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Advertising a house is ridiculously expensive in Australia – could that be affecting the property market?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/james-graham-1264059">James Graham</a>, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Australia has long been one of the <a href="https://www.forbes.com.au/news/investing/sydney-melbourne-adelaide-are-top-10-least-affordable-cities-for-housing/#:%7E:text=Demographia's%20annual%20report%20assesses%20housing,second%20place%2C%20and%20Vancouver%20third.">most expensive</a> places in the world to buy a house. Now, it’s apparently also one of the costliest places to sell one. Recent <a href="https://www.theguardian.com/australia-news/2024/sep/16/the-symbiotic-relationship-that-makes-selling-a-house-in-australia-so-damn-expensive">reporting</a> in the Guardian has raised concerns about the market dominance of Australia’s two main real estate advertising websites, realestate.com.au and Domain. Facing little competition, the largest – realestate.com.au – appears to have <a href="https://www.theguardian.com/australia-news/2024/sep/16/the-symbiotic-relationship-that-makes-selling-a-house-in-australia-so-damn-expensive">significantly increased its fees</a> in recent years, while thwarting disruptive innovations from smaller competitors. Why does that matter? Because when it comes to selling a house, Australia <a href="https://www.theguardian.com/australia-news/2024/sep/16/real-estate-website-fees-australia">stands out</a> globally. In most other countries, any advertising costs are tiny or bundled in with agent fees. Here, along with only <a href="https://www.theguardian.com/australia-news/2024/sep/16/the-symbiotic-relationship-that-makes-selling-a-house-in-australia-so-damn-expensive">Sweden and New Zealand</a>, home sellers pay their own advertising costs in addition to real estate agent fees and commissions. This advertising can be expensive – up to several thousand dollars for a single property listing. But it also seems necessary, with a lack of alternative platforms offering comparable reach. Setting aside the problems of monopolistic pricing behaviour, what are the economics of high and rising real estate advertising fees? Do home sellers get value for the money they spend on advertising? And what might be the impacts of these fees on the Australian housing market? <h2>Is advertising on big platforms worth it?</h2> First, it’s worth asking whether real estate advertising is actually effective and whether bigger platforms are better. To explore these questions, a group of US-based economists <a href="https://www.aeaweb.org/articles?id=10.1257/aer.99.5.1878">studied</a> the outcomes of advertising on a large platform favoured by real estate agents in the United States called the “multiple listing service”, compared with a smaller for-sale-by-owner platform. The study found no differences in eventual home sales prices between the two platforms. But properties on the multiple listing service were more likely to sell and spent less time on the market. However, the size of the advertising platform didn’t explain these benefits. Rather, the different platforms appealed to buyers and sellers with varying patience levels. This variation in willingness to “wait-and-see” affected the time it took to sell. Translated to the Australian context, that raises questions about the value for money of advertising on a larger platform – which here, unlike the US, attracts significant fees. <h2>Housing markets are ‘search markets’</h2> Next, we need to consider how high costs of advertising property might affect the housing market more broadly. Housing markets fall into a category called “search markets” within economics. Sellers seek buyers, and buyers seek sellers offering up properties that meet their required criteria. The economics of search markets have been extensively studied by the likes of <a href="https://www.nobelprize.org/prizes/economic-sciences/2010/summary/">Nobel laureates</a> Peter Diamond, Dale Mortensen and Christopher Pissarides. Their insights highlight the key factors that determine search market outcomes. Sellers consider the costs of listing an item for sale (such as advertising) and the time it takes to find a buyer. Buyers, on the other hand, consider their alternatives to buying (such as renting) and the time it might take to find a suitable seller. The likelihood of a sale – and how long everything will take – depends on the number of potential buyers relative to sellers. The sales price is then negotiated after meetings between the two. This gives us a framework to speculate about how Australia’s high – and increasing – costs of advertising real estate could be affecting the broader housing market on both sides of this equation. <h2>Costs can affect both supply and demand</h2> On the supply side, high fees reduce the net financial benefit of selling a home, which could discourage homeowners from listing their properties. All else being equal, this could lead to fewer properties on the market, shorter selling times, and higher prices for the properties that are listed. But we can predict some effects on the demand side, too. High fees also reduce the net benefit of buying a home, as current buyers expect to be sellers in the future. These costs are likely to be even more pronounced for property investors, who buy and sell property more frequently than homeowners. Anticipation that selling costs will be high in the future could suppress the demand for housing, reducing prices and increasing the time it takes to sell a property. Interestingly, <a href="https://www.nber.org/papers/w32855">recent research</a> from the US suggests that these demand-side effects might outweigh the supply-side effects. Economists studied the impact of a series of court decisions that forced the National Association of Realtors to reduce real estate agent fees. They found lower fees increase the lifetime benefits of homeownership, which leads to a significant increase in house prices. Significantly, that suggests lowering the costs of selling property – including advertising – could increase property values. <h2>Just one part of the housing story</h2> High prices in any area of economic life are likely to rankle our sense of a fair deal. High fees for advertising real estate have an obvious immediate impact on a home seller’s wallet. But the nuanced flow-on effects to the broader housing market are harder to tease out. They are also likely to vary across different property markets within Australia. Commentators and policy makers should think carefully before leaping into action in this area. In the meantime, advertising fees are one more thing to keep an eye on as Australian housing costs continue to rise.<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/239111/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/james-graham-1264059">James Graham</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/university-of-sydney-841">University of Sydney</a> Image credits: Shutterstock 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/advertising-a-house-is-ridiculously-expensive-in-australia-could-that-be-affecting-the-property-market-239111">original article</a>. </div>

Money & Banking

Shock over op shop item listed for $2,000

An Aussie charity shop has come under fire after a shopper spotted a luxury item with a hefty four-figure price tag. A woman was browsing the shelves at the Vinnies Op Shop in Tamworth where she spotted a forest green handbag by luxury brand Balenciaga for sale for a whopping $2,000. While the handbag retails at roughly $4,000, the eye-watering "sale" price has infuriated many after a customer spotted it isolated on a shelf in-store. "How in the world would a normal everyday person be able to afford that? At the stage now it’s cheaper to go to Kmart," a local woman hit out on social media. Others agreed, saying it's a "slap in the face when everything is donated in first place". "It’s ridiculous these days, all the op shops are so overpriced. Very much so in the suburb I live in because it’s a wealthy area, they think everyone who walks in is loaded," another said, commenting on the designer bag. Vinnies was quick to respond to the backlash over the expensive item, Vinnies North West area manager Julie Crosby reiterated that Vinnies shops are charity stores. "We're raising funds," she told the <a href="https://au.news.yahoo.com/tagged/social-media/" data-i13n="cpos:8;pos:1" data-ylk="slk:ABC;cpos:8;pos:1;elm:context_link;itc:0;sec:content-canvas" data-rapid_p="18" data-v9y="1">ABC</a>. "We can spend that money on helping out homeless people, domestic violence issues where we're relocating families". Store manager Megan Moffat added, "It's a beautiful little handbag" implying the $2,000 is justified. Image credits: Shutterstock / Facebook

Money & Banking

How to revive your curls without paying salon prices

Maintaining curly hair takes a lot of time and effort and sometimes no matter what you do, the frizz just cannot be tamed. While getting your hair done at the salon can be a treat, having to pay salon prices to get softness, shine and definition for your curls is just not sustainable in the long run. Enter <a href="https://www.johnfrieda.com/en-au/home/" target="_blank" rel="noopener">John Frieda</a>'s newest Frizz Ease Miraculous Recovery range, which is now infused with repairing ceramides designed to transform frizzy and damaged hair. The Miraculous Recovery Repairing shampoo and conditioner are two of my personal faves, as I could feel the difference in how soft my hair felt after the first use. Not only are the products safe for colour-treated hair, they also made my curls more manageable and easy to style, with the effects lasting for two days, which is amazing considering how quickly my curls can go limp. I also loved how subtle the scent was, and found the most effective way of applying the conditioner was to comb it through my hair with a detangling brush in the shower, as it helps distribute the product evenly. While different curls all need slightly different care, I found the shampoo provided the perfect balance of cleaning build-up on my hair without leaving it dry or flaky. The star of the range was definitely the All-in-1 extra strength serum, which provided extra protection for my colour-treated and chemically treated hair. I love that you can apply this product through wet or dry hair, and it was the perfect way to revive my curls. The Finishing Creme was a bit too thick for my fine, curly hair, but for those with tighter curls or those looking for some extra moisture during more humid days, a light layer of the product would surely tame any flyaways or frizz. With most of their products retailing for around $20 it is an affordable solution to bringing life back into colour-treated and damaged curls. The product can be found in all major supermarkets and pharmacies across <a href="https://www.chemistwarehouse.com.au/shop-online/5571/john-frieda-haircare" target="_blank" rel="noopener">AU</a> and <a href="https://www.chemistwarehouse.co.nz/shop-online/5571/john-frieda-haircare" target="_blank" rel="noopener">NZ</a>. Images: Supplied

Beauty & Style

Aussies outraged over price of staple snack

Australians have expressed outrage over the price of Tim Tams, after one Reddit user spotted the staple snack being sold in stores and online for $6 per pack. “I (remember) when a double pack used to only be about $4.50. F**k this shit,” the user who posted the photo stated. Others blasted the price hike as excessive and "un-Australian". One commenter pointed out that the iconic Australian biscuit was potentially cheaper overseas, despite the import taxes. “That’s in Australia? They’re half that in Canada and they have to import them from Australia,” one said. “Like many other shrunken and quality reduced products I can live without them," another added. Arnott's traditional flavours are currently listed at $6 in Coles and Woolworths, while a family packet will set buyers back $7. An Arnott's spokesperson told the Daily Mail that the price hike was due to increased input costs. “Like most Australian manufacturers, we are experiencing a significant increase in our input costs, including the surging price of cocoa," the spokesperson said. “This has led us to make the difficult decision to increase the price of our Tim Tam biscuits. “We continue to invest in promotional programs with our retailers year-round, to ensure consumers can buy our products at great value prices. ‘The changes are necessary for Arnott’s to remain competitive as an Australian manufacturer and to continue to make the delicious products Australians know and love.” Image: Reddit

Money & Banking

How fear of missing out can lead to you paying more when buying a home

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> The property market is a competitive space where finding a nice home, in the area you want, at a price you can afford is a hard ask. With buyers outnumbering available properties, the pressure is even greater causing some would-be buyers to develop <a href="https://health.clevelandclinic.org/understanding-fomo">a fear of missing out</a> (FOMO) and to make irrational decisions. FOMO might make you worry others are finding nicer homes and getting better deals, or that prices will rise to the point where you are priced out of the market altogether. This could cause you to pay too much or to buy a property in an area unsuitable for your needs. Then there is <a href="https://www.psychologytoday.com/au/blog/counseling-keys/202103/overcoming-fear-of-making-mistakes">fear of making a mistake</a> (FOMM), which can also cause problems if you’re a home hunter. You might be reluctant to bid or to negotiate because you are afraid of choosing the wrong property or paying more than it’s worth. <h2>Problems caused by FOMO and FOMM</h2> The principles of contagion theory, crowd psychology and the scarcity principle we identified in <a href="https://onlinelibrary.wiley.com/doi/epdf/10.1111/ijcs.12649?casa_token=271MN72XdP8AAAAA%3AfhYF_2yUJtM7KGv5jvFdXn5UsXQLkMcIM_F6hffYa30QaSdRivjf2mhFX-cr5C7ttCuLl1-e2OFYXBA">our research</a> on panic-buying during the pandemic, can be applied to any purchasing decisions. In this instance we applied them to buying properties in a competitive housing market. <a href="https://www.communicationtheory.org/contagion-theory/">Contagion theory</a> applies when people act irrationally under the influence of a crowd. <a href="https://www.bestvalueschools.com/faq/what-is-crowd-psychology/">Crowd psychology</a> is similar but relates to how a crowd behaves in certain circumstances, while <a href="https://www.indeed.com/career-advice/career-development/scarcity-principle">scarcity principle</a> is the idea if there are fewer items available, their value increases. Each of these can increase the likelihood of several behaviours when purchasing a property. These include: <ul> <li>Underbidding and overbidding</li> </ul> Fearing other buyers might get the house, house hunters might get caught up in a bidding war and end up paying more than planned. Conversely, buyers with FOMM might fear spending too much so bid too low to start with and risk losing the house. <ul> <li>Following the crowd and peer pressure influence</li> </ul> Buyers might feel <a href="https://link.springer.com/article/10.1007/s11403-021-00324-7">pressured to buy</a> in a certain area because it’s popular, even if it is not best fit for them. This can lead to paying more for a house just because others are doing the same. <ul> <li>Delaying decisions</li> </ul> FOMM can lead to <a href="https://onlinelibrary.wiley.com/doi/abs/10.1111/ijcs.12990?casa_token=ZhJnLBOwVxUAAAAA%3AW5haHZKSA1rFQsRNdvw0liOoyvdxl0OrFR2phkhGfYC6TnWRv9EsnV-N8w52CmcnAVb8X2yU1obpIjKx">taking too long to decide</a>. This delay can mean missing out on good deals or being forced to rush into a decision and end up overpaying. <ul> <li>Avoiding negotiation</li> </ul> Some buyers might avoid negotiating the price or special conditions such as building and pest inspections and finance approval because they fear the seller will reject their offer. This can result in paying more than they need to if there are problems later. <ul> <li>Excessive inspections and appraisals</li> </ul> While inspections and appraisals are important, too many can suggest indecisiveness driven by fear, resulting in wasted money on unnecessary assessments, and more importantly, wasted time and delayed decisions. <h2>Removing fear from the buying process</h2> Start with thorough research and preparation by learning about different neighbourhoods and house prices. The history of properties and suburbs can be found for free on property websites and is a good place to start. Seek professional guidance from real estate agents or financial advisers to help you through the process. Get insights on market trends from an agent from a selling company or bank to help find homes that meet your criteria. Keep in mind these agents will get some form of incentive from your purchase. All the big banks or loan officers can provide free property reports on specific properties or suburbs. Don’t forget to check council mapping and water authority documents to check for potential future road projects and other developments and for an area’s flood rating. Perform due diligence by thoroughly inspecting properties and reviewing contracts to ensure they meet your needs and are a good investment. For example, it is a good idea to hire a home inspector to check for any hidden issues before making an offer. Another common mistake made by most buyers is not asking their <a href="https://www.qld.gov.au/law/housing-and-neighbours/buying-and-selling-a-property/buying-a-home/before-you-start-looking/appointing-a-solicitor">solicitor</a> to check and give suggestions before signing a contract or offer. A solicitor can check the sale contract before you sign, review the disclosure documents, give advice on your mortgage contract, carry out title searches and explain the results and explain how the purchase may affect your liability for land tax. Do some contingency planning by preparing for unexpected price increases and for the presence of other strong bidders to reduce anxiety about making the wrong decision. Setting aside extra funds could help deal with higher than expected prices or unexpected repairs that need doing. In the end, plan well and make decisions without letting emotions take over. Taking your time to find the right home that fits your budget and goals, rather than rushing into a purchase due to fear of missing out or making a mistake.<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/233197/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/park-thaichon-175182">Park Thaichon</a>, Associate Professor of Marketing, <a href="https://theconversation.com/institutions/university-of-southern-queensland-1069">University of Southern Queensland</a> Image credits: Shutterstock 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/how-fear-of-missing-out-can-lead-to-you-paying-more-when-buying-a-home-233197">original article</a>. </div>

Money & Banking

What is competition, and why is it so important for prices?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/paul-blacklow-1546097">Paul Blacklow</a>, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> It’s hard to remember a time before the <a href="https://theconversation.com/you-dont-have-to-be-an-economist-to-know-australia-is-in-a-cost-of-living-crisis-what-are-the-signs-and-what-needs-to-change-210373">cost-of-living crisis</a> dominated news headlines. Most of us would certainly like it to be over. But the fundamental question at its heart – which points to the problem we have to solve – seems simple. What determines the prices we pay? The cost of producing goods and services is certainly one big factor in determining how much we pay for them. So, too, is what we’re prepared to fork out. But when we talk about lowering prices, we often also talk about increasing competition – the number of firms vying to sell us a particular offering. It’s so important for efficient pricing that the government body tasked with making our markets fair is called the Australian Competition and Consumer Commission – the “ACCC” for short. But why does having more people trying to sell us things drive down their prices? And can companies find ways to get around this? <h2>More sellers, lower prices</h2> In a free market system, there are a few different types of competition. In the most ideal, a perfectly competitive market, firms must use resources efficiently to produce what we consumers want at the lowest possible cost. In perfect competition: <ul> <li>the products and services traded are identical (or very similar)</li> <li>there are many buyers and sellers</li> <li>information is perfect</li> <li>firms can enter and exit freely.</li> </ul> A firm charging prices well above the minimum cost will sell no goods or services and be forced to leave the market. Why? Because its competitors will be able to steal customers by charging slightly less for exactly the same thing. Only lower-cost firms will remain and compete prices down until they cover the lowest cost of supplying the good or service, plus an average or normal “return on capital”. At a high level, think of this return as an acceptable monetary reward for the business for investing the inputs and taking on the risks required to operate. If ever an industry is earning above-average returns given its level of risk, new firms will enter and charge less, until only normal returns are earned. Conversely, below-normal profits will see firms exit, decreasing supply and raising prices. Do perfectly competitive markets exist? There are arguably some examples that come close, such as casual labour services, some agricultural commodities like grain, livestock and fruit, and financial and currency markets. But there are more examples of less competitive markets. <h2>The winner takes it all</h2> At the opposite extreme, in monopoly markets, there is only one seller of a good or service. Typically, there is some barrier preventing new firms from entering the market and driving prices down. Without government regulation, monopoly firms will reduce supply, increase prices and earn above-normal profit levels. However, sometimes monopolies emerge naturally because it is far more efficient to have a single coordinating supplier of a particular service – such as in letter delivery, rail tracks, or internet infrastructure. To strike a balance, governments typically regulate or own monopolies. <h2>Same same, but different</h2> More common than monopoly is what’s called monopolistic competition, which is the market structure for many of our tech, entertainment and dining goods and services. In monopolistic competition, firms try to make their offering different by investing in R&D and advertising, so that they do not have to compete on price alone. Think Apple’s iPhone versus Samsung’s Galaxy. Both are technically the same kind of product, but have created their own unique markets. Differentiation allows firms to price above minimum cost and earn above-normal rates of return. At least, that is, until new firms enter and imitate them, increasing supply and lowering prices and profits to normal levels. <h2>A few big players hold market power</h2> In Australia, many key goods and services are traded in oligopoly markets. Oligopolies arise when a few large firms dominate a particular industry, such as supermarkets, domestic airlines, banking, mobile telecommunications, and petrol retailing. Some oligopoly markets are very competitive and drive prices down to cost, plus normal return to capital. But in other more concentrated markets with a few powerful firms, firms may have significant market power and be able to keep prices above the competitive level. It is not illegal to possess market power, but according to Australia’s Competition and Consumer Act 2010, it is illegal to use it “for the purpose, effect, or likely effect of substantially lessening competition”. It is illegal, for example, for firms to explicitly work together when setting prices. This is called collusion. Neither can they force suppliers to deal with them exclusively, or set prices below cost when new firms attempt to enter a market. But that doesn’t mean some firms haven’t learned subtle and legal ways of reducing competition. For example, loyalty programs and charging special loss-leading prices can seem at first glance to be good for consumers, but can also increase the <a href="https://theconversation.com/loyalty-programs-may-limit-competition-and-they-could-be-pushing-prices-up-for-everyone-220669">cost of switching</a> to the lowest-priced firm. <h2>Are we getting a good deal?</h2> Still, you may have noticed the prices charged for many goods and services are very similar across different firms in the economy. Have these prices been driven down by competition to their cost plus a normal return to capital? Or are firms abusing their market power to lessen competition in the market? What can we do if firms are reducing competition through legal measures? These are just some of the difficult questions both government and industry are currently grappling with.<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/234082/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/paul-blacklow-1546097">Paul Blacklow</a>, Lecturer in Economics, <a href="https://theconversation.com/institutions/university-of-tasmania-888">University of Tasmania</a> Image credits: Shutterstock 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-competition-and-why-is-it-so-important-for-prices-234082">original article</a>. </div>

Money & Banking

Young Aussies hit back at Steve Price for calling them "lazy"

Young Aussies have hit back at Steve Price after being criticised as lazy by the broadcaster. Prince unleashed at younger generations on The Project while they were discussing the campaign for more leave initiated by the Shop, Distributive and Allied Employees Association, which is pushing to increase annual leave to five weeks a year. The union hopes to ease burnout in employees, and Price was not impressed with the calls for extra leave. "We're trying to get productivity up in this country," he said. "So we've got people refusing to go back to the office, working from home in barely washed tracksuit tops and bottoms, three days a week. "And now they want five weeks holiday." Georgie Tunny, a millennial, hit back at the boomer by arguing that the "work culture" has changed, especially among those new to the workforce. "Especially for the younger generations, they see work completely differently," she said. Price interrupted her saying that young Aussies just did not want to "work very hard", to which Tunny replied: "There's been a death of your job as your identity or career." Social media users were quick to back Tunny, and took aim at Price. "Where's the incentive for young people to work hard when working hard won't buy you a house or even afford you basic veggies," one said. "You get what you pay for, and it's not worth it to work hard. There's literally no benefit to working as hard as you can," another added. "When you're priced out of the market, priced out of holidays and priced out of necessities, what motivation is there to care or be productive," another added. Others suggested that employers should "increase wages and introduce bonuses as incentives," to encourage their staff to work harder. "Nobody is interested in working themselves to death for scraps," one person said. "I don't want to work very hard for CEOs to make millions while I'm barley able to afford bread," another said. "Our generation is just sick of working hard to have all the higher ups take the credit and the bag. We know what we're worth," a third added. A recent Productivity Commission report found that Aussies born after 1990 are finding more difficult than previous generations to move up the financial ladder. The report also found that young Aussies are increasingly earning less than their parents did at the same age, with the global financial crisis partially to blame for the weak income growth. Images: The Project

Money & Banking

So when should you book that flight? The truth on airline prices

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/yuriy-gorodnichenko-144556">Yuriy Gorodnichenko</a>, <a href="https://theconversation.com/institutions/university-of-california-berkeley-754">University of California, Berkeley</a> and <a href="https://theconversation.com/profiles/volodymyr-bilotkach-145437">Volodymyr Bilotkach</a>, <a href="https://theconversation.com/institutions/newcastle-university-906">Newcastle University</a> How airlines price tickets is a source of many <a href="http://airtravel.about.com/od/travelindustrynews/a/mythticket.htm">myths</a> and urban legends. These include tips about the best day of the week to buy a ticket, last-minute discounts offered by the airlines, and the conspiracy theories suggesting that the carriers use cookies to increase prices for their passengers. None of these three statements is entirely true. Studies have suggested that prices can be higher or lower on a given day of the week – yet, there is no clear consensus on which day that is. Offered prices can in fact drop at any time before the flight, yet they are much more likely to increase than decrease over the last several weeks before the flight’s departure. Further, the airlines prefer to wait for the last-minute business traveler who’s likely to pay full fare rather than sell the seat prematurely to a price conscious traveler. And no, the airlines do not use cookies to manipulate fare quotes – adjusting their inventory for specific customers appears to be beyond their technical capabilities. What is true about pricing in the airline industry is that carriers use complex and sophisticated pricing systems. The airline’s per passenger cost is the lowest when the flight is full, so carriers have incentive to sell as many seats as possible. This is a race against time for an airline and, of course, no company wants to discount its product more than it has to. Hence, the airlines face two somewhat contradictory goals: to maximize revenue by flying full planes and to sell as many full-fare seats as possible. This a process known in the industry as yield or revenue management. <h2>Airlines and their bucket lists</h2> Here is how <a href="http://commons.erau.edu/cgi/viewcontent.cgi?article=1522&context=jaaer">yield management</a> works. For each flight or route (if we are talking about multi-segment itineraries), the airline has a set of available price levels – from the most expensive fully refundable fare to the cheapest deeply discounted non-refundable price. The industry jargon for these prices is “buckets.” Then, seats can be interpreted as balls that are allocated among these buckets. Initial allocation of seats between the price buckets is determined by historical data indicating how well a certain flight sells. For example, fewer deeply discounted seats will be offered on a flight on Thanksgiving week than on the same flight during the third week of February. As the seats on a flight sell, yield managers monitor and adjust the seat allocation. If, for instance, the sales are slower than expected, some of the seats might be moved to lower-priced buckets – this shows up as a price drop. As noted above, such price drops can occur at any time before the flight. However, the general trend of price quotes is upward starting from about two to three weeks before the flight departure date. Of course, an average traveler wants to know when he or she should buy the tickets for the next trip. Another important question is where to buy this ticket. Airlines distribute their inventory on their own websites and on several computer distribution systems, meaning that prices can sometimes differ depending on where one looks. We are not entirely sure what precipitates this phenomenon – likely explanations include differences in contracts between the airlines and the distribution systems/travel agents, implying that different travel agents may not have access to the airline’s entire inventory of available prices. <h2>When to book</h2> The airlines’ yield managers start looking at flight bookings about two months before the departure date. This implies that it generally does not pay to book more than two months in advance: studies show that initially the airlines leave the cheapest price buckets empty, and yield managers may move some seats into those buckets if a couple of months before the departure date the flight is emptier than expected. Between two months and about two to three weeks before the flight date, the fare quotes remain mostly flat, with a slight upward trend. However, and perhaps paradoxically, there is a good chance of a price drop during this period. We tend to monitor prices for several days – sometimes up to a week – hoping for a potentially lower quote. It does not always pay off, but sometimes we do manage to save a considerable amount of money. Two to three weeks before the flight date, the price quotes start increasing. This is the time when business travelers start booking. While price drops are still possible, a chance of a price increase is much higher if you wait to book within this time period. This is also the time when one can find significant differences between price quotes, depending on where one looks and what contract they have with the airlines. Thus, if we book a trip earlier than three weeks before the flight date, we tend not to delay the purchase. At the same time, we check quotes from multiple travel agents, or go directly to a site that allows for a quick comparison of prices (such as <a href="https://www.kayak.com">kayak.com</a> or <a href="http://www.skyscanner.net">skyscanner.net</a>). Or check the airline itself. As for answering the original question we posed, here are some simple tips. First, if you have to travel during a peak period, such as Thanksgiving week, it is generally best not to delay buying that ticket. Otherwise, it might pay to monitor the offered prices for some time before committing. The best strategy for booking within the last couple of weeks before the flight, however, is not to delay the purchase, but to try getting quotes from several agents, which is easy to do in the internet age.<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/34033/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/yuriy-gorodnichenko-144556">Yuriy Gorodnichenko</a>, Associate Professor of Economics, <a href="https://theconversation.com/institutions/university-of-california-berkeley-754">University of California, Berkeley</a> and <a href="https://theconversation.com/profiles/volodymyr-bilotkach-145437">Volodymyr Bilotkach</a>, Senior Lecturer in Economics, <a href="https://theconversation.com/institutions/newcastle-university-906">Newcastle University</a> Image credits: Shutterstock 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/so-when-should-you-book-that-flight-the-truth-on-airline-prices-34033">original article</a>. </div>

Travel Tips

Can you change your mind after you buy a house?

<div class="theconversation-article-body"> <a href="https://theconversation.com/profiles/rosemary-gibson-1544081">Rosemary Gibson</a>, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> In the Bluey episode “<a href="https://iview.abc.net.au/show/bluey-the-sign">The Sign</a>”, the Heeler family enters a contract to sell their family home to a pair of English Sheepdogs, or as Bluey calls them, “the dogs with no eyes”. But towards the end of the episode, the Sheepdogs spy another house that they prefer. Unlike Bluey’s house, the new place has a pool. They telephone Bandit and tell him that they have changed their mind. Happily for Bluey’s family – and let’s face it, most of Australia – Bandit decides not to press ahead with the sale and the Heelers end up staying put in their family home. But aside from the fact that the contracting parties are all cartoon dogs – how realistic is this scenario? Is it possible to end a contract to purchase or sell a house simply because you’ve changed your mind? The reality is that once a contract of sale is signed, there are only limited circumstances in which buyers and sellers can bring the contract to an end. <h2>What do you sign when buying or selling a house?</h2> In Australia, each state and territory has its own standard form contract for the sale of land that buyers and sellers must sign. The terms of these contracts mirror relevant state or territory laws, meaning they differ throughout Australia. It is important for parties to obtain advice from a property lawyer with experience in a particular jurisdiction’s contract. <h2>Can you change your mind after signing?</h2> Once a contract has been signed, a buyer may only end it for a “change of mind” during the “cooling off period”. The cooling off period is a short period of time – usually between two and five business days – after the contract is signed. During this time, the buyer can end the contract, “no questions asked”. But there are usually financial consequences for terminating during the cooling off period. For example, in New South Wales, Queensland and the ACT, a buyer who ends the contract during the cooling off period must pay the seller 0.25% of the purchase price. For a house purchase of A$1 million, this termination penalty would be $2,500. But not all states and territories guarantee a cooling off period for buyers. And in such a hot property market, an individual seller may be unlikely to agree to include such a term in a contract. <h2>What if something goes wrong down the track?</h2> When negotiating the contract terms, the parties may agree that the sale is subject to certain conditions. Typically, these conditions are in the purchaser’s favour. If one of the conditions is not satisfied in time, then the contract can be brought to an end. It is up to the parties to negotiate which conditions (if any) are included in the contract, and the time by which the conditions must be satisfied. The most common conditions of sale are: <ul> <li>the buyer obtains finance by a certain date (a finance clause)</li> <li>the buyer obtains satisfactory building and pest inspection reports by a certain date (a building and pest clause).</li> </ul> The buyer may also want the sale to be subject to the buyer first selling an existing property. Once all of the conditions of sale are satisfied, the contract is said to be “unconditional”. From this time, there are no express circumstances in which either party may bring the contract to an end. When the Sheepdogs telephoned Bandit, the Heelers had already moved all their furniture out of the house. Clearly, the sale had already gone unconditional. There was no express basis on which the Sheepdogs could have terminated the contract. <h2>Could the Heelers have sued for breach of contact?</h2> A party who ends a contract without justification is liable to pay compensation to the other party. A house purchaser who wrongly terminates a contract would almost certainly lose their deposit. They may also be liable for additional losses the seller suffers as a result of the breach, including any deficiency in price on a resale of the property. But a buyer and seller may bring a contract to an end by “mutual agreement”, which seems to be what happened in Bluey. The Sheepdogs sought to end the contract and – to the relief of all Australians – the Heelers agreed. This is, however, unlikely to occur “in real life”, especially in today’s highly competitive property market. At the very least, the seller would be entitled to retain the purchaser’s deposit. There would also be the issue of who bears the costs incurred in advertising and agency fees. It seems Bandit followed his heart rather than the strict terms of the contract — and Australia is the better for it.<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/234659/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/rosemary-gibson-1544081">Rosemary Gibson</a>, Lecturer in Contract Law, <a href="https://theconversation.com/institutions/the-university-of-queensland-805">The University of Queensland</a> Image credits: Shutterstock 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/can-you-change-your-mind-after-you-buy-a-house-234659">original article</a>. </div>

Money & Banking

Tragic moment mother returns to scene of fatal house fire

In a heartbreaking moment, Stacey Gammage, 29, has returned to her devastated home in Lalor Park for the first time since the tragic fire that claimed the lives of three of her children. The fire, allegedly <a href="https://www.oversixty.com.au/finance/legal/dean-heasman-s-grandmother-breaks-silence-after-deadly-house-fire" target="_blank" rel="noopener">started by her partner, Dean Heasman</a>, 28, left the family reeling with loss and sorrow. On Sunday, shortly before 1am, Heasman allegedly set the family’s home ablaze and barricaded them inside. Two boys, aged two and six, were critically injured and later died at Westmead Hospital. The body of a five-month-old girl was also found by firefighters after extinguishing the flames. Returning on Tuesday afternoon, Stacey Gammage, still wearing her hospital wristband, was supported by family members and police as she read the numerous tributes and cards left outside the home. The street was closed for almost two hours to allow her to grieve privately. The devastated mother then returned to Westmead Hospital, where her four surviving children remain. The children, including a nine-year-old girl and three boys aged four, seven and 11, are all reported to be in stable condition. Heasman remains under police guard in an induced coma at Westmead Hospital, and no charges have yet been filed. Investigations continue under Strike Force Carrbridge. According to reports, Heasman allegedly threw a burning pillow at his wife, which contributed to the blaze. Investigators are also examining whether an accelerant was used, as a second explosion occurred moments after the initial fire began. Local hero Jarrod Hawkins, whose daughter is friends with one of the surviving children, rushed to the burning home and saved the nine-year-old girl and her three brothers. The eldest boy reportedly told his rescuers, "Dad tried to kill me." As the community mourns this unimaginable loss, they continue to leave floral tributes, stuffed toys, and candles at the scene, while detectives work tirelessly to uncover the full details of the tragedy. Image: Nine News

Caring

Dean Heasman's grandmother breaks silence after deadly house fire

The estranged and terminally-ill grandmother of the man allegedly responsible for lighting a house fire that killed three of his children has spoken out in the wake of the tragedy. In the early hours of Sunday morning, neighbours raised the alarm after spotting the fire in a family home in the suburb of Lalor Park, with firefighters arriving on the scene in six minutes to battle what neighbours called an "intense" <a href="https://oversixty.com.au/finance/legal/three-children-dead-after-allegedly-being-forced-into-house-fire" target="_blank" rel="noopener">blaze</a>. Two boys aged three and six years old were given CPR on the street but could not be revived, and a 10-month-old baby girl was also found dead inside the home. The children's father, Dean Heasman, has since been arrested over the deaths of the children, with police treating the tragedy as a domestic violence attack. Now, Heasman's grandmother, 82-year-old Neryle Heasman, told <a href="https://www.dailymail.co.uk/news/article-13610539/Lalor-Park-house-fire-dean-heasman.html" target="_blank" rel="noopener">Daily Mail Australia</a> she knew her grandson Dean as "a nice child" but said she had been estranged from him in recent years. "I didn't have a lot to do with him since his father, my son also named Dean, passed away," she said. "On the odd occasion I saw him, I remember him being a nice child." Mrs Heasman, who is receiving home palliative care for terminal lung cancer and has six months to live, said she had not met her great-grandchildren. "I have kept up with his family through photos on Facebook," she said. But she was stunned to discover he was at the centre of the police investigation into the deadly fire, asking Daily Mail Australia, "Are you sure we're talking about the same Dean?" A 29-year-old woman, a nine-year-old girl, and three boys aged four, seven and 11 were also in the house during the blaze, but escaped and were rushed to Westmead hospital. Investigators are now trying to determine what caused the blaze, with reports claiming that Heasman threw a pillow on fire at his partner, which was partially responsible for starting the fire. Image credits: 7News / Daily Mail Australia

Legal

From lettuce fields to opera stages – the brilliant journey of Helen Sherman

How does a young girl growing up on a lettuce farm in rural New South Wales, surrounded by the quiet rustle of leaves and the hum of daily farm life, go on to become such a powerful voice on the operatic scene? This is the unlikely beginning of Helen Sherman, the Australian-British mezzo-soprano who has taken the world of opera by storm. Sherman’s musical journey began at the Sydney Conservatorium of Music, where her extraordinary voice started to attract attention. It wasn't long before her ambition led her to the prestigious Royal Northern College of Music (RNCM) in the UK. There, she honed her craft, setting the stage for a remarkable career that would see her representing Australia at the BBC Cardiff Singer of the World competition and the Francisco Viñas International Singing Competition. Sherman's rise to operatic fame has been nothing short of meteoric. Her versatility and talent have seen her perform a wide range of roles across the globe. Recent highlights include Flora in La traviata at the Royal Opera House, Covent Garden, and Octavian in Der Rosenkavalier and Cherubino in Le nozze di Figaro with Opera North. Her portrayal of Tamiri in Farnace with Pinchgut Opera and Dorabella in Così fan tutte at Teatru Manoel in Malta further cemented her reputation as a mezzo-soprano of extraordinary range and depth. One of Sherman’s standout performances was her interpretation of the title role in Carmen with the State Opera South Australia. Her embodiment of Carmen’s fiery spirit and complex emotions captivated audiences and critics alike. Equally compelling was her portrayal of Giulio Cesare with Bury Court Opera, a role that showcased her ability to navigate the demanding vocal and dramatic challenges of baroque opera. In 2024, Sherman’s calendar is as busy as ever, as she will be singing Dorabella in Così fan tutte and Mistress of the Novices in Suor Angelica for Opera Australia, roles that promise to highlight her versatility and emotional depth. <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: left; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: #ffffff; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;">Over60 was lucky enough to be able to interview Sherman in the lead-up to her Sydney performances of <a href="https://opera.org.au/productions/il-trittico-sydney/" target="_blank" rel="noopener">Il Trittico</a> and <a href="https://opera.org.au/productions/cosi-fan-tutte-sydney/" target="_blank" rel="noopener">Così fan tutte</a>: O60: How did you become an opera singer after growing up on a lettuce farm in rural NSW? “It was quite a journey. My father was an incredible piano accordionist (think Flight of the Bumblebee, Malagueña etc). In the 1970s his teaching studio in Bathurst peaked at about 40 accordion students, which I think is quite remarkable. After his father died, Dad stepped back from his teaching to take over the family farm, though he still plays to this day. “My mother is a music lover, and wanted her children to have the opportunity to explore creative outlets that she wasn't fortunate enough to explore in her youth, so my brother, sister and I all had lessons in piano accordion, piano, dancing, drama and singing. We were fortunate to live in a town that had many thriving arts organisations, such as the Dolly McKinnon School of Dance, Bathurst Eisteddfod Society and Mitchell Conservatorium of Music. “Bathurst's Carillon Theatrical Society (for which my dad's cousin, the late, great, Carole Eastment, was choreographer) afforded us the opportunity to be part of full-scale classic musical productions. I was also fortunate to attend MacKillop College, a local Catholic high school of humble proportions, that had a very passionate and resourceful music teacher, Mr David Eyles. Thanks to him, students like me were able to star in wittily re-written and orchestrated G&S productions. With such a plethora of opportunities at my feet, my love of the stage was pretty much pre-determined. “Upon graduating high school, aged seventeen, I moved to Sydney to take up a place at the Sydney Conservatorium of Music, where I completed a Bachelor of Music and a post graduate diploma in opera. At this stage, I wasn't really in love with opera, that came later, when I found myself covering third novice in OA's 2007 production of Suor Angelica. “During the last studio run of the show, mere metres away from me, star soprano Cheryl Barker was singing the final solo notes of the title role: ‘Madonna! Madonna! Salva me! Salva me!’, tears streaming down her face, and the most incredible voice soaring out; I had chills all over my body and in my soul, and I have loved opera ever since.” O60: You were based in London for years; how did you find the opera world overseas versus in Australia – in both your studies and performing? “I guess the main differences are that the UK scene is a bigger one with more companies and more music schools; a more international one, that students and professionals from around the world flock to, and one with – historically – more financial backing and patronage. However, the scene in the UK has suffered dramatically in the last few years, particularly with the effects of Brexit compounded by COVID, cost-of-living crisis and embarrassingly ignorant cuts made by the Arts Council. “Generally, abroad, there are many more opportunities for musicians, but many, many more musicians competing for them. It is an awe-inspiring thing to meet and work with musical idols like Roger Vignols, Julius Drake, Yvonne Kenny etcetera, to sing a piece of music in the venue in which it premiered or was composed for; to tread the same cobblestones that the likes of Mozart and Handel trod and to delight in the discovery that the shoes or trousers you're wearing in a production bear the name of the likes of Dame Sarah Connolly.” “However, I would say that there is plenty of exciting stuff going on in Australia and an optimism and openness in the Australian people, which is impactful on our industry and its creative output. “More needs to be done in our country to insure all children are given creative learning outlets for the benefit of their development, their communities and for the future of our industry.” O60: Why did you return to Sydney and how are you enjoying it? Any future plans to head back overseas? “After a health scare in 2022 that forced me to cancel all my work, my husband received a job offer to relocate to Sydney. It felt like the universe was opening a door for us, so we gladly walked through it, and onto a flight to Sydney in mid 2023. I have felt welcomed (back!) with open arms both personally and professionally and I have no imminent plans to return abroad, at this stage.” O60: You’ve appeared in many staged productions as well as concerts. What do you like about these two types of performances? “Concert performances are a chance to home in on the music and the words without worrying about physical action. Staged productions afford the performer the luxury of inhabiting and exploring a character, physically, right down to their shoes and petticoats. Both are wonderful ways of working and some works naturally lend themselves to one or the other – though, I think for opera, context is key, and can be a challenge to properly manufacture on the concert platform.” O60: Tell us about your two characters and how do you prepare for performing two roles in different operas in the same season? “I've been playing the role of Mistress of Novices in Suor Angelica and am currently preparing the role of Dorabella in Così fan Tutte. One is a senior nun and the other an excitable teenage girl, so they are rather disparate. “The big challenge is in the early days of learning and memorising the role. Once you have a grasp of the music, the libretto and who you are, it's about showing up and reacting to your world. Preparing disparate roles concurrently can be a vocal challenge, since tessitura and vocal gesture have a big impact on how one might approach a score. I like to keep in touch, daily, with technical exercises that encourage economy and flexibility in my voice, especially when I'm working on contrasting roles. Thankfully, the human voice is a very sensitive instrument and responds intuitively to intention and emotion, so developing the character arc and subtext helps a lot with that. O60: What should audiences be watching and/or listening out for Il Trittico versus in Così fan tutte? “There's so much to enjoy so let it wash over you in broad, beautiful, very human brushstrokes!! Or, if you love little details, in Il Trittico see if you can spot which singers appear in all three operas and watch out for Frugola's bag of strange objects in Il Tabarro. You'll learn a lot from the body language and small glances between characters in the world of Suor Angelica, and in Gianni Schicchi, well, I am told there is a very interesting door stop! “In Così fan Tutte, listen out for the way Mozart creates subtext for his characters; tiny details, like Dorabella needing to sing a third higher than Fiordiligi (because she is the competitive younger sister!) when emotionally fraught in some of their act one recitatives! Mozart is a genius of musical detail!” O60: Do you have any dream roles you’re yet to perform? “There are too many to list, but I adore the role of Octavian in der Rosenkavalier by Strauss (a role I have sung, but would love to revisit) and I would love to sing Ariodante by Händel.” --- <p style="box-sizing: border-box; margin-top: 0px; margin-bottom: 1rem; color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px; background-color: #ffffff;"><span style="color: #212529; font-family: -apple-system, 'system-ui', 'Segoe UI', Roboto, 'Helvetica Neue', Arial, sans-serif, 'Apple Color Emoji', 'Segoe UI Emoji', 'Segoe UI Symbol', 'Noto Color Emoji'; font-size: 16px;">Click here for more information on <a href="https://opera.org.au/productions/il-trittico-sydney/" target="_blank" rel="noopener">Il Trittico</a> and <a href="https://opera.org.au/productions/cosi-fan-tutte-sydney/" target="_blank" rel="noopener">Così fan tutte</a>.

Music

Three children dead after allegedly being forced into house fire

Warning: This article contains disturbing content that readers may find distressing. Three children have tragically died in a house fire in Sydney's west, with police allegedly treating the incident as a domestic violence attack. At 1am on Sunday morning, neighbours raised the alarm after spotting the fire in a family home in the suburb of Lalor Park. Firefighters arrived on the scene in six minutes to battle what neighbours called an "intense" blaze. "The flames were shooting out the front window at 20 feet," Brett said. Two adults and seven young children were inside when the fire broke out, with neighbours saying they were awoken by screaming. Two boys aged three and six years old were given CPR on the street but could not be revived, and a 10-month-old baby girl was also found dead inside the home. As rescue crews, emergency services and locals battled to extinguish the powerful flames and rescue those inside, father Dean Heasman was allegedly seen pushing the children back in. "We're alleging that 28-year-old man took direct actions to prevent the rescue of those young lives that were lost," NSW Police Homicide Squad Superintendent Danny Doherty said. "We will allege that this 28-year-old man's actions were directly the cause of the death of these three young people." "We've seen three young lives have just been taken away in the most tragic of circumstances, quite unimaginable how the family is coping with this." A 29-year-old woman, a nine-year-old girl, and three boys aged four, seven and 11 were also in the house during the blaze, but escaped and were rushed to Westmead hospital. Neighbours said the surviving children told them the man ordered them to stay inside the home as it burned, one of them claiming he tried to fight in a bid to save his siblings. "Dad tried to kill us," the child allegedly told rescuers. Residents claimed they saw the man attempting to drag the terrified children back inside, as they said he was shouting "leave me here to die". It's understood the man, who was arrested at the scene and remains in a coma with significant injuries, was not previously known to police and had no existing apprehended violence order against him. NSW Premier Chris Minns labelled the incident "horrifying and senseless" and offered the family support, as an investigation into the cause of the blaze begins. Image credits: Nine News

Legal

Cheaper mortgages, tamed inflation and even higher home prices: how 29 forecasters see Australia’s economic recovery in 2024-25

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Australia’s top economic forecasters expect the Reserve Bank to start cutting interest rates by March next year, taking 0.35 points of its cash rate by June. If passed on in full, the cut would take $125 off the monthly cost of servicing a $600,000 variable-rate mortgage, with more to come. The panel of 29 forecasters assembled by The Conversation expects a further cut of 0.3 points by the end of 2025. This would take the cash rate down from the current 4.35% to 3.75% and produce a total cut in monthly payments on a $600,000 mortgage of $335. The forecasts were produced after last week’s news of a higher than expected <a href="https://theconversation.com/australias-inflation-rate-jumps-to-4-putting-an-rba-rate-rise-back-on-the-agenda-233331">monthly consumers price index</a>. Several of those surveyed revised up their predictions for interest rates in the year ahead, while continuing to predict cuts by mid next year. Only two expect higher rates by mid next year. Only four expect no change. <hr /> <iframe id="6eIe8" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/6eIe8/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Now in its sixth year, The Conversation survey draws on the expertise of leading forecasters in 22 Australian universities, think tanks and financial institutions – among them economic modellers, former Treasury and Reserve Bank officials and a former member of the Reserve Bank board. Eight of the 29 expect the first cut to come this year, by either November or December. One of them is Luci Ellis, who was until recently assistant governor (economic) at the Reserve Bank and is now at Westpac. She and her team are forecasting three interest rate cuts by the middle of next year, taking the cash rate from 4.35% to 3.6%. <h2>Reserve Bank a ‘reluctant hiker’</h2> Ellis says inflation isn’t falling fast enough for the bank to be confident of being able to cut before November. But after that, even if inflation isn’t completely back within the bank’s target band but is merely moving towards it, a “forward-looking” board would want to start easing interest rates. Another forecaster, Su-Lin Ong of RBC Capital Markets, says in her view the bank should hike at its next board meeting in August after the release of figures likely to show inflation is still too high. But she says the bank is a “reluctant hiker” and keen to keep unemployment low. Although several panellists expect the Reserve Bank to hike rates in the months ahead, almost all expect rates to be lower in a year’s time than they are today. <hr /> <iframe id="2xF3M" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/2xF3M/" width="100%" height="400px" frameborder="0"></iframe> <hr /> The panel expects inflation to be back within the Reserve Bank’s 2-3% target band by June next year, and to be close to it (3.3%) by the end of this year. Twelve of the panel expect inflation to climb further when the official figures are released at the end of this month, but none expect it to climb further beyond that. And all expect inflation to be lower by the end of the financial year than it is today. One, Percy Allan, a former head of the NSW Treasury, cautions that the tax cuts and other government support measures due to start this month run the risk of boosting spending and falling progress on inflation. <hr /> <iframe id="LGJa7" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/LGJa7/" width="100%" height="400px" frameborder="0"></iframe> <hr /> The panel expects wages growth to fall from 4% to 3.5% over the year ahead, contributing to downward pressure on inflation, but to remain higher than prices growth, producing gains in so-called <a href="https://www.investopedia.com/terms/r/realincome.asp">real wages</a>. It expects wages growth to moderate further, to 3.2%, in 2025-26. <hr /> <iframe id="iV7mZ" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/iV7mZ/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Consumer spending is expected to remain unusually weak, growing by only 1.7% in real terms over the next 12 months, up from 1.3% in the latest national accounts. Mala Raghavan, from the University of Tasmania, said even though inflation was falling, previous price rises meant the prices of essentials remained high. AMP chief economist Shane Oliver expected the boost from the <a href="https://treasury.gov.au/tax-cuts">Stage 3 tax cuts</a> to be offset by the depressing effect of a weaker labour market. <h2>Unemployment to climb modestly</h2> The panel expects Australia’s unemployment rate to climb steadily from its present historically low 4% to 4.4%. Moodys Analytics economist Harry Murphy Cruise said although the increase wasn’t big, the effect on pay packets would be bigger. Employers were shaving hours and easing back on hiring rather than letting go of workers. <hr /> <iframe id="SM8PI" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/SM8PI/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Panellists expect China’s economic growth to slip from 5.3% to 5% and US growth to slip from 2.9% to 2.4%. Australia’s economic growth is expected to climb from the present very low 1.1% to 1.3% by the end of this year and to 2% by the end of next year. Although none of the panel are forecasting a recession, most of those who offered an opinion said if there was a recession, it would start this year when the economy was weak. Some said we might later discover that we have been in a recession if the very weak economic growth of 0.1% recorded in the March quarter is revised and turns negative when updated figures are released in September. <hr /> <iframe id="3I49o" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/3I49o/1/" width="100%" height="400px" frameborder="0"></iframe> <hr /> Home prices are expected to continue to climb notwithstanding economic weakness. Sydney prices are expected to increase a further 5% in the year ahead after climbing 7.4% in the year to May. Melbourne prices are expected to rise a further 2.8% after climbing 1.8% in the year to May. Percy Allan said Sydney had fewer homes available than Melbourne, and Victoria’s decisions to extend land tax and boost rights for tenants had upset landlords, many of whom were offloading their holdings. <h2>Home prices to climb further</h2> Julie Toth, chief economist at property information firm PEXA, said rapid population growth was colliding with an ongoing decline in household size since COVID. At the same time, fewer new homes were being commissioned and long delays and high construction costs were also keeping supply tight. <hr /> <iframe id="JzLaY" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/JzLaY/" width="100%" height="400px" frameborder="0"></iframe> <hr /> The panel expects non-mining business investment to continue to climb in the year ahead, by 5.2%, down from 6.9%. It expects the Australian share market to climb by a further 5.6% Read the answers on <a href="https://cdn.theconversation.com/static_files/files/3350/2024-25_The_Conversation_AU_Forecasting_Survey.pdf">PDF</a>, download as <a href="https://cdn.theconversation.com/static_files/files/3351/2024-25_The_Conversation_AU_forecasting_survey.xlsx?1719478737">XLS</a> <hr /> <h2>The Conversation’s Economic Panel</h2> Click on economist to see full profile. <iframe id="tc-infographic-1066" class="tc-infographic" style="border: none;" src="https://cdn.theconversation.com/infographics/1066/93fb29ba32e178ec2dcda111f014a50cf7ea1f49/site/index.html" width="100%" height="400px" frameborder="0"></iframe><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/233244/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/peter-martin-682709">Peter Martin</a>, Visiting Fellow, <a href="https://theconversation.com/institutions/crawford-school-of-public-policy-australian-national-university-3292">Crawford School of Public Policy, Australian National University</a> Image credits: Shutterstock 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/cheaper-mortgages-tamed-inflation-and-even-higher-home-prices-how-29-forecasters-see-australias-economic-recovery-in-2024-25-233244">original article</a>. </div>

Money & Banking

How would a switch to nuclear affect electricity prices for households and industry?

<div class="theconversation-article-body"><a href="https://theconversation.com/profiles/roger-dargaville-1832">Roger Dargaville</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Peter Dutton has announced that under a Coalition government, seven nuclear power stations would be built around the country over the next 15 years. Experts have declared nuclear power would be <a href="https://www.abc.net.au/news/2024-06-20/power-prices-wont-fall-with-nuclear/103998172">expensive</a> and <a href="https://www.afr.com/politics/federal/nuclear-to-cost-17b-and-take-until-2040-to-build-csiro-20240521-p5jfaj#:%7E:text=Nuclear%20could%20cost%20up%20to,until%202040%20to%20build%3A%20CSIRO&text=Peter%20Dutton's%20nuclear%20energy%20plans,operational%20until%20at%20least%202040.">slow to build</a>. But what might happen to energy prices if the Coalition were to win government and implement this plan? <h2>How might we estimate the cost of nuclear?</h2> By 2035, 50–60% of the existing coal-fired fleet will very likely <a href="https://aemo.com.au/-/media/files/stakeholder_consultation/consultations/nem-consultations/2023/draft-2024-isp-consultation/draft-2024-isp.pdf">have been retired</a>, including Vales Point B, Gladstone, Yallourn, Bayswater and Eraring – all of which will have passed 50 years old. These five generators contribute just over 10 gigawatts of capacity. It’s probably not a coincidence that the seven nuclear plants proposed by Dutton would also contribute roughly 10 gigawatts in total if built. Neither my team at Monash University nor the Australian Energy Market Operator has run modelling scenarios to delve into the details of what might happen to electricity prices under a high-uptake nuclear scenario such as the one proposed by the Coalition. That said, we can make some broad assumptions based on a metric known as the “levelised cost of electricity”. This value takes into account: <ul> <li> how much it costs to build a particular technology </li> <li> how long it takes to build </li> <li> the cost to operate the plant </li> <li> its lifetime </li> <li> and very importantly, its capacity factor. </li> </ul> Capacity factor is how much electricity a technology produces in real life, compared with its theoretical maximum output. For example, a nuclear power station would likely run at 90–95% of its full capacity. A solar farm, on the other hand, will run at just 20–25% of its maximum, primarily because it’s night for half of the time, and cloudy some of the time. CSIRO recently published its <a href="https://www.csiro.au/en/research/technology-space/energy/gencost">GenCost</a> report, which outlines the current and projected build and operational costs for a range of energy technologies. It reports that large-scale nuclear generated electricity would cost between A$155 and $252 per megawatt-hour, falling to between $136 and $226 per megawatt-hour by 2040. The report bases these costs on recent projects in South Korea, but doesn’t consider some other cases where costs have blown out dramatically. The most obvious case is that of <a href="https://www.edf.fr/en/the-edf-group/dedicated-sections/journalists/all-press-releases/hinkley-point-c-update-1">Hinkley Point C nuclear plant</a> in the United Kingdom. This <a href="https://www.reuters.com/business/energy/edfs-nuclear-project-britain-pushed-back-2029-may-cost-up-34-bln-2024-01-23/">3.2GW</a> plant, which is being built by French company EDF, was recently <a href="https://www.edf.fr/en/the-edf-group/dedicated-sections/journalists/all-press-releases/hinkley-point-c-update-1">reported</a> to be now costing around £34 billion (about A$65 billion). That’s about A$20,000 per kilowatt. CSIRO’s GenCost report assumed a value of $8,655 per kilowatt for nuclear, so the true levelised cost of electricity of nuclear power in Australia may end up being twice as expensive as CSIRO has calculated. <hr /> <iframe id="Aryx7" class="tc-infographic-datawrapper" style="border: none;" src="https://datawrapper.dwcdn.net/Aryx7/4/" width="100%" height="400px" frameborder="0"></iframe> <hr /> <h2>Other factors play a role, too</h2> Another factor not accounted for in the GenCost assumptions is that Australia does not have a nuclear industry. Virtually all the niche expertise would need to be imported. And very large infrastructure projects have a nasty habit of <a href="https://www.cis.org.au/publication/bungles-blowouts-and-boondoggles-why-australias-infrastructure-projects-cost-more-than-they-should/">blowing out in cost</a> – think of Snowy 2.0, Sydney’s light rail project, and the West Gate Tunnel in Victoria. Reasons include higher local wages, regulations and standards plus aversion from lenders to risk that increases cost of capital. These factors would not bode well for nuclear. In CSIRO’s GenCost report, the levelised cost of electricity produced from coal is $100–200 per megawatt-hour, and for gas it’s $120–160 per megawatt-hour. Solar and wind energy work out to be approximately $60 and $90 per megawatt-hour, respectively. But it’s not a fair comparison, as wind and solar are not “dispatchable” but are dependent on the availability of the resource. When you combine the cost of a mix of wind and solar energy and storage, along with the cost of getting the renewable energy into the grid, renewables end up costing $100–120 per megawatt-hour, similar to coal. If we were to have a nuclear-based system (supplemented by gas to meet the higher demands in the mornings and evenings), the costs would likely be much higher – potentially as much as three to four times if cost blowouts similar to Hinkley Point C were to occur (assuming costs were passed on to electricity consumers. Otherwise, taxpayers in general would bear the burden. Either way, it’s more or less the same people). <h2>But what about the impact on your household energy bill?</h2> Well, here the news is marginally better. Typical retail tariffs are 25-30 cents per kilowatt-hour, which is $250–300 per megawatt-hour. The largest component of your energy bill is not the cost of generation of the electricity; rather, it’s the cost of getting the power from the power stations to your home or business. In very approximate terms, this is made up of the market average costs of generation, transmission and distribution, as well as retailer margin and other minor costs. The transmission and distribution costs will not be significantly different under the nuclear scenario compared with the current system. And the additional transmission costs associated with the more distributed nature of renewables (meaning these renewable projects are all over the country) is included in the estimate. According to my back-of-the-envelope calculations, your retail tariff under the nuclear scenario could be 40–50c per kilowatt-hour. But if you are a large energy consumer such as an aluminium smelter, you pay considerably less per kilowatt-hour as you don’t incur the same network or retailer costs (but the cost of generating electricity in the first place makes up a much bigger proportion of the total cost). So if the cost of electricity generation soars, this hypothetical aluminium smelter’s energy costs will soar too. This would be a severe cost burden on Australian industry that has traditionally relied on cheap electricity (although it’s been a while since electricity could be described as cheap). <h2>A likely increase in energy costs</h2> In summary, in a free market, it is very unlikely nuclear could be competitive. But if a future Coalition government were to bring nuclear into the mix, energy costs for residential and especially industrial customers would very likely increase.<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/232913/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/roger-dargaville-1832">Roger Dargaville</a>, Director Monash Energy Institute, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Image credits: Shutterstock 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/how-would-a-switch-to-nuclear-affect-electricity-prices-for-households-and-industry-232913">original article</a>. </div>

Money & Banking

Steve Price fires up over Dan Andrews' special honour

Steve Price has sparked a bitter row on-air with his co-hosts of The Project, as he spoke out against former premier Dan Andrews being named on the King’s Honours list this year. Andrews, the former premier of Victoria who saw the state through the Covid pandemic, has been recognised on the prestigious list for his “eminent service to the people and parliament of Victoria, to public health, to policy and regulatory reform, and to infrastructure development”. After the announcement of Andrews' upcoming recognition, Price let loose on The Project as he condemned the former premier. “It’s got to be some sort of sick joke,” he said as he began his rant. “Who would expect Daniel Andrews would get the highest honour that you can possibly get from the King? It’s the equivalent of a Knighthood! This is a bloke who locked Victoria up longer than anywhere else in the word. Apart from Covid, this bloke wasted 600 million dollars not holding the Commonwealth Games.” <blockquote class="instagram-media" 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);" data-instgrm-permalink="https://www.instagram.com/reel/C8B5Ft8Pe0k/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <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> <div style="padding: 12.5% 0;"> </div> <div style="display: flex; flex-direction: row; margin-bottom: 14px; align-items: center;"> <div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(0px) translateY(7px);"> </div> <div style="background-color: #f4f4f4; height: 12.5px; transform: rotate(-45deg) translateX(3px) translateY(1px); width: 12.5px; flex-grow: 0; margin-right: 14px; margin-left: 2px;"> </div> <div style="background-color: #f4f4f4; border-radius: 50%; height: 12.5px; width: 12.5px; transform: translateX(9px) translateY(-18px);"> </div> </div> <div style="margin-left: 8px;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 20px; width: 20px;"> </div> <div style="width: 0; height: 0; border-top: 2px solid transparent; border-left: 6px solid #f4f4f4; border-bottom: 2px solid transparent; transform: translateX(16px) translateY(-4px) rotate(30deg);"> </div> </div> <div style="margin-left: auto;"> <div style="width: 0px; border-top: 8px solid #F4F4F4; border-right: 8px solid transparent; transform: translateY(16px);"> </div> <div style="background-color: #f4f4f4; flex-grow: 0; height: 12px; width: 16px; transform: translateY(-4px);"> </div> <div style="width: 0; height: 0; border-top: 8px solid #F4F4F4; border-left: 8px solid transparent; transform: translateY(-4px) translateX(8px);"> </div> </div> </div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center; margin-bottom: 24px;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 224px;"> </div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 144px;"> </div> </div> <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 style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" href="https://www.instagram.com/reel/C8B5Ft8Pe0k/?utm_source=ig_embed&utm_campaign=loading" target="_blank" rel="noopener">A post shared by The Project (@theprojecttv)</a> </div> </blockquote> He continued, “Every infrastructure project he’s [Andrews] ticked off on is either over budget or over time. And we give him an award? I mean it is pathetic!” “I have never heard people today so angry about something like this. Daniel Andrews should be run out of the State, not given an award. It’s pathetic!” As co-host Waleed Aly began to share his own thoughts on the matter, Price butted in to ask, “You’re not going to defend Andrews are you?” “Will you let me say something?” replied Aly awkwardly, as Price nodded his head. “Premiers usually get these awards, but they don’t usually get them this quickly,” continued Aly. “And the weird thing about this is that it isn’t for services to the State, it’s for services to health. And that makes it about the pandemic disproportionately. If this was happening in a few years, I don’t think we’d be having this conversation.” Despite Price's claims that many were angry with the decision to award Andrews with the honour, it turns out most of the outrage was directed towards Price himself as many condemned his "embarrassing" rant. “What criteria is The Project applying to Steve Prices opinion? The short man is a self serving blowhard that has no credible platform for his opinions. Surely in 2024 there are better options in Australia,” ranted one annoyed viewer. A second person commented, “If it makes Steve Price mad then it’s a great decision!!” with another replying, “Like anybody should give credibility to anything Steve Price says”. The onslaught of remarks didn’t end there, with another firing back, “Steve Price is jealous and miserable,” while a similarly annoyed viewer wrote, “Dan living rent free in Price’s head, embarrassing”. Image credits: The Project / AMES ROSS/EPA-EFE / Shutterstock Editorial

"Rentirement": Bold new proposition for housing crisis

Aussies over 67 are being urged to rent out their homes and retire overseas in a bold new housing proposition floated by Suburbtrends. The property sector market researchers said that “rentirement” is a viable solution to the nation’s current housing crisis, as it would open up over 137,000 homes. Suburbtrends founder Kent Lardner said that current attempts of easing rental stress is not adequate enough. “While increasing housing supply is essential, it simply won’t come fast enough to address the immediate needs of renters.” Rentirement encourages those aged 67 to 77 to release their homes into the rental pool, and retire overseas, with Southeast Asia proposed as an ideal destination due to its significantly lower cost of living. “Our data shows that over 137,000 homes could be released into the rental market if just 10 per cent of the Rentirees cohort participated,” he said. “This represents a substantial untapped resource that could drastically ease rental pressures.” The initiative would offer a five-year moratorium on the loss of the primary place of residence benefit, which they believe this would be a “win-win” situation retirees, renters, and the government, as it could help provide more housing options. “Rentirees can enjoy a higher quality of life at a fraction of the cost, renters gain access to more housing, and the government can alleviate pressure on the housing market without significant expenditure,” he said. Lardner added that “rentirement” would lead to an immediate influx of rental properties, stabilising prices and reducing vacancy rates. “We believe rentirement offers a practical and timely solution to Australia’s rental crisis,” he said. “It’s time to think outside the box and explore every avenue to ensure a stable, affordable housing market for all Australians.” This comes after PropTrack reported that there has been a drastic reduction in affordable rental homes, with the amount of rental properties costing less than $400 a week plummeting from 43.2 per cent at the start of the pandemic to just 10.4 per cent now. Image: Steve Tritton/ Shutterstock

Money & Banking

Dad forced to live in tent amid housing crisis

An Aussie dad is the latest to fall victim to the housing crisis, with soaring rent and low vacancy rates forcing him to live in a tent. Peter Woodforde, 58, has been forced to live makeshift gazebo wrapped in tarps that's set up in an Adelaide park, and while his children know that he is doing it tough, they don't know that he is homeless and living in a tent. The father has yet to tell his kids, who live with their mother, that he's unable to find a suitable place to live as he said that they would be distraught if they found out. He admitted his 15-year-old daughter once told him that it "hurt her" to know her dad was struggling to find a comfortable place to live - but she doesn't know the extent of it. Speaking to 7News, Woodforde said it's been difficult not being able to offer his kids a place to sleep. “Every parent wants to give their kids everything they possibly can and wants to give them the best chance of having a good life,” he told the publication. “What I say to them is that this is only temporary, Dad will get back on his feet. “(But) you’re missing out on some golden years ... I help where I can, I might pick them up and drop them off from school, but now they’re too far for me to do that,” he added. "I have to get myself off the street. I have to get my family into a house." Woodforde is sharing his story because he believes that homelessness is in a “state of emergency”, especially with winter approaching. He is also unsure about whether his makeshift tent will collapse when heavier rain hits, and hopes that more could be done to help these people facing desperate circumstances. “We’re coming into the colder months - what’s the bill going to be for all the health problems that are going to arise out of this?" he said. Images: 7News

Money & Banking

Airbnb launches real-life "Up" house - and it actually floats!

Airbnb is taking its latest listing to the sky - literally. The accommodation provider has announced a partnership that will see the iconic house from Pixar's hit film Up being lifted into the air, balloons and all. In their ongoing quest to redefine hospitality, Airbnb has launched a permanent category called “Icons,” which features partnerships with brands and celebrities that promise unforgettable experiences. Suspended over the New Mexico desert with the aid of a crane, the property looks like an exact replica of the home and contains adorable easter eggs from the film - including the Adventure Book. “Icons take you inside worlds that only existed in your imagination — until now,” Airbnb CEO and co-founder Brian Chesky said in a statement. “As life becomes increasingly digital, we’re focused on bringing more magic into the real world … we’ve created the most extraordinary experiences on Earth." The house offers a stunning view of the desert, which you can enjoy while sitting on replica's of Ellie and Carl's chairs or have breakfast with a view in the kitchen. Alternatively, you could look at the stars while sitting on the front porch - but don't look down because the adventure is out there. Of course there are questions about the logistics of the stay, including plumbing and electricity, but the accommodation giant has assured that the house is “fully functional,” connected to generators and utilities that will be seamlessly managed before and after its flight. Other fantastical listings include a replica of the mansion from the “X-Men ’97” cartoon, a stay at the Ferrari Museum in Italy, and Prince's house that was featured in the legendary film Purple Rain. Check out the <a href="https://www.airbnb.com.au/rooms/1126185893236246260?_set_bev_on_new_domain=1715826165_M2NkZDdkODdhMjcy&source_impression_id=p3_1715826166_A20M4770EGAtl8AV&modal=PHOTO_TOUR_SCROLLABLE" target="_blank" rel="noopener">Up</a> listing here, be warned the sweet listing may make you shed a tear or two. Images: Airbnb

Real Estate

Quiet beach town offering $450k job with free house and car

A picturesque beach town in Western Australia has found a creative way to bring jobs to the area: by offering a range of enticing bonuses. The town of Bremer Bay, south-east of Perth, is desperate for healthcare providers to join the small town and have offered a range of persuasive perks to a doctor who would be willing to leave a big city for the job in the regional location. Bremer Bay is next to the Fitzgerald River National Park and nearly 40 minutes away from the closest town. Currently, they only have one temporary doctor; the next permanent GP is in Albany, almost 200 kilometres away, and the town is looking for the "Swiss army knife of doctors" to step up. According to the job listing on Seek, the successful applicant will be granted a rent-free five-bedroom house and a four-wheel drive, on top of a salary of up to $450,000 a year. "Live rent-free in a scenic location, experiencing the true essence of rural Australia," the advertisement reads. "We offer a competitive 70 per cent of Billings or a generous Salary, based on your preference. In addition, you'll enjoy the convenience of a beautiful new 5-bedroom home and 4X4." Applicants must be registered with the Australian Health Practitioner Regulation Agency and be willing to train as a rural generalist. According to the <a title="Australian Institute of Health and Welfare" href="https://www.aihw.gov.au/reports/rural-remote-australians/rural-and-remote-health" target="_blank" rel="noopener">Australian Institute of Health and Welfare</a>, people living in rural and remote areas have higher rates of hospitalisations, deaths and injury compared to city-dwellers, while also having poorer access to primary health care services. Image credits: Shutterstock

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