@boy

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.

Sally Simpson

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

@boy

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.

emelems

I appresiate it.

For lots of reasons, Keep them coming...

woops', posted by thesubmainman.

Amazulu

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.

temptininnit

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

jad n rich

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

Interesting scheme, Wonder what a reasonable rent is, 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 FFS, no wonder there is a rental shortage.

hoofie2002

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.

Geelong Gent

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.

SonicBird

nice assumption ... tinged with a hint of smugness...

gotahavit

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.

Nu-Shooz

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

SonicBird

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

themerlin

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

themerlin

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.