The state of the economy at the street level

qldfrog · 9 June 2014

500 000 new arrivant last year is it?
mostly young and in Sydney/melbourne
Going to a free festival is a must and can do.
a coffee at $5 is a great deal vs a ticket in the $100 for a paying festival

Tyler Durden · 10 June 2014

I have a friend, aged about 28 and works for a federal government agency, whose mother fell into the property hype and forced her to buy an apartment in the North Sydney area. Not even a year later, the budget cuts hit her office and she got pushed down a level (so did many others), so will now have to support the mortgage on a lower salary.

sptrawler · 10 June 2014

Tyler Durden said:
I have a friend, aged about 28 and works for a federal government agency, whose mother fell into the property hype and forced her to buy an apartment in the North Sydney area. Not even a year later, the budget cuts hit her office and she got pushed down a level (so did many others), so will now have to support the mortgage on a lower salary.

Maybe she could take whoever forced her to buy the apartment, to court.

I know a couple of friends who have hit 60 and are still renting. Needless to say they are starting to $hit themselves and their wife's haven't realised the issues yet.

sydboy007 · 11 June 2014

Tyler Durden said:
I have a friend, aged about 28 and works for a federal government agency, whose mother fell into the property hype and forced her to buy an apartment in the North Sydney area. Not even a year later, the budget cuts hit her office and she got pushed down a level (so did many others), so will now have to support the mortgage on a lower salary.

It scares me the number of people who want to get into the property market yet don't do their sums. At least once a month I'm doing a basic CBA with someone at work or extended social group and they're shocked once you put things into financial terms. They realise they can live in a more desirable suburb or larger property by renting, and as long as they use some of the difference between a mortgage and renting to increase their level of savings they should be OK.

I just can't believe people go into purchasing an IP and when you ask them what's the gross yield, what are the holding costs, what is your net return, how much do you have to add into the mortgage on a weekly basis and they struggle to tell you any of those. It's worse when you ask them what they think their 3 year job security is like. I honestly think sometimes Australians just have bricks and mortar in their heads (as opposed to rocks)

sydboy007 · 11 June 2014

qldfrog said:
500 000 new arrivant last year is it?
mostly young and in Sydney/melbourne
Going to a free festival is a must and can do.
a coffee at $5 is a great deal vs a ticket in the $100 for a paying festival

Over the long weekend in Sydney there was a massive number of people on Sat and Sun night taking advantage of the last days of the vidid festival. I'd say you're right in that they can take the kids and see a fun light show for a couple of hours and have a cheap fast food dinner for less than the cost of seeing a movie.

sptrawler · 11 June 2014

sydboy007 said:
It scares me the number of people who want to get into the property market yet don't do their sums. At least once a month I'm doing a basic CBA with someone at work or extended social group and they're shocked once you put things into financial terms. They realise they can live in a more desirable suburb or larger property by renting, and as long as they use some of the difference between a mortgage and renting to increase their level of savings they should be OK.

I just can't believe people go into purchasing an IP and when you ask them what's the gross yield, what are the holding costs, what is your net return, how much do you have to add into the mortgage on a weekly basis and they struggle to tell you any of those. It's worse when you ask them what they think their 3 year job security is like. I honestly think sometimes Australians just have bricks and mortar in their heads (as opposed to rocks)

I'm with you on this Syd.
I can't see how they can be expecting a capital gain large enough to offset the risk involved.
I know with the work situation in Perth at the moment, I would be reducing debt, not increasing it.
But I was allways a conservative investor .

Smurf1976 · 11 June 2014

sydboy007 said:
They realise they can live in a more desirable suburb or larger property by renting, and as long as they use some of the difference between a mortgage and renting to increase their level of savings they should be OK.

I understand you point and agree with the basic notion. But I think that to be fair, you need to do the comparison assuming that any difference in cost between rent and a mortgage is either spent or at best placed in a bank account then spent later.

In practice, only a minority will successfully invest what they save, most will spend in the short to medium term and the rest will put it in the bank. Something that's easy to forget, is that whilst owning shares is moderately common on Australian society, only a small minority take any serious interest in it. For most, it's Telstra, BHP, a big bank, Woolworths and that's it.

sptrawler · 17 June 2014

At last a bit of good news, W.A argricultural industries starting to make inroads in China.

https://au.news.yahoo.com/thewest/a/24250739/china-in-1b-wa-livestock-deal/

The upside jobs potential in Australian agriculture is huge.IMO

Tyler Durden · 19 June 2014

I've been noticing a couple of 'pop up stores' lately, most recently saw an MJ Bale one tonight near Martin Place.

It seems to me the idea is to open up a temporary store, put up signs everywhere with big loud words of "CLOSING SOON" and "POP UP STORE" to attract attention and draw some urgency, try to sell everything at a (purported?) discounted price, close up when the short period of lease ends and hope you've sold as much as you can.

This way you avoid long term leases and people feel the rush to buy something before they miss out.

Might be the bricks and mortars way of fighting back against online shops (with futility?).

Tyler Durden · 28 June 2014

Took a walk around the Sydney CBD today, and noticed that one of the Foot Lockers store was closing down, had just a table full of shoes and a rack of shirts to sell off at 50% discount otherwise the shop was completely empty. It's the one near the Star Bar, in the plaza that connects to Town Hall station. It's been there for like 15-20 years.

This didn't surprise me for two reasons:

1. You don't need three Foot Lockers stores within 1-2km radius of each other.

2. All the things they sell can be purchased much cheaper online from overseas, even after shipping costs, with a much larger range of choice.

Also noticed a Moochi frozen yoghurt on George St had closed down, which was a little surprising, since I thought these frozen yoghurt places were all the hype now. Maybe there is too much supply.

On the other hand, a lot of 'bubble tea' places seem to be booming, like Easyway, Gong Cha, Cha Time etc.

Tyler Durden · 16 March 2015

Found out today one of my friends who works in superannuation was made redundant as part of a cost cutting exercise.

poverty · 17 March 2015

Tyler Durden said:
Found out today one of my friends who works in superannuation was made redundant as part of a cost cutting exercise.

What does working in superannuation actually involve?

sptrawler · 24 March 2015

Woodside cut 300 jobs today, that's nothing compared to the end of the Gorgon Wheatstone construction.

https://au.news.yahoo.com/thewest/a/26782159/big-job-cuts-loom-at-chevron/

I think there should be a concerted effort by the Greens and Labor, to force an increase in the job start allowance, as there will be a lot more people dependant on it.

It should be funded by an increase in the marginal tax rates, of those on a combined income of more than $100,000.

If the marginal tax rates, above the lowest one, were increased by 5% most of our problems(regarding welfare) are solved.

rb250660 · 25 March 2015

sptrawler said:
It should be funded by an increase in the marginal tax rates, of those on a combined income of more than $100,000.

If the marginal tax rates, above the lowest one, were increased by 5% most of our problems(regarding welfare) are solved.

That's it, increase the tax on the people who pay the most tax. People like me in my industry often get fed with this and just move to the Middle East resulting in zero tax for the government. I pay enough tax per year to support 6 dole bludgers full time and you want more, help yourself...

qldfrog · 25 March 2015

increase marginal tax rate...
just in case you do not know, we are now taxed in Australia at more than 50% above 180k;
(new extra med levy);
as a result i gave up; i now work one day a week.
Well paid but one day only; best move ever, the actual financial impact on my budget is minimal, life is great;
but my taxes to fund the deficit will reduce by 6 figures this year;
If I was younger, I would have moved overseas
definitively the way to go
During that time glencore still not paying taxes but you pay part of their diesel bill.

Hodgie · 25 March 2015

sptrawler said:
If the marginal tax rates, above the lowest one, were increased by 5% most of our problems(regarding welfare) are solved.

I find it unlikely that whoever proposes this policy would get into power. 5% is massive.

ROE · 25 March 2015

qldfrog said:
If I was younger, I would have moved overseas
definitively the way to go

The grass always greener on the other side, 2 years ago I watch an an american Economist interview
and a young person ask him what would he do if he is our age, he said he would move to Australia

I been to a few places Australia still the best country to live in, clean air, proper rule of law, tax is good for everyone
without a decent tax system there isn't a decent society.

I pay ten of thousand in capital gain each year and I gladly do it as Australia is still a great country.
but you can always move to Asia where you pay bugger all tax and there isnt a proper system to collect them
but you pay for everything else and you will see it is far better to pay tax to have a cilvil society than an under the table system

sptrawler · 25 March 2015

I know it sounds harsh, but if no one is willing to tighten up on welfare spending, it has to be funded.
There are limited ways to increase taxes that make them indexed. For example it has been suggested introducing a land tax system, but unless the value of that land increases at the rate of inflation its value diminishes.

Wages tend to follow inflation, the same as welfare payments, I know it sounds harsh, but it is reality. If you are going to supply a generous welfare, education and health system, you have to work out an ongoing way to fund it.

All these layoffs in the W.A mining sector are high paying, high taxing jobs, the loss in tax reciepts has to be picked up somewhere.
That's just to tread water.lol

qldfrog · 25 March 2015

sptrawler said:
I know it sounds harsh, but if no one is willing to tighten up on welfare spending, it has to be funded.
There are limited ways to increase taxes that make them indexed. For example it has been suggested introducing a land tax system, but unless the value of that land increases at the rate of inflation its value diminishes.

Wages tend to follow inflation, the same as welfare payments, I know it sounds harsh, but it is reality. If you are going to supply a generous welfare, education and health system, you have to work out an ongoing way to fund it.

All these layoffs in the W.A mining sector are high paying, high taxing jobs, the loss in tax reciepts has to be picked up somewhere.
That's just to tread water.lol

no issue with the above: but Australia can not support its current welfare so taxes have to be increased GST, land tax as you say AND costs cuts;
You have a fundamental mistake in the post above:"Wages tend to follow inflation" that wastrue in Australia because of the past boom, ask any american or european if it was true in the last 20 y, feel free to check figures;
middle class is being crushed and salaries are not catching up (so my smile when the pension was indexed to average salary and not CPIortrayed as a victory for pensionner, one of the only tax cut this government has been able to pass)
ROE as a 20 to 35y old, you would be better off moving out of Australia financially if you can.
I also like how you say you pay 10 of thousand (and not hundred which believe me make a difference) in capital gain (aka effective tax rate of 25% max after discounts) yeap I have no problem paying 25 or 30% tax rate either, even 40% and would be full time working hard in that case.
I am not a hardcore neocon either, but the balance in the country has shifted (and will carry on i have no doubt)

and for the main thread:
Email this morning of a past colleague in dire need of a job (mining IT Brisbane as well)
Sadly nothing I can lead him to, mining or otherwise.One more 100k of tax lost for that budget, and probably the next, trouble is he is not willingly doing it.
And mining IT is not restrictive, could work in industry finance as easily, there are just no white collar jobs.

sptrawler · 25 March 2015

qldfrog said:
and for the main thread:
Email this morning of a past colleague in dire need of a job (mining IT Brisbane as well)
Sadly nothing I can lead him to, mining or otherwise.One more 100k of tax lost for that budget, and probably the next, trouble is he is not willingly doing it.
And mining IT is not restrictive, could work in industry finance as easily, there are just no white collar jobs.

I had an email this morning, it was about sponsoring a fifo, seems as though there is a scheme starting up, where you can donate money to sponsor a fifo until the resources sector picks up again.

I'm not sure if it was legitimate or not though.

By the way I was being a bit tongue in cheek about the 5% tax increase, but it did generate some action on the thread.

The state of the economy at the street level

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