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Owners with a mortgage pay smallest proportion of income on housing costs since records began
Topic Started: 17 Oct 2015, 05:49 PM (3,530 Views)
Strindberg
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Housing is currently clearly more affordable now (well, in 2013-14, the latest data) to Australian households with a mortgage than at any time since before 1994.

ABS Release
http://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/079986D30C7AA15BCA257EDF007FE4E0/$File/41300do001_201314.xls


Table 2 ALL HOUSEHOLDS, Housing costs as a proportion of gross household income by selected household characteristics

Owner with a mortgage

1994–95 18%
1995–96 19%
1996–97 19%
1997–98 18%
1999–00 17%
2000–01 17%
2002–03 17%
2003–04 18%
2005–06 19%
2007–08 18%
2009–10 18%
2011–12 18%
2013–14 16%

This is especially striking as we know that real income has increased greatly since 1994. So households now spend a smaller proportion of an even larger income on housing.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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Terry
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Strindberg
17 Oct 2015, 05:49 PM
Housing is currently clearly more affordable now (well, in 2013-14, the latest data) to Australian households with a mortgage than at any time since before 1994.

ABS Release
http://www.ausstats.abs.gov.au/Ausstats/subscriber.nsf/0/079986D30C7AA15BCA257EDF007FE4E0/$File/41300do001_201314.xls


Table 2 ALL HOUSEHOLDS, Housing costs as a proportion of gross household income by selected household characteristics

Owner with a mortgage

1994–95 18%
1995–96 19%
1996–97 19%
1997–98 18%
1999–00 17%
2000–01 17%
2002–03 17%
2003–04 18%
2005–06 19%
2007–08 18%
2009–10 18%
2011–12 18%
2013–14 16%

This is especially striking as we know that real income has increased greatly since 1994. So households now spend a smaller proportion of an even larger income on housing.
Well aint that jolly coming off the most extravagant credit bubble in human history, one would hope that this has translated into incomes in the suburbs. However, looking at the range of a list of %s over 20 years directionally shows nothing has changed. Of course, I wouldn't expect calculating or understanding variance to be one of your strengths.
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Shadow
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Evil Mouzealot Specufestor

Strindberg
17 Oct 2015, 05:49 PM
So households now spend a smaller proportion of an even larger income on housing.
And they're getting a larger and better appointed home for their money too.

So much for the bears and their claim that houses are unaffordable.
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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stinkbug
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There is also substantial evidence showing that Australians end up significantly better off (on average) if they own than if they rent.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Terry
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stinkbug
17 Oct 2015, 06:38 PM
There is also substantial evidence showing that Australians end up significantly better off (on average) if they own than if they rent.
Yes, there is.....after the greatest credit bubble in human history and the finacialization of the residential property industry. The whole world is aware of that. The question is how to calibrate and protect the status quo moving forward so the whole paradigm can be maintained.
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Trollie
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The most striking figure is in table 4.

Housing costs as a proportion of gross household income

Couple family with dependent children
Mortgage 16 %
Private Renter 19%


I'm assuming we can all agree couple with a few kids is "average".

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Rastus2
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Shadow
17 Oct 2015, 06:19 PM
And they're getting a larger and better appointed home for their money too.

So much for the bears and their claim that houses are unaffordable.

I think the claims that some bears were making was 100% right.. ie. that previously, a single income family could afford to purchase a home. Now, a double income family is required to purchase.

Household income has risen thanks to both partners sacrificing home time (with the kids) to work... the benifit of that has been to tread water in regards to purchasing a home.

If measured in the same way as it was for some previous generations (ie. single income family households), does this reduce the affordability ?
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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herbie
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Rastus2
17 Oct 2015, 09:29 PM

I think the claims that some bears were making was 100% right.. ie. that previously, a single income family could afford to purchase a home. Now, a double income family is required to purchase.

Household income has risen thanks to both partners sacrificing home time (with the kids) to work... the benifit of that has been to tread water in regards to purchasing a home.

If measured in the same way as it was for some previous generations (ie. single income family households), does this reduce the affordability ?
I don't think the "One man; One job" (with no mention of women having jobs) ALP policy from the 30s or 40s or 50s or whenever it was is actually gunna cut it these days Rastus.

Though yep sure; It's valid to recognise that things have changed.

'N PS (as I've said before) : My mob's been here for a while. So 'we' remember/'know' even :

http://trove.nla.gov.au/ndp/del/article/36775836 ... Hmmm - 1935 was the year.

Edited by herbie, 17 Oct 2015, 09:58 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Rastus2
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herbie
17 Oct 2015, 09:50 PM
I don't think the "One man; One job" (with no mention of women having jobs) ALP policy from the 30s or 40s or 50s or whenever it was is actually gunna cut it these days Rastus.

Though yep sure; It's valid to recognise that things have changed.

It's not about being sexist, Herbie.

I think you miss my point.

With women women working in paid work, the quality of the entire families life should rise to reflect it, not simply the price of houses.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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herbie
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Rastus2
17 Oct 2015, 09:59 PM

It's not about being sexist, Herbie.

I think you miss my point.

With women women working in paid work, the quality of the entire families life should rise to reflect it, not simply the price of houses.
Well standards of living have risen - Across the board generally quite a lot I'm told?

Quality of living? That's another matter. (And possibly one that an old fashioned basket like me would be best to not get too carried away with mouthing on about) - The Youngies will choose what they want ... Hey, if they want to go back to having only one working parent per family I'm surely not stopping them ... Though they'll struggle to compete internationally where others might not make such a choice maybe?
Edited by herbie, 17 Oct 2015, 10:18 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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