Severely unaffordable housing market in Australia
#31
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Re: Severely unaffordable housing market in Australia
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
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
#32
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Location: Brisbane
Posts: 4,298
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....
#33
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Re: Severely unaffordable housing market in Australia
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?
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
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
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
#34
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Re: Severely unaffordable housing market in Australia
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.
#35
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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.
#36
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Joined: Apr 2007
Posts: 14
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
Dave
#37
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
Dave
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.
#38
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Posts: 546
Re: Severely unaffordable housing market in Australia
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!
Maybe the Gen Xers should move back in with the baby-boomers who caused this mess in the first place!
#39
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Joined: Apr 2006
Posts: 10,784
Re: Severely unaffordable housing market in Australia
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.
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.
#40
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Re: Severely unaffordable housing market in Australia
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.
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.
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 !!
#41
Re: Severely unaffordable housing market in Australia
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 !!
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 !!
Answer For Everything!
#42
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Joined: Jan 2005
Location: Brisbane
Posts: 4,298
Re: Severely unaffordable housing market in Australia
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.
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.
#43
Re: Severely unaffordable housing market in Australia
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 !!
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 !!
#44
BE Forum Addict
Joined: Jul 2008
Posts: 1,048
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'
#45
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.
http://www.businessspectator.com.au/bs.nsf/Article/MAKE-AUSTRALIA-WORK-brThe-crisis-is-just-beginning-$pd20090126-NMSFP?OpenDocument
"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."
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
Last edited by The Flintstones; Jan 27th 2009 at 2:06 am.