Malibu & San Diego have good weather & beaches. I would say a condo in San Diego is probably about $1 million near the beach. Malibu its probably $2-3 million. That $3.3 million POS condo is about $2 million USD. North Carolina & Virginia have some good beaches but they are prone to hurricanes occasionally. I was reading Reddit & I learned that a lot of kiwis were migrating to Australia because they couldn't afford the high inflation & high real estate cost. New Zealand must be a hellscape for the middle class.
I have dual citizenship, oz/kiwi. NZ suffers from worse property prices and their wages not as high as oz. Kiwis come to oz mainly for mining jobs, but getting into mining is not easy. Many hoops to jump. Lot of kiwis also go to Sydney, no mining there but jobs like banking etc. The houses in kiwi are shit compared to oz, here they are mainly brick and tile, in nz wooden houses mostly. In Melbourne and Sydney lots of old houses though.
New Zealand's economic woes lure thousands of Kiwis to Australia By business reporter Daniel Ziffer Thursday 17 October https://www.abc.net.au/news/2024-10...ure-thousands-of-kiwis-to-australia/104472148 Industrial designer Liam Hooper has found more job opportunities in Melbourne. ( ABC News: Patrick Stone) Australia and New Zealand are neighbours, friends and sporting competitors. But they've had vastly different fortunes in the past few years. Staring at a third recession in just two years, Kiwis are moving across the ditch to Australia in substantial numbers, seeking a sunnier economic climate. "The cost of living was just getting out of control," says Alex Cashmore, who moved to Melbourne this year. Alex Cashmore and his wife Taya moved across the ditch this year. (Supplied) He and wife Taya bought a house in Auckland as prices peaked in 2021 and just before the official cash rate skyrocketed from 0.25 per cent to a peak of 5.5 per cent. "Double-shafted," he laughs, grimly. The interest rate on repayments is higher than the cash rate set by the Reserve Bank of New Zealand, so when their introductory offer expired, repayments went from "two point something" on their mortgage to 7.15 per cent. “I’ve got friends who bought at the same time as me. They’ve sold their houses,” he says. Shifting to Australia with their border collie Ronin, they have seen big boosts to their pay. Taya manages a large gym. Alex is a software engineer. And here, wages are higher. "My wife got a 20-25 per cent pay rise. The market for software engineers was a 10-15 per cent pay rise [from NZ]." Photo shows A man wearing shorts and sneakers wheeling a suitcase behind him. New Zealand's central bank has suddenly had to begin cutting as the economy plunged into recession. Many global counterparts have begun asking: Could we be next? Three recessions A recession is when the gross domestic product (GDP) of a nation goes backwards for two consecutive quarters. And our Kiwi cousins have endured a difficult two years. "It's going to be a triple-dip recession with three episodes of two negative quarters of GDP in a row," says Sharon Zollner, the chief economist of the ANZ bank in New Zealand. "Three very shallow but, nonetheless, recessionary periods." Not only is Sharon Zollner one of New Zealand's most high-profile economic voices, she works for one of its largest private-sector employers. (ABC News: Luke Bowden) And that's since the COVID-19 shock of early 2020, when Australia endured its first recession in more than 30 years. Photo shows New Zealand flag in front of civic buildings As Australians await stronger signals that a rates reprieve is imminent here, across the Tasman, New Zealand's central bank has again taken the knife to its key interest rate. Ms Zollner says New Zealand's central bank was "unusually, even refreshingly, honest" about the fact its push to reduce inflation would lead to a rise in unemployment and a recession. But that's had a longer-term impact. "Investment and hiring is pretty much a confidence game. You have to be confident that the demand you're seeing is going to persist into the future," she says. By telling people the future was extremely difficult, the Reserve Bank of New Zealand may have confirmed it would happen. Bigger market Liam Hooper is two months into life in Melbourne, couch-surfing with friends in the weeks before he moves into a flat. He moved for different reasons to most newly arrived Kiwis — a life change after the sad death of his mother — but he's having similar experiences. The 23-year-old describes using job websites to search for potential employment and finding vastly expanded options. "There are just as many jobs in just the inner suburbs of Melbourne for my roles — like industrial product design or digital product design — as there are for all of New Zealand," he says. LIam Hooper has only just arrived in Australia, but is happy with the choice: "It feels like it's a place that's always moving." (ABC News: Patrick Stone) Despite only starting out, he's confident the stronger Australian economy will work out for him. "I'm excited about my prospects," he says. "Wages here seem to be about $15,000 higher for your [annual] salary than it is back home." Hard landing To get inflation under control, the New Zealand Reserve Bank lifted its official cash rate (OCR) by 25 basis points on October 6, 2021, to 0.5 per cent. Trying to achieve the same thing, the Reserve Bank of Australia lifted its cash rate by 25 basis points as well, but six months later (May 4, 2022) and to a still lower 0.35 per cent. Despite starting the "hiking cycle" earlier, both shared similar challenges. The annual increase in prices — measured by the consumer price index or CPI — hit a peak at about the same time: New Zealand: 7.3 per cent (September 2022) Australia: 7.8 per cent (December 2022) And unemployment fell as the demand roared after the lockdowns and international travel restrictions of the COVID-19 pandemic. The percentage of people looking for work fell to historically low levels: New Zealand: 3.2 per cent (December 2021). The lowest rate in almost 40 years Australia: 3.4 per cent (July 2022). The lowest rate in almost 50 years New Australian job figures out on Thursday told us more about the heat in the economy and if our central bank is any closer to cutting its cash target rate, which helps to determine the cost of home loan repayments. Painful transition Getting inflation down is hard. Australia's Reserve Bank governors have frequently used the term "narrow path" when talking about how hard it is to hike interest rates — to slow down the economy — without falling into recession. New Zealand tripped. "We've seen a perfect storm in terms of what's hitting the New Zealand economy," says Christina Leung, deputy chief executive of the New Zealand Institute of Economic Research. "We've seen the dampening effects of high interest rates on demand and that's been exacerbated by [job] cuts for the public sector by the new government over the past year." "Generally, the transition from a high inflation environment is usually quite painful," says Christina Leung. Inflation means consumers have less purchasing power — their money doesn't buy as much. But lowering inflation by lifting interest rates saps consumer confidence, costs people with mortgages more in repayments and makes credit for businesses more expensive. "Generally, the transition from a high-inflation environment is usually quite painful. And that is what we've been seeing," Ms Leung says. A key reason New Zealand is in the economic doldrums now is rocketing mortgage repayments. But there's a key difference to Australia. Housing pain Almost 60 per cent of home loans in New Zealand are fixed. The rest are subject to variable rates affected by the central bank's decisions. In Australia it's completely the other way. Only about 17 per cent of home loans are fixed, meaning most rise and fall on the cash rate set by the Reserve Bank. This has been seen by many as a weakness because our immense housing debt restricts the Reserve Bank from putting rates higher when it sees a need. However the New Zealand situation shows a different problem that's led to a "painful and sharp" impact, according to Ms Leung. "[Because] New Zealand tends to have a relatively large proportion of its mortgage book fixed, it does generally take around one to two years for the impact of what the Reserve Bank does with the [rate] to flow through to the broader economy," she says. What this means is the lag makes it harder to work out what the impact of those moves has been. "There is the risk that the Reserve Bank 'over-corrects' waiting for the impacts to come through." Brain drain Kiwis have voted with their feet, uprooting their lives in larger numbers. Last year there was a net migration loss of 27,000 people from New Zealand to Australia, according to Stats NZ (the equivalent of the Australian Bureau of Statistics). Population indicators manager Tehseen Islam said traditionally there had been an overall loss of migrants from New Zealand to Australia. This averaged about 30,000 a year during 2004–2013 and 3,000 a year during 2014–2019. “The net migration loss from New Zealand to Australia in 2023 was larger than the loss of 14,600 in 2022. However, it should be noted that this is below the record loss of 43,700 in the March 2012 year.” The differing fortunes of our economies play a big part. "The relative performance of countries [is] a key influence in terms of the flow of labour," says Ms Leung. "And that is what we're seeing at the moment. There's more favourable employment prospects in Australia. That's encouraging a lot of New Zealanders to move across the Tasman." ANZ's Sharon Zollner says migration has always been tied to what's available. "And big countries always offer more opportunity," she says. "The fact is, if you're footloose and fancy free and you've been made unemployed in New Zealand, then why wouldn't you hop across the ditch?"
Data reveals small number of property investors control big chunk of Australian rentals By Geraden Cann, Thursday 17 October Victor Kumar is one of an exclusive group of landlords who owns dozens of properties in Australia. (ABC News: Scott Preston) More than a decade ago, Victor Kumar ploughed an $8,000 payment from a workplace injury into a $70,000 unit. The medical worker had migrated to Australia from Fiji with his wife a few years earlier with less than $5,000 to their names. But they soon set their sights on property investment as a vehicle to a more financially secure future — and it paid off. "It was a hard slog in the initial stages, we sacrificed a lot, we started our family late, we didn't have much of a social life in the early stages," he said. The couple now owns more than 100 rentals, with an additional 30 being built. Some landlords say their investments are vital in driving housing development.(ABC News: Keana Naughton) Mr Kumar's extensive property portfolio places him among a top tier of property investors often discussed but about whom little is known. Now Australian Tax Office (ATO) data obtained exclusively by the ABC under Freedom of Information laws shows he is among at least 2,500 investors in Australia who own or part-own 10 or more rental properties. These investors control more than 33,200 rentals — roughly the same number of dwellings in the Melbourne suburbs of Richmond and South Yarra combined, or the Waverley council area in Sydney's east, according to CoreLogic data supplied to the ABC. Mr Kumar is also part of the 172 investors in an even more elite class, with interests in 20 or more properties. These investors have interests in 4,395 rentals between them, equivalent to the number of dwellings in Darwin City or North Perth. The ATO data provides an insight, but not a holistic view of the investor market, because it does not capture rentals held in companies or trusts, or properties without rental income. It may also include commercial properties if they are owned by individuals, although economists say this figure would be extremely small and unlikely to affect results. Mr Kumar said he understood investors like him were often criticised in Australia's heated public debate over housing affordability but they played an important role in increasing housing supply. "These are hard workers that have actually done something for themselves and they're enjoying the fruits of their labour," Mr Kumar said. "We have an accommodation shortage so we need more of these." A small percentage of investors control a chunk of the rental market Despite amassing multi-million-dollar portfolios, the ATO data suggests these landlords are carrying more debt on their rentals than investors with smaller portfolios. While investors who owned between one and 19 properties made a profit in the 2021/22 financial year, those who had portfolios with 20 or more properties turned a loss on average, according to the data. Australia Institute chief economist Greg Jericho said it was "quite extraordinary" any investor made a loss during 2021/22 — a time when interest rates were at rock bottom, reducing mortgage repayments, and rents were jumping fast. Mr Jericho said the data highlighted how many of the benefits of negative gearing and the capital gains discount went to the largest investors. "They are actually getting a much better average benefit from negative gearing than your more traditional mum-and-dad investors," Dr Jericho said. "The system we have at the moment … it's really kind of geared towards assisting people who are able to borrow against [the] equity of one property to buy another property, and then to borrow against that and buy another property." Greg Jericho says it is extraordinary that any landlord would not have made a profit during the 2021/22 financial year.(ABC News: Michael Barnett) Negative gearing, which is used by investors to reduce their tax bill, has been back in the spotlight since it was revealed Labor asked Treasury to start to work on options for reform. While the prime minister has since said the government has no plans to take negative gearing reforms to the next election, one idea being floated in the public discussion is capping the number of rentals investors can negatively gear. Dr Jericho said the only reason large investors would keep rentals that consistently lost them money was because they could use negative gearing to reduce their tax bill before getting a big pay-off when they sold. Head of research at property data firm CoreLogic, Tim Lawless, agreed these individuals were likely benefiting the most from capital gains discounts and negative gearing tax deductions. He said any move by the federal government to immediately implement changes to negative gearing for people who owned multiple properties could trigger a sell-off, which might impact prices. Tim Lawless says landlords are benefiting from regulations that offset their losses when they eventually sell.(ABC News: Geoff Kemp) "If it wasn't grand-fathered, then you'd have to think there would be a much more significant offloading of investment properties, given how low yields are and the fact mortgage rates are quite elevated," Mr Lawless said. While Mr Kumar is funding a number of new builds, not all economists agree that property investors overall are substantially contributing to housing supply. Independent economist Saul Eslake said ABS data showed only about 23 per cent of investor loans were for new housing. "Seventy per cent of what they borrow goes to the purchase of established housing, and all that does is drive the price up of housing that we already have," he said. True number of major investors in Australia likely much higher Large-scale property investor Margaret Lomas also runs an investment advice business. She estimates that the true number of landlords with 20 or more rentals is much higher than the ATO's figure of 172 — and is likely more than 1,000. Margaret Lomas says landlords have unfairly become a scapegoat for issues in housing policy.(ABC News: Monish Nand) She said the large debts carried by top investors were likely a result of using the equity in one property to purchase the next. "If you've got a million dollars' worth of equity in your property, that's enough to borrow $800,000, which is two more properties, or 10 more properties, if the bank will enter you with $80,000 deposit on each," she said. "The more you get, the easier it is, to a point." Property investors may use the equity from one property to purchase another and grow their portfolio.(Audience submitted: Edwin Almeida) Ms Lomas acknowledged the increasing difficulty young Australians faced getting into the market, but said those who had built wealth in the market had simply worked within the system available to them. "The motivations behind many property investors isn't to create grand wealth for themselves, it's often to help their own families," she said. "Other people are just simply trying to put together that retirement income." Property investor Michael Yardney has accumulated more than 20 rentals over the years. He agreed successive government policies had resulted in homes being seen as a method of making money rather than a human right, resulting in many people being reliant on the bank of mum and dad to buy their first home. "It is very much creating a have and have-not society, which I don't like seeing," he said. But with two-thirds of Australians still owning their own home and some politicians owning multiple rentals, he does not believe the government will do anything to lower house prices overnight. For others, the home-ownership dream is further away For Brisbane-based building foreman Thomas Bowness, 26, and nurse Shannon Nielsen, 24, the toll of constantly missing out on their first home has been heavy. They are delaying having children until they buy their own place, but they keep losing out to investors. "It is frustrating. It does feel like the market is getting further and further away," Ms Nielsen said. Brisbane couple Thomas Bowness and Shannon Nielsen are working to buy a home in Logan.(Supplied) They are keen to buy in Logan, south of Brisbane — an area traditionally more affordable for first home buyers. But since they started looking in 2022, Mr Bowness said the price of homes they were interested in had increased from about $600,000 to $750,000. Some Australians say they feel increasingly priced out of the housing market. (ABC News: Jordan Young) Their mortgage broker Wayne Bennett said the couple's experience was not unusual around Logan. "It's a constant trend of these poor first home buyers that do everything that's asked of them by me to get them ready to buy a house and then the goalposts have been moved via the market having drastic uplifts," he said. "It puts them back to square one." Mr Bowness said it was hard to accept that there were people who owned more than 20 houses. "That's over the top in my eyes," he said.
A cheaper option: Buy a $900K trailer home in a Newport Beach trailer home park. However you have to pay lease for the lot.
I found couple of cheaper options. Car space in Sydney for $150000 or a burial plot for $10000 at Rouse Hill cemetery. https://www.realcommercial.com.au/f...v-361-sussex-street-sydney-nsw-2000-503980926
Unless they have wealthy parents its hard to believe a 24 & 26 year old can come up with a 20% down payment. It just gets worse & worse in Oz.
Australians are becoming slaves to paying off a house. Gummint wins, as house & Land increase they reap more land taxes and rates and stamp duty. Then as well everyone works harder to pay off mortgages and rents, so as income goes up, tax department reap more income taxation, again. Gummint are happy people are slaves. The typical response from idiots is: "Build more houses is the solution", which is bs. Build more houses, more investors crowd in, house prices and land increases, gummint gets more tax.
Liberals promise to lift stamp duty exemptions by $100,000, targeting first homebuyers Joe SpagnoloThe West Australian Sat, 12 October 2024 https://thewest.com.au/politics/state-politics/stamp-duty-election-fight--c-16357833 First homebuyers look set to be targeted in the upcoming State election with the Liberal Party promising to lift stamp duty exemptions by $100,000 to win their votes. The current exemption, which applies to properties costing $450,000 or less, would be increased to $550,000 under a Liberal Government — though that figure is still well below the median house price of $705,000. The change would see first home buyers purchasing a home of $550,000 save $15,010. “Skyrocketing house prices mean first homebuyers in WA are finding it harder and harder to find a home in Perth under $450,000 and get the full benefit of the first home buyers’ scheme,” shadow housing minister Steve Martin said. “These tax cuts reflect the rapid growth in the cost of housing and will help more people afford their first home.” The WA Government announced in May that first homebuyers would no longer pay stamp duty on homes up to $450,000 — a slight increase on the previous exemption of $430,000. For properties between $450,000 and $600,000 fees would be discounted. Under the Liberal proposal, fees would be discounted for first homebuyers on properties up to the value of $700,000. Mr Martin said the policy was estimated to cost $240 million over four years and would assist 5000 people a year. With housing looming as a major State and Federal election issue, the WA Nationals have also released plans that waive stamp duty entirely for first homebuyers. “The government are raking in stamp duty while ignoring the plight of first home buyers,” Mr Martin said. “They pocketed $2.5 billion in stamp duty receipts in the year to June, compared to their forecast of $1.8 billion — a 39 per cent increase. “Young Western Australians are caught between a rock and a hard place, with rising rents, rising living costs and rising property prices. A shortage of established homes in Perth, rising prices and rising interest rates have made it tough for young people to buy. The alternative has also become a nightmare because of long delays in construction times. Rents have also climbed in Perth to beyond $600 a week for an average home — making renting no longer a cheaper option. “Housing is a key driver of the cost-of-living crisis gripping Western Australian families and we’ll have more to say on housing policy as we head towards the State election in March,” Mr Martin said. “Under our changes first homebuyers will save an additional $15,010 for a $550,000 home. And for the first time first homebuyers purchasing a property under $700,000 will see some stamp duty relief.”