Are you in the money?

I believe Port Lincoln has that honour

 

All cities have rich people at the top.

All cities have cheap areas and expensive areas to live.

Alot of Sydney's and Melbournes real-estate is owned by foreign wealthy individuals.

Alot of super wealthy don't show an income

Some of the wealthiest people I know show little to no income. The taxation system benifits them.

So this data does not show the extent of wealthy. Maybe to 10% of PAYG but business owners among others maybe off the charts but declare minimal income.

 

I doubt they are happy they choose to make do for now and then move a head...was a migrant myself and was never happy to do for little money but had to start somewhere!

 

I suppose these represent income averages.....
Taxed income alone does not dictate entry into blue chip suburbs, in many case a sale of share investment permitted that, a sale of business did, someone's inheritance, sale of private IPO, and so on...
Otherwise how do we then explain the article below (just compare average income for the suburb's median price):
Is your property the breadwinner of the family? – realestate.com.au
Tamarama, median price of around $6,275,000 and yet average income of around $90K.

 

Well, the interesting thing for me is that ACT workers are in second place, and really not much difference between SYD and ACT then....Sydney 135,200 to ACT 133,432 (only $1,768)....

 

Have affair with politician receive 180k a year job. No doubt plenty of these jobs exist in the nations capital

 

Does that imply that future for our kids is to obtain a job in ACT, meaning public sector may or will overtake private pay?

 

if top 10% can't get a mortgage for an average house, it goes to show that Sydney property market might be stagnant for a long time before it can grow again.

 

IMO, not necessarily.
Earned income alone does not dictate entry into median house....otherwise how do we then explain the article below (just compare average income for the suburb's median price):
Is your property the breadwinner of the family? – realestate.com.au


Tamarama, median price of around $6,275,000 in 2018, previous year $5,187,500 in 2017 and yet average income of around $90K? I doubt income differed much between those two years...
To be honest I don't understand it either....all it suggests to me is that household incomes alone are not the only determining factors.
But I agree I see the market stagnant for quite few years, many forget SYDNEY was stagnant for about 8 years or so before the rises occurred. Time will tell....

 

in the case of Tamarama, there isn't many properties that have change hands that would alter the average income significantly, any new purchase the area will need either cash or CEO level salary to purchase. Its income are low because most are retired that have brought into the suburb at their prime. In general price growth is definately tied to bank finance with perhaps some edge case exceptions.

 

If you read the whole article (?)....I used Tamarama as just a minute example, there is a whole table where you can scroll and search the suburbs throughout Australia...

 

Yes, I used Tamarama as an example why the income is so low compared to its house prices. This can be applied to other similar areas where supplies are so tightly held by affluent and relatively older population.

 

Lilli Pilli , alot of friends in this area I know and have their own business small to large.

Declared income is a choice 73,000 . Most earned x4 that amount and some.

 

That is illegal lol. To say property prices are sustainable because some of your friends avoid tax is a bit ridiculous lol.
You’d have to assume majority of Aus are business owners and illegal ones.

 

Not even close to being in the top 10%, but I'm home at 4:30pm 95% of the time (start at 7am) and work a nine day fortnight, so swings and roundabouts.

 

It's not a choice for ALL....in our business every dollar and cent is transacted directly into bank accounts.
Remember it works both ways, if not declared cannot be shown to obtain the loan????
In addition the stats are averages of top 10% for all people paying tax, not just business owners.

 

Every tradesmen that works for them self is a business. Every UBER driver is business.....

Money coming into the till is Not income. Nore is money coming into your bank account.

The income you derive from your operations has 0 to do with what comes into the account.

You can turnover $10,000,000 and run a loss. No income no destributions

You already knew that.

You need a great team around you financial planners , accountant's, brokers and so on.

If you think income can not be manipulated Brougt forward back deffered..... Legally

 

Banks look at a time frame. Most banks last year's FY books.

So when you plan to obtain loans you bring profits forward into account information period.

 

In the case of Tamarama, most are of working age and most are not retired (about 17%).

 

I'm below average, salary wise.

I think there is heaps of tax evasion going on. I heard the estimate for the black economy is 10 billion or more.

Now the govt has given the ATO 130 million to check up on ordinary hard working Australians to see that they properly claimed their income tax deductions (also rental income and expenses) And they reckon the govt will reap billions out of it!

So it's too hard for the govt to make the big end of town pay more. Even the black economy is too hard for them so they pick on ordinary workers and small time property investors.