Australia’s property boom making the nation poorer

Discussion in 'Economics' started by themickey, May 20, 2021.

  1. themickey


    July was the wettest month for 26 years here.
    #151     Sep 22, 2021
  2. .,.,It never rains, but it pours,.,.,.
    Life is usually dormant, for the most part. Until a spark ignition happens, that release a chain reaction of happenings.
    #152     Sep 22, 2021
  3. themickey


    RBA sounds warning on household debt risk to financial stability
    Ronald Mizen Economics correspondent Sep 22, 2021

    The Reserve Bank of Australia has warned that growing household debt driven by booming property prices could increase the risk of financial instability.......

    What that means in plain english, the government is worried banks and their rich mates might lose money.
    Never mind the hundreds of thousands of low income workers who are going broke now because all their income goes into housing.
    #153     Sep 22, 2021
  4. themickey


    House prices in coveted school zones soar as much as 46pc
    Nila Sweeney Reporter Sep 23, 2021

    House prices in popular school zone catchments soared by up to 46 per cent in the past year, often outperforming the suburbs they are in, as tight supply fuels fierce competition among families looking to gain a footing within the desirable locations, the Domain Schools Zone report shows.

    Melbourne and Sydney dominated the list of best performing school catchment zones compared to a year ago, reflecting the capitals’ stronger property markets.

    Homes within the Barrenjoey High School zone rose 45 per cent in the past 12 months.

    The price surges underline how much of a premium that parents were prepared to pay to enable their children to be eligible for enrolment in high-performing or popular government schools.

    In Sydney, houses in the Barrenjoey High School zone, jumped 45 per cent in the past 12 months – more than 15 percentage points above the 30.1 per cent growth posted by Avalon Beach – the suburb the school is located in.

    In Melbourne, homes within the Kunyung Primary School catchment posted the sharpest increase in house prices, climbing by 45.7 per cent and outperforming the suburb, Mount Eliza, by 13.2 percentage points.......

    ......“It’s astonishing to see that, starting on a high base of house prices, some school catchment zones are achieving 10 to 20 per cent more than the suburb they are located in,” Dr Powell said.

    “It shows that Australians are prepared to pay for easy access to public schools.”

    House prices surged the most in school catchment zones close to natural environments, such as the coastal suburbs or near to national parks, making them ideal for families, Dr Powell said.

    This was evident in the strong price growth for homes within the Burraneer Bay Public School catchment zone, which grew ten times faster than Cronulla – the suburb it is located in.

    Similarly, the desirable coastal lifestyle likely helped boost prices in the Scarborough Primary School catchment in Perth by 33.9 per cent, compared to the suburb -Scarborough – which posted just a 4.2 per cent rise in values.

    “Due to a shift in lifestyle such as flexible working and ongoing COVID-19 impacts, people are spending more time at home and desire properties that have easy access to beaches and parks,” Dr Powell said.

    A school catchment area is defined as the geographical location where a state school’s core intake of students must live.
    #154     Sep 22, 2021
  5. themickey


    LMAO - they say "prepared to pay", typical RE double speak.
    "Forced to pay!!!" Now say it, it won't hurt you.
    #155     Sep 22, 2021
  6. themickey


    'It's getting hysterical': Sydney renters pay top dollar to live near beaches


    Sydney renters pay rent up to a year in advance to live near the beach
    Tawar Razaghitwitter Journalist Oct 17, 2021

    Locked-down Sydneysiders have been paying record rents to live within walking distance of beaches, with coastal suburbs jumping up to 34 per cent in the past year and some tenants offering up to a year’s rent in advance.

    Renters are willing to do whatever it takes to outbid the competition, agents say, paying top dollar for anything beach-related, from Sydney’s eastern suburbs to the city’s fringes on the Central Coast. The frantic level of demand is pushing rents in those postcodes to dizzying heights.

    In Bronte, the median cost of renting a house is now $1873 a week, Domain’s latest Rent Report revealed, with prices soaring 33.8 per cent to the year ending September, the single largest jump for any suburb across the city.

    It was followed by Saratoga on the Central Coast, where the median rent grew 31.2 per cent to $620.

    Collaroy on the Northern Beaches also increased 30.4 per cent in the same period to $1500.

    The Central Coast median house rent jumped 15.9 per cent to $510 per week, followed by the Northern Beaches growing 15.4 per cent to $1,125 and the Eastern Suburbs increasing by 15 per cent to $1150 a week..........
  7. NumberZ


    Hi Mickey, great to see you back. I hope this means all went good for you!

    Now that is "hard yakka"!
    themickey likes this.
  8. themickey


    Still a bit tender in the gullet, eating mushed up food, eating slowly.
    Recovering from a cold which I caught so coughing a lot which is a bugger, but the Op was a success it seems.
    NumberZ likes this.
  9. Overnight


    You just brought up a good point for the religion thread which is currently raging. I must be sure to reference this...
  10. VicBee

    Millionaires who paid no tax and the richest and poorest postcodes revealed
    By business reporters Nassim Khadem and Michael Janda
    Posted Tue 8 Jun 2021
    There were 66 people earning more than $1million but paying zero tax in Australia in 2018-19. (Flickr: John Morgan)
    Sixty-six millionaires paid no tax in 2018-19, Australia's highest earners continue to live in Sydney's harbourside suburbs, and the country's lowest incomes have been recorded in drought-ravaged central NSW.

    Key points:

      • Sydney's Double Bay edged out Melbourne's Toorak to remain the nation's highest-earning postcode
      • Surgeons continued to earn the most, while those in the food industry were among the lowest paid
      • Fewer landlords made a loss as rental income increased in 2018-19
    The Australian Taxation Office's (ATO) latest taxation statistics are based on the tax returns of 14.7 million Australians for 2018-19.

    Analysis of the data by the Australia Institute reveals there were 66 Australians who earned more than $1 million in that financial year who did not pay a cent of income tax, compared to 73 the year before.

    There were a further 156 people who reported an income between $500,000 and a million but paid no tax.

    "The Australian tax system is as complex as it is unfair," said the Australia Institute's chief economist Richard Denniss.

    "While many middle income earners face marginal tax rates of nearly 100 per cent due to the combined impact of their income tax, [and losing] family tax benefits and child care benefits, there are people in Australia making more than $1 million who don't pay a cent in tax.

    While just 3.5 per cent of Australian taxpayers fall into the current top income tax bracket by earning more than $180,000 per year, those high-income earners contribute 31.5 per cent of income tax collected.

    The biggest group of taxpayers – 41.7 per cent – earn between $37,001 and $90,000, with close to 40 per cent of people who filed tax returns earning less than $37,000.

    While more than 80 per cent of people filing tax returns earn less than $90,000 per year in taxable incomes, they account for less than a third of income tax revenue.

    Those in the top tax bracket paid almost a third of the nation's income tax.(Supplied: ATO)
    However, the Australia Institute's Richard Denniss argued that is how a progressive taxation system should work, and it is likely to change for the worse after the Morrison government's stage three tax cuts take effect in 2024-25.

    "The government's stage three tax cuts and their determination to remove the Low and Middle Income Tax Offset is going to make a bad situation worse," he told ABC News.

    The number of landlords continued to edge higher to 2.24 million, and 58.6 per cent of them continued to lose money (excluding potential capital gains) — on average declaring a net rental loss of $1,352.

    However, that loss shrank from $1,623 the previous year when 60 per cent of landlords had greater expenses than rental income, and it is likely to have reduced further since then, as mortgage interest rates have fallen dramatically.

    The ATO's data suggest that, while rental deductions remained broadly the same as the previous financial year, landlords enjoyed a slight increase in rental income, narrowing their collective losses.

    Rental income rose in 2018-19, while deductions remained roughly the same, resulting in less negative gearing by landlords.(Supplied: ATO)
    The ATO's various crackdowns on fraudulent, ineligible or exaggerated work-related expenses claims appeared to have had some effect, with the number of claims down from 8.95 million to 8.89 million and the average amount claimed falling by $93 to $2,331 (the median, or typical, claim was much smaller, at $1,045).

    Fewer Australians claimed deductions for charitable giving, at 4.21 million versus 4.43 million in the previous financial year.

    That means only 29 per cent of people donated to tax-deductible charities last year, or at least claimed a deduction for their giving.

    Those who did give gave more, though, with the average annual donation rising by $87 to $933, and the typical person's gift-giving over the year edging up to $120.