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Your taxes: Luxury public housing for teen mum?

By babeeshka 1 March 2011 69

I wonder when people make decisions that end up providing one single mum with three places to go to the toilet if they consider that only too often the people they are taxing to provide for it often live in less ideal circumsances. Where is the sense of proportionality?  Why should bad life decisions be rewarded with what, given the ACT govts policy of life long tenancy, is equivalent to winning the lottery?

Personally I  live with a crappy cupboard sized bathroom which serves two adults and two kids. 

Below is an excerpt from the sale of a property similar to that given to one young mother I know know whose only distinction in life is to get pregant twice to different fathers at an early age.  Her long-term unemployed boyfriend is provided with separate housing.  He wants a “large family” and with 3 children between them already (two to different partners) they are working towards another one (she actually sadly just lost a baby). 

I wouldn’t mind if it wasn’t planned to be entirely at the expense of  our taxes, which in the inner north are becoming unaffordable.  Tenants aren’t excempt because your landlord is now paying in the vicininty of $6000 towards the ACT govt in land tax (this is passed on to you or your landlord will soon sell).

Where does this sense of entitlement come from?

THIS IS AN EXCERT FROM A SALE OF A PROPERTY SIMILAR TO THAT PROVIDED TO ONE SINGLE MOTHER BRAND NEW.

“Enjoy luxury living with this superb like new, beautifully appointed terrace style townhouse positioned on the end.

“From the moment you enter this stunning energy efficient, light filled three bedroom, ensuite residence that presents like new, you will be captivated by the feel, look and style on offer. North facing to the rear and featuring stunning separate formal and informal living areas, terrific kitchen with stone bench tops and first class fixtures and fittings. Each of the lovely bedrooms feature built in robes with the huge master boasting a large balcony and spacious ensuite with double size shower. Other features include extensive tiling, quality carpets, double garage with remote control door, exquisite bathrooms and a powder room downstairs, all which add to the appeal of this fine townhouse. The large outdoor area is just fantastic with an expansive lawn area, ample room for entertaining plus plenty of room for the kids and pets. Set in a quiet location with a brilliant outlook to both Mount Majura and Mount Ainslie. Walk to schools, shops, transport, Farmers market at epic and the reserve whilst still being only minutes to the city. Just move in and enjoy this stunning home.”

This is not meant to be a general judgement on public housing or those in public housing but to provide a personal specific example of what has occured in the ACT on our watch

What’s Your opinion?


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Your taxes: Luxury public housing for teen mum?
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vintagediva 9:06 pm 07 Mar 11

Watson said :

vintagediva said :

You are investing to increase your future wealth and that requires sacrifice and hard work. I can understand your frustration with the system, but there are many people who are indeed in a worse way than you and rather than gripe about them, why don’t we focus on how we can make ourselves better (despite the system)?

+1

PS: What do I need to do to deserve RiotActers to do a working bee at my place? How much details about my personal circumstances do you need? Does it matter that I don’t bear any grudges to people who seem to have it easy compared to me?
PS2: I’m in a private rental, does that matter? Or are working bees only for investment property owners?

I am in! What do you need? I am generally unskilled, but can provide sweat and hard yakka.

Watson 11:47 am 07 Mar 11

vintagediva said :

You are investing to increase your future wealth and that requires sacrifice and hard work. I can understand your frustration with the system, but there are many people who are indeed in a worse way than you and rather than gripe about them, why don’t we focus on how we can make ourselves better (despite the system)?

+1

PS: What do I need to do to deserve RiotActers to do a working bee at my place? How much details about my personal circumstances do you need? Does it matter that I don’t bear any grudges to people who seem to have it easy compared to me?
PS2: I’m in a private rental, does that matter? Or are working bees only for investment property owners?

babeeshka 11:06 am 07 Mar 11

Btw without stiopping by to read personal negative comments by people like Monty directed at my departing back or subject myself to more endless cross-examination about my personal circumstances I want to say that Pommie bastard I care about people like you and genuine social justice. I care that young kids are slogging their guts out in IGA to pay for little miss entitlements to produce families of eight (yes, eight) neglected and abused kids (quite a drain on the health and education budget huh?). I care that the odds are stacked against the kids I see working hard and giving it a go and I care that the odds will be stacked against children produced by a system that rewards irresponsible mothers with an entitlement mentality.

Pommiebastard I hate social workers who contribute to the social injustice you’re talking about. I wish people had taken up the issues you raised rather than just taking pot shots at me. Maybe we can have a bbq some time and invite over some social workers- I hear they make wonderful kebabs.

Compassion does not require leaving your brain at the front door.

When I see someone raising two children in government housing with a partner working I applaud that they are getting help from the govt, although I feel sorry for the satansmans of this world that face a hard road getting into the property market. I find it interesting that no-one cares when they get kicked out of their home although they’ll squawk about ‘justice’ and fight to keep public housing empty for twelve years for a criminal in jail. Funnily enough the ones who are doing the right thing after one ‘mistake’ (although its hard to call a beautiful well-behaved child a mistake) know they are lucky. In the words of another young mum I know who is doing a great job with her children “we get a house for life. They are never getting me out. I don’t know what people like little miss entitlement are complaining about.’

So why is little miss entitlement so angry when she now has luxury housing FOR LIFE that she has done nothing to earn? Because she knows deep down she is getting ripped off. She can stop having children and work but she faces an effective tax rate of 80%. How much easier to just have another child. Because if you don’t work for something you don’t appreciate it as much as you do if you don’t. Because if you don’t work and overcome obsacles you don’t know how any one else has managed and assume they must be “lucky,” or got more than you were given.

You may even, like little miss entitlement, resent someone who isn’t able to have children and has been trying unsuccessfully for several years for the fact they can ‘afford’ ivf- (“yes Monty you DO get the whiff of a medicare rebate here- put it back in your pants- you are tilting at windmills).

Now the bit where I stick up for myself: I am the type of person who will take someone elses disadvantaged child out to dinner at a Korean restaurant because I want to expose them to more culture than they are getting at home. I am the type of person who refuses to put up a low income workers rent up to unaffordable levels but will instead take on extra costs as a reduction in my own standard of living- even when I myself, am showering under a garden tap in winter, pregnant. Imagine the headline if I was a public housing tennant doing this?!?! But I’ll let you in on a little secret. It was actually quite fun. I am also that happiest person I know and my children- well, they are truly delightful. The adjective used most often in relation to them is “JOY.” I wonder why? I guess I must just be lucky.

vintagediva 2:40 pm 06 Mar 11

babeeshka said :

Btw I couldn’t help but duck back in to tweak your noses and send you into paroxysms of envy by letting you know that I am also Satansman’s landlord. I can’t believe you missed it.

So let me get this straight… you own two houses and once you sell the one you are in, you’ll probably be able to pay off the one you are moving into (or near to it…?)? So you’ll own a home worth over half a mill…

You are investing to increase your future wealth and that requires sacrifice and hard work. I can understand your frustration with the system, but there are many people who are indeed in a worse way than you and rather than gripe about them, why don’t we focus on how we can make ourselves better (despite the system)?

When’s the working bee?

vintagediva 2:28 pm 06 Mar 11

babeeshka said :

If any bleeding hearts out there in my community who are so fond of the chronically unemployed and single mothers whose condoms keep breaking have genuine compassion and would like to help me out getting my house ready to sell – I would love to hear from you.

Sounds like a working bee! I’m in!! (I am a little bit of a bleeding heart, but think of myself as more of a pragmatist/realist if that’s ok)

Maybe what we’re all missing here is a real community? How about this – we organise a working bee for babeeshka and then everyone else who wants it in RIOT-ACT?

babeeshka – anything particular you require? tiling? grouting? painting? or just hard labour? (and just in case you think I am being a cynical and sarcastic, I am not) …. come on RIOT-ACT, let’s be a real community and help each other out!

ummmm_no 11:47 pm 05 Mar 11

babeeshka said :

I can’t believe you missed it.

Perhaps if you wrote a tad more coherently?

georgesgenitals 10:38 pm 05 Mar 11

babeeshka said :

1. to negative gear you have to have a loss first. Just like any business if you lose $5000 a year that is recognised when your income is taken into account for tax consideration. So at the maximum rate of 50% you will get back $2500 leaving you effectively $2500 out of pocket for that year

Yeah but here’s the problem: you DON’T get 50% back! You get back proportional to your tax rate. Realistically, you get back 30%, not 50%, which is why negative gearing is not, in itself, a good way to buy property (barring some specific exceptions).

babeeshka 4:26 am 05 Mar 11

To the bleeding heart left:

Btw I couldn’t help but duck back in to tweak your noses and send you into paroxysms of envy by letting you know that I am also Satansman’s landlord. I can’t believe you missed it.

Satansman (devils advocate) is a low income nice guy sharing a house, together they are paying $350 a week rent of which half is immediately consumed by land tax and rates because someone in the Stanhope govt was envious and decided to up land tax .25 % of pv at a time land tax was already going through the roof. This mainly effects non-units and is particularly bad in the inner north and south.

Hopefully Satansman will be able to move into somewhere else with reasonable rent. Once I sell my house and move in to his I’ll be well off-but I would not like to be in his situation.

Property investment 101 for the envious:
1. to negative gear you have to have a loss first. Just like any business if you lose $5000 a year that is recognised when your income is taken into account for tax consideration. So at the maximum rate of 50% you will get back $2500 leaving you effectively $2500 out of pocket for that year
2. if you don’t have an income you can’t negative gear
3. many investors aren’t in it for quick cash of capital gains (which is also taxed) but to sacrifice or save now because they recognise they are in crap super funds and want a stable source of income when they retire.
4. Negative gearing can’t compensate you for the time and effort you put into your property when your tennants wreck it because they believe you to be capitalistic pigs who deserve it
5. far from being wealthy many investors are on the same incomes as everyone else and don’t “have” two properties what they have is two mortgages
6. to pay no income tax an investor would have to reduce their liveable income to nothing
7. Many items such as a new fridge or fence are up-front costs that are not negative gearable in any real sense.

Now many of you might delight that you have driven me to the point where I am selling my home and moving into Satanmans but sadly I’m going to have to rain on your parade. The last time the labour government tried to cut negative gearing rather than leading to a fall in property values it lead to a crisis in rental accomodation and wait for it…the irony is beautiful…increased demand for public housing.

Complex isn’t it?

Anyway I won’t wait around to hear your shrieks of indignation. I’ve been told I’m lucky by the envious, like the girl I was talking about who hasn’t worked an eight hour day in her life, all my life. What do you really expect me to say? Yes you’re right. You poor thing to have two kids without a job. I’m really sorry you were born with no common sense and weren’t there when the job bus went around handing out jobs like lollies.

BYE ;))

babeeshka 3:46 am 05 Mar 11

@ Monty Ha ha Monty that is so funny because I’d just popped back in to post a very humorous post at your expense. But I’ll divert: I judged my “friend,” who you really remind me of, after hearing her talk. Telling me I’m “lucky” and having her attack me for no reason as “going nowhere and doing nothing with my life.” Ha ha ha. Like you reality had no effect on shaking her world view that she was the most picked on and unfortunate person on earth. I’ve provided enough examples for you of her entitlement mentality, that to keep reversing the tables and accusing me of envy in a neat post-modern fashion either you must be having immense fun, you are stupid, or you are so busy making your next point you can’t actually understand what is being said.

As I’ve made it perfectly clear the facts I’ve shared about my life weren’t a sympathy grap, I don’t need or want your sympathy but a futile attempt to shake you loose from your nice safe assumptions about the big bad world and what it “owes” you. You know what? Life struggles have only made me stronger and happier. In the words of my favourite song, “thanks for making me a fighter.”

I wasn’t complaining about paying taxes in general, I’m not envious and I don’t have a mental illness. When did I say that I’d never benefited from society?

@busgirl I also have two friends in housing on a combined income of $150,000. It’s just the way it works in Canberra. I personally don’t care because they are both contributing towards the system, probably paying back more than what it cost the government to buy the houses back in year dot. You’d really have to ask them for their reasons.

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