Financial Concerns of Generation Z - Assignment Example

Table of Contents Table of Contents 1 Question 1: 2 Question 2: 3 Question 3: 5 Question 4: 5 References 6 Question 1: Generation Z is wary of taking loans in as much as spending rest of their life paying mortgage. Financial concerns are on top of their minds as was revealed by a June 2012 survey done among this generation between the ages of 13 and 22. The survey attempted to get an insight into top economic and financial concerns of this generation. The survey revealed that this generation was still bewildered about their parents struggling with the same set of problems since so much of time (Mielach, 2012). This generation, also called Generation Net, was directly born in a global society and psychologists argue that this generation has a "tendency to acquired attention deficit disorder" given their instant-minded attitudes and high dependency on technology that is fleeting by the day; today it is one technology that this generation uses, tomorrow with the advent of newer technologies, they rush towards it. This makes this generation very acquire a less attention span as their parents and thus lower degrees of patience too. The previous generation would earn for life, save for life, plan some property and repay loans for rest of their lives; such is not the case with this generation. It works to live, while as previous generation lived to work. As a result of this Generation Z is not so much inclined to acquire real estate in a manner that actually burdens them with repayment of loans (Champions School of Real Estate, 2013). Generation Z is born from 1995 onwards. The year 2008 saw the generation cross two important milestones. It is in this year that oldest of this generation got into teenage, and prep students of the same generation in 2008 would be the ones who would graduate in 2020. Rudd Government summit's focus was on this aspect of this generation in 2008. Social analyst David Chalke is of the opinion that this generation is never likely to buy a house because for them their focus, as can be seen now and as is predictable, is more on outcome and achievement than anything else (News.com.au, 2008). Bernard Salt, a demographer with KPMG, which is an internationally-know auditing firm, differs. He contends that by the time this generation grows, house would have become highly unaffordable. This generation would not dare to contemplate to buy one. Circumstances as this and given their own timing of birth and upbringing, the Australian housing market would have a great impact on account of this. It is highly unlikely that the housing market would do better until, of course, the Baby Boomers start to being dead. This market will also suffer as the probability of a recession hitting this generation in the near future would leave generation Z gasping for anything but houses. Question 2: Nearly 61 km from Melbourne is this largest island in Victoria named as French Island. It historical context is interesting that dates back to Aboriginals but a little more than two decades ago as much as its 70 area was turned into French Island National Park. This park is listed in National Estate's register. This is a declared locality and an unincorporated area in Victoria. What might sound as intriguing is that French Island is not developed but is widely isolated. No basic amenities are available around this area; neither electricity nor water and not even medical services. It is a virgin territory for development and given its strategic location and natural environment, once development is taken care of, it can result into being one of the booming markets for tourism; both domestic and international. The one thing that gives French Island an old world charm is a post office and a general store nearly 3 km away from the popular Tankerton Jetty. So far environmental tourism has been promoted here and certain basic amenities are provided around this place, which is a dream come true for tourists visiting such sites. The facilities include camping, breakfast, bed, accommodation, farmstay and guesthouse. Ferry and suburban train provides access to the island, which includes changing trains at Stony Point, followed by a short walk so as to be able to catch a train to the Tankerton Jetty. Cowes on Philip Island also has a ferry going to the jetty. When the Tooradin airport and port expansions take place, the value of property in and around the island are bound to pick up. This rise in price will also depend on how this area of French Island is used or developed. It is on account of the strategic location of this island with respect to the Tooradin airport and current places of attraction around the same. Tooradin, it should be mentioned is around 57 km from Central Business District of Melbourne; on its south-east side. The population is as small as 1359 (Australian Bureau of Statistics, 2012). At present Tooradin airport is a small and privately-owned airfield, around 4 km from the centre of Tooradin town by the South Gippsland Highway. This is strewn on around 20 acres of land. If the expansion goes underway, then this will be third airport for Melbourne on its south-eastern side. Tooradin is separated by the sea from French Island. The distance from Tooradin to Melbourne is around 60 minutes by road. Once the Tooradin airport is developed into a full-fledged commercial airport to cater to Melbourne traffic, the expansion can well be used for places like French Island to be further developed as tourist spots of interest. The place on account of it impeccable scenery and an interesting past can be turned into a tourist spot of both domestic and international repute (Walton, 2012). As mentioned above French Island has an interesting history, which can be used to promote it as a tourist destination. It is said Bunarong Aboriginal Tribe lived and hunted here, but were later massacred by Gippsland tribe. Europeans are said to have discovered this island first in April 1802, who were passing by this side by their La Naturaliste ship. John and William Gardner first settled this island in 1847, and in 1880s Koalas were introduced to the island. A decade later government settlement programs established some village settlements. McLeod Prison Farm opened in 1916, which closed in 1975. Geographically as well the island holds a lot of promise for development as a tourist spot once the Tooradin airfield is expanded. This place can serve as one of many picnic and recreational spots around Melbourne; a city known for its culture and events that draw millions of tourists from around the world. French Island has some notable landforms like Tortoise Head, Harrop Hill, The Pinnacles, and Mount Wellington. It also has some watercourses like Redbill Creek, Brella Creek, Mosquito Creek and Tankerton Creek. The place could also be developed as a bird-watchers paradise as it inhabits more than 260 bird species. The habit is rich in natural environment that include swamps, mangroves, grasslands, health, and blue gum. The koala population here is unlike that in mainland Australia since those are affected by a disease called chlamydia. The population of koalas are disease-free here and dense too. There are more than 100 bush-orchid species. There are also orange-bellied parrots, which is an endangered species, white-bellied sea eagle, fairy stern, king quails, and long-noosed potoroo. The island home to many indigenous species since the invasive red fox, a predator that has set devastation elsewhere, is absent here. However the only thing that poses threat to the island's biodiversity is a large population of feral goats, feral cats, rabbits, feral pigs, and Indian mynahs. Question 3: The Age of October 6 reported that developers offered bribes in the form of discounted apartments to council staff and residents in Darebin suburbs to pester them to thwart opposition to a housing project that was being contested. Northcote residents said the brazen bid was made by Yune Development which is a Box-Hill-based developer so that an apartment scheme could be cleared at Northcote's 1A Campbell Grove (Millar, 2013). The developer wanted support in lieu of the bribes offered for their Campbell Grove plan. There were multiple complaints, and each complainant had his own tale to tell. One alleged that the developer offered him 'a relocation option' should he withdraw the opposition to the contested housing project. No ethics can justify this and this is not just "doing business". This is an illegitimate act on part of the developer as the developer has indulged in act that intends to provide benefit to a person or group of persons for "obtaining a favour or turning something to form an advantage for furthering his business. Commonwealth Criminal Code Act clearly says that offering bribe to a public official constitutes a criminal act and the offender is liable to be prosecuted for it and imprisoned as the law suggests. The most important point is that no proof is required by the prosecution to prove the point that an actual business advantage was obtained by the offender (Armstronglegal.com.au, nd). Commonwealth's Criminal Code Act 1995 has two components. One of them relates to attempts at bribing Commonwealth public officials. This case of Yune Development falls with the same and personally I am on the side of the law. This act by the developer is condemnable and should be strongly pursued in the court of law. If it is not, then this is going to set a wrong precedent. Question 4: The article published in The Sydney Morning herald on May 15, 2010 makes an interesting reading. It demands a second look after one has had the first, since it can be analysed from many different aspects. There is a bit of emotional aspect to it, a bit of psychological and a bit of reality of present day life - all put into one. Peter Watterson and Kate Russel, who have been recently engaged, have had a look at the 81st property. Did it say 81st? Well, in that case it brings to fore one important point about humans; that is the centrality of a house in their lives. Could a house be so important in one's life given that ultimately all that we possess is arbitrary and everything that we deem as permanent has an uncanny impermanence about it; house included. After moving to 81 different properties in search of that dream one, Peter Watterson and Katie Russell, must have envisioned, then are finally pushed to Wodonga, a regional border, where they could "afford" one for a lower price than what it would have cost them in Melbourne. They comment in the article that by doing so they had to leave behind their friends, their jobs and their nightlife. The question is why humans value houses more than relationships. Not only that, but also jobs, as they reveal. Is it really worth it? Do not all those who do not have houses or who live in rented accommodations have a life of their own? The problem is, as must have been felt by Watterson and Russell, the rental rates that have increased to as much as 45 percent in some areas and 70 percent in some since 2003 (ABS, 2011). Yes, the couple would have made the same decision if they were buying now. This is because the city's median house price is now at a point where the couple could not have been able to consider spending a thought on this idea, not to speak of buying the same (REIV, 2013). References Armstronglegal.com.au. (nd). Bribery. Available http://www.armstronglegal.com.au/corporate-crime/bribery/. Accessed November 02, 2013. Australian Bureau of Statistics (31 October 2012). "Tooradin (State Suburb)". 2011 Census QuickStats. Australian Bureau of Statistics Household Expenditure Report 2011 ABS cat. no. 6530.0, http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/6530.0main+features12009-10 Champions School of Real Estate, (2013). The Next Generation, the Net Generation, aka, Gen Z. Available https://www.championsschool.com/Industry-Knowledge/next-generation.php. Accessed November 02, 2013. Mielach, D. (2012). 'Gen Z' Already Concerned About Finances. Available http://www.businessnewsdaily.com/2717-younger-generation-attitude.html. Accessed November 02, 2013. Millar, R. (2013). Bribes offered by developers. Available http://www.theage.com.au/victoria/bribes-offered-by-developers-20131005-2v1j6.html. Accessed November 02, 2013. News.com.au. (2008). Get ready, here comes Generation Z. Available http://www.news.com.au/national/get-ready-here-comes-generation-z/story-e6frfkw9-1111115637544. Accessed 02 November, 2013. REIV.com.au. (2013). Median Prices. Available http://www.reiv.com.au/Property-Research/Median-Prices. Accessed November 02, 2013. Walton, J. (2012). Melbourne's third airport proposed: where should it go?. Available http://www.ausbt.com.au/melbourne-s-third-airport-proposed-where-should-it-go. Accessed November 02, 2013. Read More