Category Archives: POOR PEOPLE

‘Stop buying $4 coffees’ & feel ‘Poor Me’ if you want success says young rich lister

A YOUNG rich lister who made his fortune off the back of Australia’s capital city property boom says his generation needs to stop buying $4 coffees and travelling if they want to own a home.

Developer Tim Gurner, 35, is worth nearly half a billion dollars but has delivered a brutal smackdown to some would-be first home buyers struggling to get a toehold in the market.

“When I was buying my first home, I wasn’t buying smashed avocado for 19 bucks and four coffees at $4 each,” he told 60 Minutes in a segment exploring Australia’s housing affordability crisis.

“You have to start to get realistic about your expectations. There is no question we are at a point now where the expectations of younger people are very, very high.

“They want to eat out every day, they want to travel to Europe every year. This generation is watching the Kardashians and thinking that’s normal. Thinking that owning a Bentley is normal, that owning a BMW is normal.

Property developer Tim Gurner made his fortune riding the property boom.News Corp Australia

Mr Gurner, who ranked 157 on this year’s Financial Review Rich List after making $473 million in 10 years He started out by>>>>…MORE

Henry Sapiecha

www.australianmortgageloans.com

Australians are getting poorer, comparatively speaking…

 australian bank notes image www.money-au.com

The global purchasing power of Australians is diminishing Photo: Jessica Hromas

Australia is sliding down the ranks of purchasing power and in US dollar terms we can’t nearly buy as much as we could at the peak of the commodities boom.

As recently as last year, gross domestic product per person in Australia (in USD terms) was the fifth highest in the world. Only Luxembourg, Norway, Qatar and Switzerland outranked Australia in 2014, Deutsche Bank points out.

For 2015, however, the International Monetary Fund estimates Australia’s ranking will drop from fifth, to ninth.

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Deutsche chief economist Adam Boyton expects the country to fall further down the rankings due to a continuing plunge in the dollar and lower nominal GDP growth over the next years.
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“If we apply our 2015 and 2016 forecasts for nominal GDP growth in Australia (and assume 5 per cent nominal growth in 2017) as well as our forex forecasts – a decline in the AUD to 65 US cents by end-2016 and 60 US cents by the end of 2017 – then Australia’s ‘ranking’ falls from ninth in 2015, to 11th in 2016 and then 17th in 2017, Mr Boyton wrote in a note to clients.

A further decline in the dollar was a necessary element of the economy’s transition to non-mining led growth.

Mr Boyton said that the strong Australian dollar during the boom years had also led to a surge in online shopping from offshore retailers and overseas tourism, which allowed a large number of Australians to benefit from the mining boom.

“As the Australian economy and the Australian dollar adjust to the end of that boom, one of the unfortunate ‘side-effects’ will be a decline in the global purchasing power of Australians,” Mr Boyton added.

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Henry Sapiecha

SYDNEY AUSTRALIA WHERE THE GAP BETWEEN RICH & POOR GETS EVEN WIDER

Sydney ghetto alarm: wealth gap splits city

Darling Point and Point Piper reported the highest average taxable income.

JESSICA IRVINE 7:53am | Much time has been spent focusing on Mount Druitt but another suburb lags even further behind.

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Henry Sapiecha