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?
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.
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.
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