30 thoughts on “Monday Message Board

  1. Thanks Prof Q,
    my reading of the Henry tax review was that he reccomended ammending the laws around negative gearing. I can accept that it is political suicide for any government to do away with negative gearing all together but surely some adjustments and tweaking of the laws has got to help.
    Something has got to give surely, my own teenagers are absolutley determined to never invest in real estate, after all they have had first hand experience of the ‘costs’ of the mortgage debt and I dont just mean financial. I live in Darwin and have been in the Territory for 20 odd years, affordability of living up here has always been an issue and I dont just mean real estate. I have met, befriended and said goodbye to too many people to count, most have had to leave and head back south, in large part driven away by the costs of living.
    Now we are in a time where we are looking at massive devlopment and opportunity around Inpex and another LNG plant, that is of course fantastic and welcome news. It seems like a double edged sword, we can never get enough workers, skilled and otherwise, and yet when they get here accomadation is scarce and what they do find is astronimcal to buy or rent. Average weekly house rental is $600 to $800, a 2 basic bed unit can be anything up to $450 a week.
    OK Darwin is at the end of a 2000 km + transport link and everything you see comes in on a truck, so we accept the transport levy but too many times it is an excuse for unjustifiable charges, resentment builds. Look at our recent cash for containers debacle.
    Well no point moaning about it, 30 % odd of the population up here have it way worse off, the future will no doubt judge us all very harshly. I am hard pressed to think of a more repressive, demeaning and despicable policy than waht the ‘Intervention’ has been and continues to be. But I am not Indeigenous and dont really have the qualification to make that judgement.
    Apologies for the rant.

  2. I’m trying to buy a place in Inner Sydney within 10km of the CBD (where I work, play, and I think will be most resistant to any future slumps) and entirely agree with Ian Winter at AHURI that we’re moving to a landed gentry model. On a single income, even a decent one, it’s really hard and with rents what they are saving for a deposit is brutal.

    Luckily my baby boomer parents did great out of property and are kind enough to give me a leg up (cf. landed gentry).

    Given that at least in Sydney housing seems to be a supply-side issue (one that the pollies frankly don’t want to do too much about) it’s hard to see under what circumstances the bubble might burst, though.

  3. @Dan

    My inner city Sydney real estate tip.

    Ask the real estate agent to keep an eye out for “company title” flats where the company does not allow renting.

    Australian banks will not lend on Company Title, but Citibank has in the past.

    These prices were much more reasonable because investors are kept out.

  4. @Jasmine
    We’re a group of Melbourne-based economists who do pro bono work for community groups and NGOs. As Prof Quiggin suggests, we get significant input from undergrads and masters students keen for some “real world” experience (I’m doing masters myself). Most of our recent pro bono work has focussed on reviews of economic impact assessment and cost-benefit analysis of mining projects. I’m not sure if that’s what you’re interested in, but see examples at http://www.ecolarge.com/category/news/.

    We also do paid consulting work for larger environmental NGOs and animal welfare groups, also on the website.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s