There are more interesting articles, commentaries and analyst reports on the Web every week than anyone could read in a month.
Each Saturday morning I like to share some of the ones I’ve read during the week.
The weekend will be over before you know it, so enjoy some weekend reading…and please forward to your friends by clicking the social link buttons.
If young Aussies save more, oldies will have to spend more!
There’s no doubt the topic of ‘housing’ and ‘housing affordability’ continues to run hot – particularly ahead of the budget announcement.
So what options do we have?
This article from switzer.com.au looks at the current state of play and one proposed solution – could this be the answer?
Housing is a national obsession and if it’s not about price rises and auction clearance rates, it’s about how to solve our house price problems in Sydney and Melbourne.
Over the weekend, an unknown guy called Brad put forward a plan, via an email, to well-known economists to solve it.
More on Brad’s bold plan later.
We also saw a Budget leak/idea of letting young Australians save more into a bank account for building a home deposit, which would be taxed at a lower rate, much the same as salary sacrifice.
The key difference is that if would-be homeowners saved into this home-buying, deposit-making, bank account, they could now use it to buy a house.
This amount would be small because young would-be homebuyers are unlikely to be salary sacrificing, as it would reduce their chances of having a deposit to buy a home.
Labor doesn’t like the idea because as the Hon.
Mark Butler said: “The critical message is this: you cannot deal with housing affordability in Australia without dealing with negative gearing.”
Greens senator, Sarah Hanson-Young, agreed.
“Just putting more money into the bidding process isn’t necessarily going to reduce the cost of housing,” she told ABC television.
“We have to bring the pressure down, not just give people more money to go straight into the hands of property investors.” (www.news.com.au)
So Labor and the Greens want house prices to fall but voters and those wanting a stronger growing economy don’t like the idea that consumers, who own homes, see their house values fall because that will have wealth effects.
If we feel less wealthy, then this hurts consumption, economic growth and job creation.
Labor and the Greens don’t seem worried about those consequences.
Of course, they’d argue that they would do other things to help consumers, such as redirecting income to lower income Aussies via tax — such as changes to negative gearing.
And economists have proved that these poorer people spend more of the money they receive.
But that might worry middle-to-higher income Aussies, who like their home values rising and are key spenders in the economy.
All will be revealed in the Budget, but this ‘salary sacrifice’ saving bank account to build up a deposit for a home loan is a pretty good idea.
It’s especially so when you think it would only work in a few years’ time, after savers have done some saving.
And that’s when home prices could be falling, homebuilding dwindling and we could be closer to an economic slowdown.
It would not affect the 9.5% compulsory super but there could be a redirection effect of salary sacrifice money now going into super, which might go to this new bank account.
Read the full article here
If not ‘hot spots’ then what? + A formulae for small development success + Why buyers hate auction
Another great Real Estate Talk show produced by Kevin Turner.
Michael Yardney discusses what can really be done to make property more affordable?
Cate Bakos explains why buyers are terrified about auction
Chris Gray discusses why ‘hot spots’ are not worth chasing
Nhan Nguyen talks abut making a good living from property in both the long and short term, as well as making money from property developing.
If you don’t already subscribe to this excellent weekly internet based radio show do so now by clicking here.
Listings tighten across the board
It would seem that property listings are taking a downward fall.
A fairly bullish note from SQM Research yesterday reported total listings declining by 8.3 per cent in the month of April 2017 to 322,400.
Listings are down from 366,151 or by 11.3 per cent from a year ago.
This goes against the grain of much of the media reporting this week, instead suggesting that stock is being well absorbed by the market in the low interest rate environment.
Source: SQM Research
Property markets will likely face some challenges as the year rolls on as the new cap on interest-only lending takes hold.
Read the full article here
Airbnb making hosts tens of thousands of dollars a year in Melbourne: Airdna report
We all know the concept of an air Airbnb – whether you have been a guest or an owner.
But did you know how much Melbourne hosts are making on their Airbnb home?
According to Domain.com.au numbers have hit tens of thousands of dollars.
Melbourne Airbnb hosts are making up to $150,000 each year on the platform, with hosts in the suburbs pocketing up to $42,000 a year just by listing a spare bedroom.
Figures released this week continue to paint an expanding and lucrative picture of Airbnb for Melbourne property owners, following fears some apartment owners were shunning the private rental market for the fatter profit margins on the site.
Data from analytics website Airdna, a company that tracks the performance of Airbnb rental properties around the world, shows there were up to 15,640 Airbnb listings in Melbourne at the start of February.
It was a massive increase on the start of February 2016, when 12,886 were listed.
The Airdna report also highlighted the city’s top performing Airbnbs, with those pulling in the most revenue appearing to be fairly humble listings.
Of Melbourne’s top performing listings, Fitzroy backpacker hostel The Nunnery is estimated to make the greatest annual revenue in the city, pulling in about $154,160, according to Airdna.
The backpackers guesthouse accommodates up 21 guests at a time and is listed at $1,399 per night.
A studio apartment in Richmond makes about $47,181 a year, while hosts renting out a bedroom in Oakleigh, 15 km south-east of the CBD, are bagging an estimated $43,000 annually.
The room, which is 25 minutes to the CBD via train, is currently listed for $195 per night.
Airdna calculates estimated annual revenue by adding up all the reservations in the last twelve months. It calculates the advertised daily rate of each unique reservation and then adds the cleaning fee.
Read the full article here
How businesses can prepare for the workplace of tomorrow
It’s no secret we are living in a fast paced world, if you don’t keep up, you’ll be left behind – and the world of business is no different.
So how can businesses prepare for the future?
An article on has revealed the tactics businesses (and individuals really) should be applying today.
It’s no secret that the very nature of our workplaces is fundamentally changing.
Business transformation is never-ending, so embracing change and learning to thrive in an ambiguous environment is an ongoing challenge for everyone in the organisation.
As leaders, we need to manage changes in partnership with people instead of dictating change to people.
The 38-hour work week, you could argue, is already a thing of the past and across the globe, experts predict that the workplaces of tomorrow will be more flexible, collaborative and mobile, resulting in a vast majority working remotely on a freelance basis for multiple companies.
And it doesn’t stop there – we’ll also be paying employees based on the value of the business outcomes delivered, rather than hours worked.
These shifts, along with increased digital disruption, will result in significant changes to business structure and practices, presenting both challenges and opportunities.
From an individual perspective, there’s an increasing need for transferrable skills and a flexible work approach may also mean multiple jobs.
The businesses and the business leaders that thrive will need to confidently lead their people through an era of disruptive and accelerated change.
The question is, how do organisations and their people prepare for the changes of the workplace of tomorrow?
1. Traditional work structures and offices as we know them are over
According to the report ‘Freelancing in Australia: A National Survey of the New Workforce’, 30 per cent of Australians are already doing some form of freelance work and over half do so out of choice rather than necessity.
2. Multigenerational workforces
As a result of people living longer and retiring later, for the first time in history, we’re seeing a workforce formed of five generations.
3. Both businesses and individuals need to embrace change as the “new-normal”
With most organisations already undergoing rapid change, businesses and individuals alike need to adapt to changing circumstances and be proactive in fostering new skills.
4. Embrace technology
Technology is changing the way we work on a daily basis and plays a critical role in the success of future workplaces.
Weekend Reads: The Mysterious Glass
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