Australian Housing Affordability Discussion

[whatmeworry]

Yup and they are ditching the apartment and townhouses. Matter of time before we see some apartment developers go belly up..

Already happening.

Perth apartment projects cancelled as property investors abandon market | Perth Now

No Cookies | The Courier Mail

Collapsed Perth builder leaves hundreds of unfinished homes | Perth Now

Day quits Senate as company busts

Qld construction: hundreds of builders tipped to fold

https://www.qt.com.au/news/builders-plan-to-save-subbies-from-further-loss/3143546/

Fyshwick builder Today’s Homes & Lifestyle goes into voluntary administration

 

[penegal]

My shoeboxes are empty ....

Are you wearing your shoes?

 

[RAM]

Are you wearing your shoes?

and do they have holes in the sole?

 

[whatmeworry]

The government were flirting with reducing the CGT.

Labor, which took a plan to reduce negative gearing and capital gains tax concessions to the last election, seized on a Fairfax Media report that the Coalition could curb CGT concessions for property investors to assist housing affordability and delivered a sustained attack on the Turnbull government in question time.
Options under consideration are said to include reducing the 50 per cent discount on CGT to 25 per cent; Grattan Institute economist John Daley said that change would eventually raise about $2 billion a year.

What's the point of a Coalition government? Tony Abbott intervenes in tax debate

 

[JohnK]

Abolish capital gains tax. Abolish negative gearing. Very simple solution.

And yes I am a great believer that the individual and the individual alone gets rewarded for the risk(s) the individual takes with investments. If the individual makes a profit then good for the individual.

 

[andye]

What about increasing land tax maybe in addition to a sizeable stamp duty rebate for owner-occupiers (not just first-time buyers)?
Owning your own home is the biggest social security for Australians in their old age. Our future tax bills will be enormous if we don't encourage it

 

[RAM]

What about increasing land tax maybe in addition to a sizeable stamp duty rebate for owner-occupiers (not just first-time buyers)?
Owning your own home is the biggest social security for Australians in their old age. Our future tax bills will be enormous if we don't encourage it

Stamp duty, land tax etc are nothing when you're dealing with money laundering. Traditionally, people laundering money would be happy with getting between 30 cents to 70 cents on the dollar. Thanks to Australia, they can now get 95+ cents on the dollar.

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Well another step would be for Australia to actually enforce the global agreement on corrupt money transmission. The link below is startling. Who knew that Australia is rated by international authorities as a greater destination for money laundering than the Cayman Islands? Interesting looking at lists of donors (the declared ones that is) and seeing some of the names such as Honk Kong Holdings.

Do you remember Australia granting a visa to a PNG politician who fled PNG after a warrant for his arrest on corruption charges was issued by PNG and they asked for his visa to be refused? He was issued a visa as 'an expert manager'? Sure was expert at getting his hands on other peoples' money.

The program mentions that around $200 billion in corrupt money is cycled through Australia every year with the bulk of it going into properety.

Click on link - Aust Govt sponsored corruption

Global corruption - Big Ideas - ABC Radio National (Australian Broadcasting Corporation)


How do the Chinese subject to currency controls restricted to export $USD 50 000, end up buying apartments at prices in excess of 100 times+ that limit?


Ie $700 000 and $1.5Million at Maquarie Park, $7.5m Vaucluse Lighthouse?

No Cookies | Daily Telegraph


How do they WAREHOUSE their money? Through the 4 Australian Banks? Through Overseas banks operating in Australia? Through casinos? Is that why casinos are so popular with NSW govt?

 

[Jeffrey O'Neill]

What about increasing land tax maybe in addition to a sizeable stamp duty rebate for owner-occupiers (not just first-time buyers)?
Owning your own home is the biggest social security for Australians in their old age. Our future tax bills will be enormous if we don't encourage it

how so? it doesn't count as an asset for access to the aged pension. if anything people are encouraged to over invest into housing as it's the best tax shield there is. someone who has a modest home worth 500K and another 500K of assets will get a lot less govt support than someone with 2M home and another 200K of assets.

 

[andye]

Aged pension and own home-manageable
Aged pension and paying rent-considrring eating catfood to save money

Thus isn't talking about the middleclasses and their accumulation of wealth.
Currently, most people who have retired, and have held down a job , own their own house. In 30 years time, they will be in the minority

 

[TomVexille]

Aged pension and own home-manageable
Aged pension and paying rent-considrring eating catfood to save money

Thus isn't talking about the middleclasses and their accumulation of wealth.
Currently, most people who have retired, and have held down a job , own their own house. In 30 years time, they will be in the minority

Further to that point, will there be an aged pension in 30 years time??

 

[whatmeworry]

Further to that point, will there be an aged pension in 30 years time??

Only if your a politician.

Real Estate mate has told me on how various times buyers have paid in cash for homes 500k-1Mil.

 

[Jeffrey O'Neill]

as the Govt keeps telling us, just get a good job and you can afford a house

https://www.corelogic.com.au/news/mapping-the-market-december-2016

In 2011, the proportion of total suburbs with a median house value below $400,000 across each capital city was: 21.2% in Sydney, 28.9% in Melbourne, 40.9% in Brisbane, 40.5% in Adelaide, 31.1% in Perth, 69.2% in Hobart, 2.1% in Darwin and 1.1% in Canberra. Units offer a more affordable option highlighted by the proportions of suburbs values below $400,000 at: 38.8% in Sydney, 48.2% in Melbourne, 81.7% in Brisbane, 94.3% in Adelaide, 59.8% in Perth, 92.7% in Hobart, 53.3% in Darwin and 44.6% in Canberra…

The proportion of suburbs with a median house value of less than $400,000 at the end of 2016 was recorded at: 0.1% in Sydney, 6.3% in Melbourne, 29.2% in Brisbane, 28.0% in Adelaide, 18.9% in Perth, 52.1% in Hobart and 0.0% in Darwin and Canberra. For units the proportions were recorded at: 6.5% in Sydney, 31.8% in Melbourne, 62.7% in Brisbane, 85.1% in Adelaide, 46.4% in Perth, 88.4% in Hobart, 57.6% in Darwin and 45.8% in Canberra.

Five years ago every capital city except for Darwin and Canberra had at least 20% of suburbs with a median house value of less than $400,000. At the end of last year, it was virtually impossible to find houses for less than $400,000 in Sydney, Darwin and Canberra while less than 7% of suburbs had a median house value below $400,000 in Melbourne. Across each city there has been a substantial decline in more affordable housing over the past year despite the fact that outside of Sydney and Melbourne there has been only moderate value growth over the period…

At the end of 2016, looking at both houses and units, 20.5% of Sydney suburbs had a median value of less than $600,000 compared to 38.5% of suburbs having a median value of at least $1 million. To further highlight deteriorating housing affordability in Sydney, 34.6% of suburbs had a median unit value of less than $600,000 at the end of 2016.

 

[PDog]

Further to that point, will there be an aged pension in 30 years time??

My retirement plan assumes no. I think it's unlikely, and any plan will be far more similar to the current unemployment arrangement- that level of $$ and asset criteria.

 

[drron]

Interesting theory I read yesterday how governments and their authorities can always pick the top or bottom of the market.examples included the Reserve bank selling 2/3rds of it's gold a couple of months before gold began it's ~ 400% rise and Wayne Swan introducing the mining Super Profits tax months before the resource boom topped.Suggested if CGT rises or negative gearing is cut that will precede the long predicted crash of the housing boom.

 

[TomVexille]

My retirement plan assumes no. I think it's unlikely, and any plan will be far more similar to the current unemployment arrangement- that level of $$ and asset criteria.

As does mine...

 

[love_the_life]

Melbourne has a lot (and is getting more) "shoebox" apartments. Many are empty.

But still a tax deduction for the owners - some do not expect to have tenants, just purchased as a tax lurk.

 

[Simsy85]

I've Only read part of this thread given it's 96 pages long, but my partner and I are on good coin (both professionally employed, both close to 6 figure salaries) and we are struggling to get a foothold.

It's the saving of the deposit - If I want to buy in Canberra, I need about $150k deposit just to get a look in.

If we could get it, mortgage repayments aren't an issue - we can afford that, but tie in LMI, stamp duty and legals, and you need to add another 50-75k on the price of a house :\

 

[moa999]

But still a tax deduction for the owners - some do not expect to have tenants, just purchased as a tax lurk.

Still a loss.
And if prices aren't going up, or have limited likelihood of going up,
It's a pretty darn poor investment

 

[love_the_life]

Some people want a loss to offset other profits. Could conceivably write off all costs against other income.

 

[TomVexille]

Some people want a loss to offset other profits. Could conceivably write off all costs against other income.

And others are just money laundering