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Thread: Housing Affordability - Whats the Answer?

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    Junior Member diggler's Avatar
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    Default Housing Affordability - Whats the Answer?

    amongst the worse in the world and no signs of getting any better. not much chance for a young person wanting to get into the market.
    One thing i think should go is negative gearing for residential housing investments. was speaking to a dutch national not that long ago and she told me that the government over there discouraged residential property investment by having a high property tax for people owning more than one residential property which has the effect of keeping prices affordable.



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    That tax a very interesting idea, and a really new idea. But what does that mean for people already owning multiple houses??? Or units owned by a company that in turn rents them out? Thats only going to push those rents up.

    As far as affordability is concerned.... Just depends where you want to buy. I agree its hard, but not as hard as when i had to do it. We never had Fisrt Home Owner Grants. A 22 year old can be on $3500 a week these days in the trades or over at the mines or in the Gas fields. Interest is still low... it's bloody easy as these days.

    Some people just need to ask themselves am i batting outside my average.
    For those with part time work and or low wages whom complain... you should of tried it 20 years ago, a Bank would just laugh at you and there was no such thing as a Building Company getting you into a home for $350 a week.

    I agree house are expensive, thus rates are expensive but guess what, it won't get any easier than today..... because it's only going to get harder and harder

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    Senior Member z80's Avatar
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    If we want lower house prices then that is achieved through high interest rates.

    That's because it slows demand and hence drives prices down.

    Simple economics based on the concept of scarcity.

    So therefore nothing will make it easy to buy a first house.....ever.


    Most of it is due to all the young fashionable people demanding an ensuite, walk in robe, theatre room, double garage and fully lanscaped garden from day one....instead of earning it first.

    Such a bad attitude, peer group pressure etc etc etc.


    I would also wait till all the idiots shitting their pants over shares stop flooding the housing market with cash.

    Wait a year or 18 months and it will fall in a heap like it did in 83,89,92,97...
    and this could be the best yet !

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    true Z80 most people when they borrowed for a home borrowed near the max the bank told them and got all the bells and whistles .
    In part it a bit of irresponsibility on the banks side for telling them they can borrow that much , but 99% of the fault goes with the borrower for doing it in the first place .
    Whe we first went for a home loan the max amount we could borrow was something like 40% of income . We borrowed less than half of that
    interest rates were about 3-4% less than they are now , but even now we are paying less for our mortgage than what an average rental is worth .
    We were lucky enough to borrow and buy before the housing boom and borrow sensibly to suit our needs and not our wants

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    Im in the position of buying my first house at the moment. Man its hard, we have looked at over 50 houses so far and the money people want for the crap they are selling is unbelivable.

    We are trying to look at the market in a fairly sensible way by trying not to devote more then 1 of our full wages to the mortgage, but 1 or 2 interest rate rises is really going to hit the pocket.

    I heard a recent study that said my area (Wollongong) is as expensive to live in as New York.... its just crazy down here.

    Anything that is on a reasonable block for a good price is soon snapped up by developers who buy it as a knockdown and put up 2-3 town houses on the same block.

    Property developers are really giving me the shits lately....

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    Quote Originally Posted by diggler View Post
    Housing Affordability - Whats the Answer?
    The answer to housing affordability is to buy or rent a house that is affordable to you.

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    I'd like to see a tax break for investors to sell properties in the low end of the market.
    Remove Capital Gains Tax on properties below a certain figure (prolly $350K) for a limited time, and create a sellers market.
    As more houses go on the market, creating competition, prices will either fall slightly or at least stablise for some time.

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    the tax break should be the opposite way have the tax help the first home buyer instead of the investor

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    Senior Member z80's Avatar
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    Quote Originally Posted by PunX0r View Post
    I heard a recent study that said my area (Wollongong) is as expensive to live in as New York.... its just crazy down here.

    ....

    It's not quite the same....you aren't 300 feet in the air.

    Detached housing is much more expensive because of the land component.

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    Housing Afford ability - Whats the Answer?


    The answer is :- Work Work Work and don't spend more then you earn.

    Get a basic house and stop asking bloody governments for hand outs. Work for IT!!!!!


    kevin1341 Far West NSW AU

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    Yeah I hear far west NSW is one of the hardest hit areas for housing affordability, thanks for the tip.

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    Quote Originally Posted by fandtm666 View Post
    the tax break should be the opposite way have the tax help the first home buyer instead of the investor
    Which will further increase house prices because it hots up the market allowing developers to inflate prices.
    What scares me more about first home buyers is not so much the ability to buy a house, it's making the repayments to service the loan.

    And it's not just the first home buyers that struggle, the real scary thing is banks who approve loans based on equity which, if prices do come down will end up with people owing the lender more than what the property is worth.
    Last edited by exited; 03-03-08 at 08:10 PM. Reason: typo

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    claim you are aboriginal and get a free one.
    and when you want to move smash the house up and complain the house is crap and you will get a new house somwhere else FREE.

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