shonk?


Sent from my iPhone using Tapatalk

you can only lol of this idiots incompetance being the major cause of the States covid debt.
The amount of people he has put out of jobs, business's closed etcetc and now he wants his fellow sucker voter to recover the costs lol.....
Oh hang on it only effects 1.3% of the pop one quotes.
Seriously talk about s hithousery.
It may not be much to some but its just another added cost that even if it ends up being tax deductable its the initial outlay, you may have countless more bills due at the time for eg.

[FoxtrotGolfXray 5.0]

Nothing comes for free. There was significant stimulus (read cash investment from the government, both state and federal) injected into the community through various pipelines, all of which was supposed to help carry the state through a down turn in the economy. Whilst there were specific feed-in points, it was supposed to benefit everyone by stimulating spending.

At some point in time, that money needs to be recouped. And, just like it was handed out through particular feed in points, that money will be collected through particular collection points. But that will also impact the rest of the community as the costs of that are passed on.

So, everyone (in theory) benefits. And everyone (in theory) pays. No one should be surprised at this.

And those living in other states should also be concerned about their own state's debt. NSW, for example, has a debt of over $187 billion. That's about $70b more than what Victoria's current debt is. At some point in time, that money has to be repaid. You can't do that without someone feeling the pain.

[prydey]

Govt debt (and country debt) is very different to a personal debt though. I think many people see these figures and think along the same lines as their own personal debt repayment plan/scheme/timeline.

Debt needs to be paid down, but there is no term. There has been debt for most people's lifetimes and there will continue to be debt.

People will always pay tax. Its not really related to the debt. Lots of comments in the media about future generations having to pay this off for years etc etc, makes it seem like their lives will be different somehow. Its just the media turning people against whatever govt is in power.

Tax will always be paid by the populace. Paying tax is doing your bit.

[T3rminator]

Originally Posted by FoxtrotGolfXray 5.0

And those living in other states should also be concerned about their own state's debt. NSW, for example, has a debt of over $187 billion. That's about $70b more than what Victoria's current debt is. At some point in time, that money has to be repaid. You can't do that without someone feeling the pain.

Can't blame them when they get their news from the Neil Mitchells, Peta Credlins and the Herald Sun...

Sit back and enjoy the same merry go round from the same "smart ones" who post the same thing across every page. The most vocal ones don't even live here. The north have been paying through their noses in land tax for yonks....young families are leaving in droves due to cost of housing, but never mind, we're the dumb ones.

Private schools defunded, 9 new public schools to be build, upgrade to health facilities....yeh never mind all that.

When you want to build and grow, you have got to pay. Wait for the QLDers to start investing in the Olympics, see what happens then.

Here's hoping the 3 year back to surplus holds true. But we'll be told we got our heads buried in the sand.

[FTE217]

the exodus is happenning from both the big states.
Not surprised.
NT is the only state not paying land tax
haha smart ones, turn it up

[FoxtrotGolfXray 5.0]

Originally Posted by prydey

Govt debt (and country debt) is very different to a personal debt though. I think many people see these figures and think along the same lines as their own personal debt repayment plan/scheme/timeline.

Debt needs to be paid down, but there is no term. There has been debt for most people's lifetimes and there will continue to be debt.

People will always pay tax. Its not really related to the debt. Lots of comments in the media about future generations having to pay this off for years etc etc, makes it seem like their lives will be different somehow. Its just the media turning people against whatever govt is in power.

Tax will always be paid by the populace. Paying tax is doing your bit.

True, it's not like a personal or home loan that you and I would deal with, but it is still money from other people/organisations. The government bonds still have to have regular payments made to the owner of the bond (coupon payment) and the bond has a maturity date, at which time the government pays back the face value of the bond. So, it still has to be paid back and it costs the government more than the face value of the bond to have 'borrowed' the money in the first place.

Whichever way you want to look at it, it costs the government (and hence the people) to 'borrow' that money and it does have to get paid back at some point in time.

Again, you don't get anything for free.

[BENT_8]

Originally Posted by FoxtrotGolfXray 5.0

Nothing comes for free. There was significant stimulus (read cash investment from the government, both state and federal) injected into the community through various pipelines, all of which was supposed to help carry the state through a down turn in the economy. Whilst there were specific feed-in points, it was supposed to benefit everyone by stimulating spending.

At some point in time, that money needs to be recouped. And, just like it was handed out through particular feed in points, that money will be collected through particular collection points. But that will also impact the rest of the community as the costs of that are passed on.

So, everyone (in theory) benefits. And everyone (in theory) pays. No one should be surprised at this.

And those living in other states should also be concerned about their own state's debt. NSW, for example, has a debt of over $187 billion. That's about $70b more than what Victoria's current debt is. At some point in time, that money has to be repaid. You can't do that without someone feeling the pain.

Lets be honest though, its the people who can least afford it who'll do the majority of the lifting as property investors will just pass on the additional tax to renters via additional increases.

[prydey]

Originally Posted by FoxtrotGolfXray 5.0

True, it's not like a personal or home loan that you and I would deal with, but it is still money from other people/organisations. The government bonds still have to have regular payments made to the owner of the bond (coupon payment) and the bond has a maturity date, at which time the government pays back the face value of the bond. So, it still has to be paid back and it costs the government more than the face value of the bond to have 'borrowed' the money in the first place.

Whichever way you want to look at it, it costs the government (and hence the people) to 'borrow' that money and it does have to get paid back at some point in time.

Again, you don't get anything for free.

True, but it's not something new to this generation. That's my point. Govts and countries have been borrowing money and paying it off since Adam was a boy.

The media use the debt message to sway the populace one way and then the other.

The govt use the debt message as an excuse to implement taxes or raise taxes.