David, you are not a battler mate. You are looking to buy a property well over $1,000,000. In my opinion, you are just looking to save your pennies and increase profit. This is a very selfish economic outlook. It seems obvious to me what you are driven by.
Robert Bou-Hamdan
Mortgage AdviserDavid, you are not a battler mateDid I at any point say I was a battler?
The personal attacks continue. Why? I don’t know.
It is not a personal attack. I am merely outlining facts which I think I am entitled to seeing so many of what I consider your one-eyed economic views and other posts of yours have been directed at me. You also continue to say that it would be better for ‘battlers’ if the economy went the way you want it to. I totally disagree as it will only be better for you.
Am I not entitled to my own opinion as to the economy and your motives?
Robert Bou-Hamdan
Mortgage AdviserOf course I would be in a position to buy a better house if prices fell, and yes I would be looking for a house in the $1M+ range. I haven’t attempted to suggest otherwise.
As for battlers (i.e. non home owners) being better off if prices fell, of course they would be. They might finally have a chance of owning their own home.
The challenge for the RBA and government is to engineer a ‘soft landing’ whereby house prices ease, but we don’t end up with a recession and mass unemployment. Unfortunately the excesses of the recent property boom have been so extreme, it seems unlikely we will escape a recession.
Am I not entitled to my own opinion as to the economy and your motives?I’d much rather you actually express an opinion on the economy rather than continually harp on about my dark alterior motives.
Originally posted by dmichie:The challenge for the RBA and government is to engineer a ‘soft landing’ whereby house prices ease, but we don’t end up with a recession and mass unemployment.
We finally agree on something else!!!! I think they will achieve this though. Watch this space after July Senate take over by the Libs.
I’d much rather you actually express an opinion on the economy rather than continually harp on about my dark alterior motives.I have many times to no avail. It is much more fun airing your ‘alterior motives’.
In case you were wondering why I have a stable to positive outlook and totally disagree with any real burst of anything, read my comment above. July is not far off!!!!
Robert Bou-Hamdan
Mortgage AdviserI think they will achieve this though. Watch this space after July Senate take over by the Libs.Indeed, they have a historic opportunity to reform the Australian economy without an obstructionist Senate. Lets hope they show a bit more courage after July than they did in the budget.
I think you may find this article interesting:
http://www.theaustralian.news.com.au/common/story_page/0,5744,15256514%5E25377,00.htmlinteresting article dmichie… highlights our insane obseesion with fair go, socialism, blue collar first, onya farmer jack, tax the rich, books are for nerds mentality.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
highlights our insane obseesion with fair go, socialism, blue collar first, onya farmer jack, tax the rich, books are for nerds mentality.Well, I think that Australia is long gone. The point I took from the article is if we’re going to a pro-business, pro-free market government, for Christ’s sake lets have one! They don’t have any excuses after July 1.
They have lower income taxes in the UK and NZ and they have Labour governments.
BTW, can you tell me who was Prime Minsiter the last time the top marginal rate was lowered (from 60% to 47%)?
I knew I should not have followed that link. You don’t know me at all. Why would I find that babbling rubbish of any interest?
Robert Bou-Hamdan
Mortgage AdviserI knew I should not have followed that link. You don’t know me at all. Why would I find that babbling rubbish of any interest?True, I have absolutely no idea where you stand on economic reform. You seem entirely satisfied that there are no problems whatsoever with the economy and that the Howard government can do no wrong. Government backbenchers are more critical.
I agree that article was awful- ugh- greg sheridan’s writing looks more suited to a blog than an article in The Australian.
A comment on bracket creep though… I never get why people complain about getting more wages and moving into a higher tax bracket… it’s like being annoyed at paying more CGT because one got more capital gain!
How do these people think we will pay for hospitals, roads, schools, etc etc unless we pay taxes? Tax cuts mean very little to many higher income earners anyway, as many have their income going into trusts (middle class welfare)
kay henry
2 quick points
first some support for Foundation ( no pun intended) I had the same reaction to the Brisbane”HOUSE PRICES SLUMP” headline- I couldn’t find anything in the article as evidence except”3 per cent fall in the March quarter”
Second there has been some talk about first home buyers ” deserting the market”. This doesn’t seem to be the case in Brisbane yet rather they deserted and then came back- though not to the boom levels- the direction is Up though.
http://www.osr.qld.gov.au/gas/fhog/statistics.htm
Cheers
Putting aside the fact that Australia’s top tax rate is much higher than most OECD nations (outside of Europe) the real problem is that corporate, capitals gains, and personal income taxes are levied at very different rates; 30%, 24.25% and 48.5% respectively.
These distortions mean that high income earners “spend much of their lives trying to shift income into the lower brackets through contracting, leaving money in corporate structures and/or running fiddles to get it out as something other than income, and risky investment negative gearing, especially on property (a big part of the reason for the recent property boom)” (as Alan Kohler put it after the last budget)
http://smh.com.au/articles/2004/05/14/1084289886748.htmlSure, it keeps a lot of accountants employed, but we’d be much better off as a nation if all that time spent avoiding tax was used more productively.
dmichie said:
” Putting aside the fact that Australia’s top tax rate is much higher than most OECD nations (outside of Europe)…”
So what, dmichie? Euro countries also protect workers’ jobs better, have better public education systems, better public health systems etc…
We are not ALL of the “tax is bad” vein. To like real estate doesn’t mean we are all Liberal voting, ayn rand following, invisible hand types.
I just care about where my taxes are spent… I wish the NSW exit duty was spent on more public housing, and none on weapons of mass destruction.
kay henry
Euro countries also protect workers’ jobs better, have better public education systems, better public health systems etc…I agree entirely. Believe me, my political views are a million miles from Greg Sheridan’s and pretty much anything that comes out of the Murdoch propaganda machine.
What I’m trying to say is, if Howard is going splurge $20 billion on tax cuts, he could have at least done it in an economically efficient way.
Australia is neither a Euro-style social democracy (with all the benefits you described) nor a lean and mean free-market economy, we’re some kind of mish-mash inbetween with (as big Kim said) a tax act that has to be weighed not paginated. If we are going to have Emperor Howard after July 1, can he at least show some reformist zeal and clean up the tax system.
Where’s Hewson when you need him?
Originally posted by dmichie:True, I have absolutely no idea where you stand on economic reform. You seem entirely satisfied that there are no problems whatsoever with the economy and that the Howard government can do no wrong. Government backbenchers are more critical.
And there you go putting words in my mouth again. Why does it matter where I stand on economic reform? I am not an economist. I am confident I can make money in any economic climate. I also have the benefit of being able to do whatever I want in Europe and the Middle East. It is all about me remember???
I have not once said there are no problems or that the Libs (personally, I dislike Howard) can do no wrong. I am just confident that we are in a better position than YOU try to portray and I am certain that the economy would go straight into recession if Labor was in control.
Robert Bou-Hamdan
Mortgage Adviserpersonally, I dislike HowardWoo hoo! Something else we agree on.
Wages hold key to next rate move
By Richard Webb
May 15, 2005
Page Tools* Email to a friend
* Printer format
*
*Home owners beware: two economic readings this week will show whether the strong jobs market is causing wage pressure.
If it is, economists say the Reserve Bank will move sooner rather than later to lift interest rates. But if it is not, as they expect, then rates could be on hold for the rest of the year.
CommSec chief equities economist Craig James says the March quarter labour price index on Wednesday and the February average weekly earnings reading on Thursday hold the keys.
“These figures will show whether the tight labour market is leading to higher wages,” he said. “There is plenty of anecdotal evidence to suggest wage pressures are starting, but they seem to be confined to the construction, mining and maybe education sectors. In the rest of the economy, wages are not galloping higher.”
This in itself is remarkable because 300,400 jobs have been created in the eight months to the end of April, a record for an eight-month period, while the unemployment rate has stood at a 28-year low of 5.1 per cent.
AdvertisementAdvertisementWhen a labour market is tight, wages can start to rise as businesses find it harder to fill job vacancies, and this can lead to inflation. That’s why the Reserve Bank has wages on its radar.
According to Macquarie Bank interest rate strategist Rory Robertson, the job market is a beacon of strength in what is otherwise a sluggish economy.
“We have a conundrum of unbelievably strong jobs growth at a time when GDP growth is unbelievably weak,” he said.
“But the unemployment rate has been at 5.1 per cent for the last five consecutive months and there is a growing probability it is bottoming out. The jobs market is growing at an annualised rate of 4 per cent but we expect this to drop to 1.5 per cent in the year to the end of June 2006.”
Mr James is not so sure. “The jobless rate is finding it hard to break through the 5 per cent barrier. But the continued strength of lead indicators like job ads suggest that it’s a matter of time before the jobless rate has a four in front of it.”
He said the labour force participation rate and employment to population ratio were both at record highs.
“In short, a greater proportion of people are working, rather than staying at home, retired, unemployed or studying, than ever before,” he said. “There’s no shortage of demand for white-collar positions, so it is a watching brief. There must be wage pressures out there but so far it has not shown in the numbers.”
CommBank expects the wage price index on Wednesday will show quarterly growth of 0.9 per cent, to keep wage growth steady at an annual rate of 3.6 per cent, well below the 4.5 per cent considered consistent with 2 to 3 per cent inflation.
“Anecdotes, however, are suggesting that the risk to inflation from rising wage pressures is tilting up,” CommBank economist Besa Deda said.
“These anecdotes include surveys showing that the sorts of wage rises that consumers expect to receive have risen and the wage rises businesses expect to pay have lifted.”
That article lost my interest the second it said “Home owners beware”. Why does the media feel the need to use scare tactics to get people to read a story? The article was as mild as any economic article could be. I guess I better “beware” and hide all my money because the writer thinks something terrible is about to happen!
Robert Bou-Hamdan
Mortgage AdviserWe’re in a funny period. Sluggish growth but with very low unemployment, and wage pressures suggesting future inflation. Prior to the 1970s economists didn’t believe you could have slow growth and inflation at the same time, but then it happened, so they called it “stagflation”.
Is stagflation making a come back? Who knows. The Economist looks at the issues here:
http://www.economist.com/opinion/displayStory.cfm?story_id=3941024
You must be logged in to reply to this topic. If you don't have an account, you can register here.
