The state of the economy at the street level

[basilio]

This might be of interest in the discussion around who owns what in rental investments. It also offers some useful advice admittedly from a self interested participant.

How Many Property Investors Are There In Australia?

The number of property investors in Australia exceeds 2.2 million. This means around 20% of Australian households hold an investment property and 80% don’t.

propertyupdate.com.au

 

[TimeISmoney]

Back then we were told it would help increase rental stock, while at the same time help with wealth distribution to the lower classes by allowing low-income families to invest in property.

And it worked, people on low wages got into the property market, people started to build rental stock, wealth was shared. there was a period during the late 90's and early 2000's where there was more rental tock than renters, causing drastic price drops in rent. I don't recall governments and welfare agencies complaining about that for the investors.

My father was one of those new investors, he was a working-class guy working multiple jobs. Purchased his first rental when I was 10 and had the whole family working to renovate it. The next when I was 13, and I was there again to help restore it for renting. then another when I was 16, and then he built one when I was 18. He did not purchase a new car or go overseas, every spare cent went into building for his retirement.

And now we have governments and other organisations trying to make those people out to be greedy rich people, when all they did was sacrifice and work within the rules that helped build a wealthy and successful country.

However, nothing stands still forever.

Changes to the rules need to be made, many of the current property investors are building portfolios that have dozens of houses. Maybe the government could change the tax rules so that the benefit is for the first few properties, and then stops but changes to a benefit for building a apartment or retirement village

Same here, can remember towing behind Mum at the age of 10 picking up all kinds of crap left behind in rentals. I can still recall one lady who left a room full of knickers behind, looked like she wore them once and just threw them in the corner of the room. Then there was a lady with 12 kids, after she left my parents decided to paint the house and there was a different bloke every day turning up looking for her.

No one looks at the hard work and sacrifices of living a very basic life, in many instances worse than someone who is very poor just to get ahead in life.

The only thing they see is the end result.

 

[qldfrog]

Same here, can remember towing behind Mum at the age of 10 picking up all kinds of crap left behind in rentals. I can still recall one lady who left a room full of knickers behind, looked like she wore them once and just threw them in the corner of the room. Then there was a lady with 12 kids, after she left my parents decided to paint the house and there was a different bloke every day turning up looking for her.

No one looks at the hard work and sacrifices of living a very basic life, in many instances worse than someone who is poor just to get ahead in life.

The only thing they see is the end result.

Envy, jealousy and all rights/no duties: Australia 2024 and the ALP/greens are surfing the wave..would do the same if i was rotten and did not care for the country

 

[Smurf1976]

Not quite "at the street level" but a news report that I think is close enough:

In short, inventory is piling up at car dealerships and now they're discounting.

 

[moXJO]

Some large building supplies going out of business. Trades have very little new work.

Heard of a roof tile company going broke in Sydney. Their tiles are on suburbs worth of roofs out western Sydney. If their is a hail storm the whole roof will need to be replaced as you won't match the tiles. Insurance will be in for a good time.

 

[farmerge]

Some large building supplies going out of business. Trades have very little new work.

Heard of a roof tile company going broke in Sydney. Their tiles are on suburbs worth of roofs out western Sydney. If their is a hail storm the whole roof will need to be replaced as you won't match the tiles. Insurance will be in for a good time.

Stuff the tiles put an iron roof on the joint instead.

 

[sptrawler]

Interesting thing happened today, I had to drive the daughter to work so that I could take her car for a service, on the way she mentioned it was a shame she didn't buy a couple of properties so that she could rent them out.
She works 3 days a week, is deaf and is a single mum with two IVF kids and we all live together.

That in a nutshell, is how stupid this whole property issue is becoming, it is becoming an ingrained ponzi and the Government are worried about gambling adverts.

Maybe they should worry about the ridiculous property investment scam, that guarantees a huge win for everyone.

This whole economy is starting to look more and more out of control IMO.

By the way, I'm in no way putting down the daughter, she is an amazing person that has punched well above her weight always.

But for her to think that the possibility of her being able to financially support investment properties, while struggling to cover her financial commitments already, just shows how much of an attractive sure bet property is becoming.

IMO it just has to end badly, I certainly hope the Banks are being vigilant on loans, or else an Australian GFC is on the cards.

 

[qldfrog]

Stuff the tiles put an iron roof on the joint instead.

Give it 20y and a nice blue tarp plus some recycled plywood for Sydney suburbs?

 

[mullokintyre]

Give it 20y and a nice blue tarp plus some recycled plywood for Sydney suburbs?

So who manufactures and/or sells blue Tarps in OZ?
Might be the next big thing.
Mick

 

[qldfrog]

So who manufactures and/or sells blue Tarps in OZ?
Might be the next big thing.
Mick

Nahhh indian crap by that time

 

[moXJO]

It's really hard to judge the economy out there at the moment. Coming to Spring has a lot of people out and about.

 

[JohnDe]

It's really hard to judge the economy out there at the moment. Coming to Spring has a lot of people out and about.

Past indicators are not as reliable as they once were. A lot of consumers have given up on owning a home or topping up retirement investments, instead preferring to rent long term and using their disposable income on luxuries like eating out, daily coffee, holidays, new cars, etc.

In the near future the tax system will be unable to support all the retires that have nothing but a pension to support themselve. That is why governments are introducing rules that will make self funded retirees less able to access public funded schemes such as public hospitals, and so on.

 

[JohnDe]

More cost of living to be thrust onto the worker and middle class, because at the end of the day business and governments pass on the cost -

The Greens and several crossbenchers have clinched a mega deal with the government to pass three major reforms...mandatory for companies/all businesses with a turnover of $50m to disclose climate risks...includes emissions along the supply chain, which are not generated directly by a company within its fence line or through its electricity consumption...Farmers, who supply big supermarkets and other large companies that will have to make climate disclosures under the program.. https://www.theaustralian.com.au/na...ive-coverage/8081cf2f420407ba6d29e1027306dfab​

How many Australian business with a turnover of $50M, and how quick will inflation create more?

 

[Smurf1976]

More cost of living to be thrust onto the worker and middle class, because at the end of the day business and governments pass on the cost -

The Greens and several crossbenchers have clinched a mega deal with the government to pass three major reforms...mandatory for companies/all businesses with a turnover of $50m to disclose climate risks...includes emissions along the supply chain, which are not generated directly by a company within its fence line or through its electricity consumption...Farmers, who supply big supermarkets and other large companies that will have to make climate disclosures under the program.. https://www.theaustralian.com.au/na...ive-coverage/8081cf2f420407ba6d29e1027306dfab​

How many Australian business with a turnover of $50M, and how quick will inflation create more?

Here comes another industry of consultants.

Because very few businesses would have the technical capability to carry out such an assessment in house.

 

[farmerge]

Here comes another industry of consultants.

Because very few businesses would have the technical capability to carry out such an assessment in house.

Here comes another industry of consultants.

Because very few businesses would have the technical capability to carry out such an assessment in house.

And the dollar cost of all of this Think of a number then multiply by10.

 

[wayneL]

And the dollar cost of all of this Think of a number then multiply by100.

^corrected for accuracy.

 

[divs4ever]

And the dollar cost of all of this Think of a number then multiply by10.

now there IS an upside to this

higher business costs leave less money available for political donations and taxable profits ( those golden geese may start starving to death .. and of course that will flow on to the advertising companies who normally produce 50% methane )

 

[moXJO]

More cost of living to be thrust onto the worker and middle class, because at the end of the day business and governments pass on the cost -

The Greens and several crossbenchers have clinched a mega deal with the government to pass three major reforms...mandatory for companies/all businesses with a turnover of $50m to disclose climate risks...includes emissions along the supply chain, which are not generated directly by a company within its fence line or through its electricity consumption...Farmers, who supply big supermarkets and other large companies that will have to make climate disclosures under the program.. https://www.theaustralian.com.au/na...ive-coverage/8081cf2f420407ba6d29e1027306dfab​

How many Australian business with a turnover of $50M, and how quick will inflation create more?

How the f does such a minority stuff up decisions. Admittedly I went to town on one of their policies and noticed they made changes in line with what I had said.

 

[farmerge]

How the f does such a minority stuff up decisions. Admittedly I went to town on one of their policies and noticed they made changes in line with what I had said.

There must be a dark, dark dungeon where some of these bods habitat so they can dream up new schemes to create more grief and havoc amongst businesses.

 

[wayneL]

There must be a dark, dark dungeon where some of these bods habitat so they can dream up new schemes to create more grief and havoc amongst businesses.

Not too far from the truth.

I have been involved with policy discussions both here and in the UK.

In the UK it was the cigar room of a swanky London restaurant, in Oz it was around a bbq at a central Brisbane Park (can't remember the name of it)

In both instances there was discussion about the greater good as the people there saw it, but there was also discussion on what might gain the votes of the plebeians, irrespective of the greater good.

In the UK there was the prospect of power which did eventuate, which meant all those greater good considerations were straight out the window in favor of gaining power.

I have stories.