Are rents too low?

[tech/a]

A bit more upmarket in a nice area - $2600 per month US

AU$3400/mth---$785/week.

Thats about right with comparable homes in Stirling/Mt Barker/Crafers in Adelaide.

Comparable home 30 miles out of London was around 6000 pounds a Month
Or $15,000.

In The UK its not un common to have 6 sharing.

You think our rents are to low-----??

 

[tech/a]

Yep. Overheard on the news tonight that workers will not come to Perth because rents are ridiculously high. No new skilled workers = top in economic growth.

Mate in Perth building Industry paying his labourers $24/hr 50 hr weeks
In Adelaide we pay $18 /hr same hrs.
Take a skilled operator.Perth $30/hr Adelaide $23/hr
At $7/hr diff or $350/week. Even $ 150/week more in rents not a problem.

 

[wayneL]

AU$3400/mth---$785/week.

You cannot use exchange rates as a comparison. They earn the same in USD as we do in AUD if not a helluva lot more. (unless unskilled, then wages crap)

Comparable home 30 miles out of London was around 6000 pounds a Month
Or $15,000.

You cannot compare 30 miles from London to Buffalo NY. You would have to use Nth Wales or the NE England as a comparison. #1950 would get you something like this is a seriously mucky muck area:

This one overlooks golf course etc.

This one is 1800:

 

[wayneL]

I have a 4 x 2 detached in Somerset, not quite as flash as those above, but very large by English standards. Rents for 1200 pounds.

 

[wayneL]

This one is 16,000 pounds per month LOL

Sunninghill Berkshire... Very highbrow

 

[wayneL]

Tech,

here's one closer to your 6k close to London... Near Windsor Castle

http://www.rightmove.co.uk/viewdetails-5836341.rsp?pa_n=9&tr_t=rent

It is quite a few notches above the Buffalo NY pile of bricks.

An exciting property, in a fantastic location, with numerous features, including indoor pool, roof terrace, conservatory, triple garage, 7 bedrooms and 7 bathrooms and expansive private grounds
leading to the Windsor Great Park.

 

[chops_a_must]

Mate in Perth building Industry paying his labourers $24/hr 50 hr weeks
In Adelaide we pay $18 /hr same hrs.
Take a skilled operator.Perth $30/hr Adelaide $23/hr
At $7/hr diff or $350/week. Even $ 150/week more in rents not a problem.

We are talking, in some cases, $600 p/wk for basic rentals.

I'm just writing what I heard...

 

[Noskcid]

Mate in Perth building Industry paying his labourers $24/hr 50 hr weeks
In Adelaide we pay $18 /hr same hrs.
Take a skilled operator.Perth $30/hr Adelaide $23/hr
At $7/hr diff or $350/week. Even $ 150/week more in rents not a problem.

Well according to the MBA which is what the company I work at pays, its $15.38 for a normal labourer, but obviously thats just the base rate. Also a skilled operator would be paid according to what he was capable could range from $23 - $28. Then on top of that you got other rates for specialised trades. (Adelaide)

But yeah I agree with a $150 more a week rental is not a problem, it really depends in what state. Generally the higher the rent = higher living standards which means people just get paid for for the same job. I could move to sydney and get an extra $20k easy for the job im doing now, but that would just go to living and I'll end up not saving it anyway.

A mate just went down to work in Sydney, hes getting an extra $20k but $10k is going back into rent and the rest into travel and other living expenses, as he lives an hr from work, if he was to live closer he'll prob spend more than $20k extra for rent.

In Sydney you be looking at the 500 - 800k mark for appartments in glebe, for the same in adelaide say north adelaide its around 400 - 600k mark for a same appartment, in a slightly better suburb (distance to the city is pretty much the same). Thats 200k Diff!!!

If you bring interest rates in then its a different story, ill come back to that later, kindda busy atm!!

P.S. From what I heard so don't quote me on this, the living cost in Sydney is higher than New York???? and one of the highest in the world..

 

[numbercruncher]

From an investment point of view i agree rents are to Low compared to property values!

But the said propertys are way overvalued and i cant wait for them to crash! (sounds like this has started already in the US)


Only way to buy a house now a days, is to rent one and purchase an investment property for the negative gearing benifits, get together with a mate or family member and buy a house near each other and rent it off each other!!


Crazy crazy world.

 

[Kimosabi]

Well, there was finally... a piece on US Sub-Prime housing on Lateline Business Tonight. They had some stats on Aussie Sub-Prime foreclosures currently running at approx 5%.

US Subprime Defaults are currently running at 20% but theres nothing to worry about

If you want to watch the repeat, it's on ABC2 at 7am tomorrow morning.

 

[bvbfan]

Or on the web here at the Lateline Business website

 

[Go Nuke]

Work longer hours or get a second part time job if that is the only way. A lot of us did that to get where we are now.
If you don't then you are either a winger or a loser. The only one who can help is yourself.
I once gave a job to an ex POW (Burma Railway). He lived 10km away. I asked him how he was getting to work after he had been there a week. His answer was walking. He also was cleaning at a hospitol at night and said he would be able to buy a car in a few months time.
And you are complaining. Please excuse me if I seem cranky but you young ones these days seem to want more than you are prepared to give.

Gee....nothing personal there...Im either a winger or a loser!
Ive done my hard yards as a Boilermaker...so i guess that doesn't make me a loser.
You know..real work..not that pen pushing crap.

We only get about $23/hr here in Brisbane for that. Queensland has some of the countries lowest wages along with Tas and S.A
Its all relative. People in Perth are earnign big dollars with the mining boom..hence the high rent. You just cant do that to people here in Queensland or expect to get the same rental return.

Something will have to give. Im sure that will happen before all us low/middle income workers go out and work 2 jobs... Kiss the family time goodbye. (Not that i have a family...couldn't afford 1..hence Australia's declining birth rate.)

Something just mentioned in the news the other day was that it takes approx $93k to buy an average house here in brisbane.
Hmmm...come to think of it....I dont know many people even with a combined income of $92k!
Thats not winging btw..that a fact.

To be honest..im pretty pissed at your comments. Perhaps a typical white collar worker from down south's response.

 

[chops_a_must]

We only get about $23/hr here in Brisbane for that. Queensland has some of the countries lowest wages along with Tas and S.A
Its all relative. People in Perth are earnign big dollars with the mining boom..hence the high rent. You just cant do that to people here in Queensland or expect to get the same rental return.

Not really.

The only jobs in Perth that are paying more now thanks to the boom are Engineering type jobs. Everyone else is being paid much the same as what they were before and that's the problem. The boom hasn't really helped anyone apart from those directly employed by the industry.

 

[Freeballinginawetsuit]

Not really.

The only jobs in Perth that are paying more now thanks to the boom are Engineering type jobs. Everyone else is being paid much the same as what they were before and that's the problem. The boom hasn't really helped anyone apart from those directly employed by the industry.

Thats not correct. If youre an employer looking for quality staff, you have to pay appreciated rates to get them.....if you can at all.

If you have skills or a work ethic that employers seek (and their are plenty seeking ATM) youre in a good market to be remunerated accordingly.....simple supply/demand scenario.

Wages haven't increased for the Drones not prepared to get out of their box and chase the work....most of those are happy in their box, if employed at all!. What a waste of an opportunity.

 

[chops_a_must]

Thats not correct. If youre an employer looking for quality staff, you have to pay appreciated rates to get them.....if you can at all.

If you have skills or a work ethic that employers seek (and their are plenty seeking ATM) youre in a good market to be remunerated accordingly.....simple supply/demand scenario.

Wages haven't increased for the Drones not prepared to get out of their box and chase the work....most of those are happy in their box, if employed at all!. What a waste of an opportunity.

But once again, it depends on what sector you are in. Public servants for instance, have had an abysmal time of it. Wages in my profession and associated areas haven't moved either.

And the problem is, if you don't have a skill set the employers want at the moment, bad luck. They're all chasing exactly the same people in a very narrow range of expertise.

 

[wayneL]

But once again, it depends on what sector you are in. Public servants for instance, have had an abysmal time of it. Wages in my profession and associated areas haven't moved either.

And the problem is, if you don't have a skill set the employers want at the moment, bad luck. They're all chasing exactly the same people in a very narrow range of expertise.

Agree

I have a friend, a Phd with a very crucial and responsible position in biological safety, who would earn way less than a chippy or truck driver or something. Very little opportunity outside her chosen field.

I'm so glad to be a self unemployed trader (soon to join the ranks of the working masses ). I'd hate to be trying to earn a crust with my particular skill sets.

 

[Freeballinginawetsuit]

But once again, it depends on what sector you are in. Public servants for instance, have had an abysmal time of it. Wages in my profession and associated areas haven't moved either.

And the problem is, if you don't have a skill set the employers want at the moment, bad luck. They're all chasing exactly the same people in a very narrow range of expertise.

A simple basic work ethic has a place in the market ATM, obviously skilled labour is sought after, but their are plenty of T/A or manual work for those that are prepared to grasp an opportunity.

Problem is the work ethic and anyone worth some salt is snapped up.....Quick.

A simple call to an employment agency such as PVS etc will reveal whats left dosen't want to work, or is basically unemployable.

Probably are many in other mediums that are lowly paid, maybe they want to be highly paid but aren't willing to move outside the comfort zone .

 

[Freeballinginawetsuit]

Agree

I have a friend, a Phd with a very crucial and responsible position in biological safety, who would earn way less than a chippy or truck driver or something. Very little opportunity outside her chosen field.

I'm so glad to be a self unemployed trader (soon to join the ranks of the working masses ). I'd hate to be trying to earn a crust with my particular skill sets.

Well I've got a mate who has a degree as well, but now he's at Murin Murin as the H&S staffy on FIFO and raping it in. Whats youre point?.....you can't always have youre cake and eat it!.

Sure their not really his skills but who cares. Its a bit like the arguement of some wheat and sheep farmers,making no money but not prepared to change their ways......., doh.

 

[Kauri]

A simple basic work ethic has a place in the market ATM, obviously skilled labour is sought after, but their are plenty of T/A or manual work for those that are prepared to grasp an opportunity.

Problem is the work ethic and anyone worth some salt is snapped up.....Quick.

A simple call to an employment agency such as PVS etc will reveal whats left dosen't want to work, or is basically unemployable.

Probably are many in other mediums that are lowly paid, maybe they want to be highly paid but aren't willing to move outside the comfort zone .

Spot on...


WA unemployment stays at record low


15th March 2007, 13:45 WST



Premier Alan Carpenter declared that WA has reached full employment and its economy is leading the country after the latest figures showed the State's unemployment rate has remained at a record low.



Australian Bureau of Statistics figures show WA has created more than 130,000 new jobs since 2003 when the Labor government set a target of 125,000 new jobs in five years, Mr Carpenter said.

"This is a direct reflection of the state's strong economy, and a testament to the government's ability to deliver improved opportunities for West Australians," the premier said.

The latest figures showed WA's unemployment rate remained at three per cent for the second month in a row - the lowest on record since the ABS commenced the Labour Force Series in 1978.

"WA has almost certainly reached full employment and it is now conceivable the unemployment rate could crash through the three per cent barrier - something that was unthinkable just a few years ago," Mr Carpenter said.

AAP

 

[wayneL]

A simple basic work ethic has a place in the market ATM, obviously skilled labour is sought after, but their are plenty of T/A or manual work for those that are prepared to grasp an opportunity.

Problem is the work ethic and anyone worth some salt is snapped up.....Quick.

A simple call to an employment agency such as PVS etc will reveal whats left dosen't want to work, or is basically unemployable.

Probably are many in other mediums that are lowly paid, maybe they want to be highly paid but aren't willing to move outside the comfort zone .

In principle I strongly agree, in the real world, things can be very different as I detailed in the above post. In the real world, folks may have extraneous circumstances which can prevent them moving to greener pastures. (family considerations, intellect, physicality, race, disability etc etc etc)

For instance, I was injured in my last occupation that makes any sort of real physical work impossible, and I've always worked in very physical roles. I'm just lucky enough that my brain works in a way that makes other things possible.