Complain or Conquer, is housing affordability really the issue?

And a median house in Sydney is a 4 bedroom with land, 15 mins from the city?

 

It's just short of $1m, what form that takes is particularly irrelevant in a discussion on affordability

The fact is that a family on roughly 4x the median household income can't afford the median house under normal circumstances.

 

Yes it does because the form changes the price.
Housing is a human right but housing is not necessary owning a house with land. It could as well be a 1 bedroom apartment with 99 year lease.

 

Great post @albanga, excellent sentiment, looks like you've hit a raw nerve with some!

Big believer in working in my circle of control and not wasting energy on futile complaining. We live in a first world country with a democratic government, high wages, safe environment in a time of record low interest rates and unlimited access to self education via the Internet.

There will always be challenges, some will winge about how hard it is, others will get to work to overcome them.

 

well written Redom

 

My heart bleeds for those poor DINK couples on combined salaries of 240k

 

Who said that humans should not have shelter? When has that ever been the debate? It is likely the thing some people are fighting for (scrap NG/CGT) is the very thing keeping these people under a shelter in a suburb they might consider desirable.

How can you be certain that scrapping NG doesn't result in increased rent? How does that help affordability? O.K prices drop 100k but rents go up $70, how much has there position changed?

 

It's not easy when you have 2 european cars on lease, a shoe and luxury watch collection to maintain, business class flights, regular fine dining (don't forget to tip).
I just don't understand how people can afford to buy a $1million home these days...

 

It does worry me that a couple on such a large income with little expenses and large deposit still can't afford a reasonable house in a reasonable location (forget the median). Sydney is getting out of options.. Not so much in Bris/Adelaide.

 

If they scrap NG all it will do is remove a small segment of investors.
The vast majority will continue on their current journey with a bit of tweaking to their tax return and a few more visits to the broker to make finances work.

Where there's a will, there's a way.

The government will need to sanction new bans on investing altogether if they want to stop the 'gravy train'.
This can be the topic after the next boom in 2025.

 

@Redom very good detailed post as always, but in reply:

You say these people have large incomes and well educated, so clearly they have plenty of employment options? I think we can all agree on that?

O.K so that leaves them with two options as I see it.
A - Continue to work in the CBD on high paying salaries at a cost of a large commute and time away from the kids and dog.

B - Take a pay-cut and work closer to home. The lower cost of home ownership puts them in the exact same financial position as option A but they also have time with the kids and dog.

This is a choice. As per my previous post I really believe using median house price in any argument is seriously flawed. We as humans have so many opportunities, more than ever in the history of man, about where we live, how we live, what we do for work, how we work.etc.
Almost everything is achievable in a suburb 50km's from the CBD as it is 5km's from the CBD.

 

The biggest irony of this thread is that it is taking place in an investment forum, yet there are so many people fixated on the premise that salary is the only way to grow wealth.

 

If every DINK (and every other FHO for that matter) sacrificed their entire income except for 2min noodles and toilet paper to save for the required deposit in Sydney, the economy would cease to work..

 

In Perth, the next generation will be able to afford a house. Houses are getting very cheap over here.

 

I prefer the word shelter however to stay in line with your post, housing is a human right. Agreed as there are many homeless in our cities and towns nationally and right around the globe. But I don't think this is what you allude to.

However in my opinion, owning a home (which is what I presume you meant) isn't a human right; shelter or sheltered housing is. Housing can also be provided by renting premises. People should be safe, sheltered from elements and in a degree of comfort whilst having sanitary conditions met. How this is accomplished varies as to market forces; the depth of their pockets; savings capacity or willingness; expectations; mindset; etc.

Owning a home is not a human right. It's a desire and everyone has a choice as to how it is accomplished. Shelter is a human right, not owning a home.

By the way everyone, interest rates are also at their lowest for a generation and possibly more. Runaway house prices in the more desirable suburbs of Sydney and Melbourne may correct as rates do eventually rise and rise they will.

What will be the excuse of those who don't own a home then exactly where they want it then.. Sometimes we can't all have everything we want, where we want, for as little as we want and, all at the same time.........just a thought..................0.02

 

I'm waiting for someone to sound the 'we're at the bottom' bell

 

What you said, plus...
I used to have neighbours living in the inner-west (now a million dollar suburb) in a housing commission property. Nice 3 bedroom house with garage and newly rendered etc.

Both parents on the dole taking life easy and chilling out everyday.

Compare this to those migrants battling away at bottom-wage labour jobs out in Liverpool barely making it across the line renting in a cramped 2 bedroom walk up 70s building with 3 generations under the one roof.

Don't get me started on entitlement.
Australia is the lucky country. Complaining about costs when all your necessities have been satisfied is entitlement.

 

And writing them too!