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Australian Property Prices; Can YOU afford to buy a home in Australia?
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Topic Started: 10 Jan 2011, 07:03 PM (9,708 Views)
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Shadow
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10 Jan 2011, 07:03 PM
Post #1
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Evil Zealot Specufestor
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Simple question... if you or your family wanted to buy a home (house or unit) in Australia, could you afford it?
Half a million families bought homes in the past year, so clearly somebody can afford it.
I just want to get some idea about how many members of this forum can afford a home.
(If you already own a home then vote Yes, as clearly you can afford one.)
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Shadow's Blog - The Australian Housing Market
1 - Debunking Demographia. Demographia Survey Debunked. Australian housing is not particularly unaffordable by global standards.
2 - USA, Ireland, UK, Spain and Japan Property Bubbles versus Australia. All confirmed property bubbles had one thing in common... a particular house price/income ratio pattern.
3 - Banks can't margin call on residential property unless borrower defaults, because residential property loans are regulated by the NCCP Act 2009.
4 - Housing is the second highest taxed sector of the Australian Economy. Renters don't pay their fair share of tax, and are subsidised by high taxes incurred by homeowners.
5 - Epic Fail! Steve Keen's Bad Calls and Predictions.
Parse: A rep's spare spear pares pears, reaps as per AREPS.
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hoofarted
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10 Jan 2011, 07:44 PM
Post #2
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This is a little silly really. You may as well ask, who can afford to buy their wife, girl friend or A N Other a diamond ring. Most likely everyone can, just the size of the diamond that matters.
If on the other hand you asked, can you afford a $700K house then THAT is a different question.
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Shadow
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10 Jan 2011, 07:59 PM
Post #3
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Evil Zealot Specufestor
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- hoofarted
- 10 Jan 2011, 07:44 PM
This is a little silly really. You may as well ask, who can afford to buy their wife, girl friend or A N Other a diamond ring. Most likely everyone can, just the size of the diamond that matters.
If on the other hand you asked, can you afford a $700K house then THAT is a different question.
Why is it silly? When people on this forum claim that housing is 'unaffordable' in Australia, they don't usually specify the type of home that is unaffordable... it just seems to be a broad belief that all forms of housing are generally unaffordable. I'm really trying to work out what they mean by that. Do they just mean that some housing is unaffordable to some people? In which case what's the big deal? You could say the same about anything.
Judging by the poll results so far, most people here can afford a home.
Half a million families could afford to buy homes in Australia last year.
So who exactly is housing in Australia unaffordable for? And what type of housing are we talking about?
Do you think housing in Australia is unaffordable, and if so, what does that actually mean?
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Shadow's Blog - The Australian Housing Market
1 - Debunking Demographia. Demographia Survey Debunked. Australian housing is not particularly unaffordable by global standards.
2 - USA, Ireland, UK, Spain and Japan Property Bubbles versus Australia. All confirmed property bubbles had one thing in common... a particular house price/income ratio pattern.
3 - Banks can't margin call on residential property unless borrower defaults, because residential property loans are regulated by the NCCP Act 2009.
4 - Housing is the second highest taxed sector of the Australian Economy. Renters don't pay their fair share of tax, and are subsidised by high taxes incurred by homeowners.
5 - Epic Fail! Steve Keen's Bad Calls and Predictions.
Parse: A rep's spare spear pares pears, reaps as per AREPS.
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raveswei
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10 Jan 2011, 08:00 PM
Post #4
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- hoofarted
- 10 Jan 2011, 07:44 PM
This is a little silly really. You may as well ask, who can afford to buy their wife, girl friend or A N Other a diamond ring. Most likely everyone can, just the size of the diamond that matters.
If on the other hand you asked, can you afford a $700K house then THAT is a different question.
not just that, everyone can afford even big house but at what cost (non-financial cost).
The good question is does somebody wants to scarify life style and/or work extra for 30 years to buy a home
Edited by raveswei, 10 Jan 2011, 08:04 PM. |
http://popping-bubble.blogspot.com/
Thinking of an Australian property speculator (PI):
Inaction = missing opportunities.
Missing opportunities = losing.
Too much thinking = inaction.
Thinking = missing opportunities.
Therefore thinking = losing.
disgraceful little man Frank Castle owes a house to Salvation Army
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hoofarted
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10 Jan 2011, 08:19 PM
Post #5
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- raveswei
- 10 Jan 2011, 08:00 PM
not just that, everyone can afford even big house but at what cost (non-financial cost).
The good question is does somebody wants to scarify life style and/or work extra for 30 years to buy a home
Absolutely agreed. Because I can afford it, does not mean I should pay it. I am no debt slave.
I don't want my children to work for 30 years to buy what Shadow considers an affordable house.
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Mr Wu
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10 Jan 2011, 08:32 PM
Post #6
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- hoofarted
- 10 Jan 2011, 07:44 PM
This is a little silly really. You may as well ask, who can afford to buy their wife, girl friend or A N Other a diamond ring. Most likely everyone can, just the size of the diamond that matters.
If on the other hand you asked, can you afford a $700K house then THAT is a different question.
Wu ask why you say $700k house, why not $3,000,000 house
Wu think fhb should look to buy in fhb area and cheap house more like $350 to $400k, or unit for even smaller money
What next? you say p plate driver must have Audi as first car?
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hoofarted
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10 Jan 2011, 08:44 PM
Post #7
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- Mr Wu
- 10 Jan 2011, 08:32 PM
What next? you say p plate driver must have Audi as first car?
Nearly all P platers can afford A CAR. This does not mean that it is a great car, a car they want or even a car that is legal. The definition of a home in the context of Shadows question is meaningless.
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Maveri
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10 Jan 2011, 08:51 PM
Post #8
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I voted no because even though I own a home I couldn't afford it if I was to buy today.
I already purchased way out in the suburbs and to go much further out to buy something affordable I'd be falling off the edge of the planet.
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Maveri
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10 Jan 2011, 08:53 PM
Post #9
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- Mr Wu
- 10 Jan 2011, 08:32 PM
...
What next? you say p plate driver must have Audi as first car?
P Platers have the option of buying a second hand car that has dropped in value.
How many second hand houses drop in value?
People do not buy cars to get a capital gain so they buy with the notion that the car will devalue over time and therefore tend not to over spend on it unless they have excess money and the size of the purchase and time to repay it out is much shorter so the thinking is more short term as well.
A house is seen as an asset appreciator so the philioshphy and mindset is totally different. People want to capitalise on the purchase as much as possible - so naturally they will not want to buy way out in the suburbs unless they have to.
i.e. You cannot compare buying a car with the mentality that goes in towards buying a house.
I skipped buying a unit because at the time units had rushed up in value compared to houses. I put in the extra hard yards and paid a bit extra for a house realising that when I wanted to start a family I would loose money on stamp duty and agents fee's selling the unit to buy a house.
Not long after i purchased, house prices caught up their respective difference with units again. It was a matter of being in the right place at the right time.
Edited by Maveri, 10 Jan 2011, 08:59 PM. |
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Frank Castle
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10 Jan 2011, 09:08 PM
Post #10
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Business As Usual
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- Maveri
- 10 Jan 2011, 08:53 PM
How many second hand houses drop in value?
I think you'll find they drop in value considerably
I get offered houses regularly for free for removal
And regularly see very nice houses get demolished for the next monstrosity to be built
It is the LAND and LOCATION that costs the money
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The T.A.M.P.O.N effect - A NEW whinging bear acronym emerges
Timo And Moops Protest Over Nothing
Proof that moops is a simple minded hypocritical turnip
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Maveri
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10 Jan 2011, 09:21 PM
Post #11
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- Frank Castle
- 10 Jan 2011, 09:08 PM
I think you'll find they drop in value considerably
I get offered houses regularly for free for removal
And regularly see very nice houses get demolished for the next monstrosity to be built
It is the LAND and LOCATION that costs the money
...and how many can be decoupled from the land or are sold that way? sfa
99.99% of vehicles devalue (I'm assuming only 0.01% of rare collectables exist compared to other vehicles)
The point being made was that you cannot compare car purchasing to house purchasing.
A car engine is not normally replaced. It can be overhauled.
A house will often undergo renovation but very rarely are homes decoupled from the land now are they?
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Frank Castle
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10 Jan 2011, 09:28 PM
Post #12
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Business As Usual
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- Maveri
- 10 Jan 2011, 09:21 PM
...and how many can be decoupled from the land or are sold that way? sfa
99.99% of vehicles devalue (I'm assuming only 0.01% of rare collectables exist compared to other vehicles)
The point being made was that you cannot compare car purchasing to house purchasing.
A car engine is not normally replaced. It can be overhauled.
A house will often undergo renovation but very rarely are homes decoupled from the land now are they?
Its all irrelevant
We are talking houses and land..................not cars
I showed that houses do devalue, despite your claim
and it is predominantly the land that is the expense, depending on area.
Reading Mr Wu's post, it appears to me the car example was in relation to $700k houses being bandied around as a starter home price, which is ridiculous when the median price in Oz is $500k ish
Just as ridiculous as an Audi should be a first car, when a 15 year old falcon has done fine for generations previously
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The T.A.M.P.O.N effect - A NEW whinging bear acronym emerges
Timo And Moops Protest Over Nothing
Proof that moops is a simple minded hypocritical turnip
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Deleted User
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10 Jan 2011, 09:36 PM
Post #13
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Deleted User
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- Shadow
- 10 Jan 2011, 07:59 PM
Why is it silly? When people on this forum claim that housing is 'unaffordable' in Australia, they don't usually specify the type of home that is unaffordable... it just seems to be a broad belief that all forms of housing are generally unaffordable. I'm really trying to work out what they mean by that. Do they just mean that some housing is unaffordable to some people? In which case what's the big deal? You could say the same about anything.
Judging by the poll results so far, most people here can afford a home.
Half a million families could afford to buy homes in Australia last year.
So who exactly is housing in Australia unaffordable for? And what type of housing are we talking about?
Do you think housing in Australia is unaffordable, and if so, what does that actually mean?
Affordability to me is measured as how many Australians actually own outright their home.
Actually own it instead of being a mortgage holder and claiming to own it. You do not have the title when you have a mortgage...
The OO percentages are shocking as less people as a percenatge now own their home than 30 years ago. Fek!
That is how you measure true affordability as a nation. Did they pay it off, not could they get a big farking loan......
Half a million did not become outright owners, please talk the right numbers.. half million took loans.......
When I started working in 1986, I probably could have saved up and become an outright owner on my pittance I was paid as a teacher, $22k. I could have bought a home in Toowoomba for $40k easy, now well it is slightly more than double a teachers wage... that is how the real world measures individual affordability.... Rents or wages to the price. Simple.
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Shadow
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10 Jan 2011, 09:42 PM
Post #14
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Evil Zealot Specufestor
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- hoofarted
- 10 Jan 2011, 08:44 PM
Nearly all P platers can afford A CAR. This does not mean that it is a great car, a car they want or even a car that is legal. The definition of a home in the context of Shadows question is meaningless.
Then you would have to admit it is equally meaningless for people to claim that 'housing is unaffordable' in Australia, right?
Do you think housing in Australia is unaffordable, and if so, what does that actually mean to you?
Edited by Shadow, 10 Jan 2011, 09:58 PM. |
Shadow's Blog - The Australian Housing Market
1 - Debunking Demographia. Demographia Survey Debunked. Australian housing is not particularly unaffordable by global standards.
2 - USA, Ireland, UK, Spain and Japan Property Bubbles versus Australia. All confirmed property bubbles had one thing in common... a particular house price/income ratio pattern.
3 - Banks can't margin call on residential property unless borrower defaults, because residential property loans are regulated by the NCCP Act 2009.
4 - Housing is the second highest taxed sector of the Australian Economy. Renters don't pay their fair share of tax, and are subsidised by high taxes incurred by homeowners.
5 - Epic Fail! Steve Keen's Bad Calls and Predictions.
Parse: A rep's spare spear pares pears, reaps as per AREPS.
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Deleted User
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10 Jan 2011, 09:43 PM
Post #15
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Deleted User
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- Mr Wu
- 10 Jan 2011, 08:32 PM
Wu ask why you say $700k house, why not $3,000,000 house
Wu think fhb should look to buy in fhb area and cheap house more like $350 to $400k, or unit for even smaller money
What next? you say p plate driver must have Audi as first car?
They bought the big houses to follow the delusion that prices always go up and they did not intend to stay they for life.
They wanted to play the RE game that you created, as well and now they are feked if they bought in the last 2 years on a high LVR.
Your thinking is correct, they should buy in an affordable area like you did, then sell, make money, upgrade and so on.. Sorry it did not work as they saw the RE game as being a safe bet, so why not buy the biggest house and make the most money.
After all, why buy a $200k unit that may make $60k, when you could buy a $3m property and sell it for $5m. Opps... sorry did not work. It is broken. I know people who bought the $3m properties and well, they might get $2m now and they know it....
they can service the huge debts and are only living on a prayer....This may be a domino effect soon I expect as the losses are realized as the huge mortgages continue to exert pressure.
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5:31 PM May 20
