Australian Houses overvalued by 30%

[willrocks]

Look, I'm not saying that being an adult with a full time job is always easy and that some choices in life aren't difficult, but I just find it a bit difficult to feel sorry for people earning two hundred grand a year.

And I'm not asking you to feel sorry for anyone. I'm pointing out the fact that double the salary doesn't equal anywhere near double the take home pay. And that it's only going to get worse with inflation. If it keeps going this way the average wage will one day be in the highest income tax bracket.

 

[bja]

Don't forget the Medicare levy (regardless of health insurance) is now 2%, you also will have to pay the debt levy and if you earn more again you will lose all superannuation rebates (and have to pay back the 15%).

I think regardless of your wage everyone should be treated fairly, paying half your wage in tax is not being treated fairly but is rather performance based punishment. These people don't get anything for their tax dollars, no family payments, baby bonuses etc, etc. People often make huge sacrifices for high paying jobs and to see it eaten up in wasted spending or handouts is disheartening.

The structure of the system discourages people from earning more and encourages people to avoid tax. Now a flat rate that's stops once you have paid your 'fair share' well that would be brilliant.

 

[Silversaving]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

 

[leo25]

Mind boggling people making 4 times me are having a hard time getting by.

Welcome to Australia, land of the whingers :lol: I know people that complain because they can only afford to go on a holiday once a year, only afford one car and only afford 20 pairs of shoes.

 

[Court Jester]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

costs here are significantly more than for you in the states, your fuel, food, clothing, cars, housing, electricity just about everything is cheaper so your 45k stretches a lot further.

 

[Court Jester]

Look, I'm not saying that being an adult with a full time job is always easy and that some choices in life aren't difficult, but I just find it a bit difficult to feel sorry for people earning two hundred grand a year.

And I'm not asking you to feel sorry for anyone. I'm pointing out the fact that double the salary doesn't equal anywhere near double the take home pay. And that it's only going to get worse with inflation. If it keeps going this way the average wage will one day be in the highest income tax bracket.

I agree with you, in your situation you dont take home much extra on 200k vs 100k and I also believe you are correct that to be on 200k you will be in a capital city / expensve area to work / live

The difference is not all that much considering the extra effort and stress and probably extra hours you will also have in a job that pays 200k

I ahve a mate that works in the mines and pays more in tax each year than I earn, but he is also doing double the working hours and living in a shitty mining camp for weeks on end and away from his friends / family. Just because you are on big $$$ does not mean you are better off.

 

[Skyrocket]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

I heard the minimum adult full time wage in the US is under $8 an hour. Is this correct?

I think the Australian minimum adult full time wage is around $18 an hour.

 

[JulieW]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

costs here are significantly more than for you in the states, your fuel, food, clothing, cars, housing, electricity just about everything is cheaper so your 45k stretches a lot further.

Yes, I had an American friend who couldn't believe $4 for a coffee and $3 for a diet coke. Even paying tourist rates I find the US a cheap place to visit (or used to - it feels too much like entering Nazi Germany these days sorry).

 

[valuecreator]

Yes, I had an American friend who couldn't believe $4 for a coffee and $3 for a diet coke. Even paying tourist rates I find the US a cheap place to visit (or used to - it feels too much like entering Nazi Germany these days sorry).

Robin Williams used to say that Canada is like a nice flat above a crack house. I tend to agree.

And Australia is like the beach five minutes away.

 

[trew]

In my hypothetical example. The person on $100K with two kids receives $7400 in family tax benefit. While a person with two kids on $200K does not receive any family tax benefit.

That's only the case if the wife earns zero (assuming the primary earner is the husband)


Obviously a couple with kids is much better off tax wise with two $100K incomes than one $200K income and one zero

 

[trew]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

I think you would actually find bigger income inequality in the US than in Australia.

professions like IT would earn more in the US for the same type of job than in Aus
Plus there is much more chance of working for big companies like Microsoft, Google, Facebook etc. with share options potential

I'm pretty sure professions like doctors and lawyers make vastly more in the US than in Aus

 

[toorak13]

I really think all these statements using averages are BS.

I earn more than double the wage figure and my first house cost less than half the average, 3 years ago.

I have no problem at all servicing several mortgages.

If you earn 60k a year you shouldn't be living the high life and buying 600k houses...

Pull your head out of your arse. I was making the point that houses are overpriced and tossed some figures around to show why.

Like a rat up a drainpipe, you couldn't wait to declare your income and your asset base. Use some of your money to go back to school and get an education. Perhaps then you'll learn the art of discourse.

Wow, you come across as pretty bloody "average" Sammy.

My intention was not to big note, nor trigger such an aggressive response.
But you know what, I'm stoked with what I've achieved at 27 while people like you told me it can't be done, it's overpriced, it's to risky, you're stupid etc. etc.

what industry are you in and what suburb to earn twice the salary and buy a house 300k 3 years ago. what size block is it ?

 

[toorak13]

Mind boggling people making 4 times me are having a hard time getting by.

Welcome to Australia, land of the whingers :lol: I know people that complain because they can only afford to go on a holiday once a year, only afford one car and only afford 20 pairs of shoes.

not sure why the US houses are only approx 100 k ? double storey etc?

 

[toorak13]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

I heard the minimum adult full time wage in the US is under $8 an hour. Is this correct?

I think the Australian minimum adult full time wage is around $18 an hour.

i think it is $6 an hour

australia is $17 i think

 

[sammysilver]

I'd like to apologise to pi, I am not that person that came across like that yesterday.

 

[danman49]

$7.25 in the US ..... UNLESS..... you are classified as "tipped labor" where it is a massive $2.13 an hour http://en.wikipedia.org/wiki/Minimum_wage_in_the_United_States

 

[Skyrocket]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

I heard the minimum adult full time wage in the US is under $8 an hour. Is this correct?

I think the Australian minimum adult full time wage is around $18 an hour.

i think it is $6 an hour

australia is $17 i think

Well if food, homes, cars, utilities, ect and other essential items in the US are all under half or third of the price of what they are in Australia then it be ok for them I think.

The upside for Aussies is when they buy or travel overseas they have more money/dollars and it goes a lot further then say a person from the US.

 

[Court Jester]

I'd like to apologise to pi, I am not that person that came across like that yesterday.

orly?

 

[Silversaving]

Eye opening discussion here for me. I'm American and make $45,000 a year working full time for the city. Mind boggling people making 4 times me are having a hard time getting by.

I heard the minimum adult full time wage in the US is under $8 an hour. Is this correct?

I think the Australian minimum adult full time wage is around $18 an hour.

Sorry for the late reply (was out camping for the week).

You are correct that the Federal minimum wage in America is around $8. I'd say roughly half the states have a higher minimum wage they require in their state though and some cities have yet a higher minimum wage they require (confused yet?). $8 an hour is below poverty though. You simply can't survive on it after all the taxes they take out. I find it amazing your minimum is $18. That's a "good" paying job around here.

 

[willrocks]

I find it amazing your minimum is $18. That's a "good" paying job around here.

$18 per hour is a low paid job over here. Normally reserved for people who do not have a trade, skills, or experience.