Spiralling rental market forces 'hundreds of thousands' into social housing

Discussion in 'Property Market Economics' started by Sackie, 4th May, 2022.

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  1. skater

    skater Well-Known Member

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    1) China is no longer a third world economy.

    2) The topic of this thread is NOT CGT, but rather social housing.
     
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  2. Gen-Y

    Gen-Y Well-Known Member

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    I am not saying the government should pick up all the slacks for social housing.
    They should facilitate means to get more affordable housing - privately and government schemes.
    Over the last 2 decades of doing SFA have lead to this predicament.
     
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  3. Shogun

    Shogun Well-Known Member

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  4. Mr Burns

    Mr Burns Well-Known Member

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    Shocking aye. Out of sight, out of mind from city dwellers and politicians.
     
  5. See Change

    See Change Well-Known Member

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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Some socially disadvantagesd people must be facing terrible issues. Single mums, unemployed, less income due to illness, sick kids or spouse. They get served with a vacancy or cant pay and there is little housing available. Agents and landlords are cherry picking.

    NRAS is winding down without replacement other than some affordable rental housing in the pipeline. Owners will pull them from low cost and relet at higher rates without the incentives. The demand > supply. And its not easily solved as no state govt agency will buy up badly made apartments in the interim.

    ‘I am panicking’: the vulnerable renters at risk as housing subsidy expires.

    QLD has the largest exposure
     
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  7. inertia

    inertia Well-Known Member

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    You are right. It is tough enough for the financially stable. Friends of mine have relatively good incomes (until recently was pretty much 1 income, but the wife has finished an undergrad and masters and has started working) and have been saving a deposit, but prices have been skyrocketing which is delaying their purchase. They were evicted from a house in the middle of covid, and even with plenty of notice were struggling to find a place - extremely low vacancy, and rents booming. They only found a place through friends. They are doing "ok", but their plans are being pushed back.

    I think it would be easy to see someone just slightly less capable really suffer in the current market, let alone a single parent on welfare trying to get by.
     
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  8. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    In 2000,
    Australia had 'housing debt to GDP' of 70%,
    Housing debt at 290bn
    Gov debt at A$50bn


    followed by the start of multi decade, once in a century commodity boom, from which Australia as a country made huge huge profits.

    Now in 2022,
    Australia has 'housing debt to GDP' of 125%,
    with a rental crisis putting our most venerable to a crisis like never before.
    Housing debt at A$1.75 trillion
    Gov debt at A$834 bn


    What do we have to show for in return of multi decade commodity boom??
    How did we reach here? :confused::mad:
     
    Last edited: 10th May, 2022
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  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Commodities are a terrible issue for the country. The likes of BHP dig it up. Send it raw offshore using foreign carrier. No GST. No tax sometimes on profit. Then we reimport the finshed product . Its like giving wheat away and buying imported baked bread. The mining companies dont even fill the ******* holes they dig. Look at argyle mine. Hunter valley is just black pits.

    If we want zero net emssions someone who buys the stuff needs to be made to pay more and to benefit the nation.
     
  10. KJA182

    KJA182 Well-Known Member

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    Americas tax rates are even worse (higher) than Australias. Especially if you live in NYC or California. 60% tax rates on income are possible last time i checked

    Taxing more does not benefit the common man. It benefits government bureaucrats. Government revenue was ~600bn last year, and we had about 14.7m taxpayers. That means every taxpayer paid 41K in tax. If you think government cant solve homelessness etc with 41K per person, what makes you think it can solve it with 51K, or 61K, or 100K? (as a FYI, before you say we should tax corporates more, its not a corporate that pays the tax. Its the individual shareholders, which on average, are also citizens of Australia so form part of the tax base)

    Singapore is ranked #1 in the world for economic freedom - low taxes, low government regulations etc. And it became one of the richest countries in the world when it literally started as a fishing village, spurned by the rest of malaysia. This is despite it having no natural resources, very scarce land etc. Switzerland is 2nd. The US, which in your example is a "bad example" of taxation etc is 25th (below Australia). And declining.

    Country Rankings: World & Global Economy Rankings on Economic Freedom
     
  11. KJA182

    KJA182 Well-Known Member

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    Yes, whenever the political class want a bit more moolah to distribute in exchange for votes, they tend to hit up the property investors. Some examples:

    - proposed removal of negative gearing
    - proposal halving of CGT
    - Land tax indexation no where near levels of actual inflation (or, price of land inflation)
    - extortionately large stamp duty
    - QLD making the land tax threshold aust wide, rather than state based
    - Govt enabling tenants to not pay rent during covid with zero repercussions. Landlord not compensated at all
    - Proposed Vic "social housing levy"

    Thats all i can think of on the top of my head. Im sure others have more examples :D
     
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  12. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Now add all the taxes during the lifespan

    Gov controlled drip fed, over priced land sale
    45% of the initial HnL being taxes of some form
    Recurring land tax
    and top it all with a CGT

    In a way Investor is really a minor partner in the deal when it comes to profit share if at all.
     
    Last edited: 12th May, 2022
  13. KJA182

    KJA182 Well-Known Member

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    Haha yeah.. an investor makes a small profit on the upside.. but on the downside the govt takes its cut no matter what

    heads govt win tails you lose i guess
     
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  14. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    That's the beauty of the power,
    guaranteed gains, no down side,
    field renter vs landlords against each other,
    and then pretend to be savior of all.
     
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  15. sash

    sash Well-Known Member

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    It is a third world country
     
  16. skater

    skater Well-Known Member

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    I said economy, not country.
     
  17. sash

    sash Well-Known Member

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    Ok. But that may change soon.....the West as I have said before have found a new weapon. They are using economic leverage to destabilize the Chinese economy.

    Couldn't happen to a nicer bunch. The CCP know as the fed raises it's rates it is a dagger stab. China economy is going the way of Japan very quickly.

    The sanctions against Russia if it continues for another 2 years could set that country economically back 30 years. Bidens team is doing damage to autocratic regimes what no other president could do. Interesting huh? By the West I mean EU... USA. .ANZ...Japan...Korea...UK....Canada....Sweden/Finland. That is like 70% of the global GDP.
     
    Last edited: 13th May, 2022
  18. skater

    skater Well-Known Member

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    I know all this.......we'll see. In this unstable world we live in, we need to protect our own. The ordinary man on the street is addicted to cheap Chinese crap and many seem oblivious to world events. Our own government doesn't seem interested in bringing manufacturing back home. Would help with unemployment, and give people a better future than the gig economy.
     
  19. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    People in the gig economy seem to like it though. That it is flexible and unregulated is precisely its appeal.
     
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  20. skater

    skater Well-Known Member

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    Good for some. I agree, there's a place for it, especially for those who want flexibility and a little bit extra....but not really great for a stable livable income.
     
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