First Time Homebuyers Priced Out of the Market, 90% Can't Afford

Discussion in 'Property Market Economics' started by House, 23rd Sep, 2015.

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  1. House

    House Well-Known Member

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    And the huge influx of Asian buyers. They buy 98% of all property these days.
     
  2. JohnPropChat

    JohnPropChat Well-Known Member

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    A lot of developing countries have poor yields and the investor's only incentive is CG. Sad that Australia is headed in that direction.
     
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  3. AndrewTDP

    AndrewTDP Well-Known Member

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    Also we lack population numbers and density to really achieve it.

    Look at London - my sister and brother in law live in St Albans, about 30 miles out of London. Typical commuter belt area. But it only takes 16 minutes to get in to the centre of London via public transport as they have a good, high speed rail network. But, in order to achieve that, the town is very medium density orientated.

    Current and past developments in Australia are low density (look at how some Councils are opposed to even dual occs in residential zones) so that means we get more urban sprawl, longer distances between services and infrastructure, and a much lower population density. This makes public transport options not really stack up.

    Imagine how much more appealing the central coast or blue mountains would be if you could get the CBD in 30 minutes. But, because sprawl is such a part of our identity this is but a pipedream. We will just keep on building further and further out so people can have 5 bedrooms, formal and informal living space (none of which are needed) and a 3 car garage on a 500sqm block because they can. We have an incredibly low average household size, that is decreasing, but the size of housing is going up.

    I can get a nice 3-4 bedroom townhouse with usable outdoor space, a study nook and open plan living area etc in to around 130sqm. But it doesn't have rooms that are only used twice a month so it simply isn't as appealing.
     
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  4. Rich2011

    Rich2011 Well-Known Member

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    Spot on! I agree totally.
     
  5. Bayview

    Bayview Well-Known Member

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    Ah, yes; there are literally bus loads of them coming down our way to buy.

    Oh; wait; no they aren't....too far from the CBD. ;)

    Thankyou god; for my peaceful little swamp backwater...not for much longer though; every bloody house is being knocked down for a few townhouses to take their place...disgusting transition unfortunately.
     
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  6. AndrewTDP

    AndrewTDP Well-Known Member

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    Where do you propose people live?

    Or should we stagnate the economy and avoid growth to protect the myth of the quarter acre block?
     
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  7. Bayview

    Bayview Well-Known Member

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    I don't care; anywhere but near me. ;)

    Bugger off everyone.:p Go live in the City on top of each other.

    I've done my bit and moved an hour away from the rat race.

    Where I live is a sleepy hollow Coastal holiday destination with approx 50% of properties as holiday homes. There is absolutely no reason to start jamming up the joint with hideous townhouse complexes.

    What's wrong with another, better quality and better class house?

    The Council have allowed the zoning laws to be what they are, and everyone is buying them to do a development - just because they can - and many are not that much over 700sq/m

    Very sad.
     
  8. Simon L

    Simon L Well-Known Member

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    "an hour away from the rat race" is the new city fringe

    Two hours away is the new "sleepy hollow Coastal holiday destination"

    time to cash out on a couple of townhouses and pack your bags :)
     
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  9. Bayview

    Bayview Well-Known Member

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    Only in Sydney.
     
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  10. LibGS

    LibGS Well-Known Member

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    15 year government bonds yeild 3.06%. To call them incompetent is kind. Turnbull won't be any different.
     
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  11. Kangaroo

    Kangaroo Well-Known Member

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    Hi, fellows,

    I think you are missing the point. Our home is our final life style choice. We are willing to save and borrow to enjoy our life and out time is limited. Our dream home has always been UNaffordable.

    But the first home has always been affordable. it has always been a few years of wages for a family. The only difference is that along with the population increasing and economy growing, the first home has changed from hundreds of acres of land with a house on it, to acreage home, to 1/4 acre home, to 300m2 land home, to 3 bdr,to 2 beddr home and to 1 beddr. Finally it will be a small studio as our first home. This is happening everywhere in the world, just the scale and speed is different. But the first home has always been affordable. I bet your parent's first home was way smaller than your grandparent's first home in most of cases. The property ladder has always been there.

    Instead of wishing to buy your dream home in one step, it is far better and easier to cling to the first step of the ladder and then climb up.
     
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  12. Sonamic

    Sonamic Well-Known Member

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    Patience is a virtue not being passed down through generations. These days the wants are more complex. It's bigger, better, faster, richer, newer, NOW. "I deserve this", not "I earned this".
     
  13. Kangaroo

    Kangaroo Well-Known Member

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    Too true. In the old days if some one adopted the quoted attitudes towards life, he/she would die quicker than anybody else, without even the possibility of passing down the genes.
     
  14. Angel

    Angel Well-Known Member

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    It's OK, Gruen dealt with this problem tonight on our ABC.
     
  15. Sonamic

    Sonamic Well-Known Member

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  16. Sackie

    Sackie Well-Known Member

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    Yes This is already happening with the Parramatta CBD, gentrification around 'undesirable' suburbs etc. Its the law of Supply and Demand. It wont change, unless supply becomes plentiful and or demand drastically dries up.

    What has to change, and I think already is changing, is people's expectations of what they can buy and where for their first place. Even during my dad's time it was not 'easy' to buy a home close to the cbd but he worked his ass off and made it while others were prancing around.
     
  17. TMNT

    TMNT Well-Known Member

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    What about melb

    Canf really see any area becoming a second cbd

    Unless you call ballarat or bendigo a hot spot
     
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  18. Sackie

    Sackie Well-Known Member

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    Give it time ;)

    Who ever thought Blacktown would be a killer hot spot.:D
     
  19. TMNT

    TMNT Well-Known Member

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    I dont plan to live past 100
     
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  20. Sackie

    Sackie Well-Known Member

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    haha with medical technology nowadays you could be surprised :p