Complain or Conquer, is housing affordability really the issue?

True - this is typically how most conversations go with young Sydney buyers after an original context setting, it becomes a discussion of choices and trade-offs. Either unit/houses, fewer kids, etc, etc.

Your definitely right about opportunities to go and do more - especially in Aus, there's ample scope to get creative and increase income.

I've often thought about whether the current Sydney house price dynamics will incentivise further risk taking (in a good way). If a starting point goal is to own a home in Sydney, it may encourage great risk taking endeavours in pursuit of that noting that standard 'get a career/job and work your way up' may not end up getting you the lifestyle - whether that be property investments, entrepreneurial endeavours, etc.

 

I have 3 friends who are all renting in the suburb I own in. The median house price is 800k. They all have a salary of around 80k+ and to that the 10x rule applies.
Two suburbs down and literally 5 minutes on not even a freeway the median price reduces to 450 and we are already down to 5.5x.
The next suburb down from that and the median there is in the 3's and we are closing in on 4x.
All of these friends won't budge on wanting to live where I do and all of them complain about housing affordability.

So again I ask, is there a housing affordability problem? Or is there a reality problem?

NOTE - None of them work in the CBD, there work commute would maybe go out by 5-8minutes.

 

First home buyers are usually not looking at median priced properties.

Comparisons with the bottom 10%-20% of the market would be more meaningful.
Marg

 

Haven't you been watching 4 corners? First home buyers are absolutely looking for median detached houses close to the city!!

 

I'm in the fortunate position that my old home has just about doubled in value since I purchased so its not a problem for me to buy another house in Sydney.

But if Sydney's unaffordable, those locked out of the Sydney market should instead do something like buy an IP home in Brisbane Adelaide! At least its a way to be in the market. And when they rise....

 

Clearly there is more to this story, otherwise why aren't you selling out and buying a comparable home 5 minutes away + a lamborghini?

 

Judging by the relative property values in neighbouring suburbs, he is enjoying sitting on a more rapidly appreciating property having already fulfilled his financial goal of owning said property. Only he can answer whether or not getting a Lamborghini is one of his other life goals.

I had a similar dilemma when househunting for a new PPOR last year though. For my budget we could have bought a nice big 4/5-bedroom house, OR we could have bought a smaller 3-bedroom house and a McLaren.

Instead we bought the smaller 3-bedroom house, a Lotus, and enough managed funds to cover running costs and depreciation of the Lotus.

 

But I am not the one complaining about home affordability?

I am the person who started this thread talking about opportunities. I am a person who has taken these opportunities and as such have put myself into a position to enjoy my suburb.

How is there possibly more to that story?

 

No, you're the one claiming mythical neighbourhoods where property magically gets cheaper 5 minutes away, but you yourself haven't made the move.

 

Now here comes the ultimate question.
Was the car worth it? Do you still want the McLaren later on?

 

You seem to have made a fundamental misunderstanding. You are the one that needs to prove why he should give up his current home and move, rather than him proving why he hasn't.

I test drove almost all the McLarens (12C, 650S, 570S) and placed an order for a 570GT. Then I tested the Evora 400, cancelled my McLaren order and ordered the Lotus It comes off the production line in 2 weeks, to spend about 2 months on a boat before I get my grubby little hands on the keys!

So to answer your questions: yes, no

 

I'll try not to change the topic of the thread too much, but wow. Congratulations.
I feel happy for you as though you have just fathered a newborn child.
Post photos of the first steps please.

 

You have a computer because you are responding to this thread so look up the following:
Niddrie (where i live) - Median House Price $853,000
Tullamarine - $455,000
Jacana - $370,000

Now jump onto Google maps and get directions between these places.
Google maps says by car:
Niddrie > Tulla = 12 minutes (That is to Tullamarine centre though, I can get to the fringe in just over 5)

Niddrie > Jacana = 12 minutes as well via the freeway.

Mythical?? This is 1 example! I am sure nearly every person on this forum could find relevant for where they live.
The fact you dont believe this to be a true statement shows a lack of understanding about house affordability.

 

It's not mythical it's true.
Essendon median over a 1,110,000
2 minute drive to niddrie up the road median 835k
Another 3 minute drive north to airport west, median 630k
Add 2 more minutes and you hit Tullamarine, median 455k.

If you drive straight onto the freeway entry from Essendon to Tullamarine you can do it in less than 5 minutes. 5 minute drive will save you $655,000. But expect at least $23 in additional fuel per week

 

Lol

 

This would only work if all first home buyers were the same. People should be able to afford comparable houses to their incomes, if you earn in the top 5% you should be able to afford houses in that top 5%, when you're in that top 5% and can't afford houses in the top 50% there is a problematic disconnect that exists and is the direct source of the entire affordability issue.

If someone making 200k and can only afford to buy in the cheapest areas, where are we expecting the 50% of the population with a household income of 60k to buy?

The entire problem with the affordability is that houses have gone completely out of whack with incomes. Those on the median income can't afford anywhere, those on high incomes can barely afford the median and it's something that needs addressing. Ideally it would be addressed by changing the income levels but that's just not happening (largely because so much money is going to die in property instead of growing the economy) so a far easier way is to address the reasons why property has outstripped incomes so greatly and that is hugely to do with government policy (CGT, means testing exclusions, NG, bank policies on lending, interest rates, etc). It's quite simply time to wind back a large portion of those policies to correct what is a serious societal problem and, yes, that goes against the vested interest of the vast majority of this forum and thus is a terribly unpopular sentiment around here.

Ultimately it comes down to what we want housing in Australia to be and represent. Do we want it to be an asset class for the wealthy to increase their wealth gap or do we want it to be what provides shelter to all Australians? Which is our priority and major focus? Do we want our young people to have no free time and not live because they can't afford to? Do we just want a society where the people are mindless drones who do their 4 hour commute to and from work and don't socialise, don't add to the economy and just save every dollar so they can pay the mortgage? I don't think that's a good aim for society, there are plenty of ways for the wealthy to make money that don't come at the cost of everyone else, heck a vast majority of them even make life better for everyone else through innovation and development, reasonably priced housing in decent locations should be what we want as a country, not excessively priced housing that hurts the public, just my opinion though, maybe I'm becoming idealistic...

I actually think we need a lot of changes in this country that are being put off because a large amount of them would be unpopular and hard pills to swallow. The aged pension is a perfect example of something that needs changing or it's going to just become a heavier and heavier anchor on this country (good luck finding someone with the cajones to even mention it publically though) and there are plenty of others of which housing affordability is becoming a more and more important factor.

The problem has more to it than just price. There are areas in Perth where you can cross a road and have a drop off like that because of school catchment zones, I know of people who paid 300k+ extra to live on the right side of the road to ensure that their kids could go to the right schools because that's more important and for someone like that they'd choose to rent in the right area instead of buy in the wrong one because they can't afford the right area.

Tullamarine is an airport area as well, lots of people would rather not live next to an airport which justifies a large part of that drop.

 

haha brilliant!

 

Thought you were ********ting and I still think you are.

• 12 minutes /= 5 minutes
• Said not even a freeway, provided freeway time
• Working off median price, not comparable property price
• literally directly under an airport flight plan

That last one is the catch I was looking for. let me fix your original statement

Original:

 

Because its not a true statement, you claimed 5 minutes, no freeways, 50%. Then responded with 12+ minutes, freeways & living in an airport flight path. Super comparable. I can't imagine why all your friends aren't racing out the door to move there.

 

Essendon > Tullamarine in 8 minutes not on a freeway (Albanga said no freeways) ? Yeah, no.
Even on a freeway, still yeah, no. Even at 2am with no other traffic you're not doing that in 8 minutes, which is also nearly double the timeframe albanga stated.

He made a ******** statement and hasn't backed it up, now he's just failing at shifting the goal point.

But hey if strawmanning "literally 5 minutes on not even a freeway" floats your boat, go for it.