herbs While the majority of retirees might be mortgage-free, a large number of people who retire from age 65 onward use their retirement savings to pay off their mortgage and other expenses. Of those who retired at age 65 and above who received a lump sum payment, 32 per cent used a part of the payment on home-related expenses. Around 25 per cent of those who received a lump sum invested some of the amount in an annuity or other super vehicle, and around 27 per cent invested outside super. Some will have done both, so half or less maintain their savings for their retirement. http://www.challenger.com.au/funds/TechnicalUpdates/CRIR_How_much_super_do_Aussies_have_Apr12.pdf
A Lurker
22 Sep 2014, 02:01 PM
Still a stupid idea. Probably more stupid as VG is going to be affected by proximity to beaches, land size etc and accordingly disadvantages people who bought for lifestyle reasons and stayed for a long time regardless of the standard of the accommodation.
Anyway, as mentioned by others there is zero chance of this ever happening in Australia. 70% of people (voters) are owners and that percentage is higher for politicians.
Without doubt, equity extraction is the face of the future. Many Baby Boomers, particularly younger Baby Boomers will have their expectations for inheritance unfulfilled as their parents spend their inheritance. Many of my older respondents now in retirement talked of themselves as OWLS (Oldies Withdrawing Loot Sensibly) or SKIERS (Spending the Kids Inheritance). So many Baby Boomers will be dependant upon the equity in their home to support their enhanced expectations for retirement. Without doubt the desire to bequeath assets particularly the family home is diminishing. In my study, one third of Baby Boomers 50 to 60 expect to use up all their assets before they die.
Still a stupid idea. Probably more stupid as VG is going to be affected by proximity to beaches, land size etc and accordingly disadvantages people who bought for lifestyle reasons and stayed for a long time regardless of the standard of the accommodation.
Anyway, as mentioned by others there is zero chance of this ever happening in Australia. 70% of people (voters) are owners and that percentage is higher for politicians.
In my suburb--slightly more than 10 km from the CBD, not near a beach, boringly average--most of the established housing stock is solid-brick, classic middle Australia circa 1973.
And those houses, most in decent repair, are worth practically nothing. The bungalows sell for lot value, the double-stories for $50-100K beyond lot value.
Lot value, on the other hand, is just under $500K, and rising steadily. So Pauk wants to reach into the pockets of the oldies in this heartland middle-Australia suburb, while avoiding that fate for himself.
In my suburb--slightly more than 10 km from the CBD, not near a beach, boringly average--most of the established housing stock is solid-brick, classic middle Australia circa 1973.
And those houses, most in decent repair, are worth practically nothing. The bungalows sell for lot value, the double-stories for $50-100K beyond lot value.
Lot value, on the other hand, is just under $500K, and rising steadily. So Pauk wants to reach into the pockets of the oldies in this heartland middle-Australia suburb, while avoiding that fate for himself.
If the VG amount is over $50ok then they are not middle class. I will retire with an expensive home, so yes, the poicy I support will disadvantage me.
In my suburb--slightly more than 10 km from the CBD, not near a beach, boringly average--most of the established housing stock is solid-brick, classic middle Australia circa 1973.
And those houses, most in decent repair, are worth practically nothing. The bungalows sell for lot value, the double-stories for $50-100K beyond lot value.
Lot value, on the other hand, is just under $500K, and rising steadily. So Pauk wants to reach into the pockets of the oldies in this heartland middle-Australia suburb, while avoiding that fate for himself.
I live in an old Sydney suburb. Most houses are at least 100 years old on very small land sizes. My land value is nearly double Paul's threshold. While it's mostly a pre-retirement area many of the retirees that remain would not be considered wealthy, some might even be flattered to be called middle class. Many have lived in the area for many decades and would be extremely upset to have to move along to a new neighbourhood that had lower land value but a more expensive house on it.
In my suburb--slightly more than 10 km from the CBD, not near a beach, boringly average--most of the established housing stock is solid-brick, classic middle Australia circa 1973.
And those houses, most in decent repair, are worth practically nothing. The bungalows sell for lot value, the double-stories for $50-100K beyond lot value.
Lot value, on the other hand, is just under $500K, and rising steadily. So Pauk wants to reach into the pockets of the oldies in this heartland middle-Australia suburb, while avoiding that fate for himself.
That's what he wants, although the VG valuation won't do it for him. That's only because Paul doesn't know what a VG's valuation is. Not because he wants to spare his misery on anyone, it's just his ignorance of anything to do with this subject.
A VG's valuation is the unimproved value of the lot.
Quote:
The Act requires that all statutory valuations in Queensland are on either a site value or unimproved value basis, depending upon whether the land is designated non-rural land or rural land respectively. The Act provides the definitions of what is non- rural land and what is rural land. The allocated valuation basis or methodology is called the Property Valuation Methodology, by the State Valuation Service. Each statutory valuation record held in the Queensland Valuation and Sales System contains a Property Valuation Methodology, which is either non-rural (U) or rural (R) and signifies the appropriate methodology under which the valuation is assessed.
2.2 Non-rural land (Section 8) Non-rural land is land other than rural land, or land that is not zoned under a planning scheme. In general terms, non-rural zoned lands account for most properties in Queensland as it includes most lands in urban centres, lands zoned rural residential or equivalent, and those lands which although zoned rural do not meet the legislative criteria to be deemed as rural land. Rural land will be amended to non-rural land: • if the land is no longer zoned as rural land following the amendment of an existing scheme or the introduction of a new planning scheme; or • where land is used for an urban purpose under a preliminary approval for a material change of use under the relevant planning legislation being the former Integrated Planning Act 1997 and the current Sustainable Planning Act 2009. An urban purpose is considered as being any usage of an urban nature including commercial, industrial, multiple unit, residential or any other use that is associated with a built urban environment. An example of this would be a new residential subdivision which has a material change of use and reconfiguration for residential purposes but still has an underlying rural zone under the planning scheme. Land not zoned by definition will be designated as non rural (e.g. permits or licenses from the State and, lands below high water mark). However, the declaration provisions allow the Valuer-General to declare the land as rural where necessary. The allocation of the Property Valuation Methodology will have regard to the parent parcel Property Valuation Methodology where applicable, or the Property Valuation Methodology of adjoining or adjacent properties.
2.3 Rural land (sections 9–14) Rural land is land that is zoned rural (but has not ceased to be rural land) under a planning scheme, or where the Valuer- General declares the land to be rural land. Land is zoned rural land either: • if more than half of the area of the land is zoned as rural under a planning scheme (Section 10 (2)) • where land is declared to be rural land upon application by the owner, and satisfies the criteria as per the legislation (Sections 12, 13) • where the land is not zoned under a planning scheme and the Valuer-General declares the land to be rural (Section 14). Multiple zoned parcels have a Property Valuation Methodology based on the area of the zonings within the lot. Multiple lots held in one valuation have a Property Valuation Methodology based upon the aggregate of the area of the zonings within the amalgamated parcel. A landowner may apply to the Valuer–General to declare the land to be rural land or the Valuer-General may at any time (without application) declare the land to be rural (sections 12–14). Once a landowner has made a rural land application, they can only apply again if there has been a material change of use under the planning scheme or if a development approval is granted for the land (Section 12(2)). Non-rural land can be declared by the Valuer-General to be rural land where it meets the criteria under the Act: • at least 95 per cent of land in the state used for the same purpose is zoned rural • the land’s zoning in a zone other than rural, makes a material difference to its value, of at least 30 per cent (Section 13). Land not zoned will be designated as non-rural land. However, the declaration provisions allow the Valuer-General to declare the land as rural (where necessary) having regard to the parent parcel Property Valuation Methodology (where applicable) or the Property Valuation Methodology of adjoining or adjacent properties.
I'm sure that he will now change the criteria to "Market Valuation" which he earlier said could only be determined on sale.
Any expressed market opinion is my own and is not to be taken as financial advice
That's what he wants, although the VG valuation won't do it for him. That's only because Paul doesn't know what a VG's valuation is. Not because he wants to spare his misery on anyone, it's just his ignorance of anything to do with this subject.
A VG's valuation is the unimproved value of the lot.
I'm sure that he will now change the criteria to "Market Valuation" which he earlier said could only be determined on sale.
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