Recession etc, are things really that bad?

[kincella]

quote....My mum is a boomer, has 4 properties, probably needs to sell one to pay down debt. Therefore all boomers have too many properties with too much gearing without sufficient income in return. end quote....

hehehe...love the reasoning in this statement
Just because your mum has 4 properties.....therefore all boomers have too many properties !

Do you know when the state and feral / federal govts stopped spending on public housing ??? or reduced spending to such an extent there is almost no money spent increasing public housing.....or even maintaining public housing ??? I think it was about 1970 the last houses were built in Wodonga, Broadmeadows etc

The property investors out there have taken up the slack...hence there are rental props available....so you either pay more taxes for an inefficient govt to provide housing...or some tax for people like your mum to provide the housing.

 

[Aussiejeff]

aussiejeff....I used to live in Wodonga...grew up on farm...could not get out fast enough.. did you move there by choice ?

Spent some time here in the late 60's at Bandiana training in R.A.E.M.E. corps. Met my better half here at the same time

After living all over Australia since the 60's, came back in 2004 after my mum died in Sydney so we could look after my wife's mum (widow with dementia). Just moved her into a new dementia unit at Baranduda - she is adjusting ok but some others are not.

Having seen a lot of Oz (through myriads of DoD postings) I actually have come to love this place. As an ex-Sydney city-slicker, the rural atmosphere here agrees with me. Can't stand big city traffic, can't stand big city pollution, can't stand big city pace of life. Guess I'm getting too long in the tooth for that.

and about the centrelink benefits....see my post this morning for more accuracy

Yeah. That's what I thought. Which is why asxgorillas remarks about Centrelink paying 80-90% of exit salary sorta stunned me! LOL

When you consider that many of those recently un-employed miners in WA northwest were earning what, $100,000-200,000 P.A? - they are looking at a whopping come down in lifestyle on Centrelink Newstart allowance! The local towns & economies in WA northwest are going to suffer severely in the next 6 months or so as more high income mining staff are laid off and those bucket-loads of salaried cash that had been piling into the local economies (to filter down to Perth and some eventually interstate) evaporates to a bare trickle.

Is there really a recession? Maybe it hasn't started to hurt Mr & Mrs Average city slicker... but as BoneCruncher suggests, patience, grasshoppers - patience. It WILL come to pass.

Cheers,

aj

 

[kincella]

AussieJeff,
Ok...I grew up on a farm, the opposite to you, love the hustle and bustle of the city life., after what I determined was boring country life.... been in Melbourne 20 years now,, this is first time ever have not gone back to Albury for xmas......doing a de-stress thing now...like nothing...until I get bored. Have couple of resi props in Albury and a shop .

A childhood friend had invited me out to his farm to stay over at Xmas....I stunned him by saying no....had enough country life to last me a lifetime...he loves the quiet, clean country air etc..and he thought because I came from a farm I may enjoy reminiscing!

And those looking for an answer to tied them over from Centrelink will be in a for a big shock....who can live on 220 per week ????

 

[gfresh]

$220 is ruinous if you have absolutely any form of debt. It wouldn't be enough to pay even the most meager mortgage or rent.

No wonder the government is looking to hand out cash left right and center -- beats paying it out on the other end. Speaking of which, Rudd is in the commentary box

Back to the good old index charts.. Really depends on where you want to take things from, and where you wish to draw the trend lines. But if we look at a chart of the Australian index, what does this say about the general investor consensus for Australia?

Either they've got it incredibly wrong, or 91 was a teaparty...

 

[chops_a_must]

quote....My mum is a boomer, has 4 properties, probably needs to sell one to pay down debt. Therefore all boomers have too many properties with too much gearing without sufficient income in return. end quote....

hehehe...love the reasoning in this statement
Just because your mum has 4 properties.....therefore all boomers have too many properties !

Ummmmm!!!!

In case you didn't notice the bit that I quoted, I COPIED YOUR logic, and fit it into my post.

Now please, keep this property dribble to the relevant threads.

 

[kincella]

oh dear chops......recession and housing discussed in the same thread...not allowed...???

 

[robots]

hello,

$220/wk is heaps for these professional individuals and ALL the benefits they get,

hows $3.00 pharmaceuticals, half price public transport, rent assistance, bill assitance

these people get down to welfare agencies to get free food all day long, they sit under an ATM machine peskering people for there hard earned and plenty hand it over

oh, i have a mental illness anymore for that would be a usual trait, and probably do one of Chops experiences, launch into a bit of a tirade in the Centrelink office and walk out with a smirk on their face

you get 3 of them in a flat and the $250/wk isnt a big deal

tough times in Australia, no way

thankyou
robots

 

[Green08]

Land Tax

​

Some areas have gone up 600% in the last year! So if you own multiple properties be ready.


Land tax shock for Victorians

February 1, 2008

Page 1 of 2 | Single page


THOUSANDS of Victorian business owners, property investors and holiday house owners will be stung by soaring land tax bills, after the Brumby Government dumped a cap limiting annual increases to 50%.

The change means Victorians will once again be vulnerable to massive land tax hikes — potentially reigniting a potent political issue that was extinguished when the cap was introduced in the 2006 state budget......

http://www.theage.com.au/news/natio.../2008/01/31/1201714153263.html?s_cid=rss_news


NSW Land Tax

www.hdy.com.au/attachments/NSWStateMiniBudgetAlert_Nov2008.pdf

 

[theasxgorilla]

I am questioning the statement one would receive 80-90% of the dole....?

Sorry, by "the north" I meant Scandinavia, not Queensland. And yes, this is normal. But then again, when it come to cushioning the impact from events in the real economy on day to day life anything is possible up here.

 

[theasxgorilla]

The property investors out there have taken up the slack...hence there are rental props available....so you either pay more taxes for an inefficient govt to provide housing...or some tax for people like your mum to provide the housing.

As Chops has pointed out this isn't one of our property threads (heck, we even have our own forum for that now too! shameless plug: http://www.aussiepropertyforums.com

On the bolded point though, I don't think everyone's parents have been participants here. Some people's parents have more properties than kids. From one angle they're doing more than their share of "service" for society. But over the last decade or more I don't think many would argue against saying that they've been adequately compensated (with capital gains) for providing that service and taking those risks.

But there are many folk in the boomer generation age group who haven't adapted to this new fact ie. property investors bridging the public housing supply gap (...and at the same time addressing their own pension funding gaps). It's presumptuous to think of all boomers as investment property owners. The vanilla boomers, whose investing has been limited to sharemarkets via their superfunds are the group I'm most worried about at the moment. Gen Y have plenty of time to figure it out and catch up.

 

[Aussiejeff]

Sorry, by "the north" I meant Scandinavia, not Queensland. And yes, this is normal.

OMG!!

I have 2 responses.

(1) Does anyone work in Scandinavia?

(2) If the answer to (1) is YES, then WHY?

 

[numbercruncher]

THOUSANDS of Victorian business owners, property investors and holiday house owners will be stung by soaring land tax bills, after the Brumby Government dumped a cap limiting annual increases to 50%.

Ouch !

Seems them pesky victorians are also addicted to the income of the Credit Boom era ...... now those 5x wealthier land owners that Robi talks about get to help plug the shortfall ?

 

[robots]

hello,

Chops has told us we not allowed to discuss property here Number

just bang the rent up another 14%,

the stats show last year got that so i imagine all landlords out there will bang them up, fantastic

or alternatively, another set of bunk beds from Harvey's joint, might put them on the balcony

thankyou
robots

 

[kincella]

but you do have 2 threads...house prices to rise and another house prices to fall....I will try to be more politically correct regarding where and what I post....silly me..talk of a recession and I mentioned house prices....
cheers

 

[theasxgorilla]

OMG!!

I have 2 responses.

(1) Does anyone work in Scandinavia?

(2) If the answer to (1) is YES, then WHY?

Good question. Sweden are in trouble when it comes to hidden unemployment. If it's included in their stats then the unofficial unemployment rate could be as high as 20%. Might go a way to explaining why Sweden’s GDP has fallen from fourth highest in the world in 1970 to 17th in the world.

 

[psychic]

Double whamy for property holders as their properties go down in price and with that drags rent prices down. I love a good recession

 

[robots]

Double whamy for property holders as their properties go down in price and with that drags rent prices down. I love a good recession

hello,

yes and you forgot drags down interest rates, petrol, food, coca-cola, cost for painter to paint walls, cars, anything else

it "appears" your $ is going further, but in reality its all just the same

thankyou
robots

 

[kincella]

well to answer the question...its not bad yet...but it will probably get worse....fed govt's world wide printing money will have a bigger effect in the long run....more money circling the globe will eventually mean your dollar is devalued...less buying power in the future...and when the economies do settle down and everything returns to stability again....your dollar will buy less in the future......

I am so against feds bailing out those exact same companies that have contributed to this global mess....good money after bad....
they should let the companies go under...including the car companies....who have insisted on building big gas guzzling cars...
use the money to start knew companies..or govt owned agencies to begin with...like banks for saving and lending the old fashioned way...the motor vehicle industry can be sustained building more energy efficient cars...when my old one breaks down I will still want another one....we are not going back to the horse and cart days...the building industry can contribute with greener materials etc
cheers

 

[arco]

Interesting slant on the Australian economy from Saxo Bank


AUDJPY to 40

The Australian economy is heavily influenced by the commodity market and a large part of the country’s economic expansion in the past year has been driven by the commodity boom. We believe the whole commodity complex will be left dead in the water for the next ten years due to real demand destruction caused by the high prices over the past five years. At the same time, we are bullish JPY with the big, Japanese Current Account Deficit and overwhelming domestic savings.

 

[Smurf1976]

I am so against feds bailing out those exact same companies that have contributed to this global mess....good money after bad....
they should let the companies go under...including the car companies....who have insisted on building big gas guzzling cars...
use the money to start knew companies..or govt owned agencies to begin with...like banks for saving and lending the old fashioned way...the motor vehicle industry can be sustained building more energy efficient cars...when my old one breaks down I will still want another one....we are not going back to the horse and cart days...the building industry can contribute with greener materials etc
cheers

Exactly. There's no point propping up failed businesses that will never work in their current modes. Let them die and move on.

Likewise there's no point propping up a failed ideology. The whole deregulation / privatisation / globalisation thing failed nearly a century ago and seems to be failing again now. Let it die and stop trying to bring back an idea that clearly doesn't work.