Cost of living #3

[Silverstreak]

New thread time! Previous thread here: https://www.everybump.com.au/community/topic/9802-cost-of-living-2/page/100/#comments

 

[Yogaalaates]

Who can afford gold these days?

[LemonMyrtle]

Silver if you’re lucky 

[Kallie]

Bronze isn't so bad anymore?

[LemonMyrtle]

In the previous thread someone said we had 1 million unoccupied homes.

a lot of those would be holiday houses. Maybe we need to crack down on those. Do we allow just one home per family? Per person? Per household? How do you address that? 

[Darryl]

2 minutes ago, LemonMyrtle said:

In the previous thread someone said we had 1 million unoccupied homes.

a lot of those would be holiday houses. Maybe we need to crack down on those. Do we allow just one home per family? Per person? Per household? How do you address that? 

I admit I don't have a strong grasp on what the current rules are - I wonder if people could be further disincentivised (with taxes, for example) from purchasing multiple properties so that after the 2nd or 3rd it's no longer a worthwhile investment?

[LemonMyrtle]

Just now, Darryl said:

I admit I don't have a strong grasp on what the current rules are - I wonder if people could be further disincentivised (with taxes, for example) from purchasing multiple properties so that after the 2nd or 3rd it's no longer a worthwhile investment?

But holiday homes aren’t necessarily an investment, people buy them cause they can. You would have to charge land tax at such a high rate that no one but the very very rich can afford a holiday home.

imagine the outrage though by people with existing holiday homes.

Easier solution: more housing supply is needed in general. 

[Gumbette]

5 minutes ago, LemonMyrtle said:

In the previous thread someone said we had 1 million unoccupied homes.

a lot of those would be holiday houses. Maybe we need to crack down on those. Do we allow just one home per family? Per person? Per household? How do you address that? 

I think that would be so hard. 

Slightly OT, but I know when MIL passes, we'll inherit her house.  It's where DH grew up from aged 5 until we married at 26.  I spent pretty much every Christmas there from 16 - 49.    For this reason I don't really want to sell it.  I'll also be hesitant to rent it out because then it becomes someone else's home, so I'll be honest and say that when the time comes we'll probably have a home sitting there empty too.

[Kiwi Bicycle]

6 minutes ago, Gumbette said:

I think that would be so hard. 

Slightly OT, but I know when MIL passes, we'll inherit her house.  It's where DH grew up from aged 5 until we married at 26.  I spent pretty much every Christmas there from 16 - 49.    For this reason I don't really want to sell it.  I'll also be hesitant to rent it out because then it becomes someone else's home, so I'll be honest and say that when the time comes we'll probably have a home sitting there empty too.

My parents just sold my childhood home. Surprisingly enough I am not devastated. In fact it's currently getting a massive renovation and extension it desperately needs. When the time comes, you'll be able to do it. Because it’s making someone's dream happen. Don't rent it, that's demoralising, especially if it gets trashed. But onselling, if you can to an owner occupier, will be satisfying.

Oh and plus you would be devastated if squatters got in and damaged the place, and they do know what homes are empty. Or illegally claimed it, even worse.

Edited November 8, 2023 by Kiwi Bicycle

[CrankyM]

I walk past so many houses daily that show little sign of occupation. This is in a town that is desperate for rentals. (There is even two in the block of units I live in, they are rented by the shire though but no one is currently living in them and hasn't been for a good 8-9 months. 2 x 3 bed townhouses). Frankly I do think there should be an empty house tax, even if it's a holiday home. Having a holiday home is a massive privilege. 

[Darryl]

I think what we have been lulled into forgetting is that property is an investment, and like all investments it comes with risks. Things have been "safe as houses" for so long that the notion of people losing money on property is seen as an unacceptable outcome.

But if the only thing driving up property prices is the belief that they will continue to rise and new buyers are essentially paying for the returns of earlier investors, what do we normally call that?

[LemonMyrtle]

3 minutes ago, CrankyM said:

I walk past so many houses daily that show little sign of occupation. This is in a town that is desperate for rentals. (There is even two in the block of units I live in, they are rented by the shire though but no one is currently living in them and hasn't been for a good 8-9 months. 2 x 3 bed townhouses). Frankly I do think there should be an empty house tax, even if it's a holiday home. Having a holiday home is a massive privilege. 

In Victoria you pay land tax on a holiday home, and any property that isn’t your primary residence. But unless your holiday property is worth $2 million, it’s not much. Although, with prices rising, some people will be in for a rude shock!

[LemonMyrtle]

1 minute ago, Darryl said:

I think what we have been lulled into forgetting is that property is an investment, and like all investments it comes with risks. Things have been "safe as houses" for so long that the notion of people losing money on property is seen as an unacceptable outcome.

But if the only thing driving up property prices is the belief that they will continue to rise and new buyers are essentially paying for the returns of earlier investors, what do we normally call that?

But also property shouldn’t be an investment at all. It’s a home. A basic right to a roof over your head. 

[Over and out]

2 hours ago, LemonMyrtle said:

In Victoria you pay land tax on a holiday home, and any property that isn’t your primary residence. But unless your holiday property is worth $2 million, it’s not much. Although, with prices rising, some people will be in for a rude shock!

Yep, there are significant sales happening down the peninsula now because of land tax. 
 

[LemonMyrtle]

10 minutes ago, Over and out said:

Yep, there are significant sales happening down the peninsula now because of land tax. 
 

I could well imagine. The land there would be worth a fortune. They would be facing $30k+ bills, yearly.

doesn’t really help the entry level housing market though, those properties are out of reach of most. 

[dianalynch]

2 hours ago, LemonMyrtle said:

In Victoria you pay land tax on a holiday home, and any property that isn’t your primary residence. But unless your holiday property is worth $2 million, it’s not much. Although, with prices rising, some people will be in for a rude shock!

And then we get all the clever people having one property as husband’s primary residence, the other property as wife’s primary residence…I don’t know how they get away with it, but I know they do 

[Bornagirl]

1 minute ago, LemonMyrtle said:

I could well imagine. The land there would be worth a fortune. They would be facing $30k+ bills, yearly.

doesn’t really help the entry level housing market though, those properties are out of reach of most. 

It has a flow on effect though. That person who can afford that place (and there are still plenty) are not buying the next level down (cos now they can afford the nicer one).  One less competitor for the next one down keeps the price down at auction. And so it goes.

 

[magic_marker]

I just did some research.

Approximately 56% of properties are holiday homes.

44% unoccupied for other reasons.

[Yogaalaates]

I was on my last box of weetbix bites and noticed they were now $6 at woollies, and at a non-colesworth supermarket they’re now over $8! I ordered some last night from coles who still had them for $4.50. Today they’ve put them up to $6. It seems crazy, that’s up by so much. They’re a pretty small box for what it costs. A few weeks ago they were half price, $2.25!

[Gumbette]

Overseas buyers keep coming, whilst the Government gives those trying to find an affordable property to rent or buy the middle finger. 

https://www.smh.com.au/politics/nsw/minns-housing-plan-has-two-problems-he-can-t-solve-20231107-p5ei5l.html

At the same time, the premier’s proposal towards a raft of new builds will mean more foreign money looking to get in on Sydney’s property party, and the healthy capital returns that come with it.

Beyond a little extra paperwork, the Australian government places no substantial restrictions on overseas buyers of newly built property. Perhaps the idea was that international investment would boost housing supply for existing Australian residents. However, when you combine loose rules on foreign capital inflows with historically high immigration, that overseas money tends to fund new homes for wealthy people coming from overseas.

Look at recent high-rise developments in Chippendale and Redfern, exemplars of well-located, high-quality dwellings that the premier has in mind, and you’ll find ownership and occupancy composed almost entirely by well-heeled international students and other recent arrivals. The raising of these big, sometimes beautiful towers has done nothing to lower rents in the wider area. Instead, these developments are beacons to the world that speak a simple truth: Sydney is open for sale to the highest bidder.

[dianalynch]

Migration has been temporarily increased for 2 years to ‘catch up’ post pandemic…someone needs to rethink the wisdom of that, and slow it a bit…it’s so obviously inflationary. It doesn’t mean we cut migration to zero. But halve an already very increased figure? That’s probably reasonable. 
 

that and halting or delaying some of the infrastructure projects…my god try and find materials, a tradie or a builder….the incredible demand due to the many and varied local, state and federal projects needs to be reconsidered and coordinated….again they’re obviously inflationary 

 

governments have many levers to combat inflation, they need to stop relying on interest rates which are obviously not having the desired effect. 

[Over and out]

19 minutes ago, dianalynch said:

And then we get all the clever people having one property as husband’s primary residence, the other property as wife’s primary residence…I don’t know how they get away with it, but I know they do 

SRO here in vic does not allow that. Well they didnt for us. 

[dianalynch]

1 minute ago, Over and out said:

SRO here in vic does not allow that. Well they didnt for us. 

Ikr? I looked it up too when I heard about it. Yet I know people doing it. How? Is there a seperate form and criteria for GWRPs? (Generationally Wealthy Rich Pricks) 

[LemonMyrtle]

2 minutes ago, dianalynch said:

Ikr? I looked it up too when I heard about it. Yet I know people doing it. How? Is there a seperate form and criteria for GWRPs? (Generationally Wealthy Rich Pricks) 

They’re lying somewhere along the line. And the systems aren’t interconnected enough to pick up the lies. 

[dianalynch]

3 minutes ago, LemonMyrtle said:

They’re lying somewhere along the line. And the systems aren’t interconnected enough to pick up the lies. 

Well yes, that’s why I wrote I don’t know how they’re getting away with it. Yet, they do.