Housing affordability crisis "Grim"
 

http://news.sbs.com.au/worldnewsaust...is_grim_541596

The Real Estate Institute of Australia has released its findings for the December quarter, labelling it the "grimmest picture of home loan affordability in 22 years".

The proportion of family income required to meet average home loan repayments rose to 37.4% in the December quarter, the highest level reached in just over two decades.

Overall in Australia, renting families required 23.9% of their median family income to meet rent payments in the December quarter 2007.

Re: Housing affordability crisis "Grim"
 

If you're not living in the UK, you're just camping out.

Re: Housing affordability crisis "Grim"
 

Dunno about everyone else - but everywhere I ahve lived and/or worked and/or stayed in the last ten years produces a report to say its the least affordable place on the earth....

The figures are often misleading as whether they use median or mean housing prices and incomces they are exaggerated...

Ie, where I live there are a lot of houses in the $3-4 million mark .... and this pushes up the 'average' price, making it look as though its less affordable than it really is......in that suburb (within a few miles) you can still get a great 4 bed family home on 650 sq metres within 2kms of the beach for under $500,000. You can get a really really great place for between $500,000-$700,000.

Likewise with wages - there are a lot of people who earn in the $70,000-$150,000 bracket - and very few who would be earning money in the millions - so it drags down the 'average'.

Comparing average to average doesn't always work....

I think that now is a prime time to buy - actually, I have just today put in an offer on a new place.... housing markets are stagnant because of rising interest rates, but will probably take off over the next few years with uncertainty in the stock market leading to investors looking at future growth in the housin market....

Re: Housing affordability crisis "Grim"
 

It would make better sense to work out the "median" house price and the "median" wage. I think you would find the median income would be around $40k (which is about $15k less than the average) and the median house price around $400ish k (about $100-150k less than the average).

Don't forget one needs to take tax from the income, and add stamp duty (if applicable) and other fees to the house price.

All in all, it doesn't matter how you dress it up, buying in Australia is very unaffordable for the average punter, especially if one has or intends to have kids.

Of course there are dumps in places like Adelaide or the Central Coast of NSW that are on the market - but you wouldn't even put your dog in them.

Re: Housing affordability crisis "Grim"
 

This phenomenon has happened all over the world. House price inflation has been much higer than wage inflation in many developed countries.

Recent interest increases obviously haven't helped matters. Quite a few mortgage holders have never experienced high interest rates. They came into the market when they could get a rate of 2, 3 or 4% and it wasn't a problem. Now with rates at 8, 9 or even soon to be 10%, things are different.

The next 6 months should prove 'interesting'

Re: Housing affordability crisis "Grim"
 

The cost of living here has definately gone up a lot over the past few years, but I know I would rather live here
Attachment 63027

than here

http://http://www.personal-homefinde...erties/648.jpg

for the same money, and OH is being paid more than UK by a long way.

(Hope those photos worked)

Re: Housing affordability crisis "Grim"
 

Purely from a standard of living perspective it may be time for some people to consider the U.S. - the US$ is very very weak at the moment and the interest rates are extremely low. You can get houses very cheap and the prices are plummeting. The cost of living can also be low.

Re: Housing affordability crisis "Grim"
 

I've always been surprised about how cheap houses are (apart from a few hotspots) in the US.

Re: Housing affordability crisis "Grim"
 

try getting a visa. not that easy for the average pom. oz is easy to get a visa.

Re: Housing affordability crisis "Grim"
 

I second this. The USA, even including places like NY and the San Francisco Bay Area is LOADS cheaper than Australia. As pointed out, however, for Brits it is extremely difficult to emigrate there.

Re: Housing affordability crisis "Grim"
 

And those hotspots are hot.

I think a recent global survey had San Fran- San Jose Bay area as the most exy in the world over London/NY etc. 10/11 x income. We'll be there soon.