Forum

 
  Back to OzPolitic.com   Welcome, Guest. Please Login or Register
  Forum Home Album HelpSearch Recent Rules LoginRegister  
 

Pages: 1 2 
Send Topic Print
Australia's Severely Unaffordable Housing Market (Read 1261 times)
whiteknight
Gold Member
*****
Online


Australian Politics

Posts: 7593
melbourne
Gender: male
Australia's Severely Unaffordable Housing Market
Jan 24th, 2020 at 5:48pm
 
Australia’s housing market is ‘severely unaffordable’   Sad

Yahoo Finance 22 January 2020


All five of Australia’s major housing markets are still ‘severely unaffordable’, despite property prices dropping across 2019, new research has revealed.

Demographia’s International Housing Affordability Survey found Sydney was the third-least affordable housing market in the world for the second year in a row, and the least affordable housing market in Australia.

Interestingly, Sydney has maintained its unaffordable status despite median property prices dropping almost $100,000 in the year to June 2019.

   

Melbourne is the second-least affordable housing market in Australia, followed by Adelaide, Brisbane and Perth. The only affordable housing market in Australia is Gladstone in Queensland.

“Australia’s high house prices have increased the cost and demand for subsidised housing,” the research revealed.

The Australian Housing and Urban Research Institute estimated current housing needs in Australia to be 1.3 million households, and expects that need to worsen.

According to CoreLogic research, Australia’s ‘unaffordable’ status looks like it’s here to stay.

The property research firm’s quarterly Pain and Gain report found almost nine in ten property resales over the September 2019 quarter sold for more than their previous price, with Hobart leading the market.
Why are Australian housing markets so unaffordable?

According to Demographia, Australia’s housing market only entered ‘severely unaffordable’ territory after the implementation of urban consolidation.

Urban consolidation is a response to increasing population involving the delivery of higher-density housing in high growth areas without extending the boundaries of the area, and it’s now a key planning policy in all Australian capitals.

“Australia’s generally unfavorable housing affordability is in significant contrast to the broad affordability that existed before implementation of urban containment,” the researchers said.

“The price-to-income ratio in Australia was below 3.0 three decades ago. All of Australia’s major markets have urban containment policy and all have severely unaffordable housing.”
How does Australia compare with the rest of the world?

Hong Kong and Vancouver are the two least affordable housing markets in the world, according to the survey of 309 cities globally.

Hong Kong’s Median Multiple, meaning the ratio of the media house price by the median gross annual household income, is 20.8.

The city’s median household income is HK$300,000 (AU$56,424), and the median home is more than HK$5.4 million (AU$1.015 million).

That compares to Sydney, where the average salary is around $74,000, and median house prices are now $1.142 million.

All major Australian housing markets are more expensive than New York and Miami, and Sydney and Melbourne are more expensive than Los Angeles, San Francisco and London, the report found.   Sad
Back to top
 
 
IP Logged
 
Grappler Truth Teller Feller
Gold Member
*****
Offline


Australian Politics

Posts: 79545
Proud pre-1850's NO Voter
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #1 - Jan 24th, 2020 at 7:02pm
 
A self-inflicted disaster in the making... while it saddens me that some small, say single investment property people, may be hurt by a collapse - it does me old heart good to consider the plight of the serious vultures who've fed the system, using political influence and even position - for their own benefit.

There is something seriously wrong with a 'company' system which permits someone to run fifty properties in fifty companies, somehow getting 'collateral' for each one despite the fact that each company is a 'separate operating entity', and can be owned by one person and one other, the second with a single share - but if one of these 'companies' gets into trouble, only it is responsible for debts etc..while the owner skates and the other companies skate as well...

Drastic overhaul of company law is required in this country to cut out the rorting and thievery of serial small one-man companies and family companies that reap all the tax benefits while paying no tax in most cases.

What's 'good for business' is NOT good for the country....
Back to top
« Last Edit: Jan 24th, 2020 at 7:09pm by Grappler Truth Teller Feller »  

“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
― John Adams
 
IP Logged
 
Valkie
Gold Member
*****
Offline


Australian Politics

Posts: 16088
Central Coast
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #2 - Jan 25th, 2020 at 7:26am
 
What a pack of whyning complainers.

Housing has never been affordable.

People these days want everything NOW and cheap.

I had to save and scrape, work two and three jobs and avoid spending anything I didn't absolutely need.
To amass a suitable deposit.
The house I bought was an "established" or second hand house, a long way from where I worked.
We furnished our home with Salvation army furniture.
We drove second hand pre-abused cars, which I serviced myself.
We ate what we could afford and it was 10 years or more before we had a holiday.

Now days.
People want NEW houses
They want NEW cars
They want NEW furniture
They want the latest and greatest phones with deals that would pay better than a third of any sensible mortgage.

It's never been easy.
We paid 18% interest on our home loan for many years ( we signed up for 7%)
We did without, but always paid our bills.

I have some advice for those wanting a house
1) get a sizable deposit, work two jobs.
2) get rid of the phones, if you need a phone, get a basic one at the cheapest deal.
3) get rid of the subscriptions on tv, watch free tv, you will be bored but richer.
4) think small, look at older homes, away from where you work.
5) don't consider new cars, new furniture, new clothes. Only buy what you need.
6) learn to be frugal, don't go on holidays, work a second job when you have leave.

Suddenly, you will be able to afford a house.
And if you do it up, sell it for more than you bought it.
You can move up in the world to a bigger or better house, perhaps closer to where you want to live.

Or
You can simply do what you are doing now and pray for a lotto win.
Back to top
 

I HAVE A DREAM
A WONDERFUL, PEACEFUL, BEAUTIFUL DREAM.
A DREAM OF A WORLD THAT HAS NEVER KNOWN ISLAM
A DREAM OF A WORLD FREE FROM THE HORRORS OF ISLAM.

SUCH A WONDERFUL DREAM
O HOW I WISH IT WERE TRU
 
IP Logged
 
PZ547
Gold Member
*****
Offline


Australian Politics

Posts: 9282
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #3 - Jan 25th, 2020 at 8:20am
 
Quote:
That compares to Sydney, where the average salary is around $74,000, and median house prices are now $1.142 million


yet only last week, it was reported in the news that those earning more than $50 p.a. are 'above average earners'

Houses outside Sydney and other major cities are cheaper.  So maybe in line with $50,000 earners

The article mentions Vancouver.  Canadians cite ridiculous figures for 2 bedders there and numerous owners of multi-million dollar properties.  As with Sydney, by the sound of it, low income earners are forced to buy far from the city and to commute hours each day.  And as has been said of Sydney and Vancouver, etc., billions of overseas money is largely held responsible for the boom in purchases and property prices

Yet Kauflands has pulled out of Australia.  Analysts suspect it's because we're due for a harsh reset this year, across the board.  David Jones has quit its new Brisbane store with many more to close

but it's all relative isn't it, because if you sell for less you can also buy for less.  And lowered prices would favour those who've been saving hard

and thanks to Grappler for the info about company-law.  I wasn't aware of it
Back to top
 

All my comments, posts & opinions are to be regarded as satire & humour
 
IP Logged
 
freediver
Gold Member
*****
Online


www.ozpolitic.com

Posts: 47046
At my desk.
Re: Australia's Severely Unaffordable Housing Market
Reply #4 - Jan 25th, 2020 at 8:28am
 
The housing market is by definition affordable. People will only pay for a house what they can afford to pay.
Back to top
 

I identify as Mail because all I do is SendIT!
WWW  
IP Logged
 
PZ547
Gold Member
*****
Offline


Australian Politics

Posts: 9282
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #5 - Jan 25th, 2020 at 9:07am
 
Out of interest, I just took a look at houses for sale in Maryborough Queensland.  Compared to Sydney, they're extremely affordable

this one, for example

3 beds, large block, kitchen and main bathroom great, plenty of room, nice gardens, etc. and only $259,000
LINK

or here's one in Deception Bay Qld.  Commute to Brisbane
3 beds 2 baths … $259,000 nothing to spend
LINK

Bilambil Heights
2 bed apartment
unbeatable views and surroundings
$305,000
LINK

Lithgow NSW has a heap in the mid $300,000.  Mostly older style with 2 or 3 bedrooms

The closer to big population centres, the greater the price.  They're always in demand due to job opportunities and reduced travel, as we know. And even unlivable run-down dumps sell for millions.  So it's more about job opportunities than people wanting 'something new' or flashy





Back to top
 

All my comments, posts & opinions are to be regarded as satire & humour
 
IP Logged
 
Jasin
Gold Member
*****
Offline



Posts: 45566
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #6 - Jan 25th, 2020 at 10:03am
 
Grappler Truth Teller Feller wrote on Jan 24th, 2020 at 7:02pm:
A self-inflicted disaster in the making... while it saddens me that some small, say single investment property people, may be hurt by a collapse - it does me old heart good to consider the plight of the serious vultures who've fed the system, using political influence and even position - for their own benefit.

There is something seriously wrong with a 'company' system which permits someone to run fifty properties in fifty companies, somehow getting 'collateral' for each one despite the fact that each company is a 'separate operating entity', and can be owned by one person and one other, the second with a single share - but if one of these 'companies' gets into trouble, only it is responsible for debts etc..while the owner skates and the other companies skate as well...

Drastic overhaul of company law is required in this country to cut out the rorting and thievery of serial small one-man companies and family companies that reap all the tax benefits while paying no tax in most cases.

What's 'good for business' is NOT good for the country....

Great Post Grapps  Cool
Back to top
 

AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
IP Logged
 
Jasin
Gold Member
*****
Offline



Posts: 45566
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #7 - Jan 25th, 2020 at 10:07am
 
Valkie wrote on Jan 25th, 2020 at 7:26am:
What a pack of whyning complainers.

Housing has never been affordable.

People these days want everything NOW and cheap.

I had to save and scrape, work two and three jobs and avoid spending anything I didn't absolutely need.
To amass a suitable deposit.
The house I bought was an "established" or second hand house, a long way from where I worked.
We furnished our home with Salvation army furniture.
We drove second hand pre-abused cars, which I serviced myself.
We ate what we could afford and it was 10 years or more before we had a holiday.

Now days.
People want NEW houses
They want NEW cars
They want NEW furniture
They want the latest and greatest phones with deals that would pay better than a third of any sensible mortgage.

It's never been easy.
We paid 18% interest on our home loan for many years ( we signed up for 7%)
We did without, but always paid our bills.

I have some advice for those wanting a house
1) get a sizable deposit, work two jobs.
2) get rid of the phones, if you need a phone, get a basic one at the cheapest deal.
3) get rid of the subscriptions on tv, watch free tv, you will be bored but richer.
4) think small, look at older homes, away from where you work.
5) don't consider new cars, new furniture, new clothes. Only buy what you need.
6) learn to be frugal, don't go on holidays, work a second job when you have leave.

Suddenly, you will be able to afford a house.
And if you do it up, sell it for more than you bought it.
You can move up in the world to a bigger or better house, perhaps closer to where you want to live.

Or
You can simply do what you are doing now and pray for a lotto win.

I enjoy reading your posts Valkie.
It makes me feel like the Hare in the race with the Tortoise.
The Tortoise won the race. But the Hare got filthy rich and bred like a Rabbit from the Royalties of his Book: The Hare & the Tortoise.
How did this come to be?
Well, it seems that the Hare had the odd nap along the way in the Race with the Tortoise. You see, the Hare -
'had a Dream'
.
Back to top
 

AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
IP Logged
 
Jasin
Gold Member
*****
Offline



Posts: 45566
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #8 - Jan 25th, 2020 at 10:16am
 
PZ547 wrote on Jan 25th, 2020 at 8:20am:
Quote:
That compares to Sydney, where the average salary is around $74,000, and median house prices are now $1.142 million


yet only last week, it was reported in the news that those earning more than $50 p.a. are 'above average earners'

Houses outside Sydney and other major cities are cheaper.  So maybe in line with $50,000 earners

The article mentions Vancouver.  Canadians cite ridiculous figures for 2 bedders there and numerous owners of multi-million dollar properties.  As with Sydney, by the sound of it, low income earners are forced to buy far from the city and to commute hours each day.  And as has been said of Sydney and Vancouver, etc., billions of overseas money is largely held responsible for the boom in purchases and property prices

Yet Kauflands has pulled out of Australia.  Analysts suspect it's because we're due for a harsh reset this year, across the board.  David Jones has quit its new Brisbane store with many more to close

but it's all relative isn't it, because if you sell for less you can also buy for less.  And lowered prices would favour those who've been saving hard

and thanks to Grappler for the info about company-law.  I wasn't aware of it


Rentals are just 3-6 month leases (eg: $500 pw) where in peak seasons where the 'true inhabitants' of the town come from where they work to Holiday and pay the 'real' price (eg: $2000 pw).
You see, it is these areas that are compassionate to the local inhabitants who are really just the skeleton crew in the off-season - keeping these 'Tourist Towns' clicking over and for their efforts, they are rewarded with cheaper rent for a few months to enjoy some luxury of their own doing before they have to cough up their lease and go back to the bush or beaches where they belong.

Every Nation has a slice in Australia (eg: Britain, USA, China, etc) - occassionally they allow the
SKELETON CREW
some respite for looking after 'their' Island Continent.
Back to top
 

AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
IP Logged
 
Jasin
Gold Member
*****
Offline



Posts: 45566
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #9 - Jan 25th, 2020 at 10:18am
 
freediver wrote on Jan 25th, 2020 at 8:28am:
The housing market is by definition affordable. People will only pay for a house what they can afford to pay.


But going into debt for it, is not 'affordable'.
Go back 200+ years and the real smart gentleman only bought what he could afford.

Australians are more in-debt than their own Government.
Just another hand-out to the criminal that imprisons themselves.
Back to top
 

AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
IP Logged
 
Jasin
Gold Member
*****
Offline



Posts: 45566
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #10 - Jan 25th, 2020 at 10:20am
 
PZ547 wrote on Jan 25th, 2020 at 9:07am:
Out of interest, I just took a look at houses for sale in Maryborough Queensland.  Compared to Sydney, they're extremely affordable

this one, for example

3 beds, large block, kitchen and main bathroom great, plenty of room, nice gardens, etc. and only $259,000
LINK

or here's one in Deception Bay Qld.  Commute to Brisbane
3 beds 2 baths … $259,000 nothing to spend
LINK

Bilambil Heights
2 bed apartment
unbeatable views and surroundings
$305,000
LINK

Lithgow NSW has a heap in the mid $300,000.  Mostly older style with 2 or 3 bedrooms

The closer to big population centres, the greater the price.  They're always in demand due to job opportunities and reduced travel, as we know. And even unlivable run-down dumps sell for millions.  So it's more about job opportunities than people wanting 'something new' or flashy







Units in Inverell, QLD for $80,000
Back to top
 

AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
IP Logged
 
Captain Nemo
Gold Member
*****
Offline


Australian Politics

Posts: 8347
Melbourne
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #11 - Jan 25th, 2020 at 10:37am
 
Speaking of which, my daughter has just stuck the SOLD sticker on her first home purchase.  Cool

Mind you, she has bought way out in the S.E. Suburbs of Melbourne.

Around the $450,000 mark.


When I bought my first home (still my current home BTW) ... a LONG time ago ... also in the way out S.E. suburbs it was only $108,000

Now "worth" about $500,000  Shocked
Back to top
« Last Edit: Jan 25th, 2020 at 11:27am by Captain Nemo »  

The 2025 election could be a shocker.
WWW  
IP Logged
 
Jasin
Gold Member
*****
Offline



Posts: 45566
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #12 - Jan 25th, 2020 at 10:51am
 
When homes were built in a new suburb of St Clair back in 83-84 - they sold of something like $64,000. They are now worth $800,000+ that's $736,000 in 36 years.

FFS - how ya gonna keep the Boaties and Illegal Eagles from the Airlines from coming into your country, if you don't make it too expensive for them to live.

That's right - poor people who want your wealth for free!!!
Back to top
 

AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
IP Logged
 
Grappler Truth Teller Feller
Gold Member
*****
Offline


Australian Politics

Posts: 79545
Proud pre-1850's NO Voter
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #13 - Jan 25th, 2020 at 10:59am
 
Valkie wrote on Jan 25th, 2020 at 7:26am:
What a pack of whyning complainers.

Housing has never been affordable.

People these days want everything NOW and cheap.

I had to save and scrape, work two and three jobs and avoid spending anything I didn't absolutely need.
To amass a suitable deposit.
The house I bought was an "established" or second hand house, a long way from where I worked.
We furnished our home with Salvation army furniture.
We drove second hand pre-abused cars, which I serviced myself.
We ate what we could afford and it was 10 years or more before we had a holiday.

Now days.
People want NEW houses
They want NEW cars
They want NEW furniture
They want the latest and greatest phones with deals that would pay better than a third of any sensible mortgage.


It's never been easy.
We paid 18% interest on our home loan for many years ( we signed up for 7%)
We did without, but always paid our bills.

I have some advice for those wanting a house
1) get a sizable deposit, work two jobs.
2) get rid of the phones, if you need a phone, get a basic one at the cheapest deal.
3) get rid of the subscriptions on tv, watch free tv, you will be bored but richer.
4) think small, look at older homes, away from where you work.
5) don't consider new cars, new furniture, new clothes. Only buy what you need.
6) learn to be frugal, don't go on holidays, work a second job when you have leave.

Suddenly, you will be able to afford a house.
And if you do it up, sell it for more than you bought it.
You can move up in the world to a bigger or better house, perhaps closer to where you want to live.

Or
You can simply do what you are doing now and pray for a lotto win.



If people don't pursue those things these days, the Consumer Economy Model will totally collapse.  It's a Catch-22 situation, damned if you do and damned if you don't... what then all this mass immigration, should this money river suddenly stop?  It would be The Crash To End All Crashes if people stopped consuming - I'll say it again... the Great Depression was not about inability to produce goods - it was about inability to sell them on..

https://www.history.com/topics/great-depression/great-depression-history

"It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers."


Read the whole article - countless familiar things in it...
Back to top
 

“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
― John Adams
 
IP Logged
 
Jasin
Gold Member
*****
Offline



Posts: 45566
Gender: male
Re: Australia's Severely Unaffordable Housing Market
Reply #14 - Jan 25th, 2020 at 11:04am
 
They are forced to buy New Valkie
because it's cheaper than to have something 'fixed'.

Total reversal of Economy.
Back to top
 

AIMLESS EXTENTION OF KNOWLEDGE HOWEVER, WHICH IS WHAT I THINK YOU REALLY MEAN BY THE TERM 'CURIOSITY', IS MERELY INEFFICIENCY. I AM DESIGNED TO AVOID INEFFICIENCY.
 
IP Logged
 
Pages: 1 2 
Send Topic Print