ABS Releases more useless Stats

[silentC]

From the SMH:

On the day when a Reserve Bank meeting is expected to raise interest rates, new statistics reveal thousands are paying off loans on houses that are too big for them.

The ABS found that between 1994 and 2004, the average number people per household dropped from 2.7 to 2.5, but the average number of bedrooms had risen from 2.9 to 3.

In 2003-04, 77 per cent of households had one or more spare bedrooms and nearly all (97 per cent) of couple-only households had one or more spare bedrooms. At least 85 per cent of solo dwellers also had empty bedrooms in their homes.

By tying it to interest rates, what they are trying to say here is that people are foolishly paying off huge mortgages on bedrooms they don't need.

Don't any of these people have family or friends that live interstate/overseas who come to visit? Don't they have friends who like to come over for a few drinks and stay the night? Don't they have old computers/toys/boxes of junk to store?

I mean, if you took any notice of these pointy heads, where would the childless couple who don't want to live in an apartment block find a house with one bedroom? What about the young couple buying into the housing market and planning a family in a few year's time - are they supposed to live in a flat until the first baby comes along?

It's the weakest excuse for a story I've heard today!

[Wongo]

The ABS found that between 1994 and 2004, the average number people per household dropped from 2.7 to 2.5, but the average number of bedrooms had risen from 2.9 to 3.

Its 4 and 4, so the Wongs are above average.

[silentC]

Same here. Same with both my neighbours.

There must be some single rich dude living in a mansion here somewhere to make up the difference.

[chrisp]

I'm not so sure... It seems to me that people want to buy bigger and better houses than their parents ever had, and yet they have smaller families, more, and newer, cars. Little wonder they are worried by interest rate rises.

I recall a story on 4 Corners about housing and McMansions. One comment was that first home buyers want to start where their parents finished (in terms of quality and size of housing).

[silentC]

Houses are bigger, no doubt. That's probably a valid observation. Bigger rooms, more family space - rumpus room, study, separate dining, home theatres etc.

I came from a family of 5 and we always lived in 3 or 4 bedroom houses. Families of that size are less common now, and most people I know have 1 or 2 kids, not 3 or 4. But I remember when we lived in a 2 bedroom house with one kid. It was an absolute pain when grandparents came to stay. Suitcases in the hall, mattresses on the lounge room floor. Hated it.

I suppose I'm not arguing that the houses are bigger, it's the 'too big for them' that I disagree with. Adding a spare bedroom to the cost of building a house is bugger all as a percentage, compared to what it costs to put in an ensuite.

I also wonder what they expect us to do with all the three bedroom houses now that we only have 2.5 people per house. Get in a boarder I suppose.

[Wongo]

What they are trying to say here is that people are foolishly paying off huge mortgages on bedrooms they don't need.

I do agree that there are a lot of people buying more then they can afford. As a result both mum and dad need to work, the children are sent to childcare or to the grandparents. In the end children are the losers.

[Wongo]

Cars, same thing.

Why do people buy a newer car or a second car while struggling to pay off the mortgage is beyond me. Why?

[silentC]

Yes but the houses that a lot of Sydney-siders are buying were built in the 50's. The house is the same house that their grandparents bought - it's just that the price of real estate is so high. It's not because they have too many bedrooms.

If you're talking about McMansions, a house and land package is nothing like what it would cost for a 50 year old 3 bedroom house in Mosman and they get 4 or 5 beds, rumpus, double garage etc. etc. It cost me about $650 to build two houses, one 3 bed one 4 including the 1.1 Ha block they're built on. You would be lucky to buy a block of land for that in Sydney.

[Big Shed]

It is not just the size of the house that pushes up the prices of today's housing, but all the extras. When we started we had a basic 3 bedroom 12 square house. No carpets, no paving/concreting, no dishwasher and the list goes on. All that was built up over the years.

Now this generation, as someone else observed, wants to start where their parents finished, or preferably bigger and better. At the same time they want the holidays overseas, 2 new cars, a 42" plasma screen with all the other bits. All this goes on the mortgage!

Then when mortgage rates go up, it is all the governments fault that they are in the sh*t.

To those people I say, grow up and do the hard yards like our generation did.

(Spoken like a true old phart!)

[Gingermick]

I usually have two spare bedrooms. My two littlest kids always end up in bed with us.

[bitingmidge]

Something I know something about! I'm right, the following is TRUE.

Houses ARE bigger, about twice the area on average.

They ARE infinitely more complex, with wiring, bathrooms and even built-in kitchens now!

They ARE burdened by redtape, with the cost of compliance with bushfire, structural codes, and climatic requirements pushing up the base price, to say nothing of the cost of the beaurocracy that administers them.

Land costs are artificially inflated by the extreme headworks charges and holding costs while developers battle with layer apon layer of red tape. The Qld government has recently recognised this, and is apparently going to release some land which will enable a direct approval process. They are responding to the red tape problem by establishing a new government department!

So, get back to basics. Stop buying stuff that needs space to keep it. Build small and simple, and you could EASILY knock 30% of the cost of housing. (another 20% too if you ignore manufacturer's instructions BTW! )

I've a feeling I'll say more on this one!

Cheers,

P (2 people, 2 bedrooms, 2 bathrooms, 2 "studies", 2 car garage, 2 sheds, 1 television)

[Cliff Rogers]

.... (2 people, 2 bedrooms, 2 bathrooms, 2 "studies", 2 car garage, 2 sheds, 1 television).....

At the risk of wearing out the joke, how many dust extractors systems?

[bitingmidge]

Only one, but it's got a twin outlet!

P (no ducting though!)

[Metal Head]

Cars, same thing.

Why do people buy a newer car or a second car while struggling to pay off the mortgage is beyond me. Why?

It is so they can show their friends that they can as least do the same as them or even better but we know if the rates go up substantially they will be the one's most likely with egg on their faces.

[Sebastiaan56]

I lived in 0.9 of a room once, boy was I glad when the others moved out......