Why falling prices aren't making homes more affordable | 7.30
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- Опубликовано: 5 мар 2019
- The dream of owning your own home is out of reach for a growing number of Australians.
The Real Estate Institute of Australia's latest quarterly survey shows housing affordability is still getting worse.
That's even with falling house prices and government help for first home buyers.
Peter McCutcheon explains it's because wages in Australia aren't rising, meaning many find it hard to get a loan.
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So the banks wont give you a loan you cant afford how sad.
Your tone is pretty bitchy, plenty most cannot afford their loan, I know a salary paid average class paid engineer, Indian that can't afford his loan on three properties but after two years the bank just approved another loan for $1.3 million. Previous job he left, the job before he was let go. It more seems to be more contraversal than you dismissively consider. Further more it seems Australians don't look after their own as do other cultures when it comes to family support.
Good comment Robin Furniss. In a debt laden economy whereby lending standards have declined since the 1980's, household net worth is all phantom wealth anyway because asset prices have exploded higher in direct response to the currency debauchery. Buying a home for $200k and then selling it for $400k is a phantom way of measuring wealth because it ignores household productivity and was only the result of easy credit. "Wealth" as it is used here, really means " household leverage over the last 30 years".
These are all balance sheet semantics done by accountants and bankers. They are only meaningful when the SHTF because it gives bankers the legal means to confiscate your assets. The Currency Act 1965 gave the banks the power to make every Australian a debt slave rather than save for a few years and own your home, which, as you correctly point out, was the way it used to be...
Thank Bill Shorten for that...Labor did nothing about the banks when they were in power for 6-years, later the ALP forced the Liberals to fix the problem which they helped to create.
@4:44 a one bedroom apartment with a garage at $800,000 ?! there are options outside Toorak.
I was gonna comment on that. I don't know where she was looking but damn, $800k for that is expen$ive!
Exactly
She made that up on the spot. 400K is more like it, maybe 500k for something top end.
There is a reason why there is a term called ‘fake news’ lol
Tang LEI 🤣🤣🤣👍
Don’t panic there’s another 40% drop in prices coming. The economy isn’t getting better any time soon. This correction is only getting started.
Malibu 340 40% down will be only in your dream
No way it’ll drop 40%, the most it’ll drop is about 10-15%
The median income to median house ratio in Sydney is 11. It should be 7. New York is 6. If it goes to 7 where it should be then 40% decrease is correct. However, the house prices are likely to remain artificially inflated and over valued. Of course someone may argue you can't determine price by looking at what other cities pay, its what people will pay for it here which counts. Well that would be like saying if gold sold more in Sydney than in any other country Sydney gold is NOT overvalued. That's non sense. The houses are way over valued you are paying 40% more than you would if you went to a comparable city.
Wait until banks raise their interest rates to recover the capital lost on the house prices. Thats the cyanide in this bubble
So not even a pandemic could bring your dream to a reality hahahaha.
Inflation on everything except for your wage.
You don't know how inflation works.
house prices will continue to fall :
1- Australia has 5 million pensionnaire, 3 million on centrelink ( disability and new starter ), 6 million already in mortgage, what's left are folks who are still struggling with rent, hosue owners or kids.
2- A one Million dollar house in Sydney is made of : (200k land , 50k labour , 50 materials ), the rest are fees ( LIM , Real-state, broker , developer , contractor, Insurance , council fees, government rate , bank interest ...etc) , Many will tend to move to rural areas if the NBN has spread around.
3- Migration has dropped dramatically over the past 4 years.
4- Wages are not grown.
5-houses built in the last 3 years are more than the normal.
6- ASX and SP500 are all time high and the risk of recession is very high.
7- and other reason.
Tennis clearly you don’t know were facts and sarcasm lines.
"I think what's unreasonable is the banks. They won't lend us money to buy the house". Seriously. How dumb are these people. From what I gathered, he is the only income earner and they got a baby. The banks will assess them based on their income and expenses, not what they want. Get real people.
The banks get richer when people foreclose. It is not the banks who want to lend responsibly. Banks are happy to watch people fail.
When these people say "the banks" what they really mean is the rules put forth to the banks by the regulators.
Their point was correct. And it was yours that was incorrect. By tightening lending standards now compared to before, it benefits those already in the market and gives them an unfair advantage since they are not playing the same game.
20 years of non stop growth in housing. You can't honestly expect instant affordability when the market cools for a quarter, give it time - you'll get there if you keep saving and are buying within your means.
Good advice and attitude from such a young looking person. You'll do well in life, bud. ✔️
I agree. I bought my humble home at 28 after a life time of skimping and saving. So glad I did. Worth it
No Name trust me it’s not that the younger generation wants to enter the housing market at baby boomers levels. But it’s also ignorant of baby bombers (not talking about you) to go out in the media and say the world hard and entered the property market when realistically they percentage of income they shelling out to get a house was far lower than it is now. Additionally, the people who aren’t able to enter the housing market is not millennials (they are struggling entering the renting market) it’s generation X and people in their late 30s and 40s who are getting very close to reaching the end of their pay progression in their careers yet they are unable to even get a half decent home in the middle of nowhere.
Additionally, I feel the sentiment from your comment is that you believe people are trying to enter the market and being too picky about where they will live. I.e. preferring more expensive suburbs and not want to live further away from work and other commitments. And yes while that may be true it’s not like people aren’t looking further away it’s just they can only go so far away from where there sources of incomes are before that income is threatened. In this market it’s way to risky to move jobs to somewhere just because you want to buy a house (additionally the quality and pay of a job closer to a cheaper area in a person field may be much less than what they where getting previously, voiding any point of moving)
@@Deltasource it was affordable for Gen X. Anyone in my generation who doesn't own a home would have travelled alot or spent up in the younger years.
@@Deltasource Exactly. It is sad that those facts have to still be explained to people.
800k for a 1 bedroom apt in Melbourne?? Is she wanting to live in south yarra 1 bedroom penthouse or something?? Save your money and live within your means. Don't put yourself into debt you can't afford...
Yeah it was bollocks, plenty of apartments in Melbourne in the $300-$400k range now. I found a couple of cool Warehouse conversions in for that price range. Seems her expectations of where she wants to live and price are misaligned. $800k can buy some good houses in Melbourne.
She has to be looking at high end apartments if she is quoting a price that high for a 1 bedroom apartment!
She could get an older apartment a little further out for much less.
South Yarra 1 bedroom, 2 min walk from station is worth $400k. What is she thinking? Get an older place.
Edward_Cvas agreed that figure is ridiculous for a 1 bed, even in some of the more expensive suburbs.
After the crash the people renting now will find bargains as those in the market still owing will be locked into their negative equity, another 5 years until the real bottom occurs. Don’t jump in to early. These dips are for dummies. Also get a government job, they are the last to get the sack and are always getting pay rises irrespective the economic conditions.
lol. Last to get the sack? Dont you remember previous political debates and elections that caused government jobs to be "streamlined" aka sacked.
Longer than 5 years IMO. Govt jobs under pressure by lower taxation revenue
That's is factually incorrect. I worked for local government for 15 years. I saw 3 mass rounds of redundancies in that time and CPI for wage increases where only valid 3 times in that 15 year period.
Barry McNamee - the average cost of 250000 Qld government workers is $98000
oooh statistics! Sorry you must be right then, silly me.😂
Where the heck is that local gov worker only finding 1 beds in Melbourne for 800k????
Even inner melbourne you can find 1 beds for 450 easy.....
Depression coming!!! Hold onto your money!!! Too many ppl are living beyond their means. Its all going to come crashing down. Thats when the rich will become richer. They will buy everything at massively reduced prices.
Mark r save up and buy then
You’re so right. When it all comes crashing down people with money available will swoop in and buy bargains.
Karen needs get a job and the woman in Melbourne looking for a one bedroom apartment needs to go to SpecSavers - 1 bed apartments are not $800K!
Or south yarra
She can buy 400k appartments plenty AVALABLE
Don't worry property prices in Australia are about to tank 30% more. Just wait.
@No Name don't hold your rentals too long lol
Mike at least.
I was living in USA and witnessed everything there while owning property in Sydney. I sold up in Australia in 2013 and bought bank sale properties outright in USA for cash.
They’ve now tripled and I’m selling in 4 months to repeat this in Australia. Judging from what happened here, I’d say 2022 will be rock bottom and about 60% below mid 2018 prices.
The Government will do another quantitive easing package first (like here in USA) which makes it worse, then...bang! It took 3 years after initial downturn to hit rock bottom here. It’ll repeat there.
It's going to get worse before it gets better - most people have no idea how precarious and built on falsehoods the entire financial system is. It's one big lie waiting for the exposure of a terminal collapse.
I bought my first townhouse as an apprentice earning $600 a week. It cost me $340k, with a 15% deposit. I renovated it after work and on sundays or on my holidays. I never knocked back any overtime or weekend work from my boss. I scrimped and saved and did everything myself (except electrical work) Some nights I finished at 12am and I was up at 5:30am the next morning. I spent $23000 on the renovation and it took me 18 months to complete. I revalued the property after the renovation and made $160k profit. I bought another 3 bedroom house for $450k and am currently renovating it. Houses aren’t unaffordable if you’re willing to start in cheaper areas. The problem with people today is they expect to have the best house, the best car, the best of everything straight away. If you’re willing to put the hard work you’ll succeed in life. My grandfather had the best saying about money and being successful- “the rich invest, the poor spend” It’s so true.
These people can’t see what their problem is? Single income. Low wage. Increasing cost of living. And they complain the banks won’t lend to them? It’s called prudent lending and it’s not going away anytime soon, so get used to it.
1 bedroom apartment with garage will be 800,000. Well, well. You are not going to be able to afford apartment in center of the city.
Totally unrealistic expectations like most young people, buy where you can afford I say.
1:25 I think wants unreasonable is your expectations that you’re entitled to be lent money. What a joke.
To buy in Sydney you'd need to borrow at least $600k with a shitty apartment you'll need to sell. On their meagre wages it's too high risk when lending standards are applied. They could sell apartment, rent and wait it out and see if house prices fall more. It might get them into a house. Or find a house further away..
@No Name The majority of jobs are in the cities. I would have thought it too obvious to be said.
@No Name
No there are not "loads of jobs" in the regions. The unemployment rate in regional areas are higher than cities and the diversity of jobs is higher in the cities. I do agree that the couple in the video just has unrealistic expectations.
@@gav240z that's exactly what they should do, sell now. Rent. Love every 6 months because the rent will fall too. Save and but near the bottom of the market.
@@Alig3388 problem is it's a gamble. If prices don't keep falling and depends on what their mortgage is vs cost of rent. They could always rent the apartment and then rent a house nearby. Rents are a fraction of the cost of a mortgage on many homes in Sydney right now.
They obviously expect to borrow too much from the bank relative to their wages and expenses of selling / buying stamp duty etc.. got little sympathy for them and their ilk.
For a long time one had to have about 25 percent deposit to buy a house. Everyone now wants everything immediately and is in so much debt. This is not a "Correction" - its a Crash and a Recession. Nearly every SUV in my town is on credit - huge huge debt across the board will mean huge losses.... big changes are coming. Reality is coming. Debt was never a good idea - it never will be. If you can't afford it - you don't need it - and also who says the hardworking taxpayer should keep propping up the solo parent industry - especially those who keep having kids. Where are the fathers? Women must be accountable for using the state to pay for their constant breeding.
I’m 25 and bought my first home. I’m 38 minutes from Brisbane CBD and I had to buy in an area that as great as I wish but it is what you have to do. The benefit is my mortgage is really affordable and I have decent 3 bedroom 816 sqm. I think that perhaps this is more of an isolated issue?
@No Name Of course there's a crisis...those places that are "affordable" are only affordable to those on city wages. Country prices = country wages
Brodee Wright the right thing to do! Brisbane is affordable and easier to live in than Sydney it Melbourne. I just moved from Sydney’s Northern Beaches to Brisbane. So much better off! Less stress, less mortgage, Sunshine Coast up the road! Happy days
@No Name Plenty of affordable houses in the major cities? What freaking parallel universe do you hail from? Do you think 500,000+ grand is cheap or do you think everyone is making six figures?
@@Sean-ll5cm I think No Name is one of those born into privilege, and has never had to struggle for anything in his life. Therefore has no idea how the majority have to live with insecure work, the rise of underemployment, and saving for a deposit, while paying high rents - that even exist now in the regional areas.
@No Name It's complicated. Nurses CAN make the same in the country.. Of course there's way less jobs..so if you're using nurse as a 'decent' job then yes there is less decent jobs in country. For Teachers? Again public system it's comparable but private City schools? Yes they pay more and there's more of them in city.
Just remember falls are magnified on the way down, a 100% increase in property price is reversed by a 50% reduction. A 25% increase is reversed by a 20% decrease, and that's not factoring in Inflation.
More prices are down, down, down over the coming 1-3 years. Recession is coming be prepared.
This is banking propaganda
the more that word is thrown around the less it means
I very much doubt that
Na its true tho. There will mass be propaganda to keep house prices inflated. Thats what keeps Australia's economic assets creditable. Say goodbye to your super
$800k single bedroom in Melbourne is on the extreme luxury end, where is she looking. Can easily get $400k+ near CBD. Still overpriced but not $800k.
These people coudn't afford to buy even a 300K property...
The apartment that she was looking is made out of gold
One million house drop price by 10% is still 900k, which is still a lot money. Price need to drop 30% to make a difference, no joke
even if it drops by 100%, I wouldn't pay more than 50k for a shoebox in a congested city like Sydney.
The problem is our useless corrupt politicians
We also have a massive amount of corruption in electricity and gas billers and prices for the utilities are ridiculously high.
There are alternatives to a traditional mortgage you could always try and do an owner finance deal
house prices will continue to fall :
1- Australia has 5 million pensionnaire, 3 million on centrelink ( disability and new starter ), 6 million already in mortgage, what's left are folks who are still struggling with rent, hosue owners or kids.
2- A one Million dollar house in Sydney is made of : (200k land , 50k labour , 50 materials ), the rest are fees ( LIM , Real-state, broker , developer , contractor, Insurance , council fees, government rate , bank interest ...etc) , Many will tend to move to rural areas if the NBN has spread around.
3- Migration has dropped dramatically over the past 4 years.
4- Wages are not grown.
5-houses built in the last 3 years are more than the normal.
6- ASX and SP500 are all time high and the risk of recession is very high.
7- and other reason.
The problem is not property prices going up or down, it is the currency.
Our debt fueled economy is what has created this, and there is no easy way to fix it!
Council rates keep going up even though its based on the GRV... but rents have came down!? It makes no sense
MrGaZZaDaG
Give it time.
Laws will catch up.
Seriously???? These people are actually complaining that the bank is acting responsibly and won't give them a loan that they can't afford. Boo Hoo! As for the prices, they're going to fall a lot further! This is just the beginning. Those houses aren't worth even a quarter of what they are selling for, and the sellers will get more and more desperate until they meet the real world value, or can't pay the mortgage anymore.
while I agree there's problems why don't people consider moving to somewhere that's not sydney or melbourne?
Because there are no jobs there and so many bogans
Obviously the decentralisation idea had no traction at all. There is little to encourage people to move to larger towns because issues in towns have not been addressed and there is no infrastructure, industry development, tourism or education facilities to entice people to move there.
As long as the affluent are able to buy multiple properties, and buy out the lower-end properties there will be no affordability.
There must be leadership with strong vision and regulation of this area.
That will never happen because those "leaders" are multiple property owners themselves!
A house price is now 7 years wages in the country an 13 years wages in the city.
Economy pick up? Only the beginning of House price fall IMO. China won't buy same volume of Iron Ore in any future stimulus
Here's a tip for the couple.
Sell your unit. Rent. Wait two years and keep saving. Buy an absolute bargain.
(This is not financial advice).
@EvanShmevan But then he would be also "ditching" his son as well. It's not the sons fault he was born.
@EvanShmevan mate youve been hurt way too many times lol
@Evan Better that sending him to overpriced childcare. Let childcare workers loss their jobs so that the house price will further drop.
Hi Australian, can any one tell me how many percent Australia housing had fell down and in big city, how. UCB for a small single house now. I had suffered so much during the USA recession in 2008. Some area fell 50% compared to 2006. I have some relatives who live in some small towns. Maybe time to invest.
The only accuracy in this report was that the cities are too big. FHB would be well asvised to stay clear of a dropping market, and wait till it gets to the bottom before purchasing. The couple cannot get financing as they cannot afford to service the loan, and if they bought now would risk losing it all as the value goes down over the next 2 years. The lending criteria is now where it should have been, which will now drive prices further down. And if they are waiting for the economy to pick up, well ... they will be waiting a while
They call i a dream to own your own home because you have to be asleep to believe it
800k for a one bedroom apartment with car space in Melbourne? No way! Like half that for somewhere really nice in or near the cbd like St kilds.
Min 3.24. The professor points out a small correction over each apparent cycle. There is never a real correction so what we have is a cumulative lack of correction. This accumulation has to correct itself eventually so the numbers balance out. Perhaps we are entering that correction now?
We will follow Ireland, house prices there have not returned to previous highs after a decade. We didn't have a GFC here, we kicked the can down the road. So welcome (finally) to our once in a lifetime housing crash/recession. The landing will be hard, even the pilots have left the cockpit, but some of us have been preparing for 10 years and have nice fancy parachutes.
What did you do exactly to prepare ? Share the knowledge sir
Only top houses price falls down. The medium and low price houses still go up slowly in price. That will not solve the problem because most can't afford houses for 1.2mln that used to be 1.4mln etc...
Australia's big city house prices are F up. Even regional homes are on the extension of a high paid middle double income family.
Beijing?
I wanted to stay in Sydney to. Wound up in campelltown for 11 years then worked my way in. Took 3 houses though
I can extrapolate a trend too. I learnt how in Ireland during mid 2000's.
haha, same here.
@No Name yeah it's different this time lol
When they are falling, they get more affordable progressively. So buying today is less affordable than buying tomorrow.
Just go to Mosque and pray to Allah and keep reading Quran over and over again.
I just looked online, went to a site that calculates the stamp duty. It's $46,000 on a $300,000 home. That insane!
what? I think u made a mistake there buddy.
Bottomless greed's from landowners, developers,real estate agents. That's the root of the problem.
Oh wow what a huge discount, 2.5 mill house is only 2.3 mills now, it's time to buy.
12% drop but 70% overpriced! Australian house prices are a bubbled joke. Greedy boomers unrealistic prices with wannabe yuppies willing to pay the prices and drown in debt. I have no sympathy. BOYCOTT THESE RIDICULOUS PRICES!!
Its not the same because lower house price = lower stamp duty taxes
So a housing economist professor thinks that this "pause" in the housing market will only last a couple of years before things pick up again? A decrease of 20% plus in some area's of Sydney in the last 12 months is not a pause. What a simplistic view.
I have watched a few videos about Australia Real estate prices but it is confusing. So maybe if you put a video on RUclips, you should mention the price in US Dollars as well. This is just a suggestion. The conversion rate is quite steep being almost 2 AUD to 1 USD. Still the prices are quite high. Maybe in Australia they need more smaller cities around the larger cities connecting by a good rail system.
"When the Economy picks up" As though that's a forgone conclusion and implied that that would be soon or in the foreseeable future. Sure, I'll hang around to 2029 then.
Some basic facts on Australian Housing.
1. The GFC had a relatively small impact on house pricing. Why? Answer: The Chinese were buying up houses off the plan as their retirement fund or superannuation. Two years ago they spent $28 BILLION in Australia buying up assets.
2. Most Australian politicians have property portfolios and it is not in their interests to control the market prices.
3. The Chinese introduced currency controls and the money stopped coming into Australia for general properties.
4. The banks create money from thin air as 'fractional reserve banking' and so only a ledger entry is made as a 'Credit' to them and a 'Debit' against you ie they give you a line of credit and it is your signature that creates the 'money' NOT the bank.
The reality is that housing is now way out of the reach of the working man and it does not matter whether Labour, Liberal, Greens or One Nation etc they al have the same agendas and it is now time for every Australian electorate to vote in independents who do not need to follow the party line. This is real democracy as the current party system only allows the slaves to elect their new MASTERS every 4 years.
ROLF, come to a regional town where a lot of ppl brought their living house and a rental house and see them all lose 40%. Mind you, thees houses were worth about 350k for a decent 4 bedder in a nice area.
High demand areas will always maintain their value
What could possibly go wrong?
When they are almost doubled in the last 5 years, falling prices by 2% not gonna help much.
What the hell half a million for small apartment price in Sydney surberb.
What else they want & how high price they want seriously?
Even Australia is a continent & it's population only 22 million
Price falls from 800k to 780k. Falling but still bloated by 50%
If you purchase a house and the value keeps dropping then you are actually losing money and are unable to sell your house.
The reason that the average people still cannot afford a house is because it is not falling enough!!!
You would expect that someone on an average wage should be able to afford an average price house. The fact that this isn't the case illustrates the problem.
Y'all screwed. Buy a tent.
Australia....if I buy a car and pay full price cash...it's the car mine?
No...I have to pay rego that was $80 a year when was less cars on the road..now there's 4 times more cars and I have to pay $208 every quarter $800 a year .why ? In 10 years will be $8,000 in 20 years $16,000..wow... the car cost $100 ..????
Prices are not down ...prices were $99,000 in 2000....$120,000..
$350,000/$450,000 in 2012/$560,000.2015.../$$750.,000 in 2018 so were the prices falling??? Lies lies f our get about a house cost more than a milion + c out council rates + insurance unless you got $200,000 a year???
One bedroom for 800k, what a load of bull. You can get a wonderful 3br. Townhouse in a good area for 600k. You don’t need to live in Toorak.
A one bedroom apartment for $800,000??? Are the floors made out of gold, and the light fittings have diamonds encrusted in them?
If they not lower prices of house and land,and rents.
Prices are dropping I n Sydney.. city council's rising value of homes in thousand so they can get more higher rates
The couple interviewed should be thankful they can't 'trade up' to a bigger mortgage in a falling market.
The melbourne girl is BS. you can buy a house in werribee for $400k!!
2:20 it is called income to home affordability ratio - long been out of whacked
the government has done to little to late , waiting until homes are no longer affordable . to busy collecting stamp duty and massive council rates . we don't have a billion people lol . huge country yet only a handful of cities that can't even cope with the traffic . land developers price fixing . next recession will be huge .
Property prices are rising in rural areas, due to the mass exodus from the big cities. So if you don't get off your butt, you'll be locked out of that housing market too. Unfortunately you do have to save for a deposit, there is no way around it. If you have credit cards.. pay them off, the bank won't even look at you for a Mortgage if you have them.
The problem is, migrants are over 80% of the buyers, mostly Chinese, who have a 300 year property bubble at home. A house has been 3 years of the average wage for over 100 years, After John Howard's third and last term, politicians with public company investments lost control of the borders
and Australians lost the ability to buy a home.
Wife was not working & wanted to upgrade to a house. Husband being exsploited as a work slave to give her more comfort, to buy a house he will never uses because he is always working. I now understand why men don't want marriage.
She stays home and takes care of his kids! He should have kept his sperm locked in if he didn’t want that to be his life
And she'll probably get the house anyways,if they divorce, because of the biased & corrupt family law court rules against men!😠...Why the hell would ANY man want to get married today!?🙄 The system is rigged against men!😠
Don't upgrade or wife will divorce the husband, kicks him out to the street and takes the house
@@esml373 They are not his kids, they are her kids, due to the bias of family law, she has a statistically 96% chance of getting custody in divorce. How about she get a job & give him a break from the drudgery of work slavery,, so he can stay home & have the pleasure of spending time with her children, so they can then bond with him to become his children.
MGTOW men are leaving the plantation
Home mortgages and women there both overpriced
The expectations of young home buyers that everything must be like it's out of a glossy magazine will undermine their ownership of property. I still have old sheets up for curtains!
Leo
I'm sure you can afford $20 kmart sheets lol don't act so poor or tight
Everyone move to Adelaide. For 800K you can live in a swanky Eastern suburbs place no probs. I've watched this 8 months later and everyone is jumping up and down with joy about the bounce back. Nobody knows what's going to happen. Seems no answer for lack of wage growth in sight.
I had rural property happily set and was able to manage my low mortgage loan even paying off capital, but interest rates rose so high it all became unmanageable and before the bank repossessed I sold for an attractive price. In rural areas good jobs are hard to come by, particularly full time, Life now is non committal, lower standard of existence, overall far less. Pretty bleak.
Save a few dollars on stamp duty and get a better deal on real estate fees
Unemployment is one reaason and bank don't give loans to casual employees , especially since many jobs now are casual or a contract.
Please people wake up!!! Things are going to get worse; much worse. If unemployment goes up default rates go up; if defaults go up; rates go up. If rates go up defaults go up; causing more people to constrict spending; causing more unemployment; causing higher rates. The banks have leveraged our entire working life to pay for an asset that's been mispriced from 20 years of consistent economic growth. Our government whose role is to act as intervention mechanism for large sways in economic activity has decided to sway to reelection. Future historians/economists will veiw this period in Australia as a period of greed and stupidity.
Stop having kids, stop getting debt, CHASE MONEY, be frugal, network with successful people, spend time with family, get outside in nature and keep mentally stimulating hobbies.
Housing is a business they don't want u living peacefully with a family. They want u stressed and thinking about prices and investments
Looking forward to picking up my free motorhome in September, courtesy deceased estate. No power bills, site rentals, and free to come and go.
We need a bank, or a government scheme, to allow renters to demonstrate the ability to make mortgage payments. Open an account, pay your rent into, and then out off that account. After 12 months there is a demonstrated pattern of saving. If a renter has $500/wk in their budget, then that money can either go to the landlord or go to the mortgage. Basically the bank says "You don't have enough money to give me more money."
The problem is that Australians have used their house as atm cash machine! Is not the fault of the young people if the price of house have skyrocket, but people who have been greedy! That is why now this get overboard and become unsustainable.
The correction won't be over until the average Australian is disgusted by the prospect of owning a home because they've lost soooo much money.
thats why population growth doesn't make economic sense anymore, that was the old way in the Nation building years
We are simply in a period of adjustment, now that banks cannot lend to those who can't afford, the market will clear once prices have dropped to the level that can be afforded. Just relax and wait.
Let me help you out, if the bank wont lend you the money, then you can't afford it. They are doing you a favour.
Getting rid of Negative gearing is the first step followed by restricting foreign investors and finally low immigration can only make housing more affordable.
Cost of living will push up cost of production making Australia in competitive amongst free trading partners.
New migrants are poor indians, they don't buy homes, they only stay 10 people in a room, cook curry and talk on the phone all times.
800k for a one bedroom apartment 🙄
I'm renting a one bedroom apartment in one of Melbournes most posh areas and even this would only be worth 500k-600k including parking
The main reason homes have become unaffordable for many first home buyers, is because the renewable industry has destroyed many highly and stable coal Jobs.
Many 1st home buyers have only themselves to blame.
The renewable industry destroyed many Highly paid Jobs.
Every coal job is worth between &180,000 to $200,00- plus annually, compared to a renewable Job worth only between $30,000 to $40,000 annually unless for the very few who are electricians and such...The big majority of ex-coal workers who lost their jobs remain unemployed.
Go for forced sales. Govt should make sure banks DO force sales for those npt able to pay their home loans. That way people can get to buy homes, instead of keeping those who can't pay keep a home and no tallow those who can pay to buy a home. And it is the banks who should take the cost of unpaid loans, not homebuyers.
Move out west simple 2 hrs from brisbane you can buy a 4 bed home on 5 acres and live like a king for under 300k
Funny how all the cheap housing is where there are literally sweetFxckAll jobs to pay it off.
Tell me how much do the banks lend to people on Centrelink?
Surely if there is no job to pay it off the price corrects accordingly.
So by free market reasoning that $300k house is only worth $100k.
Sounds like you overpaid.
@@AlienLivesMatter im not jade i work a blue collar job on 65k a year i live 20 mins from my worksite and im working in the industry im trained in. There is loads of work out here you just have to be prepared to do something your not trained in. Thats the sacrifice. Give up your 9to5 traffic or public transport massive loans and huge debts move out of the city and get happy. The boat has sailed there.
No Name...
yeah plenty of $4 per hour internships, fruit picking competing with import labor & insecure casual gig economy
Suffer in your jocks when you go to sell. D!ckhead
@@AlienLivesMatter "Suffer in your jocks"...classic!
@@AlienLivesMatter where i work the average worker is on around 25 to 30 an hr on fulltime conditions. They pay under 400 a week for rent and only work 8 hrs a day. Life is great out here. You dont need to make 6 figures to live you dont need to sit in traffic for 4 hrs a day to work you dont need to fifo and work 12 hr shifts for 2 weeks just to have a decent living. Living is living dont extend yourself look outside the box and you will see there is a real lifestyle to be had out here. I accept its not for everyone but i start work when i want and knock off just after lunch come home and work on my little farm i paid fuck all for i love it!
The Govt could solve this tomorrow by having a public bank.... but will they do it ?.. NO THEY WON'T..... Why ?
Australia's dream mutated into modern day serfdom... Who would have seen this coming.. Not like the hundreds of papers that were published over the last ten years.