Australian Housing Affordability Discussion

[medhead]

And when everyone up and does something about it? Where do we find all these lawyer and doctor jobs? What do we do when there are no more nurses and teachers, because those people have up and got new jobs?

 

[trippin_the_rift]

And when everyone up and does something about it? Where do we find all these lawyer and doctor jobs? What do we do when there are no more nurses and teachers, because those people have up and got new jobs?

It won't happen on such a scale.
Even if it did - Gov will offer fast-track PR to uni grads who complete certain courses in fields the country needs people in. Nothing new gov been doing this for decades.

 

[whatmeworry]

Surprise surprise, government down in the polls over housing affordability.

The findings on housing affordability suggest the recent contributions on the subject by Mr Hockey and Mr Abbott have done more harm than good, and that struggling would-be buyers took offence at being told to succeed more in order to get loans.
While the federal government has little room to move on house prices, with the supply of new land being a state government responsibility, Mr Hockey's comments raised eyebrows within his own party room as they were seen as lacking empathy or, as the ALP framed them, "out of touch".
The poll comes as pressure mounts for a more substantive policy response from government with less than 50 per cent of house purchases now being done by owner-occupiers, as cashed-up older investors help to drive prices beyond the reach of newer entrants.

Voters drift away from Tony Abbott amid worsening housing affordability crisis and same-sex marriage debate

 

[drron]

So just what do you want a federal Government to do,I haven't heard anything from Bill Shorten.
Local councils control planning.State Governments can override them and plan for land releases.They also control stamp duty and First home buyer grants.
Sure the Federal Government could end negative gearing.Paul Keating to his credit tried but the backlash saw Bob Hawke cave in and reverse the decision.
It might also have the unintended effect of finally bursting the bubble-just imagine how popular a Government would be if peoples houses lost 50% of their value.

No this is just bash the Liberals no matter what they say.Most obviously have no idea of Joe Hockey's background.Even why he is called Joe.But no worry,just crucify him.

 

[amaroo]

So just what do you want a federal Government to do,I haven't heard anything from Bill Shorten.
Local councils control planning.State Governments can override them and plan for land releases.They also control stamp duty and First home buyer grants.
Sure the Federal Government could end negative gearing.Paul Keating to his credit tried but the backlash saw Bob Hawke cave in and reverse the decision.
It might also have the unintended effect of finally bursting the bubble-just imagine how popular a Government would be if peoples houses lost 50% of their value.

No this is just bash the Liberals no matter what they say.Most obviously have no idea of Joe Hockey's background.Even why he is called Joe.But no worry,just crucify him.

Bill's too busy rewriting old AWU agreements to worry about house prices....

 

[whatmeworry]

So just what do you want a federal Government to do,I haven't heard anything from Bill Shorten.
Local councils control planning.State Governments can override them and plan for land releases.They also control stamp duty and First home buyer grants.
Sure the Federal Government could end negative gearing.Paul Keating to his credit tried but the backlash saw Bob Hawke cave in and reverse the decision.
It might also have the unintended effect of finally bursting the bubble-just imagine how popular a Government would be if peoples houses lost 50% of their value.

No this is just bash the Liberals no matter what they say.Most obviously have no idea of Joe Hockey's background.Even why he is called Joe.But no worry,just crucify him.

John Howard's move to reduce capital gains has lead to this massive property bubble. When Joe Hockey starts selling his property investments, you investors better worry. I wonder if Joe's wife will sell her investment property in Canberra before or after this election? It will happen in the next year or two! Hopefully another Abbott daughter gets herself a plum PBS in Canberra and can possibly buy the property?

 

[medhead]

It won't happen on such a scale.
Even if it did - Gov will offer fast-track PR to uni grads who complete certain courses in fields the country needs people in. Nothing new gov been doing this for decades.

That's right it won't happen which only goes to highlight that the treasurers advice is ludicrous. Also a massive reason that telling people to just change their job is not the answer.

 

[medhead]

So just what do you want a federal Government to do,I haven't heard anything from Bill Shorten.
Local councils control planning.State Governments can override them and plan for land releases.They also control stamp duty and First home buyer grants.
Sure the Federal Government could end negative gearing.Paul Keating to his credit tried but the backlash saw Bob Hawke cave in and reverse the decision.
It might also have the unintended effect of finally bursting the bubble-just imagine how popular a Government would be if peoples houses lost 50% of their value.

No this is just bash the Liberals no matter what they say.Most obviously have no idea of Joe Hockey's background.Even why he is called Joe.But no worry,just crucify him.

Last time I checked bill shorten wasn't the one in charge. You were certainly happy for the last opposition leader to offer no alternative. What's changed now?

Perhaps the answer to that will tell us why calling out entitled, stupid statements by the treasurer is liberal bashing, in your opinion. Oh, I see the poor old treasurer didn't say anything wrong at all. It all the fault of those unfair liberal bashers. Of course your bashing of the ALP is perfectly justified.

 

[footy99]

His answer was that the supply side needs to be improved. He spent a while trying to educate on why he thought that was necessary. He also flagged the need to properly enforce foreign ownership restrictions which have been flaunted effectively in recent times. The only thing being isolated and quoted out of context was part of an answer to a hypothetical and basically irrelevant to the pertinent discussion.

 

[UP4014]

So the question becomes....

a) Why bother owning a home?
b) If you do want to own, why live in an area that is out of your financial grasp? (area could mean suburb, city or country...)

I think JHs comments sum it up well. If you can't afford an asset - do something about it. Just because your parents could buy in that suburb 40 years ago on an average wage doesn't mean you can or should be able to do the same today. There's many suburbs in Australia JH wouldn't be able to afford but you don't see him complaining... if he wanted to live there he'd go earn more cash - simple.

I discovered last year that I was unable to afford tax in Australia. Unfortunately that means I had to move to another country where I am able to. Same applies to any type of expense including property. Seems straight forward to me!

I think you'll find the Hockey family have around $10M in property, that puts them buying into the suburb of their choice I'm afraid.

 

[NM]

It is a measure. Apparently the appropriate one for housing. That seems reasonable compared to using an average. But to the crux of your post, do you believe the range of house prices has expanded so that the bottom is fixed and the top is much much greater than when you purchased? Or is it possible that the bottom and top of the range have also experienced similar increases?

I am not suggesting either of the options you have stated.

I am simply stating that the median house price is not the market that I was able to afford when I first entered the housing market. And I think that many first home buyers will not be seeking entry at the median house price either. So using the median house price as a measure of first home affordability is a poor choice in my opinion. Perhaps a better choice would be say 50% of median price, or 25th percentile mark (there you have my suggestion).

 

[cove]

One of our sons has not bought a home but at 23 he is a good saver. It is most likely that he will not live in our suburb and we can only suggest that he checks to see his potential life partner actually knows how to save. If all she brings in is spent and has a maxed out credit card or two then that could be a problem. Sensible couples need to save a good deposit.
We have a young friend who has a house that is tenanted and he lives at home. His current lady seems to have a negative net worth and that is troubling him seeing she is 26.

 

[UP4014]

So just what do you want a federal Government to do,I haven't heard anything from Bill Shorten.
Local councils control planning.State Governments can override them and plan for land releases.They also control stamp duty and First home buyer grants.
Sure the Federal Government could end negative gearing.Paul Keating to his credit tried but the backlash saw Bob Hawke cave in and reverse the decision.
It might also have the unintended effect of finally bursting the bubble-just imagine how popular a Government would be if peoples houses lost 50% of their value.

Cease negative gearing. I have an investment property myself and looking at another, but I still say get rid of it if there is genuine commitment to help people into their own house.

Or, at least cease it on any property bought after say July 2015.

Matt

 

[yohy?!]

Cease negative gearing. I have an investment property myself and looking at another, but I still say get rid of it if there is genuine commitment to help people into their own house.

Or, at least cease it on any property bought after say July 2015.

Matt

Yup kill negative gearing whilst also introducing support for new supply and industry entrants - e.g. make it more desirable for developers to go into residential construction and management, at present the rental market is way too dependent on small investor landlords to deliver stock

 

[CaptJCool]

This report No Cookies | dailytelegraph.com.au
indicates some of the issue
Stamp duty tax is responsible for keeping many first home buyers out of the market: Tim McIntyre
and
LMI Lenders Mortgage Insurance Premium Estimator - Genworth on $700k Is $15,624 plus more stamp duty. and first home owners get $1,500 relief and I note there are now 40 year loans???? In addition to interest only loans

so tell me on a salary of $70k tax Is $15.7k, paying $400 per week rent, $20.8k just how long does it take to Save $70k feasibly 4 years saving $17,500 each year (25% of earnings) (in which time you need even more, those costs keep going up) leaving you a princely $16,000 on which to eat, ($5,200 for groceries), then utilities, forget health inurance, transport and definitely no morning coffee, parties or going out for you! So either find yourself a partner, definitely don't plan on children, pray for an early inheritance ....

 

[chelzmalee]

so tell me on a salary of $70k tax Is $15.7k, paying $400 per week rent, $20.8k just how long does it take to Save $70k feasibly 4 years saving $17,500 each year (25% of earnings) (in which time you need even more, those costs keep going up) leaving you a princely $16,000 on which to eat, ($5,200 for groceries), then utilities, forget health inurance, transport and definitely no morning coffee, parties or going out for you! So either find yourself a partner, definitely don't plan on children, pray for an early inheritance ....

Get out of the city where a lovely 3 bedder will run you $250k instead?

 

[drron]

Last time I checked bill shorten wasn't the one in charge. You were certainly happy for the last opposition leader to offer no alternative. What's changed now?

Perhaps the answer to that will tell us why calling out entitled, stupid statements by the treasurer is liberal bashing, in your opinion. Oh, I see the poor old treasurer didn't say anything wrong at all. It all the fault of those unfair liberal bashers. Of course your bashing of the ALP is perfectly justified.

I just knew you respond Medhead.
Now I did post the transcript of the interview.Just what was entitled and stupid about it?He told the truth which some feel is insensitive.Fair enough.But stupid,entitled.
Oh and by the way affordability of housing is now around the same as it was in 2010.Yes prices even in Sydney did fall a little and interest rates now are much lower so affordability really hasn't changed much.So was the Treasure then stupid.And of course I don't recall many people being in such a lather about affordability then.

As to the Treasurers investments he married a woman who does earn much more than he as an investment banker.Then he is no different to Bill Shorten and Kevin Rudd in marrying well.

And he is actually named Joseph Benedict after Ben Chifley.His father was an ALP member until 1974 when Gough Whitlam showed him the light.

 

[Warks]

The problem seems to be that there's no way to save money at anything like the rate prices are going up in Sydney. Okay if you have a house but starting from scratch?

Will our kids all live in granny flats in our backyards then kick us out to live there in our old age?

 

[N860CR]

Get out of the city where a lovely 3 bedder will run you $250k instead?

Wonderful in theory... But the reason the country is cheap is because it simply isn't feasible for everyone to live there. Jobs are hard to come by, especially if one has a "good job" (however not a highly paid one) that requires them to work in the city.

I moved to a rural area for a number of years (as I was fortunate enough to receive a good job there), however eventually had to move back to the city when the next step came up

 

[andye]

The major factor driving the investor-frenzy is the fact that the rate of CGT on property profits is low. It does not make sense to me that (even accepting the illiquidity and expense of property investment) that you are taxed less when you sell an investment unit than when you take profit from investing in a small business

People will move money to exploit sub-1% differentials in taxation but there is a system in Australian property taxation where the margin is over 20%

If you stopped negative gearing without changing CGT, you potentially leave the benefits of the low CGT to the very rich who might already have a large portfolio of properties (some of which are positively geared)

If you want to preferentially encourage new building investment, keep the CGT benefit for new builds only.