Housing Affordability

[echnidna]

in a hot crappy climate

[patty]

I honestly do not know how the average Joe Blow on a combined income of 100k a year and have 2 kids can afford to buy into the Real estate market now the Aussie dream to me really is just that a dream for many and is only getting tougher I was lucky I bought before the real estate boom!I think the government must step in to restrict the amount of properties people can own I dont be-grudge the "well off people in our community for their success but whilst they are trying to build their own personal wealth through real estate and investment properties it is making it so much harder for the Aussie Battler to even own 1 house let alone scrape together a deposit for one.. I totally agree with some blogs posted here I have always said it if you can't afford to live in a Place like Sydney answer simple move but the crazy part is the majority of the coastline of Australia if not all the real estate prices have all gone up as well and the government is not releasing enough land to keep up with demand which then points your direction west the question you have to ask yourself before moving what employment opportunities exist, what education for Children because they are going to need a bloody good one, has the government provided infrastructure in Hospitals Water Supplies and utilities to cope for the influx of people going west in search of living a comfortable life and maybe gwtting into the real estate market!

[HappyHammer]

...... the government is not releasing enough land to keep up with demand .......

Not sure about that..... a large housing development is currently planned for an area called Thrumster between Port Macquarie and the Pacific Highway. 4,500 new homes, housing approximately 11,000 people. The development includes services, shops, schools and other infrastructure, it is basically a new town within the Port Macquarie Hastings Council boundaries to accomadate the population growth.

HH.

[patty]

Ok then what are the blocks of land going for $200k+? then the house on top of that $120k+ so the price you will be in debt $300k if you had a 20K deposit a 300k mortgage repayments would be around $2,200 per month to many people on a combined income of $85k a year with 2 young kids would find this a big challenge to me this is not Housing Afforbilbility just my two bobs worth!

[Gingermick]

We need lots and lots of engineers, draftsman, builders and the like to construct a 4500 lot subdivision. Many, many years work.
And everyone's flat out as it is.

[HappyHammer]

I think the work is going out to developers so that will be there problem.

HH.

[Gingermick]

But they then get me to do the work and hassle me about the progress then it becomes my problem

[HappyHammer]

Don't you manage that by including aggravation in your initial quote?

HH.

[Gingermick]

Nah, my boss hands out aggravation to pushy clients for free. He must enjoy it.

[Frank&Earnest]

Funny how a measurable ratio cost of house/income has become a discussion on people's attitudes to work, saving and ownership.

There will always be periods when affordability is objectively higher/lower because average incomes increase more or less linearly reflecting inflation, while residential real estate tend to move in steps: a flat period where affordability improves followed by a steep catch up increase like the one we are having. In the long term it averages out.

The other factor is position. If you were lucky enough to buy in a good area, long term appreciation of your area might be higher that long term increase of your income. The reverse is also true.

When I bought my house 30 years ago it was worth 3.5 times my annual income, when I retired last year it was worth about 6 times my income. Which means that the area is very good or my career was lousy, or both. Either way, it is certainly less "affordable" now.