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Anyone on minimum wage can afford to buy or rent a home in Australia
Topic Started: 29 Jan 2013, 03:53 PM (22,050 Views)
Shadow
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Evil Mouzealot Specufestor

Some of the other bulls and bears may like to perform a similar exercise for other cities, but since Perth is supposedly one of the 'least affordable' cities in Australia, I think this example should be quite enlightening. The bottom line is that it is quite easily affordable for anyone on minimum wage to buy or rent accommodation in Australia.

Veritas
29 Jan 2013, 03:06 PM
Find me a rental property in the Perth metropolitan area, for example, that is affordable for someone on the minimum wage?

It doesnt exist.
The national minimum wage is $606 per week

You can rent in Perth for $140 per week

Or you can buy in Perth for $207 per week

(Buyer eligible for $7K FHOG. No stamp duty payable on WA FHB purchases under $500K. Assumed 20% deposit and Westpac 3-year fixed rate of 5.39%)

Now I'll wait for the excuses... 'but but but they would have to share, they would have to save a deposit, they would have to make sacrifices, that's not a desirable suburb, everyone is entitled to a freestanding 9-bedroom mansion in Peppermint Grove as their first home, oh the humanity!'
Edited by Shadow, 29 Jan 2013, 04:04 PM.
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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peter fraser
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http://www.realestate.com.au/property-house-qld-inala-112712239?rsf=ebrochure.highlight-to-property-details-page

neat tidy, close to CBD - 12 klm $269,000

Repayments $331 per week on a $250K loan over 30 years. A couple on the minimum wage could afford this.
Edited by peter fraser, 29 Jan 2013, 04:09 PM.
Any expressed market opinion is my own and is not to be taken as financial advice
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Andrew Judd
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peter fraser
29 Jan 2013, 04:06 PM
http://www.realestate.com.au/property-house-qld-inala-112712239?rsf=ebrochure.highlight-to-property-details-page

neat tidy, close to CBD - 12 klm $269,000

Repayments $331 per week on a $250K loan over 30 years. A couple on the minimum wage could afford this.
That house looks pretty good to me!

Hard to believe you can afford that on the minimum wage

The minimum wage is however surprisingly high

I must have been living in a black hole for a while
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miw
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Andrew Judd
29 Jan 2013, 04:16 PM
That house looks pretty good to me!

Hard to believe you can afford that on the minimum wage

The minimum wage is however surprisingly high

I must have been living in a black hole for a while
The big problem with the house is that it is in Inala.

But I have seen houses of similar price in neighbouring suburbs which I wouldn't have a problem with.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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Frank Castle
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Business As Usual

peter fraser
29 Jan 2013, 04:06 PM
http://www.realestate.com.au/property-house-qld-inala-112712239?rsf=ebrochure.highlight-to-property-details-page

neat tidy, close to CBD - 12 klm $269,000

Repayments $331 per week on a $250K loan over 30 years. A couple on the minimum wage could afford this.
Wow, quite impressive for the money Peter.
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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Poontang
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Frank Castle
29 Jan 2013, 04:21 PM
Wow, quite impressive for the money Peter.
I'd be inclined to check in the roof cavity for bracing work done to offset the kitchen wall removal...
There are some people who seem angry and continuously look for conflict.
Walk away, the battle they are fighting isn't with you, it's with themselves.

The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it.
The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.

Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
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Veritas
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Quote:
 
You can rent in Perth for $140 per week


I clicked about five of the apartments on that list and they were all gone from the listings.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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peter fraser
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miw
29 Jan 2013, 04:19 PM
Andrew Judd
29 Jan 2013, 04:16 PM
That house looks pretty good to me!

Hard to believe you can afford that on the minimum wage

The minimum wage is however surprisingly high

I must have been living in a black hole for a while
The big problem with the house is that it is in Inala.

But I have seen houses of similar price in neighbouring suburbs which I wouldn't have a problem with.
I used to work at the Inala Civic Centre - never had one problem. It was a downbeat housing commission area, but when the QHC decided to sell the houses to their tenants, the area started to climb up a little.

It will never rival old money areas like Hamilton or Ascot, but a couple on the minimum wage are a working couple who should be happy to get a nice house in a well located area. the old QHC homes were very solid, it will never fall over.

I know people who live in New Farm in expensive houses (land value) that aren't as nice as that house.
Any expressed market opinion is my own and is not to be taken as financial advice
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miw
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peter fraser
29 Jan 2013, 04:37 PM
I used to work at the Inala Civic Centre - never had one problem. It was a downbeat housing commission area, but when the QHC decided to sell the houses to their tenants, the area started to climb up a little.

It will never rival old money areas like Hamilton or Ascot, but a couple on the minimum wage are a working couple who should be happy to get a nice house in a well located area. the old QHC homes were very solid, it will never fall over.

I know people who live in New Farm in expensive houses (land value) that aren't as nice as that house.
You can't argue with the assertion that Inala is well-located. One day it will gentrify.

But I've been hearing that for 30 years. In fact since before people started saying Newfarm would take off.

We have to get more gay people into Inala. That will get it sorted out.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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Veritas
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Okay, lets be more specific.

The task is to do the following:

Find a place that a single person can rent at an affordable level in the Perth metro area for $202 per week or less.

Why $ 202? That is 1/3 of the minumum wage and a commonly accepted definition of affordability is if you are paying more than 30% of your income and you are in the bottom 40% of earners you are deemed to be in housing stress.

Now, I did a quick search and all i could find was student accomadation (shared) and straight up shared accomadation.

I have yet to find any self contained dwelling that can be rented for 202 per week in the Perth metro.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
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