The current Mayor of Bega, (and the Liberal Candidate contesting the seat of Bega in the upcoming March 25th NSW Election), has an easy fix for those who can't afford the inevitable rate rise from the proposed Bega Valley Shire Special Rate Variation: ACM reported on March 2nd, 2023 'He (Russell Fitzpatrick) questioned why people might haggle over a rate rise when their recently reassessed land values had doubled. He thinks older people may be better off selling the family home and moving into something smaller and thereby freeing up larger homes for younger families; it's been a theme in discussion at council over affordable housing and the supply of homes'. Let's pull that apart 'He (Russell Fitzpatrick) questioned why people might haggle over a rate rise when their recently reassessed land values had doubled." On average land values in the Eurobodalla have gone up by 60 per cent, according to the NSW Valuer General. Some more so, especially those in proximity to ocean views and prestige home sales. Even those with larger lots have discovered their property value has spiked due to the way it is valued. The Valuer General determines land values at 1 July each year in line with the Valuation of Land Act 1916 (the Act). Under section 6A(1) of the Act saying "we must assume the land is vacant and value it on its highest and best permitted use. This is based on current zoning and planning restrictions determined by councils". That might explain how my Unimproved value jumped for $600,000 to $1.8m. My valuation spike came because of the recent sale of development land in Tuross Head. A 10.4 ha property sold for $13 million. By contrast my block of land is only 6900m2 however... based on its highest and best permitted use and current zoning and planning restrictions I am sitting on a goldmine and more fool me for not ripping down my home and subdividing it into 450m2 blocks or building an apartment block. 'He (Russell Fitzpatrick) questioned why people might haggle over a rate rise when their recently reassessed land values had doubled." The last revaluation for Eurobodalla occurred in July 2019, in which time there has been an overall increase in the shire's land value from $6,590,295,780 to $14,463,615,868 in 2022 - an increase of 119.47% According to Jorja McDonnell of ACM February 3 2023 "outside of the land valuations, Eurobodalla Shire Council rates are set to go up 4.3 per cent across the board, for the 2023-24 financial year". Given that we are going through a time of high inflation, next to zero wage growth and have one of the oldest percentile of residents in the State living on fixed incomes Mr Fitzpatrick seems to have an odd solution for those who can't cope with a rate rise. "He thinks older people may be better off selling the family home and moving into something smaller and thereby freeing up larger homes for younger families; it's been a theme in discussion at council over affordable housing and the supply of homes". ACM March 2nd 2023. This brings back memories of a former General Manager whose response at the time to complaints that rates were becoming unaffordable in towns across the region was "Well they can move to Nerrigundah". Given that these apparently larger homes that will be freed up for younger families to buy will be based on the windfall of the land values being more than doubled how does Mr Fitzpatrick think that this will have any effect on bringing solution to affordable housing. So there it is. The Mayor of Bega has the solution. All you older people may be better off selling your family home and moving to something smaller. Mr Fitzpatrick adds "it's been a theme in discussion at [Bega] council over affordable housing and the supply of homes". Blind Freddy (and anyone else who bothered to think about it at length) can see problems with Mr Fitzpatricks approach. With the latest trend of asking the supposedly clever ChatGPT attificial intelligence app The Beagle posed a few questions. The Beagle asked ChatGPT: "ChatGPT, what would happen if the elderly all purchased two bedroom homes" Its unedited response was: If all the elderly individuals purchased two-bedroom homes, it could potentially have a significant impact on the real estate market and the availability of housing for other demographics. Firstly, if there was a sudden surge in demand for two-bedroom homes, it could drive up the prices of such properties. This could make it harder for other demographics, including young families or individuals, to enter the housing market. It could also exacerbate issues of housing affordability for those who are already struggling to make ends meet. Secondly, it could lead to a shortage of larger homes, as the supply of available properties would be more heavily skewed towards two-bedroom homes. This could make it harder for families or individuals who require more space to find suitable accommodation. It could also impact the rental market, as individuals who might have rented larger homes may now be purchasing two-bedroom homes instead. On the other hand, if there was an increase in demand for two-bedroom homes, it could lead to a surge in construction of such properties, as developers and builders seek to meet the needs of the market. This could create job opportunities and stimulate the economy, which would have positive benefits for the broader community. It's worth noting that the decision to purchase a two-bedroom home is a personal choice and will depend on a range of factors, including financial considerations, lifestyle preferences, and personal circumstances. While there may be potential implications for the broader community, it's important to respect the right of individuals to make their own housing choices. Overall, while a sudden surge in demand for two-bedroom homes among the elderly could have implications for the broader housing market, it's important to carefully consider the potential impacts and take a measured approach to addressing any issues that may arise. The Beagle then asked ChatGPT: "ChatGPT, please write an editorial about the unaffordability of council rate increases on the elderly." This is its unedited response: In recent years, there has been an alarming trend of council rate increases across many communities. While these increases affect everyone, they have a particularly harsh impact on the elderly population, many of whom live on a fixed income. The unaffordability of council rate increases on the elderly is a pressing issue that requires immediate attention.
As we all know, council rates are an essential part of community financing. They are used to fund local government services, including infrastructure, public facilities, and community programs. While the purpose of these rates is to improve the quality of life for all residents, it is important to recognize that not everyone has the same ability to pay.
The elderly, in particular, are vulnerable to the impact of council rate increases. Many of them are on a fixed income, which means that any increase in council rates directly affects their ability to pay for essential goods and services. For some elderly individuals, council rate increases can mean having to make difficult choices, such as between buying medication or food, or between paying their council rates or utility bills.
Furthermore, elderly individuals often have higher health care expenses, which can be a significant financial burden. Adding council rate increases to the mix can make it challenging for them to keep up with their expenses, leading to financial stress and hardship.
The unaffordability of council rate increases on the elderly is a problem that requires immediate action. Local governments must recognize the unique financial challenges faced by the elderly and take steps to address them. One solution could be to provide targeted financial assistance to those most in need. Another option could be to introduce payment plans that allow elderly individuals to spread the cost of their council rates over a more extended period.
In addition to these short-term solutions, there needs to be a more long-term focus on addressing the issue of council rate affordability for the elderly. This could include exploring alternative funding models, such as those that are based on income or age. It may also require a more significant investment in social housing, which could provide elderly individuals with more affordable housing options and reduce their reliance on council rates.
In conclusion, the unaffordability of council rate increases on the elderly is a pressing issue that requires immediate attention. Local governments must recognize the unique challenges faced by the elderly and take steps to address them. Failure to do so will only exacerbate financial stress and hardship for this vulnerable population. It is time to take action to ensure that our elderly population can live with dignity and financial security in their communities.
