What made you throw the towel in ?

[fourcorners]

Well luckily we are not in debt but unfortunately the government doesn't let you keep all $200,000. I think you end up with about $140,000 in your pocket which in our household equates to $17,000 per person per year after rent but not before bills. When you consider benefits are above that level for doing nothing but sit on you're arse it gives it some perspective doesn't it.

 

Not sure how many people in your house there are, so lets say 4

4 x $17,000 = $68000

$140,000 - $68,000 = $72000

$72,000/12 = $6000

 

I find it hard to believe anyone pays $6000 per month for rent unless you're living somewhere like Karratha. Even with 5 or 6 people in the house that's over $3000 just on rent.

 

​If you are living somewhere like Karratha and can't get work there, I suggest you move somewhere else pretty damn sharpish.

[flag of convenience]

The thing is, there are a lot of people for eample in WA who have been working in mining for a number of years, now have a mortgage / car finance and thing based on the assumption of a six fugure salary coming in. There are now a lot of guys who are being laid off and finding that the job in Perth is only going to pay half what they are used to and so are now in dire straights. Its not because they were all loose with the cash, just that they build a lifestyle, as we all do, based on a certain income. If that income is reduced a lot, then problems arrise

 

Sadly a lot of folk are economic illiterates at least in the WA context. WA has by the nature of its resource industry had a history of being a boom bust state.

 

One fellow I know purchased five houses. I know Australians are big gamblers but his impression of the economic situation was that the boom would see him through his working life and he was only 38. He wasn't alone either.The thought seemed to be that WA's had an inexaustable supply of raw materials that the world would want and that Perth/WA was to become a place of major importance not to sat desirability in the world.

 

Views of a contary nature were usually given short shift. Anyway this state with likely stumble on for several more months even a little longer before the reality hits. Remember, I do it took about two years from 03 when the initial cost of the boom stated to really become apparent. Even then it was another year or two before the word outrageous connected with prices became common parlance.

 

There is little doubt living standards will fall. Wages will fall. Employment will be harder as it was in the 90s. I imagine with the arrival of so many new folk over the past several years the job market will be highly competative as well.

 

Business interests like the Chamber of Commerce will be calling on the new government to create flexible conditions which they will find hard to refute.

Will house prices fall? Likely. Of course when the Australian dollar corrects (falls) perhaps rather substantially, real estate will be cheap for foreign investors so there is every chance of rich Chinese individuals and syndicates buying up big. South Koreans, Indians, Singaporeans,Malaysians,South Africans as well. Australia is a safe place after all to park money.

 

My own personal view is if I was a potential immigrant now with a decent job in my home country I would be inclined to hold onto it.

[VERYSTORMY]

Not sure how many people in your house there are, so lets say 4

4 x $17,000 = $68000

$140,000 - $68,000 = $72000

$72,000/12 = $6000

 

I find it hard to believe anyone pays $6000 per month for rent unless you're living somewhere like Karratha. Even with 5 or 6 people in the house that's over $3000 just on rent.

 

​If you are living somewhere like Karratha and can't get work there, I suggest you move somewhere else pretty damn sharpish.

 

Thats not a overly high rent for a lot of Perth suburbs now. Any of the inner suburbs Peppi and things, that will get you a fairly normal house

[VERYSTORMY]

Sadly a lot of folk are economic illiterates at least in the WA context. WA has by the nature of its resource industry had a history of being a boom bust state.

 

One fellow I know purchased five houses. I know Australians are big gamblers but his impression of the economic situation was that the boom would see him through his working life and he was only 38. He wasn't alone either.The thought seemed to be that WA's had an inexaustable supply of raw materials that the world would want and that Perth/WA was to become a place of major importance not to sat desirability in the world.

 

Views of a contary nature were usually given short shift. Anyway this state with likely stumble on for several more months even a little longer before the reality hits. Remember, I do it took about two years from 03 when the initial cost of the boom stated to really become apparent. Even then it was another year or two before the word outrageous connected with prices became common parlance.

 

There is little doubt living standards will fall. Wages will fall. Employment will be harder as it was in the 90s. I imagine with the arrival of so many new folk over the past several years the job market will be highly competative as well.

 

Business interests like the Chamber of Commerce will be calling on the new government to create flexible conditions which they will find hard to refute.

Will house prices fall? Likely. Of course when the Australian dollar corrects (falls) perhaps rather substantially, real estate will be cheap for foreign investors so there is every chance of rich Chinese individuals and syndicates buying up big. South Koreans, Indians, Singaporeans,Malaysians,South Africans as well. Australia is a safe place after all to park money.

 

My own personal view is if I was a potential immigrant now with a decent job in my home country I would be inclined to hold onto it.

 

Already seeing it. It isnt a shock to those of us who know this industry. I was having breakfast this morning with a consultant who is visiting for a few days - he owns a business that is one of the bigger buildings in west perth and has been in the game a very long time and we were discussing this today. His comment was that if you are going to work in the resources industry in Oz, you have to have a plan B. It is a boom / bust industry.

 

This particular bust, i think is going to be a hard one as normally, they occur due to one of three reasons. 1 Companies cant raise capital - all of the miners rely heavily on debt as exploration takes an averge of 5 years - if and its a big if, there is a deposit there. Then construction takes 2-3 years, then payback takes an average of 7 years. So throughout, the company is relying on debt. When debt is not available, it goes pop. 2. Prices - when prices go down, projects become unviable and so close and new projects are stopped. 3. Cost. When the cost of production pushes back the payback so far it isnt worth it, then it goes pop.

 

Most busts are because of one of these factors - but, this time, we have all three playing. That is going to make things particularly hard.

 

A lot of guys who have only known the boom and assumed this is what it is like, are going to get caught out. Already seeing it in Mandurah - lot of miners where i live and already a fair few repossesions coming through

[PomPrincesses]

Not sure how many people in your house there are, so lets say 4

4 x $17,000 = $68000

$140,000 - $68,000 = $72000

$72,000/12 = $6000

 

I find it hard to believe anyone pays $6000 per month for rent unless you're living somewhere like Karratha. Even with 5 or 6 people in the house that's over $3000 just on rent.

 

​If you are living somewhere like Karratha and can't get work there, I suggest you move somewhere else pretty damn sharpish.

$3,000 in rent would be cheap for where we are in Perth, we pay a little less but what was really had was the childcare costs at around $1,000 a week.

 

Anyway. Job interviews happening thick and fast, have a couple of Skype ones set up for Aberdeen if anyone has any experience of living there that would be marvellous, thank you.

[PomPrincesses]

The thing is, there are a lot of people for eample in WA who have been working in mining for a number of years, now have a mortgage / car finance and thing based on the assumption of a six fugure salary coming in. There are now a lot of guys who are being laid off and finding that the job in Perth is only going to pay half what they are used to and so are now in dire straights. Its not because they were all loose with the cash, just that they build a lifestyle, as we all do, based on a certain income. If that income is reduced a lot, then problems arrise

That is where income protection insurance comes in and I would never have a mortgage or car loan without, pays for itself very quickly if its required and gives you time to protect your credit record or sell the assets

[Guest51810]

Im glad i checked if there was a aberdeen in australia before i answered that!! Good to hear that you've got interviews lined up.

[AJ]

Your getting a lot of interviews. Are they all willing to sponsor?

[PomPrincesses]

Yeah that's not an issue with 457, wish it was pr though