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LAFHA: Rents to crash after removal of Living Away From Home Allowance; Rents in Sydney hit record highs
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Topic Started: 24 Jul 2012, 04:20 PM (1,999 Views)
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themoops
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24 Jul 2012, 04:20 PM
Post #1
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http://www.macrobusiness.com.au/2012/07/tax-man-increases-high-end-property-squeeze/
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Thousands of foreign workers who have been living lavish lifestyles by the beach or harbour subsidised by the federal government are having to dramatically downsize, with disastrous consequences for landlords.
Thousands? How many thousands?
I can't believe we're paying people to stay in rentals. Talk about socialism.
Terrible news for bulls.
It's not just some computer brain, criminal cheesedick executives that use it, it was normal people too.
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Was chatting to a 26yr old lady from London over the weekend. She’s here for a few years to experience Aussie summers whilst working in a bar in Bondi. She was very upset that LAFHA was being removed, she won’t be able to afford her 1br pad with ocean glimpses anymore….
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Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
stinkbug yn gyfunrywiol
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Sydneyite
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24 Jul 2012, 05:31 PM
Post #2
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The only impact this will have is to take away demand from the very top end rentals (like $5000/week), which is a very think market anyway, and push it down to the $2k-$3k/week rentals, resulting in an increase in demands at the lower price levels. Rents will come off from the top end to some extent to compensate, but they may well rise in other lower (but still high) price brackets as well. All these ex-pat execs and so on are hardly going to just get sent back home - the companies they are here for will want them to stay, so they will just choose to live not quite as lavish a lifestyle as they were. Some companies and individuals will of course still just cough up the extra cash.
The main-stream / median rental market will be impacted exactly zero by the LAFHA changes I reckon.
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themoops
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24 Jul 2012, 07:50 PM
Post #3
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- Sydneyite
- 24 Jul 2012, 05:31 PM
The only impact this will have is to take away demand from the very top end rentals (like $5000/week), which is a very think market anyway, and push it down to the $2k-$3k/week rentals, resulting in an increase in demands at the lower price levels. Rents will come off from the top end to some extent to compensate, but they may well rise in other lower (but still high) price brackets as well. All these ex-pat execs and so on are hardly going to just get sent back home - the companies they are here for will want them to stay, so they will just choose to live not quite as lavish a lifestyle as they were. Some companies and individuals will of course still just cough up the extra cash.
The main-stream / median rental market will be impacted exactly zero by the LAFHA changes I reckon.
You have no idea because you have no idea how many people were using this. I would say it's a lot because we have lots of backpackers and Asian students.
All it says is "thousands". That could mean a few thousand or a few hundred thousand.
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Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
stinkbug yn gyfunrywiol
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Ex BP Golly
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24 Jul 2012, 07:56 PM
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How many more of these tax payer paid, troughs exist.
This is now the second obe removed thank gods.
Only a few more to go, and the b market will begin to tester.
Yaaaaah!
The landlords are clearly losing their political clout!
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WHAT WOULD EDDIE DO? MAAAATE!
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Aussiehouseprices
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24 Jul 2012, 10:07 PM
Post #5
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Re this comment from the OP:
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Was chatting to a 26yr old lady from London over the weekend. She’s here for a few years to experience Aussie summers whilst working in a bar in Bondi. She was very upset that LAFHA was being removed, she won’t be able to afford her 1br pad with ocean glimpses anymore….
I thought the LAFHA was paid by the employer. Why would a bar owner pay a Londoner's living expenses?
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Aussie House Prices blog
Latest post: Real Estate 101 - Lecture 1: Never use the "F" word
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Perthite
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24 Jul 2012, 10:21 PM
Post #6
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- Ex BP Golly
- 24 Jul 2012, 07:56 PM
How many more of these tax payer paid, troughs exist.
This is now the second obe removed thank gods.
Only a few more to go, and the b market will begin to tester.
Yaaaaah!
The landlords are clearly losing their political clout!
That could be linked to the spruikers running out of cash. Almost daily sites like Perthnow would parade bull porn. Now F all not to mention comments being banned. Their power over the media is coming to an end as the goldmine has run dry. I never thought I would see the day. Might almost be time to buy a West Australian to see if they're still being paid off.
Media is key to controlling the mouse.
Edited by Perthite, 24 Jul 2012, 10:31 PM. |
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barns
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24 Jul 2012, 11:19 PM
Post #7
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- themoops
- 24 Jul 2012, 04:20 PM
I personally know 2 couples this applies to (all poms). One couple has moved a couple of suburbs out to pay 75% of their prior rent - if you are on the top tax bracket you were effectively getting half price rent. The other has bought a house in a comparible location and standard to what they were renting.
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audas
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24 Jul 2012, 11:27 PM
Post #8
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- themoops
- 24 Jul 2012, 04:20 PM
Ah, when its corporations and not people its not socialism - its fascism - distinct difference.
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those
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25 Jul 2012, 12:26 AM
Post #9
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- themoops
- 24 Jul 2012, 04:20 PM
I knew an ex-pat who was working in Sydney as a consultant for a couple years, always staying in nice places in the city. My understanding was that his employer paid for his accomodation up to a certain amount, but but they were probably taking advantage of LAFHA. He wasn't a senior exc or anything, just a consultant/senior consultant.
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Frank Castle
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25 Jul 2012, 06:37 AM
Post #10
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Business As Usual
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- themoops
- 24 Jul 2012, 07:50 PM
You have no idea because you have no idea how many people were using this. I would say it's a lot because we have lots of backpackers and Asian students.
All it says is "thousands". That could mean a few thousand or a few hundred thousand.
And you have no idea either
I reckon you are just making shit up as you have no proof to support your fantasy.
Tourists (backpackers) getting LAFHA for their holiday accommodation, are you for real?
As for Asian students, I thought they all left and that was why us LL's were all going to be rooted last time?
Seems you FAILED in that prediction as well eh? 
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The T.A.M.P.O.N effect - A NEW whinging bear acronym emerges
Timo And Moops Protest Over Nothing
Proof that moops is a simple minded hypocritical turnip
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Sweetdish
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25 Jul 2012, 12:39 PM
Post #11
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- themoops
- 24 Jul 2012, 07:50 PM
You have no idea because you have no idea how many people were using this. I would say it's a lot because we have lots of backpackers and Asian students.
All it says is "thousands". That could mean a few thousand or a few hundred thousand.
backpackers and students dont get LAFHA
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themoops
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25 Jul 2012, 12:46 PM
Post #12
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- Sweetdish
- 25 Jul 2012, 12:39 PM
backpackers and students dont get LAFHA
Whatever, "working visa" people. Idiots.
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Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
stinkbug yn gyfunrywiol
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Alex Barton
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11 Oct 2012, 06:33 AM
Post #13
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Record in high house rents could force families into flatsOctober 11, 2012 Simon Johanson HOUSE rents in Sydney have hit record highs. Competition among renters for fewer homes has seen the median asking rent for a typical Sydney house rise to $520 a week, the highest level on record for the city. The squeeze was felt most among house renters and may push more families to live in flats. House rents rose 4 per cent in the three months to September but rents for units stayed the same, at $470 a week, according to Australian Property Monitors. The pressure was also felt by tenants wanting apartments in inner city suburbs. Unit rents in Edgecliff, Woolloomooloo, Leichhardt and Darlinghurst rose between 6 per cent and 9 per cent. But the rise was not uniform, rents fell in Glebe and Haymarket. First home buyers were putting off buying and instead turning to the rental market, the Australian Property Monitors economist Andrew Wilson said. ''That means there's more demand … and that's one of the factors that has driven up house rents,'' he said. ''A shortage of houses and an increase in competition from tenants for what is available has put upwards pressure on rents.'' Recent figures from SQM Research show Sydney's vacancy rate - the proportion of unlet dwellings - was 1.8 per cent in August. By contrast Melbourne's was 2.8 per cent. A vacancy rate of 3 per cent represents a balanced market. Anything below is considered to favour landlords. While some struggle with Sydney's tight rental market, Darwin's is even more daunting, Australian Property Monitors's September quarter figures show. Median rents there have hit $700 a week, a massive jump of 27 per cent over the year; while prospective tenants in Perth are also facing much higher charges. A flood of mining-related labour has pushed rents up 15 per cent year-on-year. Read more: http://smh.domain.com.au/real-estate-news/record-in-high-house-rents-could-force-families-into-flats-20121010-27dl5.html
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frankrider
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11 Oct 2012, 06:59 AM
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- Aussiehouseprices
- 24 Jul 2012, 10:07 PM
Re this comment from the OP:
I thought the LAFHA was paid by the employer. Why would a bar owner pay a Londoner's living expenses?
Because its a tax deduction, and she's cute and putting out.
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Negative gearing is a form of leveraged speculation in which a speculator borrows money to buy an asset, but the income generated by that asset does not cover the interest on the loan
A negative gearing strategy can only make a profit if the asset rises so much in price that the capital gain is more than the sum of the ongoing losses over the life of the speculation. http://en.wikipedia.org/wiki/Negative_gearing
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Alex Barton
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11 Oct 2012, 09:33 AM
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Sydney, Perth rents hit record highsPUBLISHED: 8 hours 38 MINUTES AGO Marianna Papadakis  Rental rates have surged in Sydney and Perth, which is good news for investors but bad news for tenants who are struggling with tightening budgets and cost-of-living pressures. Rents have increased markedly in the past quarter in Sydney and Perth, driven by lower vacancy rates, both cities reaching record levels, figures from Australian Property Monitors show. Median weekly rent rose for houses (1.6 per cent) and units (0.2 per cent) across the nation. APM senior economist Andrew Wilson said upward pressure on rents would continue in Sydney, Perth and Darwin as declining affordability reduced the capacity of prospective first-home buyers to purchase property. “There is a shortage of properties for rent, higher populations and a lot of competition putting upward pressure on rentals over the medium term,” Mr Wilson said. But McGrath’s head of network property management, Michael Conolly, said low unemployment and falling interest rates were making housing more affordable. “We may see a resurgence in purchases over in the next quarter if that continues,” Mr Conolly said. “It’s still a tight vacancy market in Sydney and Brisbane. Canberra is softer because there is more stock compared to this time last year.” Read more: http://www.afr.com/p/business/property/sydney_perth_rents_hit_record_highs_UlbF4MK9U2UUxJB4lCMHmO
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4:19 AM May 22
