Budawang

Housing is unaffordable BECAUSE of negative gearing and assorted other policies like the first home owners' grant and restrictive planning. As a result, we are in a private debt-induced housing bubble. Meanwhile, the banks are making a killing.

Buzzy--Bee

Makes renting cheap though compared to other countries.

In effect the government is subsidising tenants' rents.

BB

bingobob777

You think? What countries is Australia cheap compared to for rent?

Moneys tight, life is expensive, you really think renters will just cough up more money to ensure the over-leveraged btl-ers survive?

Zen10

I can only speak for Adelaide, but we pay much less here. Ten years ago we paid around $1000 per month for the (small) top floor of a house in England with one bedroom and no garden, here we pay the same, ten tears later, for a three bedroom unit with loads of space, a large back garden, just sixty seconds from the beach. In our experience, renting is considerable cheaper in Australia.

It is so cheap, in fact, that I wonder if government might start making it more expensive if they ever need to kick-start a flagging house-selling market.

bingobob777

Until 2 moths ago I was paying $920 a week in Brisbane for a 4 bed with pool. I searched weekly and struggled to find anything I would consider moving for.

I'm now paying 1500GBP a month for a 5 bed in the catchment area of the best state school in Scotland

So at current exchange rates around 45% cheaper for a better house in a better area in a better city

Just did a new search for 4 bed with pool in The Gap, Ashgrove and Bardon and the cheapest comes in at $695 a week.

http://www.realestate.com.au/rent/wi...rounding=false

Buzzy--Bee

There's your problem.

In terms of % of salary earned locally, renting is cheaper in Australia. And the landlord pays rates and water rates.

BB

bingobob777

It's not

The 2011 australian census (http://www.censusdata.abs.gov.au/cen...011/quickstat/

shows

median weekly family income = $1234
Median weekly rent = $285
equals 23%

in the uk

the average weely rent is 178 (https://homelet.co.uk/rentalindex)
the median weekly income is 750 (http://www.dailymail.co.uk/news/arti...s-Average.html)
equals 23.7%

Remove London and you could probably say renting is on average cheaper in the UK than in australia, with it obviusly being possible to find exceptions

Buzzy--Bee

But why would you remove London? If you do that, then remove Sydney and Melbourne!

And you haven't taken into account the extra bills the landlord pays in Australia.

BB

Zen10

The issue we have here is regional. I am comparing one of the most expensive areas of England with Adelaide, and you are comparing Scotland with Brisbane.

bingobob777

Dont exclude it then, the cost to rent as a % of salary is still the same.

bingobob777

yep, but as a whole both countries are the same

Swerv-o

There's no comparison to be had there!


S

Beoz

UK, Singapore, Hong Kong

For me, there is a couple of percent different between what I earn in London and pay in rent and what I earn in Sydney and pay in rent. Sydney being cheaper. In London I had 65m2 in Sydney I have 100m2. In London I lived 9.9km from the city. In Sydney I live 6.3km from the city.

Just my personal circumstance though. I'm sure someone comparing somewhere in Scotland to central Sydney will find it the other way.

Buzzy--Bee

Our personal circumstance was that we lived an almost identical distance from the centre of Melbourne as we did from London. We rented a 3 bed semi detached house in London 30ks from the CBD for 1000 pounds a month. We rented a 3 bed semi detached house in Melbourne for $1800 per month. The exchange rate at the time was $2.5 to 1 pound, this corresponded exactly to my earnings ratio. So Melbourne was considerably cheaper to rent in than London, on top of that we didn't pay rates (2000 pounds a year odd in London) or water fees. I reckon it was about half the cost in Australia. A lot of the difference would have been funded to the landlord by negative gearing.

BB

Beoz

I would also suspect that "price of property" proportional "to price of rent" in lets say the UK and Oz most expensive places - Sydney v London, would also show that London is a far more expensive place to rent yet shows that buying in London makes more economic sense.