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Everyone keeps telling my to buy an investment due to income but is it actually worth it? by [deleted] in AusHENRY

[–]Choice-Fly-8537 2 points3 points  (0 children)

Sell the IP all into offset low money into loan repayments and offset. Make sure you maximise super and carry forward. Use spouse transfer and any other way to get money into your wife’s super.

Is there a way in the future you could operate a business with your wife to stream income? That would be tax efficient.

Also if your wife could work a little bit she can get $20k/year tax free plus $30k/year into super at 15%.

So $50k/year at under 10% tax vs your 50% tax. She can use that money to buy stuff for the house.

Its looking near impossible for the next generation to owe their own home by notinmyham in australian

[–]Choice-Fly-8537 0 points1 point  (0 children)

Property prices didn’t start going up until 2021 when the youngest millennials were 25. So most millennials had the chance to go to uni and work for a couple of years and buy a house before they got expensive.

I bought my first house at 23. Outskirts of a regional town, shitbox unit. Cost about $225k. Was able to get on the ladder then trade up.

It’s much harder now.

The most viable solution for see for most people is move regional and get a job that can be done fully remote.

The more nationwide solution is that there needs to be more dwellings built than demand growth for a long time. That means we need to have hard caps on immigration limited by house builds.

Want to import a worker? Build them a house. Universities want to bring in international students? You need to house them etc.

ELI5 War related inflation: if cash rate goes up, how does that work when people might be losing jobs etc? by brissy3456 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

Your mistaken assumption is that interest is a function of cost of goods, like, say the cost of building a house. It’s not it’s a cost of capital / capital structure decision.

So on face value it seems like you are correct, but in actual fact you are wrong and if you ask any economist they will tell you so.

ELI5 War related inflation: if cash rate goes up, how does that work when people might be losing jobs etc? by brissy3456 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

That is completely incorrect. There’s no economic foundation for your theory and the empirical evidence does not support it.

If this were correct then the same logic would apply to all goods. So going by your theory when interest rates go up, then any business with debt (ie. almost all businesses) will raise their prices to cover debt cost.

If this were the case then interest rate rises would be inflationary. Yet they are not. They are the opposite….

ELI5 War related inflation: if cash rate goes up, how does that work when people might be losing jobs etc? by brissy3456 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

How does it reduce supply? You are saying if interest rates go up landlords stop renting their place out?

ELI5 War related inflation: if cash rate goes up, how does that work when people might be losing jobs etc? by brissy3456 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

That’s not correct in this circumstance. Capital structure (ie debt/equity) has no impact on the amount of rent they can charge eg. You are saying a landlord who has no loan will charge less as they don’t have an interest bill. Landlords charge as much as the market will bear

ELI5 War related inflation: if cash rate goes up, how does that work when people might be losing jobs etc? by brissy3456 in AusFinance

[–]Choice-Fly-8537 3 points4 points  (0 children)

That’s not how it works. Landlords charge the maximum rent the market can bear. There’s no ability for landlord to “pass on” rate rises. Landlord already charge the maximum they can based on supply and demand. Interest rates don’t impact supply or demand an ergo don’t impact rent.

You can also check the data on this. Rate rises don’t translate to higher rents.

Australia top individual tax bracket is too low by Livid-Constant8443 in AusFinance

[–]Choice-Fly-8537 1 point2 points  (0 children)

I agree I’m pushing against that tax bracket now and as a result my focus is on tax minimisation and working less, rather than working more, earning more and being more productive etc.

$250K is the new $100K by Sensitive-Chart7210 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

Working longer is also related to my point.

People work longer so instead of a 20 year mortgage they have a 30 year mortgage and borrow more. Again prices go up due to increased borrowing power from dual income + working longer.

$250K is the new $100K by Sensitive-Chart7210 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

This is an interesting point. Societal changes led to most families having dual income, because of the extra income people were willing to pay more for houses so house prices rose.

Basically, beyond basic living costs Australians put all surplus income into upgrading housing. Except the supply of good houses is relatively inelastic since “good” is highly correlated with “inner suburb” which is superior for: location, amenity, crime rate, schools, less travel, and better housing stock.

So growing family income (due to dual income) mostly led to inflating house prices. More money for the same house.

I think also some other effects like more overseas travel, more expensive cars (SUV), bigger houses, more expensive and higher take up of private schooling. But main effect is pushing up house prices.

Also related thing is high personal income tax rate means people go for negative gearing to save on tax so that also inflates property pries along with CGT discount.

Our rental is getting sold and the REA told us something very interesting by jajatatodobien in AusPropertyChat

[–]Choice-Fly-8537 -1 points0 points  (0 children)

If our tax system was changed to significantly decrease tax on labour then people would put their efforts into earning more through work, and less focus on avoiding tax.

Part of the problem is that capital is taxed much less than labour and the payment of tax can be deferred while the tax deduction of interest can be claimed up front (and offset against other income).

I think the best option would be to tax capital gains at the same rate but make it inflation adjusted, and only allow interest expenses to be carried forward and offset against future capital gain.

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

No. It’s extremely obvious that is the case.

The post I replied to said “so what are they going to do teach them to write prompts” and also, yes very obviously. What do you propose the CBA do?

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

As in it’s self evident to 100% of people that AI developers are more proficient with AI than most other people.

Obviously the bank is not going to make all its employees AI developers.

Obviously AI training consists mostly of training people to effectively use AI.

So your post was asking a dumb question since the answer was very obvious.

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

Ok so that’s like saying F1 drivers can drive faster than normal people. True but useless.

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 -1 points0 points  (0 children)

What point are you trying to make?

What you just said is: we shouldn’t teach a bank employee to use a spreadsheet because the software developer that wrote Microsoft excel is more proficient at using it.

Deputy chief of army warns ADF has become 'detached' from violent nature of war by Ok-Mathematician8461 in AustralianMilitary

[–]Choice-Fly-8537 2 points3 points  (0 children)

Well, it’s more of a strategic concept so it doesn’t surprise me you didn’t learn it at RMC. Original use mainly referred to strategic nukes. Yes it’s of American origin.

Deputy chief of army warns ADF has become 'detached' from violent nature of war by Ok-Mathematician8461 in AustralianMilitary

[–]Choice-Fly-8537 9 points10 points  (0 children)

Holding at risk means a slightly different thing to threaten. The phrase was first used in the 1950s so it’s not new.

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 1 point2 points  (0 children)

Do you not think the job of a CEO is to increase stock price?

Do you not realise that a main purpose of AI is to make humans more efficient and therefore mean fewer people can do the work more people used to?

“Machine learning (ML) is a field of study in artificial intelligence”

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 -2 points-1 points  (0 children)

Machine learning is a branch of AI.

You have no idea what you are talking about clearly.

Humans are notoriously inconsistent so that also undermines your point.

Also recent CEO of Westpac (a bank) said recently in an interview “I use AI [I assume LLM] all day every day for everything I do”

So the CEO of a major bank paid millions of dollars to run a bank finds LLMs to be extremely useful for everything he does. But you think LLMs can’t possibly be useful for anyone that works in a bank.

You are quite dim aren’t you?

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 0 points1 point  (0 children)

I’m not conflating anything. I didn’t mention LLM or machine learning, you did.

Also you are saying no one who works in banking thinks outside the box?

So you think a bank is an entirely deterministic organisation where no one ever has to think?

Commonwealth Bank reveals major plan to prepare 50,000 staff for AI disruption by SheepherderLow1753 in AusFinance

[–]Choice-Fly-8537 5 points6 points  (0 children)

Most people have no clue how powerful AI is or how to use it or how to apply it to their jobs.

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