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What is negative gearing and what is it doing to housing affordability?

<a href="https://theconversation.com/profiles/michelle-cull-340911">Michelle Cull</a>, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a> Australia’s housing crisis is putting the <a href="https://www.mortgagechoice.com.au/guides/what-is-the-great-australian-dream/">Australian dream</a> to own one’s home out of reach for many. But it’s not just <a href="https://www.aihw.gov.au/reports/australias-welfare/home-ownership-and-housing-tenure">home ownership</a> that has been affected. Rental affordability has also become a serious issue. This has reignited the debate about negative gearing; whether or not it is fair and whether it holds the key to fixing the housing crisis. <h2>What is negative gearing?</h2> <a href="https://treasury.gov.au/review/tax-white-paper/negative-gearing">Negative gearing</a> refers to using borrowed money to invest in an asset so it results in a loss which can be claimed as a tax deduction against other income. For example, a property investment is negatively geared if the net rental income received is lower than the mortgage interest. The loss is then offset against other income, such as wages and salaries, which reduces the amount of income tax payable. Negative gearing is commonly used for property investments but also applies to other investments (such as shares). Investments can also be positively geared when net income from the investment is more than the interest on borrowings. The attractiveness of negative gearing in Australia is mainly due to its ability to reduce the amount of income tax. For this reason, it can be more beneficial to individuals who are on higher marginal tax rates. However, capital gains tax must be paid on any gain when the asset is sold. <h2>How does negative gearing work?</h2> Let’s look at a simple example of negative gearing. Say an investment property was rented to tenants at A$500 a week ($26,000 a year), and associated expenses (such as agent fees, rates, mortgage interest, maintenance) were $40,000 for the year. This leaves a shortfall of $14,000. The property owner can deduct the $14,000 from their taxable income to reduce their liability. For example if they received $100,000 from wages, they would pay tax on only $86,000 (saving $4,550 in income tax). Individuals on higher incomes and therefore higher marginal tax rates would receive larger tax deductions (for example, someone earning over $180,001 would pay $6,300 less tax). While negative gearing an investment property can reduce tax while it is being rented, it can also result in a large <a href="https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/what-is-capital-gains-tax">capital gains tax</a> bill once the property is sold (even though capital gains tax is halved for assets held for more than 12 months). For example, if the cost base for a property purchased ten years ago was $400,000 and it sells for $900,000 today, capital gains tax would be calculated on half of the $500,000 difference. At a marginal rate of 45%, the tax bill would be $112,500. <h2>How widespread is it in Australia?</h2> According to the <a href="https://data.gov.au/data/dataset/taxation-statistics-2020-21">Australian Taxation Office</a>, about 2.25 million individual tax payers (21% of all individual tax payers) claimed deductions against rental income for a total 3.25 million properties in 2020-21 financial year. Of these, 47% negatively geared their properties, claiming a net rental loss. This is equivalent to just less than 10% of all taxpayers. Investors with fewer properties were more likely to be using negative gearing with over 71% of property investors having only one investment property. <hr /> <iframe id="Wv9lV" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/Wv9lV/" width="100%" height="400px" frameborder="0"></iframe> <hr /> The largest group of property investors (524,220) had one investment property and a total annual taxable income between $50,001 and $100,000. The chart above shows the proportion of property investors by age group. From 2016-2017 to 2020-2021, the total net rental income on property investments in Australia went from a loss of $3.3 billion to a gain of $3.1 billion (as you can see from the chart below). For the same period, the proportion of investors negatively gearing their properties dropped from 58% to 47%, as lower interest rates reduced losses. <hr /> <iframe id="fXnoe" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/fXnoe/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Negative gearing is also becoming less attractive with the government’s recent changes to <a href="https://treasury.gov.au/tax-cuts">tax brackets and marginal tax rates</a>. According to a study conducted by <a href="https://www.pexa.com.au/staticly-media/2023/03/Whitepaper-2-Private-renting-in-Australia-a-broken-system_compressed-sm-1679450145.pdf">LongView and PEXA</a>, 60% of property investors would be financially better off if they instead put their money into a superannuation fund. <h2>When was it introduced?</h2> Negative gearing has been allowed under tax laws since 1936. It was thought it would encourage investment in housing and increase supply. However, debate around its impact on housing affordability led the government to partially abolish it in 1985 by not allowing rental property losses to reduce tax on other sources of income. There was a shortage of housing and rents rose during the two years it was abolished. As a result, in 1987, negative gearing was reinstated and capital gains tax legislation was introduced. <h2>Is it used in other countries?</h2> Canada, Germany, Japan and Norway use negative gearing. In Finland, France and the United States, rental losses can offset future rental income only. In the US, <a href="https://www.irs.gov/publications/p936#en_US_2023_publink1000229891">home owners are entitled</a> to claim a tax deduction for mortgage interest on their own home. The use and benefit of negative gearing depends upon all aspects of a country’s tax system. So although it may be attractive in countries with high marginal tax rates, other taxes such as capital gains tax, land tax and stamp duties may reduce its appeal. <h2>Negative gearing’s impact on housing affordability</h2> Many factors affect the cost of housing, including interest rates, inflation, employment, the overall taxation system and population growth, making housing affordability a complex issue. <a href="https://www.smh.com.au/politics/federal/nz-kills-tax-loophole-on-property-to-slow-soaring-house-prices-20210323-p57d9s.html">In New Zealand, negative gearing is being phased out</a> due to its impact on housing prices. However, unlike Australia, New Zealand does not have capital gains tax, making negative gearing more popular and more likely to impact housing prices. In addition to phasing out negative gearing, the New Zealand government <a href="https://www.hud.govt.nz/our-work/public-housing-plan/">increased the supply of public housing</a> and <a href="https://www.abc.net.au/news/2023-09-25/nz-auckland-house-supply-experiment-results-in-dramatic-change/102846126">relaxed zoning regulations</a> to provide more affordable housing. In Australia, however, there are concerns abolishing negative gearing will cause rents to rise, as they did in the 1980s. More innovative approaches to housing affordability are needed to ensure ample supply of property for first home buyers and tenants. Some consideration could be given to allowing first home buyers to claim a tax deduction for mortgage interest, increasing capital gains tax, limiting the number or type of investment properties held, capping rent increases, or more infrastructure investment from the government for first home buyers and social housing. One or more of these measures would be a step in the right direction. Negative gearing on its own is not the answer to housing affordability. The whole system needs an overhaul, with a combination of measures needed to adequately address affordability, for now and for future generations. Taking no action will put home ownership out of reach for even more Australians.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/223823/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/michelle-cull-340911">Michelle Cull</a>, Associate professor, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-is-negative-gearing-and-what-is-it-doing-to-housing-affordability-223823">original article</a>.

Money & Banking

Can’t afford a gym membership or fitness class? 3 things to include in a DIY exercise program

<a href="https://theconversation.com/profiles/lewis-ingram-1427671">Lewis Ingram</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>; <a href="https://theconversation.com/profiles/hunter-bennett-1053061">Hunter Bennett</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>, and <a href="https://theconversation.com/profiles/saravana-kumar-181105">Saravana Kumar</a>, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> With the rising cost of living, gyms memberships and fitness classes are becoming increasingly unaffordable. But the good news is you can make <a href="https://pubmed.ncbi.nlm.nih.gov/28655559/">just as much progress at home</a>. Cardiovascular endurance, muscle strength and flexibility are the <a href="https://www.acsm.org/docs/default-source/publications-files/acsms-exercise-testing-prescription.pdf?sfvrsn=111e9306_4">most important</a> components of fitness. And each can be trained with little or no equipment. Let’s look at why – and how – to fit them into your DIY exercise program. <h2>1. Cardiovascular endurance</h2> Cardiovascular endurance exercise (or “cardio”) forces the heart and lungs to increase the supply of oxygen to the working muscles. Heart disease is a <a href="https://www.who.int/news-room/fact-sheets/detail/the-top-10-causes-of-death">leading cause of death</a> and cardiovascular endurance exercise helps keep the heart healthy. The best thing about cardio is you don’t need any fancy equipment to do it. Walking, jogging and running are great options, as are cycling, skipping rope and swimming. There are two approaches to maximise cardiovascular endurance: <ul> <li> <a href="https://pubmed.ncbi.nlm.nih.gov/8897392/">high-intensity interval training</a> (HIIT) – short bouts of hard exercise (around 80% to 95% of your maximum heart rate) interspersed with lower intensity recovery periods (around 40% to 50% of your maximum heart rate) </li> <li> <a href="http://pubmed.ncbi.nlm.nih.gov/26664271/">low-intensity steady-state</a> (LISS) exercise – aerobic activity performed continuously at a low-to-moderate intensity (around 50% to 65% of your maximum heart rate) for an extended duration. </li> </ul> Both are great options. While high-intensity interval training can be more time efficient, low-intensity steady-state training might be more enjoyable and easier to sustain long-term. No matter what you choose, <a href="https://www.who.int/news-room/fact-sheets/detail/physical-activity">aim for</a> a minimum of 150 minutes of moderate-intensity or 75 minutes of vigorous-intensity cardiovascular exercise each week. For example, you could try 30 minutes, five days per week of low intensity cardio, or 25 minutes, three days per week of high-intensity activity, or a combination of the two. How do you know if you’re exercising at the right intensity? Smart watches that measure heart rate can help to monitor intensity. Or you can rely on the good old-fashioned <a href="https://pubmed.ncbi.nlm.nih.gov/25536539/">talk test</a>. During low-intensity activity, you should be able to speak in full sentences. Conversely, short phrases (initially) or single words (towards the end) should be all that’s manageable during high-intensity exercise. <h2>2. Muscle strength</h2> Next is muscle strength, which we train through resistance exercise. This is important for bone health, balance and metabolic health, especially as we age and our <a href="https://pubmed.ncbi.nlm.nih.gov/30276173/">muscle mass and strength declines</a>. Aim for two days per week of whole-body resistance exercise performed at a moderate or <a href="https://www.who.int/news-room/fact-sheets/detail/physical-activity">greater intensity</a>. Try to build two weekly sessions that target the major muscle groups. This could include: <ul> <li>squats – lower to the ground from standing by bending the hips, knees, and ankles while keeping the chest up tall before returning to standing by straightening the hips, knees and ankles</li> </ul> <ul> <li> <a href="https://www.physio-pedia.com/Hip_Hinge">hinges</a> – fold forward at the hips by pushing your bottom back to the wall behind you, keeping your back straight. A slight bend in the knees is fine but aim to keep your shins vertical </li> <li> <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7196742/">push-ups</a> – if a full push-up is too difficult, you can place your hands on a raised surface such as a step or a chair </li> <li> horizontal and vertical pull ups – using something like a portable chin up bar, which you can buy from sports supply stores </li> <li> vertical pushes – pushing an object (or weight) vertically from the top of your chest to an overhead position. </li> </ul> Once you have selected your exercises, <a href="https://pubmed.ncbi.nlm.nih.gov/35873210/">perform</a> 2–3 sets of 8–12 repetitions at a moderate to greater intensity, with about 90 seconds rest between each set. As you progress, continue to challenge your muscles by adding an extra set to each exercise, or including dumbbells, changing body position or wearing a backpack with weights. The goal should be to progress slightly each session. However, if you have any underlying health conditions, disabilities, or are unsure how best to do this, see an exercise physiologist or physiotherapist. <h2>3. Flexibility</h2> Improved flexibility can <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3273886/">increase your range of motion</a> and improve your ability to manage daily life. While we don’t know the <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3273886/">best means of increasing flexibility</a>, the most basic and readily accessible is static <a href="https://www.topendsports.com/testing/flex.htm">stretching</a>. Here, we lengthen the muscle – for example, the hamstrings, until we feel a “stretching” sensation. Hold that position for 15–30 seconds. While the precise intensity of this stretching sensation <a href="https://pubmed.ncbi.nlm.nih.gov/26347668/">remains elusive</a>, <a href="https://pubmed.ncbi.nlm.nih.gov/29506306/">around 5–10 minutes</a> per week per <a href="https://exrx.net/Lists/Directory">muscle group</a>, spread across five days, seems to provide the best results. <h2>How to stick with it?</h2> The best exercise is the one that gets done. So, whatever you choose, make sure you enjoy it. After all, it’s about creating an ongoing commitment to exercise that will deliver long-term health benefits. It’s also important to ensure you’re ready to exercise, especially if you have any underlying health issues, have been previously inactive, or are unsure how to start. A <a href="https://www.ausactive.org.au/apss">pre-exercise screening</a> can help you to determine whether you should see a doctor or allied health professional before starting an exercise program and for guidance on the next steps. <img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/206204/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/lewis-ingram-1427671">Lewis Ingram</a>, Lecturer in Physiotherapy, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>; <a href="https://theconversation.com/profiles/hunter-bennett-1053061">Hunter Bennett</a>, Lecturer in Exercise Science, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a>, and <a href="https://theconversation.com/profiles/saravana-kumar-181105">Saravana Kumar</a>, Professor in Allied Health and Health Services Research, <a href="https://theconversation.com/institutions/university-of-south-australia-1180">University of South Australia</a> Image credits: Getty Images This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/cant-afford-a-gym-membership-or-fitness-class-3-things-to-include-in-a-diy-exercise-program-206204">original article</a>.

Body

A guide to affordable art

The art world can seem intimidating from the outside, but buying striking pieces of art is one of life’s great pleasures and can transform a room instantly. What’s your style? Go and see as much art as you can to help determine the style you’re most drawn to. Look for student sales at art schools, auctions, antiques fairs and local galleries. Flick through art history books, go to museums and do some online research about any artists you like. Keep an open mind. When we think of art we tend to think of paintings, but look at photography and sculptures too. You might discover that’s where your art heart lies. Prints vs originals Many people write off prints as nothing more than posters, but a print is still an original work of art. The artist creates each print by hand, creating an original image on a surface such as wood, rubber, stone or metal, applies colour and then creates a print on paper. They make great entry-level art. Reproductions are more like inexpensive posters, and there’s nothing wrong with starting off with some posters you love, beautifully framed and well positioned. Original works are naturally the most expensive way to buy art as they are one of a kind. Imagine a best-selling author only allowing one person to own their book, or a director only letting one person see their movie. You are buying the art in its entirety: the idea, the craftmanship, the artists’ time, talent and the materials and any future gain in value. How do I make a good investment? Unless you’re planning to become a serious art collector, the most important two questions you should ask yourself when buying art are: do I love it? Can I afford it? Buying something in the hope its value might go up is risky. If there’s an emerging artist you like whose career trajectory seems to be on the up, then go for it and you might get lucky. But still don’t buy it unless you love it. Should I buy online? You’ll find an enormous choice online. Research the artist, try to see some of their work in the flesh before you take the plunge, and make sure you measure up so you know exactly the size of the artwork and whether it will look good in your space. How do I display it? If you buy from a gallery, ask them for framing advice or to frame it for you, or take it to a framer to make sure you’re making the most of it. Talk to them about whether UV glass would be suitable, to protect the art from sun damage. Always hang art at eye level and in a place where you will get the most enjoyment from it, and never in the bathroom where there’s too much moisture. Image credits: Getty Images

Art

This could be Australia's most affordable mansion

What could well be Australia’s cheapest mansion has been found – and it's listed for roughly a quarter of the value of Sydney’s median house price. 89 Harris Street in Queensland's coastal town of Emerald is a Spanish-style property located three hours inland from Rockhampton, and it's on the market with an asking price of just $360,000. With a sweeping footprint, four bedrooms and statement kerb presence flourished by nine handsome arches, it is a true bargain. "EXTENSA MANSIÓN ESPAÑOLA!" headlines the listing. In English it translates to "extensive Spanish mansion". The town has experienced strong house price growth over the past five years. "This sprawling Spanish type mansion is one of a kind for sure. Extremely deceptive from the street, you will not believe the layout of this home," the listing reads. The vendors paid $300,000 for the five-bedroom, Spanish Mission-inspired property nine years ago, Domain's Pricefinder data shows. They scored it for under the asking price at the time, with historical campaign records on Pricefinder showing a $400,000 price guide. A mid-range home in Sydney, Australia's highest-value capital city, hovers around a median of $1,552,000. Inside Harris Street, vast red-tiled floors, wood chandeliers, a fireplace with an ornate chimney and decorative sconces in the living rooms and bedrooms lend character true to the Spanish style. The outdoor zone shows enormous promise, with a deep patio and large, built-in brick barbecue beneath an angled roof, with exposed beams. The median house price in Emerald is $345,000, according to Domain's latest House Price Report. Image: Getty

Real Estate

Will you be able to afford to retire?

It was once likely that you’d die before retiring; it’s now highly probable that there will be a gap of several (or even many) years between when you permanently leave the workforce and when you die. How are you going to survive when you’re no longer willing or able to swap your time for money? A friend recently remarked to me that his work made him feel like a consumable part in a big machine. That sounds brutal, but there is a truth in it, and a revelation that we have to use our productive time to set ourselves up for life after we’ve ‘worn out’. So how do you plan to survive once you’ve retired? Here are four possible sources of income to pay your lifestyle expenses: Welfare The age pension is a subsistence payment that’s barely enough to survive on. It isn’t an option you’ll want to rely upon solely in your retirement years. Even when used as a supplement to other income, the age pension is still welfare—it’s not an entitlement nor a return of taxes paid. And don’t forget, the age pension is only available to those with insufficient income or assets to look after themselves. Any financial plan that causes you to rely on a subsistence payment in retirement is surely a poor one, leading to a poor outcome. Compulsory super Do you know that superannuation has a two-fold meaning? The more well-known one is your retirement savings available for survival once you retire. However less well-known is this: a stage in life when you become obsolete for full-time work. The superannuation (aka super) that employers deduct from your pay is sent directly to your nominated superannuation fund. The money invested in superannuation is usually locked away until after retirement and can’t be easily accessed. The profits made are concessionally taxed and reinvested to boost your super balance. A burning question many people wonder is ‘will I have enough super to survive in retirement?’ Sadly, the answer for many is no. The gap might be able to be closed if you qualify for the age pension or draw down on your superannuation balance or other assets, but the reality is more likely that you will have to downsize your living standards to lower your living expenses. Voluntary super What about occasionally topping up your superannuation account voluntarily by making some extra contributions? Well, that may be a good idea if you’re not too far off retirement (10 years or less). However, for others, locking away inaccessible money for decades may result in a severe loss of flexibility, which makes this option quite unattractive. There are also limits on how much can be voluntarily contributed on tax-effective terms. Super sufficient You can, of course, save and invest outside the superannuation regime, in your own name or using an entity such as a company or a trust (e.g. family trust, unit trust). These are non-superannuation assets, and they generate non-superannuation investment income. Such income can be used to pay for your lifestyle expenses at any time, not just after you’ve retired, or better yet, used to purchase other non-superannuation assets or to make voluntary contributions into your superannuation fund. While investing profits outside superannuation may be taxed at higher rates, the money is not locked away until retirement, and so you can use it to fund your financial freedom and avoid having to work until you are at least 60 years old. The ideal goal to aim for is to be what I call ‘super sufficient’ - an outcome where your investment income exceeds your tax and living expenses, so you can live independently without the fear of running out of money because you’ll never have to eat into your capital. So, which option is best? Well, the answer depends on your circumstances, choices and chances. Time is the biggest consideration. The less of it you have, the fewer options are available. If you’re in your 60s or older and don’t have much investment income or capital, then your choices are limited, and you’ll likely have to reign in your living expenses and perhaps rely on the age pension. Younger people need to make the most of the time they have left until retirement, because the longer your investing horizon, the greater your ability to benefit from compounding. Don’t limit yourself to one option; be smart and keep your options open. Consider all the options in some sort of combination: the age pension (to the extent you qualify for it), money inside superannuation (topped up when your circumstances say it is sensible to do so) and wealth outside of superannuation that you can access as needed before you retire. You might be lucky some of the time, but you can’t be lucky all of the time. I’ve found that while luck does have a role to play, investing skill is a far bigger determinant of an investor’s long-term success. If you want to improve your chances, your choices, or your circumstances, then invest inwards by improving your financial knowledge and ability before investing outwards and acquiring investments. Edited extract from Steve McKnight’s Money Magnet: How to Attract and Keep a Fortune that Counts (Wiley $32.95), now available at all leading retailers. Visit www.moneymagnet.au Image: Getty Images

Money & Banking

Auckland leads by example to battle housing affordability

Relaxing planning rules could be the solution for the housing crisis, by both increasing the housing supply and helping rent and property prices to fall by as much as 12.5 percent, according to new research. After Auckland “up-zoned” three quarters of the city in 2016, meaning that townhouses, terraces and units were allowed to be built within 20 kilometres of the CBD under the city’s planning laws, the number of homes in the New Zealand city has increased by five percent over the past five years, according to the report, The Impact of Up-zoning on Housing Construction in Auckland. Dr Ryan Greenaway-McGrevy, a University of Auckland professor of economics and one of the report’s authors, said that relaxing planning laws helped increase housing supply significantly “The punchline is the policy did encourage, certainly, higher rates of construction and dwelling stock,” Greenaway-McGrevy told <a href="https://www.smh.com.au/property/news/how-to-make-housing-cheaper-according-to-new-research-20220725-p5b4e0.html" target="_blank" rel="noopener">The Sydney Morning Herald</a>. “And it will increase over time.” As for housing affordability crises in other countries and cities, Greenaway-McGrevy said broad applications of up-zoning - rather than selective applications attempted in other countries - was the key to Auckland’s success. “The point of difference [in Auckland] is just the sheer pervasiveness of the up-zoning policy. We’re not talking about transit-oriented up-zoning areas. We’re talking about the close-to-blanket inner suburban area of Auckland,” he said. “We’ve had a larger area of construction and a much higher uptake.” “If cities are considering up-zoning they really need to shy away from only small, targeted areas that are permitted to build up and think about implementing the policy more broadly. “I certainly think any policymakers or commentators thinking about how to tackle housing affordability in Sydney and Melbourne should look to Auckland in greater detail.” He said up-zoning can also decrease the construction cost of property types that aren’t land-intensive, such as townhouses, apartments and terraces, while also meaning that fewer households would be consigned to far-flung urban areas and required to use carbon emissions-heavy commuting. Greenaway-McGrevy added that these benefits far outweigh the costs of preserving a city’s heritage by banning high-density properties within a certain proximity. “At this point, is it worth, as a society, preserving those character neighbourhoods when it comes at the cost of housing that costs 10 times incomes or more, forcing young families into these really long commutes where they don’t have time to spend with their kids?” he said. “If you’re interested in preserving the heritage of a suburb, I’d suggest we focus on the people, and the kinds of people and kinds of families that make up those suburbs rather than the buildings.” Peter Tulip, the chief economist for the Centre for Independent Studies, said the research showed that allowing for more buildings to be constructed resulted in a reduction in property prices. “A substantial relaxation of planning restrictions would enable more construction and hence less expensive housing,” Tulip said. “A standard rule of thumb is that every percentage point in the housing stock lowers the cost of housing by 2.5 per cent. So, a 5 per cent increase in housing stock would lower the cost of housing by 12.5 per cent.” Meanwhile, Grattan Institute’s economic policy program director Brendan Coates said increasing the stock of homes across Australian major cities would reduce rental costs and property prices by at least 10 percent. He noted that current planning laws heavily favour existing homeowners, and that prioritising heritage over supply would turn our cities into “living mausoleums”. “There’s a trade-off: you can either accept more housing will be built that have good access to amenities … Or you accept your kids or your grandkids don’t have a home near where you live, and Australia as a society will be poorer than it should be because we fail to build the housing we need to accommodate our growing population,” Coates said. “Heritage, for example, is an incredibly expensive way of protecting our memory of our cities’ history. You basically turn Australian cities into living mausoleums.” Image: Getty Images

Real Estate

More affordable housing with less homelessness is possible – if only Australia would learn from Nordic nations

Housing is expensive in Australia. But it doesn’t have to be this way. Higher quality, more affordable housing is a matter of policy choice. A key problem is Australia’s housing market is too skewed towards treating housing as a financial asset, rather than a basic human need. There is almost a universal consensus among economists, for example, that negative gearing <a href="https://theconversation.com/vital-signs-why-now-is-the-right-time-to-clamp-down-on-negative-gearing-107370">favours the interests of investors</a>to the detriment of others, but both major parties are scared to change the policy. One way to break the policy stalemate is to consider policies shown to have worked in other countries. To facilitate this, the Nordic Policy Centre – a collaboration between The Australia Institute and Deakin University – has <a href="https://australiainstitute.org.au/report/homes-for-people/">published an overview</a> of housing and homelessness policies in Sweden, Norway, Denmark and Finland. Of particular note among the wide range of housing policies in these nations is the prominence of housing cooperatives, which assist both renters and those wanting to own a secure, high-quality home. <h2>Why Nordic countries?</h2> Why look at the Nordic countries? One reason is their relative success in tackling homelessness. Finland is the world leader in this. There, the number of people experiencing homelessness has fallen from more than 16,000 people in the late 1980s to about 4,500 people in 2020. This represents a homelessness rate of less than one per 1,000 (Finland’s population is about 5.5 million) compared with nearly five per 1,000 in Australia. Homelessness, granted, is more complicated than just the cost of housing. It involves family and relationship trauma, physical and mental health issues, and substance use. The Finns’ achievement is due to a range of policy responses including strong outreach services. But underpinnning these responses is the Finnish government’s “<a href="https://housingfirsteurope.eu/countries/finland/">Housing First</a>” principle, adopted in 2007, which says people have a right to decent housing and to useful social services. It’s a seemingly simple concept, but radically inclusive compared with how other countries deal with the homeless. <h2>Vibrant cooperative sectors</h2> In Australia, housing cooperatives might conjure up images of small hippie communes. This is an unfair characterisation, borne of the fact the sector is so tiny and unknown. All up, cooperative housing comprises less than 1% of the Australian housing sector, with about <a href="https://researchdirect.westernsydney.edu.au/islandora/object/uws:53637/">200 housing cooperatives</a>mostly focused on providing affordable rental housing. In Nordic countries, however, housing cooperatives are a mainstream option for both renters and owners. Sweden’s cooperative sector amounts to 22% of total housing stock. Norway’s represent 15% nationwide, and 40% in the capital, Oslo. In Denmark, more than 20% of the population lives in cooperative housing. <h2>How cooperative housing works</h2> Cooperatives take a variety of forms. But the key features are that they are democratically organised and exist to serve a real economic or social need of their members. Rental housing cooperatives exist to provide housing, not accrue wealth. They pool common resources to own and manage affordable rental accommodation. Tenants are generally required to become members and encouraged to be actively involved in decision-making, management and maintenance. Any revenue from rents is reinvested in new housing projects or upgrading older buildings. In Denmark, rental cooperative housing – known as Almenboliger– plays a critical role in providing affordable housing for a range of people, including the elderly and those with disabilities. Its non-profit orientation as well as supportive government policies – such as lower-interest loans – enable cooperatives to reduce construction costs and offer lower rents. In Norway, national law allows 10% of units in a housing cooperative complex to be bought or used by local government authorities to house people who can’t afford alternatives. Housing cooperatives in Oslo have been vital for securing decent housing for immigrants and for older people. <h2>A path to home ownership</h2> Just as important in terms of lessons for Australia is that Nordic housing cooperatives also play a big role in helping people buy a home. So-called “equity-based” housing cooperatives in Sweden, Norway and Denmark help reduce the cost of home ownership. This generally involves the cooperative building or buying an apartment or unit block, then allowing members to buy individual homes, while the cooperative retains ownership of common areas. Members own their individual dwellings and co-own and manage shared spaces with other co-op members. The structure is similar to strata title in Australia, with individual ownership of some parts of a property and shared ownership of others. The big difference is strata title is often “investor-owned”, while a housing cooperative is “user-owned”. The result is that members can buy a home for about 20% less than what it would cost them otherwise. <h2>More collaboration needed</h2> Not everything the Nordic countries do can be replicated in Australian conditions. But one thing we can certainly learn is the importance of collaboration between different tiers of government and civil society organisations. Australia’s superannuation funds, for example, have the means to invest in low-returning, but very safe, affordable housing assets. Government policies should support them doing this through cooperative structures that help to fill the gap between market and state. There’s no quick fix. Emulating any Nordic housing policy achievements will take decades. Finland’s <a href="https://ysaatio.fi/en/hom">critical organisation</a> for tackling homelessness, for example, was established in 1985. But better housing options are there in plain sight, waiting for policy makers and other stakeholders to take them. If they want to. Image credits: Getty Images This article originally appeared on <a href="https://theconversation.com/more-affordable-housing-with-less-homelessness-is-possible-if-only-australia-would-learn-from-nordic-nations-182049" target="_blank" rel="noopener">The Conversation</a>.

Real Estate

The most affordable international destinations

Now that international borders are beginning to open, many are searching for an unforgettable overseas holiday that won’t break the bank. As global tourism hubs kick back into gear, there are plenty of great deals to be found to get people out and exploring. Here are just some of the cheapest international destinations that should make their way onto your travel bucket list sooner rather than later. Fiji With return airfares currently on offer from under $600, the sandy shores of Fiji have something for everyone. Whether you're into adrenaline sports or swanning around in luxurious resorts, you will no doubt find what you're looking for on this picturesque island. Fiji offers experiences such as snorkelling, quad bike adventures and skydiving, as well as day clubs, hot springs and the most relaxing beach experiences in the world. Singapore This city-state offers big ticket attractions the whole family can enjoy, world-class shopping and dining, and a rich cultural experience for everyone who visits. With a return airfare going for less than $500, this bustling city getaway is a must-see for any keen traveller. This great year-round destination boasts theme parks, child-friendly hotels and some of the most luxurious resorts in the world. Bali Bali has long been a fan favourite destination for cost-savvy travellers, with prices continuing to be ridiculously low. The Indonesian paradise boasts a rich heritage and culture, with over 20,000 temples offering a once in a lifetime experience. The key to Bali is relaxation, with local cuisine being followed by an hour-long massage that costs less than a cup of coffee in Australia. Thailand From picturesque beaches, exciting nightlife and incredible food all for insanely low prices, Thailand is a must-visit location. The Thai Government has shared another reason to visit, by reopening Maya Cove (the cove made famous by The Beach) after a three-year closure. With over 1,400 gorgeous islands anchored in cerulean waters, there is a spot for everyone to relax like royalty, costing next to nothing. Image credits: Getty Images

International Travel

Affordable housing lessons from Sydney, Hong Kong and Singapore: 3 keys to getting the policy mix right

Affordable housing is a critical problem for Australia’s biggest housing markets. Five Australian cities are in the top 25 with “severely unaffordable” housing in a <a href="http://www.demographia.com/dhi.pdf">2019 Demographia survey</a> of 91 major metropolitan markets. Sydney was <a href="https://www.mortgagebusiness.com.au/breaking-news/13059-australia-s-housing-market-remains-severely-unaffordable">ranked the third least affordable</a> of the 91. The <a href="https://www.realestate.com.au/news/meet-australias-oldest-person-to-buy-their-first-home-this-spring/">average age of first-time buyers in Sydney has reached 38</a>. And, <a href="https://www.finder.com.au/how-much-of-our-wages-do-we-spend-on-rent-in-australia">on average, tenants spend more than 30% of their income on rent</a>. Those who entered the <a href="https://www.facs.nsw.gov.au/housing/help/applying-assistance/expected-waiting-times">Sydney market 10-15 years ago are more likely to find their housing affordable</a>. Cities with housing affordability issues have introduced various policy packages in response. This article compares the policies of Singapore, where housing is relatively affordable, Hong Kong (the <a href="http://www.demographia.com/dhi.pdf">world’s least affordable private housing market</a>) and Sydney. Our review shows a need for coherent and coordinated housing policies – a synergistic approach that multiplies the impacts of individual policies. Housing has direct impacts on people’s well-being. A housing market that works well may also enhance the economic productivity of a city. If not handled properly, housing affordability issues may trigger economic and political crises. Our review covers several aspects. <h2>A balance of renters and owners</h2> First, an affordable housing system needs to be about both the rental and ownership sectors. In Singapore, <a href="https://www.hdb.gov.sg/cs/infoweb/about-us">public housing provided by the Housing and Development Board</a> makes up 73% of Singapore’s total housing stock, which includes public rental and subsidised ownership. HDB flats house over 80% of Singapore’s resident population, with about 90% owning their homes. The average waiting time to get public housing is three to four years. Public housing is also important, although to a lesser extent, in Hong Kong. In this city, <a href="https://www.scmp.com/news/hong-kong/society/article/2182106/why-public-housing-shortfall-will-remain-thorn-hong-kongs#targetText=Public%20rental%20housing%20estates%20found,cent%20of%20Hong%20Kong's%20population.">44.7% of the population live in public housing</a>. The <a href="https://www.housingauthority.gov.hk/tc/about-us/publications-and-statistics/prh-applications-average-waiting-time/index.html">average waiting time is three to five years</a>, depending on household type. In both cities, subsidised rental and subsidised ownership are an integral part of the public housing system, which aims to improve housing affordability. Sydney takes a very different approach. <a href="https://www.aihw.gov.au/reports/hou/296/housing-assistance-in-australia-2018/contents/social-housing-dwellings">Social rental housing provides only 5.56% of housing</a> and <a href="https://theconversation.com/focus-on-managing-social-housing-waiting-lists-is-failing-low-income-households-120675">covers only low-income households in “priority need”</a>. The average waiting time to get into social housing is <a href="https://www.facs.nsw.gov.au/housing/help/applying-assistance/expected-waiting-times.">five to ten years</a>. Although there are other policy measures to support home buying and rental (such as the National Rental Affordability Scheme), these are not integrated with the public housing system in Sydney. Rather, the goal of these policies is to support the private housing market. <h2>It’s not just about housing supply</h2> Second, housing affordability needs to be backed up by demand-side policies – i.e. policies to help tenants and owners to develop financial capacity. Despite its heavy state intervention, Singapore’s public housing stresses the responsibility of individuals. The <a href="https://www.cpf.gov.sg/Members/AboutUs/about-us-info/cpf-overview">Housing Provident Fund</a> is a <a href="https://www.eastasiaforum.org/2019/03/15/singapores-mechanism-design-approach-to-housing-policy/">form of forced savings</a> for housing, retirement, health and education, among other things. It is <a href="https://pdfs.semanticscholar.org/84e6/28299b345dcba34d328112424990cf1cabc2.pdf">integrated with the pension system to enhance the efficiency of savings</a>. Forced savings are not available in Hong Kong and Sydney for housing purposes. Since 2017 <a href="https://theconversation.com/budget-needs-a-sharper-policy-scalpel-to-help-first-home-buyers-76791">first home buyers in Australia have been able to draw on their voluntary superannuation contributions</a> for a deposit. <h2>Work-life balance matters</h2> Third, action on housing affordability needs to take employment and its location into account. Ultimately, the reason people find it hard to afford housing in certain locations is because they need to achieve a work-life balance. Both <a href="https://www.citymetric.com/transport/no-hong-kong-has-best-transport-system-world-mtr-trams-boats-4148">Hong Kong</a> and <a href="https://en.wikipedia.org/wiki/Transport_in_Singapore#Public_transport">Singapore</a> have developed extensive public transport systems. These offer affordable options for people to travel efficiently to and from work. In Hong Kong, the average daily commuting time by public transport is 73 minutes. Some 21% of the residents have to travel for more than two hours a day. In Singapore, average commuting time is 84 minutes, with 25% exceeding two hours. In Sydney, the average time is 82 minutes, but 31% take more than two hours. This means a significantly <a href="https://moovitapp.com/insights/en-gb/Moovit_Insights_Public_Transport_Index-1678">larger proportion of Sydney residents spend more time on public transport</a>. Among the <a href="http://theconversation.com/another-tale-of-two-cities-access-to-jobs-divides-sydney-along-the-latte-line-96907">worst-affected are white-collar workers from the city’s west and southwest</a>. <h2>Lessons from the 3 cities</h2> So, what we can learn from these cities’ experiences with housing affordability? Cities take very different approaches to these issues. Each approach has its own merits and issues. A key argument against public housing has been that it might give the tenants less incentive to save for housing. It might also not be popular with mainstream voters because of the cost to taxpayers. Singapore’s approach seems to be a midway solution. The government plays a bigger role in providing housing, but does not waive individual responsibilities. Providing public housing and at the same time demanding individuals and employers contribute can send a strong signal: people are encouraged to join the labour force. So far, Singapore faces the least housing affordability issues. Hong Kong and Sydney are much more liberal in their approaches to housing. In Sydney, only the poorest benefit from the public housing system. The younger generation is struggling to get on the housing ladder. In Hong Kong, people are forced to buy housing in the commercial market if their income is even just above the eligibility line for public housing. The severe unaffordability of private housing in Hong Kong, even for young professionals, brews social discontent. Combining these three perspectives, Sydney’s housing, savings and public transport systems are far from well synergised to offer a competitive package of affordable housing. The <a href="https://www.greater.sydney/metropolis-of-three-cities">30-minute city plan</a> prepared by the Greater Sydney Commission might improve the situation. However, similar to Hong Kong, current policies are weak in building the capacity of young people to own homes.<img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/123443/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/youqing-fan-483837">Youqing Fan</a>, Lecturer, <a href="https://theconversation.com/institutions/western-sydney-university-1092">Western Sydney University</a>; <a href="https://theconversation.com/profiles/bingqin-li-425950">Bingqin Li</a>, Associate Professor and Director of Chinese Social Policy Program, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a>, and <a href="https://theconversation.com/profiles/chyi-lin-lee-368009">Chyi Lin Lee</a>, Associate Professor of Property, <a href="https://theconversation.com/institutions/unsw-1414">UNSW</a> This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/affordable-housing-lessons-from-sydney-hong-kong-and-singapore-3-keys-to-getting-the-policy-mix-right-123443">original article</a>. Image: Bill Roque/Shutterstock

Home Hints & Tips

ALDI releases insanely affordable family dinner option

If you’ve ever been drawn to the convenience of a meal kit - where everything is included and you just have to cook it - this is the news for you. ALDI, known for their exclusive and own-brand food products that have attracted so many loyal fans, has launched its first series of DIY cooking kits. So what sets these apart from the dozens of other meal kits? For one thing, you can pick them up during your weekly shop and avoid the online ordering and commitment that comes with subscription-based kits. The second, and most important thing, is the low price, at just $3.99 a kit. Though they aren’t as comprehensive as kits such as Hello Fresh, they are still worth it. Unlike the standard sauce with noodles or rice kits already available in supermarkets, these ones include all the veggies you’ll need, already prepped. The one thing you’ll need to pick up yourself are the necessary proteins and carbohydrates. Though the kits require you to purchase your noodles and chicken as well, they still feed a family of four for about $14, or $3.50 per person. Plus, you can easily substitute items for ones you prefer. Each kit comes with a QR code that takes you to demonstrations that will walk you through each recipe, saving you from having to worry or plan dinner when you’re out of energy or time.

Food & Wine

The coronavirus survival challenge for NZ tourism: affordability and sustainability

Until a trans-Tasman travel bubble is <a href="https://www.abc.net.au/news/2020-05-04/trans-tasman-bubble-coronavirus-what-might-happen-next/12212580">established</a>, there is little doubt the New Zealand tourism industry will <a href="https://www.rnz.co.nz/news/national/413845/covid-19-domestic-travellers-eyed-to-keep-tourism-sector-viable-after-lockdown">rely entirely</a> on domestic travel post-COVID-19. Without underplaying the impact the pandemic will have on discretionary spending in both countries, however, there may be a silver lining to the crisis. New Zealand is in the fortunate position of having an <a href="https://tia.org.nz/about-the-industry/quick-facts-and-figures/">already strong</a> domestic tourism sector. Domestic tourists spent NZ$23.7 billion annually (or NZ$65 million a day) pre-COVID-19, compared to a total spend of NZ$12.7 billion (or NZ$47 million a day) by international visitors. <a href="https://openrepository.aut.ac.nz/handle/10292/11857">Research</a> pre-COVID-19 showed 65% of New Zealanders wanted to explore more of their country, a figure expected to increase. True, New Zealanders generally don’t have the deep pockets international tourists have. Their higher overall spend is a reflection of their numbers, not their bank balances. But with the big ticket tourist attractions now missing the bigger spenders, the market will rule. Regional tourism organisations, attractions and operators may need to rethink their offerings and their pricing. While tramping the <a href="https://www.doc.govt.nz/parks-and-recreation/things-to-do/walking-and-tramping/great-walks/">great walks</a> may be perfectly affordable for a family of four, taking the family on a whale watch, a bungy jump or a cruise on Milford Sound may not be – especially as parts of one big holiday. Indeed, it has been found that <a href="https://openrepository.aut.ac.nz/handle/10292/11857">price</a> is the major decision-making factor for 30% of New Zealanders when it comes to holidays. So this is also an opportunity to give New Zealanders back a piece of the summer pie – not only for the COVID-19 recovery but in the longer term. Summers have tended to be characterised by a large influx of international tourists, with Kiwis settling for shoulder seasons (and unfavourable weather) to tramp the famous tracks when they are <a href="https://www.stuff.co.nz/environment/99088942/tourists-outnumber-new-zealanders-on-the-great-walks--and-the-gaps-growing">less crowded</a>. But domestic tourists who have grown accustomed to off-peak holidays away from high-cost destinations will soon tip the scales. Now is the time for operators to win back their hearts. With New Zealand’s gradual easing of its strict lockdown (possibly to the stage of allowing non-essential travel by mid-May), tourism can clearly support the economic revival of local communities. The challenge is how to reinvent New Zealand tourism as an initially purely domestic industry. Overall, only a handful of New Zealand destinations have depended entirely on international tourists. These also happen to be the places most heavily associated with overtourism in the past. Given that the <a href="https://www.tandfonline.com/doi/full/10.1080/14616688.2020.1759131">growth model</a> driven by short-term, dollars-first business thinking has led to an <a href="https://www.noted.co.nz/money/money-economy/nz-tourists-should-we-limit-number-visitors">unsustainable</a> tourism market, might this also be a chance to restore some equilibrium? That will mean no more killing the goose that lays the <a href="https://www.pce.parliament.nz/publications/pristine-popular-imperilled-the-environmental-consequences-of-projected-tourism-growth">golden egg</a>. Some hotspots, such as the <a href="https://www.tongarirocrossing.org.nz/">Tongariro Alpine Crossing</a> and <a href="https://www.thecoromandel.com/activities/must-do/hot-water-beach/">Coromandel’s Hot Water Beach</a> may be managed by restricting visitor numbers. Such strategies have long been in place in other places, such as the <a href="https://www.doc.govt.nz/parks-and-recreation/places-to-go/fiordland/places/fiordland-national-park/things-to-do/tracks/milford-track/">booking requirement</a> for the Milford Track. We have also seen tremendous problems associated with too many cruise ships in too small places. Akaroa is a prime example, and limiting both the number of visits and the size of vessels may be a feasible <a href="https://www.radionz.co.nz/audio/player?audio_id=2018685520">future strategy</a>. As part of our own research (yet to be published) into the pressing issues of overtourism we conducted interviews with various tourism stakeholders around New Zealand, including city and regional councils, the Department of Conservation, residents and operators. This took place just before New Zealand’s strictest lockdown level was imposed, without any real foreknowledge of the eventual economic impact of COVID-19. Nonetheless, our interviewees shared very similar sentiments when it came to how the industry can evolve sustainably only if New Zealanders themselves embrace the behaviours they expect (and sometimes demand) of foreign tourists. According to our subjects, too many Kiwis still hold on to a past when the country’s population was half its current size and SUVs and large motorhomes didn’t crowd the roads and parking lots. Initiatives such as the <a href="https://tiakinewzealand.com/">Tiaki Promise</a>, which promote environmental and cultural sensitivity to tourists, have largely targeted international visitors. These now need to turn the lens inwards so that Kiwis become better ambassadors within their own backyard. Kiwis love their country, but they will now need to truly discover what it has to offer, not only for a weekend of tramping or a quick getaway, but for their main summer holiday. And they will have to become better kaitiaki (or guardians) of their homeland in the process. The absence of international tourists will be a huge challenge, but also an opportunity. If we get it right, when those foreign visitors are allowed to return (most likely at first from Australia) we will have found ways to grow – or limit – their numbers and their expectations so that our tourism industry can thrive as well as survive. Written by Sabrina Seeler and Michael Lueck. Republished with permission of <a href="https://theconversation.com/the-coronavirus-survival-challenge-for-nz-tourism-affordability-and-sustainability-137256">The Conversation.</a>

Cruising

Growing numbers of renters are trapped for years in homes they can't afford

Low-income tenants in Australia are increasingly likely to be trapped in rental stress for years. <a href="https://www.pc.gov.au/research/completed/renhters/private-renters.pdf">New evidence</a> from the Productivity Commission shows almost half of such “rent-burdened” private tenants are likely to remain stuck in this situation for at least half a decade. Rental stress is where a low-income tenant faces housing costs that leave them without enough income for food, clothing and other essentials. The scale of the problem – <a href="https://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1370.0%7E2010%7EChapter%7ERental%20stress%20(5.4.2.1)">commonly defined as when rent eats up more than 30% of income</a> – is usually presented as a “point in time” or snapshot statistic. As the Productivity Commission report reveals, the snapshot number in this situation has increased from 48% of low-income renters in 1995 to 54% in 2018. That’s around 1.5 million people pushed into poverty by high housing costs. For some, of course, this will be only a temporary problem. On this basis, it is sometimes argued that concerns over Australia’s high rate of rental stress are overstated. However, the Productivity Commission report, <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf">Vulnerable Private Renters: Evidence and Options</a>, highlights longitudinal survey evidence showing that a low-income tenant’s experience of rental stress is increasingly likely to be long-term – not a passing problem. As the commission notes: <blockquote> […] a growing number of households find themselves stuck in rental stress. </blockquote> What is the evidence for this? This conclusion stems from a comparison of two different tenant cohorts experiencing rental stress as revealed by survey data for 2001 and 2013. Less than a third (31%) of the 2001 cohort remained in stress five years later. But almost half (46%) of the 2013 cohort were. <a href="https://images.theconversation.com/files/296994/original/file-20191015-98657-1evkw2.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/296994/original/file-20191015-98657-1evkw2.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> While many people exit rental stress quickly, the proportion of private. low-income renters in long-term rental stress has increased significantly. <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" class="source">Vulnerable Private Renters: Evidence and Options, Productivity Commission</a>, <a href="http://creativecommons.org/licenses/by/4.0/" class="license">CC BY</a> So, it’s not just that more low-income earners are paying unaffordable rents at a particular point in time. This is increasingly a situation that affected private tenants cannot escape. Beyond the obvious welfare impacts, <a href="https://cityfutures.be.unsw.edu.au/documents/515/Full_Report_Final_edited_logos.pdf">recent work</a> argues that excessive rent burdens may also damage human capital and, as a result, reduce economic productivity. The commission’s findings seem to suggest the ongoing restructuring of Australia’s labour market and housing system is eroding socioeconomic and/or housing mobility. The report notes the significant fall in the numbers who manage to move from renting to owning – from 13.6% of renters in the period 2001-04 to 10.0% from 2013-16. Perhaps slightly more surprising is the commission’s explanation for the rising rate of (point in time) rental stress for all low-income tenants. According to the report, this results not from increasing unaffordability for the private renter cohort specifically, but from the growing dominance of private rental housing as the tenure in which low-income households live. <a href="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=1000&fit=clip"><img src="https://images.theconversation.com/files/296993/original/file-20191015-98661-b2ne0v.PNG?ixlib=rb-1.1.0&q=45&auto=format&w=754&fit=clip" alt="" /></a> The number of private renters has grown as the proportions of owner occupiers and public housing tenants have fallen. <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf" class="source">Vulnerable Private Renters: Evidence and Options, Productivity Commission</a>, <a href="http://creativecommons.org/licenses/by/4.0/" class="license">CC BY</a> This, of course, results from the post-1990s <a href="https://theconversation.com/australia-needs-to-reboot-affordable-housing-funding-not-scrap-it-72861">failure of Australian governments</a> to expand the supply of social housing to match population growth. By 2018, well over two-thirds (71%) of low-income tenants were <a href="https://www.pc.gov.au/research/completed/renters/private-renters.pdf">renting in the (relatively expensive) private market</a> – rather than from a (rent-limiting) social landlord. Back in 1996, barely half (52%) of them were renting privately. What does this mean for policy? The report presents some useful discussion of possible policy directions. For example, while dismissing rent control as liable to advantage existing tenants at the expense of potential tenants, the report is implicitly critical of residential tenancy laws in most states and territories. The report advances the broad case that <a href="https://theconversation.com/an-open-letter-on-rental-housing-reform-103825">tenancy law reforms</a>, “if well designed”, can enhance tenant welfare “without substantially increasing the cost of renting”. Longer notice periods are particularly favoured because these will “provid[e] vulnerable families more time to find new accommodation and prepare for the move”. Slightly more controversially, the commission strongly hints at support for outlawing no grounds evictions. The landlord power to end a tenancy without any need to justify the move persists across most states and territories. Discussing this power the report states: <blockquote> It increases the bargaining power of landlords […] and decreases that of tenants. Landlords’ incentives to carry out obligations, such as repairs and maintenance, decrease when no grounds evictions are available, since this provides them with an avenue to terminate leases in the event of a dispute. </blockquote> However, having highlighted a private rental affordability problem that is both growing in scale and becoming demonstrably more entrenched, the report is timid on solutions beyond modestly improving tenancy conditions. It argues in general terms for an increase in <a href="https://www.dss.gov.au/housing-support/programmes-services/commonwealth-rent-assistance">Commonwealth Rent Assistance</a> but – beyond tentatively floating a 10% rise in maximum payments – advances no specific proposal. Expanding the social housing stock as part of the broad-ranging housing strategy Australia badly needs is scorned as “an expensive option”. This is a reference to the narrowly scoped analysis in the commission’s <a href="https://www.pc.gov.au/inquiries/completed/human-services/reforms/report/human-services-reforms.pdf">2017 Human Services report</a>. It favoured market solutions to provide low-income housing – on efficiency grounds. The “expensive option” assertion is out of line with the more broadly framed analysis of the Productivity Commission’s predecessor, the Industry Commission. The latter <a href="https://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id:%22publications/tabledpapers/HPP032016005137%22;src1=sm1">concluded</a>: <blockquote> Public housing and <a href="https://www.ahuri.edu.au/policy/ahuri-briefs/what-is-head-leasing">headleasing</a> [when social housing providers sublease private rental properties] are assessed to be more cost-effective than cash payments and housing allowances. </blockquote> While the Industry Commission report admittedly dates from 1993, the subsequent failure of overwhelmingly private provision for low-income renters surely presents compelling reasons to revisit the investment case for social housing. Written by Hal Pawson, Associate Director - City Futures - Urban Policy and Strategy, City Futures Research Centre, Housing Policy and Practice, UNSW. Republished with permission of <a rel="noopener" href="https://theconversation.com/growing-numbers-of-renters-are-trapped-for-years-in-homes-they-cant-afford-125216" target="_blank">The Conversation</a>.

Retirement Income

The Reject Shop launches affordable new homewares range to compete with Kmart

The Reject Shop is launching an affordable new homewares range that’s set to rival Kmart, IKEA and Target’s range. Fashionable décor items on offer include a gold metal planter, $12, and a pink Himalayan salt lamp for $19. Scented candles are priced at a low $5 each. The new collection is on sale now and available in store. If you’re looking to update your loungeroom, there are items available for that too. The Reject Shop are selling a blush pink velvet “decorator” chair, which is a stylish addition to the bedroom or loungeroom and priced at $58. There is also a velvet footstool available, complete with a gold base, which is selling for $28. <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/B0iI5tqAYQv/" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/B0iI5tqAYQv/" target="_blank">Add a touch of savvy style to your home with this comfy velvet chair, only $58, and foot stool, $28. Perfect touch to any home, without the hefty price tag 😍. Available from this Thursday! #getsavvy</a> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/therejectshop/" target="_blank"> The Reject Shop</a> (@therejectshop) on Jul 30, 2019 at 1:00am PDT </div> </blockquote> The interiors on offer have seen an embrace of metallics, which is a trend that seems to be showing no signs of slowing down. A mirror with a gold frame and a black hanging strap is available for a low $12. If you’re sick and tired of watering your plants, there are fake potted plants available, such as the Calla lilies, that start at $12. <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/BzjRKF-AMr1/" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/BzjRKF-AMr1/" target="_blank">Add instant style to your indoors with low maintenance artificial plants, they are sure to bring some zen into your home or office space 🌴 #getsavvy</a> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/therejectshop/" target="_blank"> The Reject Shop</a> (@therejectshop) on Jul 5, 2019 at 3:00pm PDT </div> </blockquote> Creating a relaxing environment in your home just got easier with an electric LED colour changing diffuser that illuminates and changes colours as aromas are released. It’s available at $29. <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/p/B0mM-eKHmlU/" data-instgrm-version="12"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <a style="color: #000; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none; word-wrap: break-word;" rel="noopener" href="https://www.instagram.com/p/B0mM-eKHmlU/" target="_blank">Create a relaxing environment in your home with an electric LED colour changing diffuser. For just $29 it illuminates and changes colours as the fragrant aromas are released. Smell those savings 👌 #getsavvy</a> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;">A post shared by <a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px;" rel="noopener" href="https://www.instagram.com/therejectshop/" target="_blank"> The Reject Shop</a> (@therejectshop) on Jul 31, 2019 at 2:53pm PDT </div> </blockquote>

Home & Garden

ALDI has just released one of its most affordable ranges yet

When it comes to being sustainably friendly, it can be a difficult process to transition into. Everywhere around us, plastic and bad habits surround us that mean consuming less plastic and doing our bit to help the environment can be a difficult feat. However, ALDI is making it one step easier with its latest Special Buys range that is launching this Saturday. The German supermarket is releasing a set of reusable products that we often consider to be single-use plastic items found in the kitchen – meaning what you’re used to throwing in the bin after only one or two uses can be re-used over and over again. Not only is this range going to be a perfect investment for the future, it means you’re helping the environment. ALDI shoppers can get a three-pack of reusable stretch lids for just $3.99 and they are a great substitute for plastic cling wrap as they provide an airtight seal over bowls and plates. If you’re looking for a way to further minimise your plastic use, silicone stretch pods and sandwich and snack bags will be available for $3.99 each – the best part is all they require is a simple rinse and wipe, so you’ll be able reuse the items again in no time. Shoppers can also switch out their plastic straws with stainless steel straws, where a pack of five costs $3.49 with a cleaning brush included. Further, those who like to carry their lunch with them to eat later at work, or while they’re running errands, can invest in the $7.99 steel lunchboxes, and once and for all ditch takeaway plastic containers. ALDI customers can also get their hands on a bench-top composter for $19.99, a travel mug for $8 and an organic cotton grocery bag for $7.99. The items are launching this Saturday June 22 as always, it is important to keep in mind that Special Buys items are strictly limited – so you better get in fast! Scroll through the gallery above to see ALDI's most affordable range yet.

Food & Wine

For most, energy still remains affordable

Electricity prices have doubled in the past ten years, climbing 117%, which is 76% more than inflation. Gas prices climbed 89%, <a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/6401.0">53% more than inflation</a>. In a report to be released on Friday by the Australian Council of Social Service and the Brotherhood of St Laurence, we examine what these climbing prices have actually cost different types of households, after taking full account of energy use and government concessions and rebates, including solar energy rebates. Our modelling is based on the Bureau of Statistics <a href="http://www.abs.gov.au/ausstats/abs@.nsf/mf/6530.0">Household Expenditure Survey</a>. We use the changes between the 2003-04, 2009-10 and 2015-16 surveys to develop estimates for the changes between 2008 and 2018. For most, it’s as affordable as it was ten years ago A perhaps surprising finding is that, despite those strong price rises, there has been <a href="http://library.bsl.org.au/jspui/bitstream/1/10896/1/ACOSS_BSL_Energy_stressed_in_Australia_Oct2018.pdf">relatively little change in the amount households spend on gas and electricity as a proportion of their incomes</a>. The average proportion of household income spent on electricity and gas has climbed just 0.1% over the decade, from 2.3% to 2.4%. Prices have climbed more sharply than spending, but some households have responded to higher prices by using less energy in order to keep costs in check. This has been achieved partly by taking advantage of improvements in the efficiency of devices such as air conditioners, and also by being more frugal. But not for renters, or the unemployed Low-income households, in particular households whose main source of income is a government payment such as Newstart, are spending much more of their (already small) budgets on energy. In 2008 energy costs took up 5.9% of low-income households’ disposable income. By 2018 they took up 6.4%. In contrast, the highest-earning households spend just 1.5% of their income on energy, up from 1.4%. One in four low-income households spend at least 9% or more of their income on energy. Renters pay a higher proportion of their income than home owners, and have also suffered much bigger increases in costs, perhaps because they have less scope to make the sorts of changes to their homes needed to get costs down. By region, costs are the highest in Adelaide (on average about 3.4% of disposable income) and the lowest in Sydney and Brisbane (about 2%). If you’re wealthy, you can go solar Another perhaps surprising finding is that the take-up of solar panels is fairly evenly distributed across the income spectrum. Among the bottom four in ten households the take-up is 15%. Among the top four in ten, it is 17%. But high wealth households are far more likely than low wealth households to take up solar. For the most wealthy the take-up is 23.5%, for the least wealthy it is 4%. Typical savings are about A$500 a year. High wealth households saved much more than low wealth households. It’s the high payers that are paying more For most, energy remains as affordable as it was ten years ago. That’s because, for most, <a href="http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/6523.0~2015-16~Main%20Features~Changes%20in%20Income%20Over%20Time~9">incomes have been climbing</a> – although not to the same extent as energy prices. Even pensioners received <a href="https://formerministers.dss.gov.au/14265/pensions-to-increase-on-20-march/">quite big increases in 2009</a>. It’s also because many households have been able to <a href="http://www.tai.org.au/sites/default/files/NEEA%20Electricity%20Update%20Aug%20%5BWEB%5D.pdf">cut back their use of externally supplied energy</a>, especially high wealth households that can afford solar panels, and those who own the home they live and have the right to modify it. For others, especially households who rent, and those headed by people on non-pension benefits, energy costs are climbing sharply. Already paying much more of their income than others, they’re trapped into spending even more. Written by Ben Phillips. Republished with permission of <a href="https://theconversation.com/newsflash-for-most-energy-remains-affordable-104541">The Conversation.</a>

Money & Banking

Beauty on a budget! Princess Mary stuns in affordable H&M dress

Princess Mary is a royal who knows how to stick to a budget and has proven this by rocking many affordable looks in the past. On Wednesday, the 47-year-old royal showed off her thrifty side by wearing a coral patterned dress at the Copenhagen Fashion Summit, retailed at $278 from H&M. Not only is the garment an environmentally friendly frock made from organic silk, it’s a gorgeous outfit to wear for many occasions. The Tassie-born royal wore the feminine number with a fitted black blazer and simple black pumps. Princess Mary was the guest of honour as the patron of the Copenhagen Fashion Summit, which is an event that focuses on sustainability in fashion. Scroll through the gallery above to see some of Princess Mary’s best looks throughout the years.

Beauty & Style

Bill Shorten's "shopper's hack" for affordable booze

Bill Shorten has shared his top money-saving tip ahead of Saturday’s federal election. The Labor leader revealed his personal trick to score affordable alcohol in an interview with KIIS FM Melbourne on Thursday morning. Asked whether he had been to Dan Murphy’s to stock up on booze for the election night parties, Shorten said he plays the discount liquor chain off against rival retailer First Choice. “This is a little, if you like, a shopper’s hack and potentially a very useful thing,” he said. He said he capitalises on the stores’ price-matching policies as they pay dividends. First Choice’s Price Beat policy and Dan Murphy’s Lower Liquor Price Guarantee both offer to match advertised competitor instore pricing within a 10 kilometre radius of a given store, provided that the advertisement is current and that the items are identical and in stock. “See, I’m not just another pretty face am I?” Later on, the same day, Shorten made his final major speech of the five-week election campaign at the site of Gough Whitlam's 1972 “It’s Time” address in Blacktown. He declared that climate change action and wages would be high on his government’s agenda. “I promise, we will send a message to the world, when it comes to climate change, Australia is back in the fight,” he said. “We will take this emergency seriously and we will not just leave it to other countries or to the next generation.”

Money & Banking

The one item you can’t afford to forget in your suitcase

Regardless of whether your packing style is to make a list, fold and organise a week ahead or stuff a few things in your suitcase the night before you leave, there’s few of us who haven’t been caught out leaving behind something crucial while travelling. These are the items seasoned travellers insist they will never leave home without – make sure you make room for them in your suitcase! 1. Eye drops Whether it’s the moisture-sucking atmosphere of an aeroplane, too many inflight movies, or exploring exotic but dusty or smoggy locales, dry irritated eyes often seem to go hand-in-hand with travelling. But they don’t have to, if you stash some good quality eye drops in your luggage, such as <a href="https://www.chemistwarehouse.com.au/shop-online/3360/refresh-eye-drops">Refresh® Eyes</a> Drops, which offers relief for everything from dryness, stinging or burning, grittiness and blurry vision to watery eyes. Let’s face it, you want comfortable eyes to take in all those stunning sites you’ve travelled to see. <img style="width: 0px; height: 0px;" src="https://oversixtydev.blob.core.windows.net/media/7822898/img_0011.jpg" alt="" data-udi="umb://media/29879b447222482f88bb852c9f717b88" /> 2. Medicinal supplies and First-Aid kit Headaches, upset tummies, insect bites, cuts and splinters are a reality of travel, but travelling with a good supply of basic medicinal and first-aid supplies means none of your precious travel time is wasted suffering or hunting down a chemist in a foreign destination. 3. Petroleum jelly or lip balm In dehydrating aeroplane cabins, your lips are often the first to suffer and if you start licking them in sympathy, you’ll only make things worse. Be sure to pop some Vaseline or other lip balm in your carry-on luggage and apply generously to avoid dry, cracked lips on arrival. 4. Hand sanitiser A nice clean bathroom with a full soap dispenser just isn’t always on hand when travelling, so hand sanitiser is a must-have travel essential. Use liberally after taking public transport, before meals, public toilets that don’t have soap, or whenever necessary to help avoid such inconveniences as a virus or bout of gastro. 5. Earplugs Trying to sleep on a long-haul flight is challenging enough without the cacophony of crying children, clattering trolleys, flushing toilets and that overall aeroplane drone. Even when you’re on terra firma, noisy neighbours, traffic sounds and other random rackets can spell disaster for a good night’s sleep and an enjoyable getaway. Help is at hand with a good pair of ear plugs – be sure to choose soft squidgy ones you can fit comfortably in your ear. 6. Travel pillow Now you’ve conquered sound, it’s time to consider comfort! There have been amazing innovations in travel pillow technology aimed at helping you drift off to sleep in the air, from neck pillows resembling thick scarves, to others you can attach to your wrist and lay your head on. Do your research and find one to suit your preferred aeroplane sleeping style! 7. Baby wipes Baby wipes aren’t only restricted to parents with tiny tots and have a myriad of uses when travelling, from wiping hands before and after eating, to refreshing your face, taking off makeup, removing stains from clothing, wiping over doorknobs and light switches in hotel rooms or cleaning public toilet seats … and even using as emergency toilet paper if you’re ever caught out! 8. Portable hotspot Whether you need to be logged in for work or just can’t bear the thought of not having Wi-Fi access on demand, if you pack a broadband hotspot, you’ll be able to connect to the internet whenever you want. Of course, maybe you’re travelling in the hope of enjoying a digital detox, in which case, skip this and save some room in your luggage for shopping and souvenirs. 9. Smartphone or tablet On second thought, who are you kidding? Even if you want to switch off while you’re away, you’ll probably still be wanting to take either your smartphone and/or tablet. Not only will they ensure you’re contactable in case of emergencies, they will also serve as your camera, GPS, calendar, diary, entertainment … the list goes on. If travelling internationally, be sure to also include a travel adapter and/or converter and battery packs. Otherwise, you can guarantee your phone or camera battery dying just when you’ve arrived at some unforgettable wonder of the world, or when you’re hopelessly lost and unable to find your hotel. 10. Book or Kindle There’s nothing better for a long plane ride than losing yourself in a good book, whether it’s the old-fashioned paper kind or one stored on an e-reader. But if it’s the latter, make sure you have sufficient battery power! 11. Day bag An easily flattened backpack or tote comes in very handy when you’re heading out for the day, whether you’re visiting the beach, hiking or site-seeing. Perfect for stashing a water bottle, maps, hats, umbrellas and other essentials. 12. Zip-lock plastic bags These can have multiple uses, from stashing your wet swimming costume after you’ve tried to squeeze in one last swim before departure, to storing toiletries that run the risk of spilling during transit. (Who hasn’t had the pleasure of reaching their destination only to find shampoo seeping through their belongings?!) 13. Hat When you’re spending your days out and about, a hat (and sunscreen) is crucial. Choose one that stashes easily without crushing and is in a neutral shade so it goes with the majority of your travel wardrobe. 14. Travel detergent No matter where you are, if you travel with a small sachet of washing detergent in your luggage, you always have the option of being able to wash your clothes in a sink should unforeseen circumstances arise. Which they invariably do, usually when you’re wearing white. Purchase Refresh® Eye Drops today at <a href="https://www.chemistwarehouse.com.au/buy/43077/refresh-tears-plus-15ml">Chemist Warehouse</a>. Sponsored by Allergan.

Travel Tips

Pensioners retiring overseas because they can’t afford to live in Australia

As senior Aussies struggle to manage with the increased cost of living and property prices, more retirees are relocating overseas. In 2016, 11,660 Australians aged over 55 relocated overseas – a significant jump from the 7,910 who moved in 2005, according to ABS data. The destinations that most retirees are choosing to move to include New Zealand, Italy, Greece and Spain. If an Aussie pensioner lives abroad, access to their pension is reliant on several factors including the length of their time away, whether their assets or income have change and whether the pension is delivered through a social security agreement with another country. Australia has <a href="https://www.dss.gov.au/about-the-department/international/international-social-security-agreements/overview-international-social-security-agreements" target="_blank">31 agreements</a> with countries such as Italy and Spain that overcome barriers to pension payment. However, if a pensioner returns to Australia after living abroad, and they travel outside the country for six weeks within two years of returning, they could receive payment cuts. It is important for pensioners to log their travel plans through Centrelink’s <a href="https://www.humanservices.gov.au/individuals/services/centrelink/centrelink-online-accounts" target="_blank">online portal</a> if they are planning on going overseas for more than six weeks. "When looking at the aged pension it's always good advice to sit down with a financial planner before moving overseas permanently as everyone has different access rights and you may find yourself stranded," says Ryan Cullinan, an international financial adviser for Compare Return told the <a href="http://www.abc.net.au/news/2018-05-16/pensioners-retiring-overseas-because-they-cant-afford-australia/9762418" target="_blank">ABC.</a> Aussies who live abroad for more than five years, and permanent residents living overseas for more than a year, also forfeit the right to Medicare and don’t have to pay the Medicare levy. In 2013, Norah Ohrt relocated to the Spanish town of Mortas. She lives in a three-bedroom loft and has breathtaking views of the old cobbled city. With the reduced cost of food, council rates and water, Norah relies on her pension to cover all her bills. She renovated her $65,000 home using her superannuation and is just one of the many Aussies who are tempting their Aussie friends to spend their retirement in another country. "If you're on an Australian pension and struggling, I would strongly suggest that you look to alternatives, particularly if you have a second language that you can use," Norah told ABC News. Have you considered relocating and retiring in another country? Let us know in the comments below.

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What is negative gearing and what is it doing to housing affordability?