The big one - housing affordability.
Jan 30th 2006 | 6:52 pm
#1
Thread Starter
Checkin' the world out.
Joined: Feb 2002
Posts: 113
The big one - housing affordability.
So, there's been a lot of talk lately (as always) about house prices, especially in Perth and Brissie. The latest (limited/biased but whatever) in a batch of 'unaffordability' homeowner surveys puts Oz right at the top for income vs mortgage ratios, and I have to warn, it's getting that way even outside of the usual suspects Sydney and Melb., so be sure to do your sums.
We came to Perth 2 years ago, sold a cosy little semi oop north duck and somehow managed to build a funky new home here. However, if we were starting today, we couldn't afford it by a LONG shot. Build and land costs for our set up have escalated by well over $150k in less than 18 months.
5 years back when we started this whole thing we did the sums and figured we could bag a decent place for around $200k, far more for our hard earned than in blighty. Now you're looking at $350-$500k for a 'family' home in WA easily. Yes yes you can can spend less on a villa, duplex or appartment, but I'm talking houses. In the UK our annual income equalled our outstanding mortgage amazingly. Here the big M is 2.5 x our joint income. Now by most accounts this is still pretty reasonable, but when you're earning $AUS, it all goes a bit out of kilter - there's no room for changes in that thar equation.
So, if you haven't got at least some capital to bring and hope to own a home here, it's no longer too much different from the UK in trying to get that first foot on the ladder. I guess it's the way of the western world - we feel wealthy because of our bricks and mortar's value, but we still have to pay for it!
Happy house hunting!
We came to Perth 2 years ago, sold a cosy little semi oop north duck and somehow managed to build a funky new home here. However, if we were starting today, we couldn't afford it by a LONG shot. Build and land costs for our set up have escalated by well over $150k in less than 18 months.
5 years back when we started this whole thing we did the sums and figured we could bag a decent place for around $200k, far more for our hard earned than in blighty. Now you're looking at $350-$500k for a 'family' home in WA easily. Yes yes you can can spend less on a villa, duplex or appartment, but I'm talking houses. In the UK our annual income equalled our outstanding mortgage amazingly. Here the big M is 2.5 x our joint income. Now by most accounts this is still pretty reasonable, but when you're earning $AUS, it all goes a bit out of kilter - there's no room for changes in that thar equation.
So, if you haven't got at least some capital to bring and hope to own a home here, it's no longer too much different from the UK in trying to get that first foot on the ladder. I guess it's the way of the western world - we feel wealthy because of our bricks and mortar's value, but we still have to pay for it!
Happy house hunting!
Jan 30th 2006 | 6:56 pm
#2
Tiny Member
Joined: Oct 2005
Posts: 1,455
From: Perth
Re: The big one - housing affordability.
has anybody any update regarding stamp duty being abolished in Perth?
heard a rumour it was one of the last places in oz who has it and it is due to be abolished this year.
Any truth in the rumour?
heard a rumour it was one of the last places in oz who has it and it is due to be abolished this year.
Any truth in the rumour?
Originally Posted by nixstuff
So, there's been a lot of talk lately (as always) about house prices, especially in Perth and Brissie. The latest (limited/biased but whatever) in a batch of 'unaffordability' homeowner surveys puts Oz right at the top for income vs mortgage ratios, and I have to warn, it's getting that way even outside of the usual suspects Sydney and Melb., so be sure to do your sums.
We came to Perth 2 years ago, sold a cosy little semi oop north duck and somehow managed to build a funky new home here. However, if we were starting today, we couldn't afford it by a LONG shot. Build and land costs for our set up have escalated by well over $150k in less than 18 months.
5 years back when we started this whole thing we did the sums and figured we could bag a decent place for around $200k, far more for our hard earned than in blighty. Now you're looking at $350-$500k for a 'family' home in WA easily. Yes yes you can can spend less on a villa, duplex or appartment, but I'm talking houses. In the UK our annual income equalled our outstanding mortgage amazingly. Here the big M is 2.5 x our joint income. Now by most accounts this is still pretty reasonable, but when you're earning $AUS, it all goes a bit out of kilter - there's no room for changes in that thar equation.
So, if you haven't got at least some capital to bring and hope to own a home here, it's no longer too much different from the UK in trying to get that first foot on the ladder. I guess it's the way of the western world - we feel wealthy because of our bricks and mortar's value, but we still have to pay for it!
Happy house hunting!
We came to Perth 2 years ago, sold a cosy little semi oop north duck and somehow managed to build a funky new home here. However, if we were starting today, we couldn't afford it by a LONG shot. Build and land costs for our set up have escalated by well over $150k in less than 18 months.
5 years back when we started this whole thing we did the sums and figured we could bag a decent place for around $200k, far more for our hard earned than in blighty. Now you're looking at $350-$500k for a 'family' home in WA easily. Yes yes you can can spend less on a villa, duplex or appartment, but I'm talking houses. In the UK our annual income equalled our outstanding mortgage amazingly. Here the big M is 2.5 x our joint income. Now by most accounts this is still pretty reasonable, but when you're earning $AUS, it all goes a bit out of kilter - there's no room for changes in that thar equation.
So, if you haven't got at least some capital to bring and hope to own a home here, it's no longer too much different from the UK in trying to get that first foot on the ladder. I guess it's the way of the western world - we feel wealthy because of our bricks and mortar's value, but we still have to pay for it!
Happy house hunting!
Jan 30th 2006 | 7:02 pm
#3
(It's not my real name)
Joined: Sep 2002
Posts: 12,469
From: Ilukapool. WA
Re: The big one - housing affordability.
Originally Posted by tucs
has anybody any update regarding stamp duty being abolished in Perth?
heard a rumour it was one of the last places in oz who has it and it is due to be abolished this year.
Any truth in the rumour?
heard a rumour it was one of the last places in oz who has it and it is due to be abolished this year.
Any truth in the rumour?
Abolishing it would further fuel the rampant house price inflation here.
Jan 30th 2006 | 7:11 pm
#4
Tiny Member
Joined: Oct 2005
Posts: 1,455
From: Perth
Re: The big one - housing affordability.
is there a date for the next election over there?
Originally Posted by renth
I doubt it, it's such a great moneyspinner for the government I can't see them letting it go. Unless the Liberals put it forward as a pledge at the next state election.
Abolishing it would further fuel the rampant house price inflation here.
Abolishing it would further fuel the rampant house price inflation here.
Jan 30th 2006 | 7:29 pm
#5
Fighting my corner
Joined: Aug 2005
Posts: 11,948
From: Adelaide, South Australia
Re: The big one - housing affordability.
Originally Posted by tucs
has anybody any update regarding stamp duty being abolished in Perth?
heard a rumour it was one of the last places in oz who has it and it is due to be abolished this year.
Any truth in the rumour?
heard a rumour it was one of the last places in oz who has it and it is due to be abolished this year.
Any truth in the rumour?
The IGA requires that by 2005, the Ministerial Council will “review the need for retention of stamp duty†on non-residential conveyances, unlisted marketable securities, leases, mortgages, credit/rental arrangements and cheques.
Western Australia has already abolished stamp duty on unlisted securities, leases and cheques. Western Australia has also introduced a stamp duty exemption for mortgage refinancing by households and small business.
Consistent with the IGA, a review of the need for retention of the relevant stamp duties was undertaken by Heads of Treasuries for the Ministerial Council, but an agreed outcome was not achieved. The States considered that the net benefits of the GST funding arrangements also needed to be applied to service and infrastructure funding pressures, while the Commonwealth effectively argued that abolition of the IGA stamp duties should be the first priority.
At the March 2005 Ministerial Council meeting the Commonwealth Treasurer put forward a proposal for the abolition of the stamp duties.
The States and Territories rejected this proposal but subsequently six jurisdictions provided the Commonwealth with a counter offer involving the staggered abolition of the taxes by 2010‑11, with the exception of stamp duty on real non-residential conveyances.
Jan 30th 2006 | 7:32 pm
#6
Tiny Member
Joined: Oct 2005
Posts: 1,455
From: Perth
Re: The big one - housing affordability.
thanks a million. been looking everwhere on some info on this.
you da man
you da man
Originally Posted by Vash the Stampede
It's definitely on the table:
The IGA requires that by 2005, the Ministerial Council will “review the need for retention of stamp duty†on non-residential conveyances, unlisted marketable securities, leases, mortgages, credit/rental arrangements and cheques.
Western Australia has already abolished stamp duty on unlisted securities, leases and cheques. Western Australia has also introduced a stamp duty exemption for mortgage refinancing by households and small business.
Consistent with the IGA, a review of the need for retention of the relevant stamp duties was undertaken by Heads of Treasuries for the Ministerial Council, but an agreed outcome was not achieved. The States considered that the net benefits of the GST funding arrangements also needed to be applied to service and infrastructure funding pressures, while the Commonwealth effectively argued that abolition of the IGA stamp duties should be the first priority.
At the March 2005 Ministerial Council meeting the Commonwealth Treasurer put forward a proposal for the abolition of the stamp duties.
The States and Territories rejected this proposal but subsequently six jurisdictions provided the Commonwealth with a counter offer involving the staggered abolition of the taxes by 2010‑11, with the exception of stamp duty on real non-residential conveyances.
Source.
The IGA requires that by 2005, the Ministerial Council will “review the need for retention of stamp duty†on non-residential conveyances, unlisted marketable securities, leases, mortgages, credit/rental arrangements and cheques.
Western Australia has already abolished stamp duty on unlisted securities, leases and cheques. Western Australia has also introduced a stamp duty exemption for mortgage refinancing by households and small business.
Consistent with the IGA, a review of the need for retention of the relevant stamp duties was undertaken by Heads of Treasuries for the Ministerial Council, but an agreed outcome was not achieved. The States considered that the net benefits of the GST funding arrangements also needed to be applied to service and infrastructure funding pressures, while the Commonwealth effectively argued that abolition of the IGA stamp duties should be the first priority.
At the March 2005 Ministerial Council meeting the Commonwealth Treasurer put forward a proposal for the abolition of the stamp duties.
The States and Territories rejected this proposal but subsequently six jurisdictions provided the Commonwealth with a counter offer involving the staggered abolition of the taxes by 2010‑11, with the exception of stamp duty on real non-residential conveyances.
Jan 30th 2006 | 7:33 pm
#7
BE Enthusiast
Joined: Jul 2005
Posts: 936
Re: The big one - housing affordability.
Originally Posted by nixstuff
So, there's been a lot of talk lately (as always) about house prices, especially in Perth and Brissie. The latest (limited/biased but whatever) in a batch of 'unaffordability' homeowner surveys puts Oz right at the top for income vs mortgage ratios, and I have to warn, it's getting that way even outside of the usual suspects Sydney and Melb., so be sure to do your sums.
We came to Perth 2 years ago, sold a cosy little semi oop north duck and somehow managed to build a funky new home here. However, if we were starting today, we couldn't afford it by a LONG shot. Build and land costs for our set up have escalated by well over $150k in less than 18 months.
5 years back when we started this whole thing we did the sums and figured we could bag a decent place for around $200k, far more for our hard earned than in blighty. Now you're looking at $350-$500k for a 'family' home in WA easily. Yes yes you can can spend less on a villa, duplex or appartment, but I'm talking houses. In the UK our annual income equalled our outstanding mortgage amazingly. Here the big M is 2.5 x our joint income. Now by most accounts this is still pretty reasonable, but when you're earning $AUS, it all goes a bit out of kilter - there's no room for changes in that thar equation.
So, if you haven't got at least some capital to bring and hope to own a home here, it's no longer too much different from the UK in trying to get that first foot on the ladder. I guess it's the way of the western world - we feel wealthy because of our bricks and mortar's value, but we still have to pay for it!
Happy house hunting!
We came to Perth 2 years ago, sold a cosy little semi oop north duck and somehow managed to build a funky new home here. However, if we were starting today, we couldn't afford it by a LONG shot. Build and land costs for our set up have escalated by well over $150k in less than 18 months.
5 years back when we started this whole thing we did the sums and figured we could bag a decent place for around $200k, far more for our hard earned than in blighty. Now you're looking at $350-$500k for a 'family' home in WA easily. Yes yes you can can spend less on a villa, duplex or appartment, but I'm talking houses. In the UK our annual income equalled our outstanding mortgage amazingly. Here the big M is 2.5 x our joint income. Now by most accounts this is still pretty reasonable, but when you're earning $AUS, it all goes a bit out of kilter - there's no room for changes in that thar equation.
So, if you haven't got at least some capital to bring and hope to own a home here, it's no longer too much different from the UK in trying to get that first foot on the ladder. I guess it's the way of the western world - we feel wealthy because of our bricks and mortar's value, but we still have to pay for it!
Happy house hunting!
We've also been in Perth for almost two years and got the build under way before we moved out (still not finished yet, but that's another story). We thought we were buying at the peak, but to order a similar house today would cost around 40% more. The land has maybe gone up about 25% or so. Meanwhile, it looks like house prices in the UK have been flatlining in many places. It appears that the gap has closed substantially.
We were considering moving nearer to the city at some point, but a nice house in a nice area with good state schools would now cost around GBP380,000. Nothing flash, and in many cases that is not much more than block value (big blocks though), with a 40-year old "character home" on it. We were looking at Floreat, Wembley Downs, etc. There aren't many good state schools in Perth it seems, and if you're not prepared to accept religion your choice of suburb is limited if you want good high schools.
Anyway, the upshot is we'd be pretty happy with a 400k house in the UK. Cheaper housing was a big factor when we moved here from Japan instead of going back to the UK, but it is no longer a factor for us. Luckily, there are other factors (at least for now).
Jan 30th 2006 | 7:36 pm
#8
Fighting my corner
Joined: Aug 2005
Posts: 11,948
From: Adelaide, South Australia
Re: The big one - housing affordability.
Originally Posted by tucs
thanks a million. been looking everwhere on some info on this.
you da man
you da man
I notice that stamp duty isn't going anywhere in the UK.
Jan 30th 2006 | 7:42 pm
#9
Guest
Posts: n/a
Re: The big one - housing affordability.
Stamp duty on Mortgages is being/has been abolished, but the main stamp duty on residential conveyances is very unlikely to be abolished.
An idea on property prices in my area: A basic 3 bed 1 bathroom house on 700sqm costing $212,000 in early 2003 is now worth $270,000. Currently about 5.4 times the average QLD wages.
An idea on property prices in my area: A basic 3 bed 1 bathroom house on 700sqm costing $212,000 in early 2003 is now worth $270,000. Currently about 5.4 times the average QLD wages.
Jan 30th 2006 | 7:47 pm
#10
Tiny Member
Joined: Oct 2005
Posts: 1,455
From: Perth
Re: The big one - housing affordability.
living in Ireland, they tried to put pressure on the gov here to remove it but they said the people would only up the price of the property to reflect the reduction in price. Good point i suppose.
i was looking for this information as i am moving over in july and was wishing it would be removed about a week before i got there
i was looking for this information as i am moving over in july and was wishing it would be removed about a week before i got there
Originally Posted by Vash the Stampede
Cheers mate.
I notice that stamp duty isn't going anywhere in the UK.
I notice that stamp duty isn't going anywhere in the UK.
Jan 30th 2006 | 7:52 pm
#11
Fighting my corner
Joined: Aug 2005
Posts: 11,948
From: Adelaide, South Australia
Re: The big one - housing affordability.
Originally Posted by ABCDiamond
An idea on property prices in my area: A basic 3 bed 1 bathroom house on 700sqm costing $212,000 in early 2003 is now worth $270,000. Currently about 5.4 times the average QLD wages.
House Prices in the West Midlands
Average Cost: £161,076
Detached: £270,316
Semi-detached: £147,355
Terraced: £118,385
Flat: £119,428
In other words, if you want a proper house (ie. detached) as opposed to a "house substitute" (ie. semi, terrace or flat, and all the disadvantages that go with them) you will have to pay more than 10 times the national average salary of £23,000.
My missus and I live in a semi. I just can't get used to it, having lived in detached houses all my life back home.
Jan 30th 2006 | 8:07 pm
#12
Guest
Posts: n/a
Re: The big one - housing affordability.
Originally Posted by Vash the Stampede
Average prices in my area:
House Prices in the West Midlands
Average Cost: £161,076
Detached: £270,316
Semi-detached: £147,355
Terraced: £118,385
Flat: £119,428
Source.
In other words, if you want a proper house (ie. detached) as opposed to a "house substitute" (ie. semi, terrace or flat, and all the disadvantages that go with them) you will have to pay more than 10 times the national average salary of £23,000.
My missus and I live in a semi. I just can't get used to it, having lived in detached houses all my life back home.
House Prices in the West Midlands
Average Cost: £161,076
Detached: £270,316
Semi-detached: £147,355
Terraced: £118,385
Flat: £119,428
In other words, if you want a proper house (ie. detached) as opposed to a "house substitute" (ie. semi, terrace or flat, and all the disadvantages that go with them) you will have to pay more than 10 times the national average salary of £23,000.
My missus and I live in a semi. I just can't get used to it, having lived in detached houses all my life back home.
But the current average House in the Bayside region, as at Nov 2005 is $330,000. 6.6 x average income
Units are quoted at $214,000 average. 4.3 x average income
Jan 30th 2006 | 8:13 pm
#13
Fighting my corner
Joined: Aug 2005
Posts: 11,948
From: Adelaide, South Australia
Re: The big one - housing affordability.
Originally Posted by ABCDiamond
In my area 10 x the QLD average income (feb 2005) would be $490,000 which would buy a pretty decent 5 bed house, 2 living rooms, swimming pool etc.
But the current average House in the Bayside region, as at Nov 2005 is $330,000. 6.6 x average income
Units are quoted at $214,000 average. 4.3 x average income
Units are quoted at $214,000 average. 4.3 x average income
And of course, for that money you get a fully detached house with your own driveway and carport/garage. Try getting this in the UK for 6x a UK salary! Not a chance.
Feb 2nd 2006 | 11:53 pm
#14
Forum Regular
Joined: Feb 2005
Posts: 50
From: South Australia
Re: The big one - housing affordability.
Aaargh - I'm being really thick tonight and can't find the answer to this anywhere - can you help? Do we have to pay stamp duty when buying a house in rural SA.
Thanks in advance!
Thanks in advance!
Feb 3rd 2006 | 12:14 am
#15
Guest
Posts: n/a
Re: The big one - housing affordability.
Originally Posted by gjc38
Aaargh - I'm being really thick tonight and can't find the answer to this anywhere - can you help? Do we have to pay stamp duty when buying a house in rural SA.
Thanks in advance!
Thanks in advance!
Yes, is probably the answer. And SA isn't the cheapest State for stamp duty
Buying a house
