pommie bastard

The housing Market in Australia is zooming higher every month but wages are poor so what should you read into this , the bottom end keeps the market afloat and the builders highest profit housing the 'Dog Boxes' selling .
If this is true the Market could level out and the building trade lose jobs .

July 29 2003
By Tim Colebatch
Economics Editor
Canberra


Soaring house prices have torpedoed the hopes of people saving to buy their first home. Houses are now less affordable than at any time since interest rates hit 17 per cent in 1990.

The Commonwealth Bank and Housing Industry Association reported yesterday that in the June quarter the typical first home buyer had to pay $335,800 to buy a home in Melbourne, 21/2 times as much as they paid when the boom began in 1996.

http://theage.com.au/articles/2003/0...244561322.html

Florida_03

Of the $335,800 what is the tax burden?

pommie bastard

With stamp duty , interest and PAYE how much would you have to earn to borrow this amount after tax , the pay back of say $300K over 25 years .

dotty

Trouble is more and more pour into the few "livable" bits of OZ. Nobody wants to go rural where houses can be picked up under $100,000.

Majority of population is in Melb/Syd (cooler more urban bits). Brisbane and SE QLD is predicted to the the biggest growth area in the next three years, yet median house price is around $300,000 still pretty cheap for new arrivals.

Another problem for first buyers here is snobbery. All ozzies want 4 beds, 2 baths, double garages, new houses etc etc.
Nobody wants to start off with a flat in the outer areas and work up to a house, instead just scream we expect the government to subsidise us.

As for tax, it was on news last night, Average new house in Sydney would attract $125,000 from the 20 yes I did say 20 taxes imposed along the way.

One way or another this country will come up with a scheme to get people out of the cities and burbs.

pommie bastard

The state and federal goverments should relocate all departments to rual areas that would move 50% of the population away from the burbs.

dotty

PB for Prime Minister.

Jobs, cheap housing and endless sun for all, the mans a genius. Look out johnny.

Whingin Pom

Capitalism at its best mate,

Here in Blighty (Why Blighty?) the housing market has risen on average 25% a year in the last three years, thus making first time buyers either not bother, borrow on two wages up to 7 times salery (the norm being 3 times), or borrow over 40-50 years, or all three.

I just hope it stays healthy and doesn't go pop, or there will be a lot of people without homes and huge debts that they will be paying off until the day they die.

walaj

as it has been said by several people - same shit, different place.

guess what? there is a squeeze on first time buyers in the UK too.
http://news.bbc.co.uk/1/hi/business/3105651.stm

jockney

London evening standard last night had an article about first time buyers in the housing market (south east).The ave first time buyer is now 33years old and requires a £30,000 deposit.Therefor first time buyers(who are the building blocks of the housing market)have dropped by 31% which is cast iron proof that problems are looming .Throw into the mix that the city of london has shed 10% of it`s workforce in the last 18 months it does,nt take a genius to tell that prices must and are dropping.Adelaide seems to be in a similar state with prices beyond reach of a lot of people and salaries pretty low.

pommie bastard

Very true Australia is good at making the same mistakes as the Uk just takes them longer to sort them out.


GST to blame

I AM appalled at the hypocrisy of the Housing Industry Association (Young hit by house boom, 29/7) blaming the three tiers of government for the slump in first home buyers.

The HIA in 1993 supported the introduction of the Liberal's GST. Labor fought and won that election. As former Labor minister Brian Howe said at the time, the HIA should hang its head in shame. When the GST was finally introduced the impact on housing was immediate.

The Liberals were forced to introduce the first home buyers' grant, effectively negating the GST. The cost of the program became unsustainable under razor-gang Budgets.

Another impact of the GST was to destroy apprenticeship opportunities in the building industry. A builder told me he simply couldn't afford to pay GST on top of the wages of apprentices who were contracted out by labour hire firms.
GEOFF PAIN, Kelmscott.

Solution to housing crisis

IT IS a real concern that the great Australian dream of home ownership is slipping away from our youngsters. The simple reason for this is that as land around capital cities reduces, it gets more expensive, forcing people to buy, if they can, farther and farther away from work, relatives and entertainment hubs.

One way to fix this is to decentralise government institutions and industry. In this age of computers and technology transfers, there is no reason to have big capital cities which act as giant sponges for the taxpayer dollars at the expense of our regional areas.

Decentralisation would negate the need for transport links such as major railways or freeway projects, the purpose of which is to move people long distances from their homes to work and back. These projects are often justified by the peak-period patronage rather than the all-day patronage, which proves this point.

The money saved could be used to develop regional infrastructure such as hospitals, schools, power generation, recreation facilities, incentives for industry to locate in regional centres, creating jobs and breathing life into our rural areas.

There does not seem to be any vision applied to planning in our State, archaic planning conventions being applied without regard to the consequences of these plans. There is already tremendous pressure on the resources and the utilities needed to serve Perth. Encouraging growth in our regions would relieve this pressure.

State planners have to dump the thought that capital cities are the centre of the universe and start encouraging development of regional centres. The success of Bruce Rock, where the council encouraged people into the town by providing free land, should be used as a demonstration of what lateral thinking can achieve.
MAL McFETRIDGE, Safety Bay.

The Tooth Fairy

A somewhat rhetorical question: why don't immigrants and first home buyers flock to the countryside?
All troubled on the family front