Housing shortage to worsen
 

Housing shortage to worsen
November 28, 2007
http://www.theage.com.au/news/nation...036892774.html

AUSTRALIA could have a shortage of 200,000 homes by 2010, exacerbating the housing affordability problem.

Despite Labor policies designed to tackle housing shortages and increase incentives for Australians to save, experts have told a forum that housing affordability will worsen.

The ANZ Bank's head of financial system analysis, Paul Braddick, said affordability had deteriorated sharply in the past 12 to 18 months, with higher interest rates and house prices outstripping growth in household incomes.

Re: Housing shortage to worsen
 

You really are always full of the cheeriest info aren't you!:ohmy:

Re: Housing shortage to worsen
 

I take no joy in posting them , trust me. I only post articles from the papers here that I believe are particularly accurate and that will serve the most use to those planning to move here. It truly is the opposite to the UK/Irish market and no signs of slowing for some time to come. Worth hammering home the point to those who may have not factored it in or who may have glossed over it with all the other distractions of planning a move on this scale.

Re: Housing shortage to worsen
 

I appresiate it. :)

For lots of reasons, Keep them coming...

woops', posted by thesubmainman.

Re: Housing shortage to worsen
 

Not good news if you are starting out but great news if you own property - like most of the people on here do. It's swings and roundabouts really.

Re: Housing shortage to worsen
 

Sounds like recipe for wage rises and inflation- that'll slow it down a bit.

Re: Housing shortage to worsen
 

Tax credits for investors to provide 'reasonable rent' housing sounds like negative gearing is going to go out the window then:blink:

Interesting scheme, Wonder what a reasonable rent is:blink:, On a $400,000 house the loan payments would be about $3800 a month, plus rates, plus insurance, plus liablitly insurance, but probably the current market rent is $350 - $380 a week:eek: FFS, no wonder there is a rental shortage.

Re: Housing shortage to worsen
 

You've got it in a nutshell. We thought about building an investment property for our old age but the rental income we could get is far too low. I know that high rents are hard for people to pay, but the difference in rental income and actual property cost just makes it uneconomic. Some of our friends who have investment properties are also selling them once the current rental expires because of the same reason - the difference between mortgage and rental is too high.

OK, it's nice to be able to consider building another house, many people are struggling just to pay a rent - but the fact is private sector housing provides a lot of the current rental accommodation and if the pool of housing drops, rents go up [supply and demand] and people suffer.

Re: Housing shortage to worsen
 

We are moving out of our rental (breaking the lease) and the landlord has decided to sell. Even before we have moved out the selling agent has poped around and already has potential buyers waiting in the +$1million bracket and this is for a 3 bed semi attached victorian with a small patio. Paying just over $400 per week rent.

Re: Housing shortage to worsen
 

Re: Housing shortage to worsen
 

as a carpenter and a home owner this news is more than welcome for those who are trying to get onto the ladder i feel truly sorry for you,i know from my own experience that it is possible to build a descent home for under $100,000 if only the government wouild set aside a certain amount of land purely for people on low incomes.

Re: Housing shortage to worsen
 

Loads of houses for sale where i am. People can't get rid of them. Loads!!!

Re: Housing shortage to worsen
 

it's probably the stinky minge that is putting people off buying them tho..

;)

Re: Housing shortage to worsen
 

Nah get rid of negative gearing and rests will go through the roof.

Re: Housing shortage to worsen
 

Not really, your house could be worth 100k or 1000k, it's doesn't matter becuase you can't sell as you need somewhere to live. Actually lower prices would be better becuase the cost of moving would be less, stamp duty and real estate agent fee are worked out on a percentage base after all.

Investment properties are another story though.

Re: Housing shortage to worsen
 

Actually lower prices would be better because then people on average wages would be able to afford to buy their own home.

Re: Housing shortage to worsen
 

That's why I wrote 'own property' rather than 'own a property'.

Re: Housing shortage to worsen
 

I'd take stuff like this with a big fat pinch of salt. This sort of thing is usually circulated by builders and estate agents to talk the market up.

Here in the UK things are definatley cooling with month on month percentage drops and houses sitting unsold for many months.

If its happening in the US and the UK and Ireland I see no reason why Australia will be immune to the global credit crunch.

BTW the only people who benefit from high house prices are governments and big business. You may feel richer but if the house up the ladder you want has also gone up 10% then it is further out of reach. Meanwhile the poor guys at the bottom can't even get a foot hold.

Re: Housing shortage to worsen
 

To lighten the load on housing shortage, feel free to buy my place :)

Re: Housing shortage to worsen
 

WTF ??!

Are you serious ?

I ain't a builder OR a real eastate eagent, but I have been living here in AUstralia for the last 5 years and I can tell you that this article is 100% accurate in reflection of the current and trending situation.

This article is on the money.

Snorting salt in this instance is just gonna leave you with one thing, A salty nose :-)

Re: Housing shortage to worsen
 

@boy

I wasn't saying you are an EA or a builder but if you check into the source of these articles you will usually find it isn't some independant study group coming up with this sort of "PANIC BUY A HOUSE NOW!!!!!" article.

It's usually people who stand to make a bit of money out of it. And unless you are going to live in a campervan or trade down you will make no money out of rising house prices.

Just because something happened in the past dosn't mean it will play out in the future.

Re: Housing shortage to worsen
 

Yup, I found that too when we first came over. Plenty of people here want to stoke the fire.

Re: Housing shortage to worsen
 

The flood of all you immigrants :rofl:
And Australia doesn't have that many places to live despite it's size, not if you need to work anyway.

Re: Housing shortage to worsen
 

I went to an auction on the Gold Coast last night and only 5 out of 22 houses actually sold. They were asking too much money for them and people not prepared to pay over the odds.

I also dont know of anyone who cant actually find a place to live. Any internet search on pretty much any area brings up plenty of properties to choose from. Rentals are easy to find but just take a week or so for the right one.

Anyone buying now risks another couple of rate rises and the highest historical prices paid on most areas. Average wages multiplied by average house prices dont tally so they cant go up forever. A house is for living in and not designed to financially cripple you.