No it's not!!! You need to remove capitalistic greed which is embedded in the system, much of it government greed which leads a bad example.
Government manipulation and a follow up of deliberate government inaction has created spiralling out of control housing.
House prices to rise as stamp duty forces owners to stay put: Jarden Michael Read Reporter Jul 7, 2023 https://www.afr.com/policy/economy/...ces-owners-to-stay-put-jarden-20230707-p5dmhh Soaring agent fees and stamp duties are preventing an increasing number of homeowners from moving, according to new research warning the decline in housing turnover will put upward pressure on property prices. The cost of buying a property – stamp duty, agent fees, solicitor fees and listing costs – has grown at five times the pace of income over the past two decades, according to research from investment bank Jarden. The release of the research adds to pressure on state and territory governments to shift from stamp duty to land tax to encourage more people to move and reduce one of the biggest barriers to entering the housing market. Transaction costs for the average Sydney home have increased to more than $100,000 from $20,000 since 2000, according to Jarden chief economist Carlos Cacho. The increase has pushed the cost of buying a home to about 80 per cent of disposable income, compared with 28 per cent two decades ago. Over that time, the cost of buying the average-priced home in Melbourne increased to $80,000 from $15,000, and to $50,000 from $7000 in Brisbane. The increase in costs has caused a blowout in the average amount of time people live in their home. Mr Cacho estimates the average holding period for dwellings now exceeds 20 years, up from 12 years in the early 2000s. Agent fees, which are usually charged as a share of the sale price, and stamp duty were the main culprits, Mr Cacho said. Because stamp duty thresholds are not indexed to increase alongside property prices, the average stamp duty payment has grown even more than property prices. The average homebuyer in NSW paid $49,300 in stamp duty in 2022, a 50 per cent increase on 2019 levels. Deteriorating affordability Mr Cacho said the increasing cost of buying property was one of the major reasons fewer homes were being listed on the market, while the ageing population and rising prices were also playing a role. “Deteriorating affordability has meant that it takes longer to save a deposit and upgrading has become more difficult,” he said. “Demographics have seen the share of prime-age upgraders aged 30 to 50 shrink, while at the same time the share of over 65 long-term holders has increased.” Jarden expects annual housing turnover in 2030 to fall to just 4.5 per cent of the dwelling stock, implying about 62,000 fewer transactions than if it were closer to 5 per cent. While other factors such as interest rates and population growth are key determinants of property prices, Mr Cacho said declining turnover would provide a medium-term tailwind for property prices. “Because there are going to be fewer houses for sale at any given point in any given year, assuming demand still remains relatively robust given rising populations and migration, at the margin that would put upward pressure on prices,” he said. “Longer-term, the key challenge is going to be navigating these demographic shifts that are coming, particularly as we start to see the Baby Boomers move through retirement and towards old age, and they need to downsize.” State governments are highly dependent on stamp duty as a source of revenue and have ignored repeated calls from economists to dump the highly inefficient tax. NSW Premier Chris Minns axed the former Coalition government’s policy to let first homebuyers choose between paying stamp duty or land tax, while Victorian Premier Daniel Andrews has said he is “unconvinced” that replacing stamp duty with an opt-in land tax would be effective. AMP deputy chief economist Diana Mousina said shifting to land tax would in theory reduce transaction costs and make it easier to get into the property market. “It would allow the payments to be spread over a long period of time rather than just having a lump sum all at once,” Ms Mousina said. “Stamp duty is very beneficial for the government in terms of increasing their revenue, especially when the housing market is in an upturn because as house prices go up, the more stamp duty you pay.” Mr Cacho said regulating agents to charge fixed-price fees or replacing stamp duty with land tax would lower costs. “[A 0.3 per cent land tax] could reduce the transaction costs for an average Sydney house from $104,000 to about $50,000, with an annual ongoing land tax of about $4000,” he said. “However, the introduction of a land tax which grandfathers existing arrangements – which was the proposed policy in NSW – may not drive the hoped for increase in turnover as older owners may avoid downsizing for longer to avoid the new annual tax, particularly given their fixed incomes as they reach retirement.”
More insanity.... Family buys Earlwood house for $2,275,000 with last-minute bid By Kate Burke July 8, 2023 57 Main Street, a three-bedroom house on the market for the first time in more than 30 years. Sold for $2,275,000 But it was a local family who walked away with the keys, after making a last-minute bid for the property that shocked the crowd of more than 70 people. Despite the strong buyer interest, the bidding was slow to start when auctioneer Clarence White, of Menck White Auctioneers called for an opening offer on the home, which had a price guide of $1.8 million. “So many regos, so much silence,” he said, before receiving a bid of $1.7 million. Once it began, bidding was quick to climb, rising in $25,000 jumps and then smaller increments. By the time bidding reached $2.1 million, just two of the eight active bidders remained – a local upgrading family and downsizers. The auction for 57 Main Street Earlwood got off to a slow start, but ended with a bang.Credit: Peter Rae The property looked set to sell to the downsizers for $2,265,000 – the price was called three times – before the family, who previously declared they were done, shouted “10 more”, prompting a mix of shock and laughter from the crowd. Their winning bid was $375,000 above the $1.9 million reserve price. Selling agent Adrian Tsavalas, of Adrian William, said the result for the 417-square-metre block was well above expectations but still offered good value compared to neighbouring suburbs. “It’s a really good quality home, it’s in a great pocket which offers great value. Had the home been in Marrickville or Dulwich Hill it would have sold for between $2.5 million to $2.75 million,” he said. Auctioneer Clarence White prepares to sell the property.Credit: Peter Rae The final two bidders both stretched themselves – willing to go above their initial limits to try to secure a quality home in a market with limited supply, he said. The lack of stock contributed to the wide cross-section of buyers interested in the home, Tsavalas said, but so too did the growing popularity of Earlwood. Records show the home last sold for $150,000 in 1990. It was one of 467 Sydney properties scheduled for auction on Saturday. By evening, Domain Group recorded a preliminary auction clearance rate of 73.6 per cent from 292 reported results, while 56 auctions were withdrawn. Withdrawn auctions are counted as unsold properties when calculating the clearance rate. On the north shore, a five-bedroom house with harbour view in Kirribilli sold for $6 million. Sold for $6,000,000. Five buyers registered to bid on the original-condition home at 29 Peel Street, which was on the market for the first time in more than 60 years. The bidding began at $4.45 million — well below the $5.75 million price guide — and rose in $50,000 jumps to $5.45 million as two parties competed. The eventual buyers, a family from the northern suburbs, then joined and raised the bidding by $300,000 in an attempted knock-out bid. It did not work but they still walked away with the keys after the price climbed a further $250,000. The 537-square-metre block sold through Di Jones Neutral Bay’s Nigel Mukhi. He declined to disclose the reserve, but said the sale price was extremely close to it. He said the new owners, and the other interested parties, planned to renovate the property to turn it into a beautiful family home. In Artarmon, a three-bedroom house owned by Willoughby City Council sold for $2.8 million less than a year after a previous auction sale fell through. The house at 9 Parkes Road drew a mix of buyers, thanks to is 518-square-metre corner block with medium density zoning. The bidding started at $2.2 million, and three of the seven registered bidders made offers. The home had been guided at $2.3 million to $2.5 million. Forsyth Real Estate’s Tony Bellia said the home previously fetched $2.6 million at an auction late last year, but the buyer failed to settle. The increased price since, reflected the shift in the market. He declined to disclose the reserve price. Records show the property was purchased by the council in 1995. In Leichhardt, young couples and families competed for a two-bedroom semi-detached home with no parking which sold for $1.8 million. The home at 16 Kegworth Street was on a 347-square-metre block and had a price guide of $1.55 million. It was a deceased estate which had been held in the one family for about 65 years. The auction opened with an offer of $1.5 million, and soon passed the $1.75 million reserve, as four buyers made offers. There were nine registered bidders in total. The home sold through The Agency Inner West’s Luke Bellero to a young family upsizing from another inner west home. In Greystanes, a first home buyer couple outbid developers, downsizers and upsizers for a three-bedroom house, which they only looked at on Friday night. They were among 18 buyers who registered to bid on 53 Gerald Street, a 556-square-metre block with development potential. Auctioneer Michael Garofolo took 70 bids from the nine active buyers, who pushed the price from an opening offer of $900,000 to the sale price of $1,201,000. Buyers were trading $500 bids towards the end of the auction. The result was $151,000 above the reserve. The home sold through Blaze Real Estate’s Blaz Dejanovic. The vendor and his father, who also recently sold, were relocating to a family home in Haberfield. Records show the house last traded for $365,000 in 2006.
analysis Australia's cost-of-living crisis is hitting young people and low-income earners hard – but boomers are doing alright The Drum / By David Taylor Posted Sat 27 May 2023 https://www.abc.net.au/news/2023-05...living-crisis-young-people-hard-hit/102398408 Almost two-thirds of young Australian women are now struggling to afford period products, according to PLAN International. The thing about a crisis is that it is, by nature, wild. You can try to manage it, but there's no guarantee of a clear pathway out. Australia's grappling with stubbornly high inflation which has ushered in a cost-of-living crisis. Other countries are ahead of us in dealing with the pressures persistently high inflation puts on families and economies. And the message we're getting is that it's liable to surprise and flare up. The Treasurer Jim Chalmers has said ad nauseam that inflation is likely to be "higher than we'd like, for longer than we'd like". But it may also worsen. And the official data shows most Australians are not well placed to manage that. A cautionary tale Global inflationary pressures related to the pandemic and war in Ukraine began building in mid-2021, and accelerated due to Russia's invasion of Ukraine in 2022. Consumers in the UK and the US felt the financial pressure of higher petrol, as well as gas and electricity prices. Food prices also increased. Fast forward to today and, despite an aggressive interest rate tightening cycle from both the US Federal Reserve and the Bank of England, inflationary pressures remain a clear and present danger. This week, Britain's Office for National Statistics released inflation data showing British consumers are still copping it in the hip pocket. Electricity and gas prices contributed 1.01 percentage points to annual inflation. Food and non-alcoholic beverage prices continued to rise in April and the annual inflation rate of food and non-alcoholic beverages came in at 19.1 per cent in the year to April 2023. Crucially, core CPI (excluding energy, food, alcohol and tobacco) rose by 6.8 per cent in the 12 months to April 2023, up from 6.2 per cent in March, which is the highest rate since March 1992. Chancellor of the Exchequer Jeremy Hunt made it clear Britain's inflation fight is not over. "These numbers show there is absolutely no room for complacency in the battle against inflation," he said. "Food price inflation is still worryingly high. "That's why we've had food producers in, farmers in, supermarkets in, to talk about what we can do to reduce the pressure there. Inflation, Hunt added, "is causing enormous pressure on families up and down the country". Jeremy Hunt said inflation is putting "enormous pressure" on families in Britain.(AP: Victoria Jones/PA) Australia is in the firing line Inflation began building in Australia in late 2021. The Reserve Bank insisted it would need to see stronger wages growth before lifting interest rates but that was a misunderstanding of the inflationary environment. Inflation had arrived and it was growing. Again, fast forward to today, and despite one of the most aggressive interest rate tightening cycles in the Reserve Bank's history, inflationary pressures remain. New monthly inflation data will be published on Wednesday. It's possible it will show inflationary pressures are easing, but it's also likely there will be pockets of higher inflation – especially regarding food and electricity prices. It may be part of the reason the ANZ bank believes interest rates are set to remain in "restrictive" territory, as economists say, for quite some time. That is: Get used to interest rates being high enough to make you think twice about a purchase. Cost-of-living pressures remain intense for many Australians.(ABC News: Jonathon Daly) It's gone too far, hasn't it? But what if that purchase – the one you need to think twice about – is crucial to your health and wellbeing? According to new research from Plan International, almost two-thirds of young women are now struggling to afford period products. Why? Because real incomes are going backwards due to low wage growth and stubbornly high inflation. Indeed, the Commonwealth Bank's internal data shows wages growth is now decelerating — contrary to official lines from the Reserve Bank and Treasury that it's picking up. It's clear the real world effects of this personal budget squeeze are physically hurting younger Australians. The Plan International Australia April survey revealed 57 per cent of menstruating adults born after 1980 reported it was more difficult to pay for pads, tampons and reusable menstrual health items in 2022 than in previous years. Many Australians have had enough To recap, cost-of-living pressures remain intense for many Australians. Despite aggressively fighting inflation with higher interest rates, pockets of inflation – especially around items many of us need – continue to build. It's causing harm. The message from the authorities has been "hang in there" because many households are still well placed to absorb the ongoing financial shocks. But a chart from the Bureau of Statistics shows this idea to be false. It shows younger Australians are not well placed to deal with job insecurity, low wage growth, and soaring rental prices. "The growth in deposits and savings has largely been a story for the older cohort of society," says CBA's Head of Australian Economics Gareth Aird. "The savings have largely accrued to those 55 and over. And with higher interest rates people with deposits are now earning a higher return on those deposits." The "pain" of higher rates, Aird says, is largely being felt by those aged 25-45 — "either recent entrants into the housing market or renters given rents have risen swiftly over the past year." The "pain" of higher interest rates is being felt more by younger Australians, says Gareth Aird.(ABC News: Daniel Irvine) Recent Australian Council of Social Service surveys of people on low incomes have revealed the extreme measures they are taking to restrict their energy usage to lower bills. Roughly 65 per cent are cutting back on heating and cooling, 59 per cent are limiting the use of lights and almost 60 per cent are going without essentials like food and medication to afford bills. "We know people are getting sick and dying because they have to choose between heating and eating," says ACOSS CEO Cassandra Goldie. Has Australia lost its way? Stubbornly high inflation, soaring rents, a housing crisis, stubbornly low wages growth and a surge in migration — that even took the Reserve Bank by surprise — are all adding to the financial pressure millions of households are under. It's also recently led to physical and mental health problems, because the line that we're sold by the authorities — that we're well positioned, financially, to take the hits – is inaccurate for the vast majority under the age of 55.
Owner of blown-up house containing body complained of mortgage stress Robyn Wuth Jul 14, 2023 https://www.afr.com/property/reside...complained-of-mortgage-stress-20230714-p5do5x Human remains have been found after a home was destroyed in a deadly fireball north of Brisbane. They were discovered as police searched for a man feared dead after the explosion at Murrumba Downs that investigators believe was sparked by a gas bottle ignition. Police were searching for the owner of the Murrumba Downs property that exploded on Wednesday. Nine News The continuing investigation includes forensic testing to identify the remains, police said in a statement. Emergency crews were met by towering plumes of dark smoke and widespread debris when they arrived at the gated community on Wednesday afternoon. Police evacuated neighbouring properties and closed surrounding streets while fire crews spent two hours working to extinguish the blaze. Investigators said it was fortunate no other injuries were reported following the “substantial explosion” as they searched for the townhouse’s owner and sole occupant. Acting Detective Inspector Stephen Windsor said there were no concerns for community safety. The blaze at the property. Police said it was clear the owner faced challenges. Nine News “We don’t believe that there’s anyone else involved in this matter,” he told reporters on Thursday. “We don’t hold any other concerns and we are currently not looking for a suspect.” Property records identify the property’s owner as the same man whose social media posts in recent weeks outlined personal financial difficulties. “My mortgage payments 15 months ago were 1200 and [now] just under 3000,” he wrote on Facebook. Mr Windsor said it was clear the owner faced challenges. “The information I’ve been provided is that the male person has had some challenges and some current pressures in life,” he said. Investigators would conduct a “thorough and complete search” of the scene. “I don’t have any time frame in terms of how long that will go for,” Mr Windsor said.
For $280 a week you could live in a rusty old shed. Credit: Facebook Sheds and caravans on offer for desperate renters at hundreds of dollars a week in Perth, Western Australia Rachel FennerPerthNow July 14, 2023 In a sad sign of the times, multiple sheds are being offered for rent around Western Australia. The first in Haynes near Armadale was being offered for $290 a week. The renter would need to be earning $966.67 per week to rent this shed, without being considered to be experiencing rental stress. The heinous property was so bad it appeared on the rental roast account run by Rach McQueen on TikTok. McQueen is known for her videos documenting the worst of the worst in Australia’s rental market. In the video, she points out the precarious poles holding up the power cords leading into the shed. “I don’t know where they lead to but I can guarantee they’re not f**king safe,” she said. “I hope this sad manky couch isn’t what they were talking about when they said it was furnished. “I would call this less of a converted shed granny flat and more of a glorified slum.” She goes on to point out the joint bathroom/kitchen, filthy carpet, bare concrete floors and disconnected fire alarm. “So, you’ll be preparing your food right here and the toilet is right there so all of the germs are just happily flying about everywhere,” she said. “So, this is your laundry sink, kitchen sink and bathroom sink all in one. Everybody is so creative.” ‘Rent the caravan or bring your own’ For $120 a month, desperate renters can move into this caravan on offer in Byford. Byford caravan for rent. Credit: Facebook There was no word in the description if the dog costs extra. City of Armadale CEO Joanne Abbiss said generally living in sheds and caravans is not permitted. “There are strict planning, building and health requirements that apply,” she said. “Staying in a caravan is also limited to only three nights in any 28-day period.” The second shed was on offer in Karridale for $280 a week, which means the renter would have to be earning $933.33. ‘Tidy warm space’ For $280 a week you could live in a rusty old shed. Credit: Facebook Described as a rustic but comfortable shack with a basic kitchen. This shed didn’t even have an indoor bathroom — the gas-heated shower was located outdoors. The $280 did include electricity and water, though.
Exclusive Politics Federal Cost of living Half of Australians on financial brink as living costs bite By Shane Wright July 18, 2023 Key points Fifty-one per cent of respondents say they would struggle to meet an unexpected major expense, up from 41 per cent in February. Just 5 per cent believe the economy will improve over the next month compared to 47 per cent who say it will get worse. A third of respondents say managing inflation is the RBA’s responsibility, while 42 per cent believe it is the job of the government, and a quarter say both have a role. Half of Australians say they would battle to pay an unexpected bill, with warnings voters are now struggling to deal with a perfect financial storm caused by soaring interest rates, power bills and grocery prices. There has been a 10 percentage point jump since the start of the year in the number of people saying they would find it difficult to cover the cost of replacing a fridge or repairing a car, and the financial pressure is being felt by everyone from high-income earners to the unemployed. A majority of people say they would struggle to cover the cost of an unexpected bill as inflation and interest rates bite.Credit: Nine The latest Resolve Political Monitor, conducted exclusively for this masthead and based on a survey of 1610 people between July 12 and 15, also shows a growing rift between Labor and Coalition supporters about who is responsible for high inflation. The Coalition has stepped up its attacks on the government for its handling of cost-of-living pressures, putting the issue at the heart of its weekend victory in the safe Queensland seat of Fadden. But despite its criticisms, voters have yet to blame Prime Minister Anthony Albanese and Treasurer Jim Chalmers; the government is still comfortably ahead of the Coalition in opinion polls. In February, the Resolve survey found 41 per cent of respondents said they would struggle to meet an unexpected major expense. In July, this had climbed to 51 per cent. A question on the issue is often used in financial-stress surveys as it is a good indicator of the perceived and actual economic pressure being felt by consumers. Sixty-four per cent of low-income earners say they would have difficulty meeting an unexpected bill. But even among medium-income earners (49 per cent) and high earners (46 per cent), there has been a sharp lift in evidence of the financial pain facing most Australians. Half of employed respondents said they would struggle, while 62 per cent of unemployed respondents would have problems. The survey also showed people are not expecting the nation’s economic circumstances to change any time soon. Just 5 per cent believe the economy will improve over the next month, compared with 47 per cent who say it will get worse. Over the next year, 28 per cent expect improvement while 40 per cent are preparing for a deterioration. A key issue is inflation. A third of respondents say managing inflation is the responsibility of the Reserve Bank, which is mandated to keep it between 2 and 3 per cent. Forty-two per cent believe it is the job of the government, while a quarter say both have a role. But on party lines, 51 per cent of Coalition voters say inflation management is the role of the government, compared with 34 per cent of Labor supporters. Research by credit bureau illion confirms the pain being felt by many Australians. Illion, analysing the credit behaviour of 18 million people, found the risk of credit default had jumped by 9 per cent since January last year. Most of that increase has been since November, when the Reserve Bank had the official cash rate at 2.85 per cent. The cash rate is now at 4.1 per cent, and many economists expect the RBA to lift it at least once more, to 4.35 per cent. There has been a 9 per cent jump in the proportion of people at least 30 days behind on their credit card and other revolving credit facilities. Delinquent home loans are 5 per cent higher than a year ago. There has been a 40 per cent increase in the number of applications for revolving credit facilities over the past year. It is not just debtors struggling; illion also found a drop in the number of people able to save. Savings balances have fallen by 40 per cent since October last year. Illion’s manager of bureau analytics, Michael Landgraf, said it appeared many Australians were now struggling to deal with ordinary bills, forcing them to use credit to manage their day-to-day expenses. “A perfect storm of rising household and rental costs, rising credit demand and credit delinquency, together with lower savings may be pointing to impending credit losses,” he said. The Resolve survey also confirmed that a plurality of voters support the stage 3 tax cuts – due to start from July 1 next year – but a majority are either opposed or unsure. Thirty-eight per cent backed the cuts, which will reduce tax for all people earning more than $45,000 a year but which will cost the budget more than $20 billion in their first year of operation. Coalition voters (46 per cent) are much more likely to support the cuts than Labor voters (35 per cent) and supporters of other parties (33 per cent). Twenty-six per cent of respondents opposed the cuts, with supporters of other parties (32 per cent) more likely to reject the reforms than Labor (28 per cent) or Coalition (21 per cent) voters. There remains a large proportion of people (36 per cent) unsure or who have a neutral attitude towards the tax cuts.