Which Parts of The Australian Economy Are Performing Poorly?

ThithLord on 04/03/2025 - 11:48
Last edited 04/03/2025 - 14:32

Here's a list of where the Australian economy is performing quite well: (credit: Alan Austin)

Is there data to suggest the economy is performing poorly, as stated ad-nauseum by the ABC?

I am interested to see how OzBargain can explain the economy is performing poorly?

Financial

Comments

      • tenpercent on 04/03/2025 - 20:19

        If you want house prices to improve, don't vote for the uniparty.

  • MrThing on 04/03/2025 - 15:42

    Remove government and NDIS jobs how many jobs have actually been created?

    • Drakesy on 04/03/2025 - 16:15

      Shhh

      Don't talk about the elephant in the room.

  • CurlCurl on 04/03/2025 - 16:25

    If there were no CGT where would the rentals come from? If there were no CGT, please don't tell me renters could purchase properties that could be rentals.

    My daughter and her husband have two rental properties. Neither are negative geared.

    • Benoffie on 04/03/2025 - 16:39
      +3

      No one actually wants to answer that question.

      CGT discount and negative gearing actually facilities lower rents and investment uptake.

      As with anything, if the market for investors is 💩, theyll move their money somewhere else. Example is over tightening of tenancy laws. Sure, some was needed but being unable to evict poor, non paying tenants as if investors are social services is BS.

      And we've witnessed the results. They exit the market, there is no suddedn flood or drastic down turn in price (because investors aint dumb) and rents just go up more on tightening supply.

      Yes, well done 👏

      • MrThing on 04/03/2025 - 16:52
        +1

        slow clap for Victoria, marvellous work chaps

      • Drakesy on 04/03/2025 - 18:21
        +3

        Funny thing is the investors bail and that supply translates into renters actually purchasing their own homes.

        it's not like the houses evaporate. But it's 1 less family stuck paying someone else's mortgage.

        • CurlCurl on 04/03/2025 - 18:41
          -1

          Funny thing is the investors bail and that supply translates into renters actually purchasing their own homes.

          it's not like the houses evaporate. But it's 1 less family stuck paying someone else's mortgage.

          Is it?

          • mskeggs on 04/03/2025 - 18:43
            +2

            @CurlCurl: What is the alternative? The investor leaves the house empty, or occupies two houses?

            • CurlCurl on 04/03/2025 - 18:49
              -1

              @mskeggs: Who says the house would be purchased by an owner occupier? The house could be sold to another investor.

              • mskeggs on 04/03/2025 - 18:52
                +1

                @CurlCurl: Why would a new investor emerge if the law changes made it so unpalatable to be a landlord?

        • mskeggs on 04/03/2025 - 18:42
          +3

          But that would require the investor not to make super profits, for the renter to afford to buy. And house investors are a protected species.

        • Benoffie on 04/03/2025 - 19:46

          Nope.

          You have multiple more likely outcomes:

          • migrants with higher purchasing power buying the property over the previous tenants or local tenant pool (no benefit to existing renters)
          • house is subdivided, evaporating the stock and subsequent stock is sold (certainly not below $500k - again, no benefit)
          • house is renovated, relisted at higher price point and previous rental pool is excluded (again, no benefit)

          Each time one of the loopholes for vacancy has to be triggered to push out a dud tenant, the result is invariably higher rental prices.

          I have seen no actual data yet anywhere to show significant uptick in rental to owner occupier due to investor movements

          • Drakesy on 04/03/2025 - 21:04

            @Benoffie: Do you want to re read your point again?

            • Benoffie on 04/03/2025 - 21:21
              +1

              @Drakesy: Your point is that renters become owner occupiers.

              If they could do that, they either would have or, they are substantially in a worse off position financially trying to save for a deposit whilst renting in $800k-$1m min housing markets.

              Your argument is that a house, formerly tenanted to someone at say, $500 a week, will somehow magically be affordable by that same tenant when it hits the open market.

              Unless that property is $500k and their deposit is 10%, my answer is - no, there's no conversion

      • greatlamp on 04/03/2025 - 22:12
        -1

        Everything you have said I have heard spoken word for word on Sky News by their guest REIV spokeswoman.

        Rent increases consistent with CPI as it always has.

        Rental yield has decreased. That can be because rent has decreased or prices have disproportionately increased. What has actually happened is obvious, we don't need the Real Estate Institute to provide their version of events.

        CGT discount and negative gearing actually facilities higher housing prices at the expense of renters who might otherwise be able to afford to buy.

        The slowdown in new construction is directly attributable to increasing interest rates, not because landlords need to spend a few hundred dollars on checks every year. Rents have increased far more than the new costs.

        • Benoffie on 05/03/2025 - 01:17

          Dunno, dont have access to Sky and honestly, trying to link to some 'right wing' or ideological plot is half the reason why we're in this mess.

          There are multiple factors at play. But in this particular sub thread, the assertion was that once a house leaves the rental pool, it will magically become owner occupied by a previous renter.

          And Im sorry but Ive seen absolutely no data to prove that's occurring on any significant basis anywhere.

  • Dack Smith on 04/03/2025 - 18:26

    The economy is performing well, possibly top three in the OECD

    Together with China we can do great things and allow everyone to prosper

    • tenpercent on 04/03/2025 - 20:22
      +1

      +100 social credit points, good citizen #42069

  • mskeggs on 04/03/2025 - 18:40
    +2

    Housing has broken the economy. Howard and Costello most to blame, but so too every government since.
    Understanding the economy is really easy. If you have lots of housing equity, life is pretty good. If your job/business has people with lots of housing equity as customers, you are doing fine.
    If you have a recent mortgage, or are trying to save for a house, you are stuffed.
    And if you are young enough to share a flat and live pay packet to pay packet, you are having a good time too, but know that ‘stuffed’ is on the horizon.

    We could probably deal with this, except the riches continue to accrue to the people with houses, and the number in the “stuffed or pay packet to pay packet” cohort is growing larger and larger.
    Nobody has the political guts to do anything about it.

    • greatlamp on 04/03/2025 - 22:29

      The Greens do, but socalism is bad because Russia, or something

  • cille745 on 04/03/2025 - 19:00
    +1

    median wealth per adult(ubs.com) as the second highest in the world;

    Pretty easy when this is all tied up in housing and we're not doing well if you take that out

  • justworld on 04/03/2025 - 19:02
    -1

    Australia is an extremely easy country compared to any other country in the world. If you struggle here, you'd be struggling worse anywhere else. As a migrant who came here with no family money, no connections, no private schooling and no English language, I've found Australia to have a wealth of opportunity - and I'm a millennial, not a boomer. It is hard to see how anyone could struggle here unless he or she had (1) chronic severe health problems, (2) low intelligence, (3) low work ethic, (4) abusive parents.

    • tenpercent on 04/03/2025 - 20:25
      +1

      Did you come as a minor or adult? What year did you arrive in Australia?

    • CaptainJack on 04/03/2025 - 21:16

      Australia is an extremely easy country compared to any other country in the world.

      Lol. You must really like generalising.

  • serpserpserp on 04/03/2025 - 22:44

    Which Parts of The Australian Economy Are Performing Poorly?

    Internet Forums

Login or Join to leave a comment
Login Join