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Severely unaffordable housing market in Australia

Severely unaffordable housing market in Australia

Old Jan 26th 2009, 11:49 pm
  #31  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by julie and chad
interesting so where is the cheapest place to live in oz ? every story you read or listen to tells a different story and its weird we are in a semi rural really nice quiet village in north wales and we have 4 beds all double big bathroom with shower and bath and huge kitchen only 1 year old as we put it in smallish garden normal garage quiet cul de sac and we have been valued ay £180.000
The 10 Lowest Multiple areas listed (UK & Aus) are:

182 United Kingdom Dundee, Scotland 4.6 Multiple
182 United Kingdom Northeast Region, England 4.6 Multiple
182 United Kingdom Northwest Region, England 4.6 Multiple

190 Australia Bendigo, VIC 4.8 Multiple
190 United Kingdom Yorkshire Region, England 4.8 Multiple
195 Australia Wagga Wagga, NSW 4.9 Multiple
199 Australia Ballarat, VIC 5.0 Multiple

199 United Kingdom Falkirk, Scotland 5.0 Multiple
199 United Kingdom Glasgow, Scotland 5.0 Multiple

202 Australia Canberra, ACT-NSW 5.1 Multiple

How each individual compares each area, will be down to individual preferences.

I thought I had done this before.... http://britishexpats.com/forum/showthread.php?t=586939
 
Old Jan 27th 2009, 12:03 am
  #32  
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Default Re: Severely unaffordable housing market in Australia

It is interesting to see that the Australian capital city of Canberra has been classified as more affordable than Glasgow, Falkirk and Dundee using this methodology....
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Old Jan 27th 2009, 12:16 am
  #33  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by caliburn
In this report, house prices have been compared in relation to average income levels in different cities. Lets take a hypothetical example.... say a house price is $500k and average income level is $200k in London, whereas, a house price is $400k in Adelaide but average income level is $100k. In the above example, affordability index for London is 2.5 and for Adelaide its 4 (just divide house prices by income level). I agree with you, absolute house prices in Adelaide is less than London. However, given the even lower income level in Adelaide, houses in Adelaide are less affordable than London. This is precisely the point this report is trying to make. Does the report make any sense to you now?
Note that London is only 13 positions away from Sydney.

United Kingdom
London, England
World Position 248
Median House Price £249,900
Median Household Income £36,300
Multiple of Income 6.9

Australia
Adelaide, SA
World Position 253
Median House Price $363,000
Median Household Income $50,900
Multiple of Income 7.1

Sydney, NSW
World Position 261
Median House Price $529,000
Median Household Income $64,000
Multiple of Income 8.3


Also... take into account this quote from page 17:

There is considerable variation in the size of houses and extent of building lot between the nations.
The largest new houses are in Australia and the United States, with Canada and New Zealand having somewhat smaller houses.
New houses in Ireland and the United Kingdom are one-half or less the size of new houses in the other four nations
As I am in Brisbane, the closest UK comparison is Aberdeen
Aberdeen, Scotland
World Position 227
Median House Price £155,500
Median Household Income £26,400
Multiple of Income 5.9

Brisbane, QLD
World Position 238
Median House Price $410,000
Median Household Income $65,100
Multiple of Income 6.3
 
Old Jan 27th 2009, 12:21 am
  #34  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by markallwood
It is interesting to see that the Australian capital city of Canberra has been classified as more affordable than Glasgow, Falkirk and Dundee using this methodology....
Actually Canberra at a 5.1 multiple, is LESS affordable than those places, but more affordable than everywhere else listed in the UK.

It makes Canberra a good option, if you want an "affordable" property in Australia, at similar (5.0 v 5.1) "affordability" to Falkirk and Glasgow.
 
Old Jan 27th 2009, 12:48 am
  #35  
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Default Re: Severely unaffordable housing market in Australia

I've merged the two threads on this subject together, one started by Burbage and one by caliburn as its an interesting discussion and would be good to have it all in one place

Last edited by Pollyana; Jan 27th 2009 at 12:53 am.
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Old Jan 27th 2009, 12:50 am
  #36  
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Default Re: Severely unaffordable housing market in Australia

Think it all depends on where you want to live and lifestyle. We've recently bought a 4 year old, 3 bed house on 2 acres 50km from Melbourne, in a very pleasant country town for $280K, which is about the same as we sold our 3bed box on a postage stamped size bit of land in the highly built up West Midlands.

Dave
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Old Jan 27th 2009, 12:59 am
  #37  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by wiljas
Think it all depends on where you want to live and lifestyle. We've recently bought a 4 year old, 3 bed house on 2 acres 50km from Melbourne, in a very pleasant country town for $280K, which is about the same as we sold our 3bed box on a postage stamped size bit of land in the highly built up West Midlands.

Dave
Another issue in Australia is that no one seems to be building small affordable houses (certainly not round here). If you look at the newbuilds around at the moment they are all four bedroom large houses. If you want a small house you have to build it yourself or buy an older one. I think half the affordability issue here is that there aren't very many low cost homes available.

So while you might get more for your money at the cheap end of the Australian market, is is actuallty equivalent to the mid range housing in the UK, and there is very little cheap housing here.
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Old Jan 27th 2009, 1:07 am
  #38  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by highersights
Aside from housing unaffordability, this is a grotesque symptom of Australian affluenza that becomes more apparent the longer you live here. I find these kinds of attitudes and values very selfish and grasping. It is a far more capitalistic country than the UK and sadly houses are seen as factories of capital-growth. But they are non-productive assets and the whole thing may just cave in if people decide they've had enough. In our example, we've drastically cut back consumption (thus adding to unemployment), refused to buy into the bubble (thus reducing demand), and now considering moving to mainland Europe (thus combining both, and losing Australia skills that are in real shortage in one of its only growth sectors - higher education). If there are others like us, it's really not a good result.

Maybe the Gen Xers should move back in with the baby-boomers who caused this mess in the first place!
you've been in sydney too long ... the real esta e obsession there is amazing compared to many other places in Oz.
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Old Jan 27th 2009, 1:08 am
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by Burbage
Another issue in Australia is that no one seems to be building small affordable houses (certainly not round here). If you look at the newbuilds around at the moment they are all four bedroom large houses. If you want a small house you have to build it yourself or buy an older one. I think half the affordability issue here is that there aren't very many low cost homes available.

So while you might get more for your money at the cheap end of the Australian market, is is actuallty equivalent to the mid range housing in the UK, and there is very little cheap housing here.
very true. either a small unit or a large house, not a lot in between
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Old Jan 27th 2009, 1:10 am
  #40  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by Burbage
Another issue in Australia is that no one seems to be building small affordable houses (certainly not round here). If you look at the newbuilds around at the moment they are all four bedroom large houses. If you want a small house you have to build it yourself or buy an older one. I think half the affordability issue here is that there aren't very many low cost homes available.

So while you might get more for your money at the cheap end of the Australian market, is is actuallty equivalent to the mid range housing in the UK, and there is very little cheap housing here.
have a look at this one http://www.dixonhomes.com.au/plansea...&DesignRange=0
Nice and small.

There are also many builders with pre designed houses, that will quite happily alter their designs, removing rooms etc, if required. However, they are much more accustomed to people wanting to add rooms etc, as no one has been wanting small houses !!
 
Old Jan 27th 2009, 1:15 am
  #41  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by ABCDiamond
have a look at this one http://www.dixonhomes.com.au/plansea...&DesignRange=0
Nice and small.

There are also many builders with pre designed houses, that will quite happily alter their designs, removing rooms etc, if required. However, they are much more accustomed to people wanting to add rooms etc, as no one has been wanting small houses !!
I think you should change your name to AFEDiamond

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Old Jan 27th 2009, 1:24 am
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by ABCDiamond
Actually Canberra at a 5.1 multiple, is LESS affordable than those places, but more affordable than everywhere else listed in the UK.

It makes Canberra a good option, if you want an "affordable" property in Australia, at similar (5.0 v 5.1) "affordability" to Falkirk and Glasgow.
Yep, sorry I got the ranking on the left confused with the score on the right...
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Old Jan 27th 2009, 1:24 am
  #43  
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Default Re: Severely unaffordable housing market in Australia

Originally Posted by ABCDiamond
have a look at this one http://www.dixonhomes.com.au/plansea...&DesignRange=0
Nice and small.

There are also many builders with pre designed houses, that will quite happily alter their designs, removing rooms etc, if required. However, they are much more accustomed to people wanting to add rooms etc, as no one has been wanting small houses !!
I think the survey is about homes that have been built already, not build yourself or build to order, which is where the point I'm making is valid. There's nothing stopping anyone from buying 600m2 and putting a two bed kit house on it, but I'm not sure if the survey covers this, or whether the banks in their vast desire to extract every cent you have try to lend you the money to buy the bigger places anyway, meaning that half your monthly income is given to the bank in the form of interest.
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Old Jan 27th 2009, 1:38 am
  #44  
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Default Re: Severely unaffordable housing market in Australia

Good, so I'm not the only one scratching my head in confusion when I read another article in the paper about 'buyers flocking back' and 'how affordable Australian property is'
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Old Jan 27th 2009, 2:04 am
  #45  
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Default Re: Severely unaffordable housing market in Australia

Queensland professor said 6 months ago that Oz housing has climbed further than USA and he thinks it will drop further, over 50%. Things Oz were depending on to 'soften the blow' are ceasing up. China has turned off its taps and less people can afford to emigrate and will also feel less empowered to make the move.


"Unemployment will rise in 2009 and 2010, and household incomes will decline – possibly a lot.

Worse still we are badly unprepared. We harvested a resources boom and spent the lot. Now China is heading into its own version of recession and the boom is over; it won't return for many years, and the employment that has been based on it won't either.

Thanks to the wealth provided by that now-ended resources boom, house prices in this country are the most unaffordable in the world and must decline.

With house prices still high and unemployment still low, the only way in which the global financial crisis has affected us so far is through the sharemarket, but that's been dramatic: it has fallen 50 per cent – more than the US and more than the rest of the world as a whole.

The sharemarket almost certainly has further to fall, and in any case won't recover in a hurry, so we have to get used the new reality of retirement – deferred and deprived.

That is a wake-up call in itself. The market is telling us that Australia is far from immune from the crisis and, in fact, is likely to be harder hit than the US, where it all started."

http://www.businessspectator.com.au/bs.nsf/Article/MAKE-AUSTRALIA-WORK-brThe-crisis-is-just-beginning-$pd20090126-NMSFP?OpenDocument

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