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No longer a nation of home owners, now we're renting

Discussion in 'Property Market Economics' started by MGF, 17th Oct, 2015.

  1. MGF

    MGF Well-Known Member

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    http://www.theage.com.au/federal-po...-owners-now-were-renting-20151016-gkb7gr.html

    Key quotes:

    It's been two years since the latest update on housing occupancy and the one released on Friday show the proportion of households renting has edged up to 31.4 per cent. The proportion owning outright is only a point or two in front, at 32.5 per cent. Around 35 per cent of homes are mortgaged.

    Back before the tax change that ignited negative gearing at the end of the 1990s around 40 per cent of households owned outright, and only 28 per cent rented.

    Among households headed by Australians aged under 35 an extraordinary 63.4 per cent rent.
     
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  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    Great, more tenants :)
     
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  3. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Would these figures be based on occupants or properties?
    Because if it's occupants, the percentage of renters can increase with no change in property ownership stats.
     
  4. S.T

    S.T Well-Known Member

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    Thanks for bringing a positive news story to us property investors!
     
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  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    Great news indeed! I need a ready and ever increasing supply of tenants to rent my properties. That also puts pressure on rents to rise - as a LL I like that too.
     
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  6. THX

    THX Well-Known Member

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    Talk about pushing an agenda. Look at the title of this article. 67.5% of the population owning or purchasing their house is the complete opposite of the title of a nation of renters. Of course it is The Age, the most left wing communist paper around. They make pravda look balanced.
     
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  7. 2FAST4U

    2FAST4U Well-Known Member

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    According to the latest ABS figures there are 300,000 Australians who are landlord renters aka they own a property but are renting themselves.
     
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  8. Perthguy

    Perthguy Well-Known Member

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    I know people who are doing this. That would mess with the stats and make the stats unreliable.
     
  9. Perthguy

    Perthguy Well-Known Member

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    The real stats are:
    http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/1301.0Main+Features1292012

    So in 1971, the average home ownership was 69%. This is allegedly fallen to 67%. A 2% fall in the average home ownership does not mean we are no longer a nation of owners.

    Besides that,
    http://www.abc.net.au/news/2015-10-09/owner-occupiers-take-lead-in-housing-finance/6841228

    In other words, owner-occupiers are outbuying investors by nearly 60 to 40. At that rate, it won't be long until the average home ownership reverts to the mean.
     
  10. D.T.

    D.T. Adelaide Property Manager Business Member

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    Dont let facts get in the way of a cool story
     
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  11. Perthguy

    Perthguy Well-Known Member

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    A cool story would be to look at the real reasons why home ownership rates are changing instead of blaming negative gearing, especially with young people, where home ownership rates have fallen a lot. Kids are staying at home longer while they study, travel and start work. They get married later and marriage is the strongest indicator of home ownership. I would love to see a comparison of the rate of travel of young people between 1970 and now. There would be a strong correlation between that and home ownership. I say let the young travel. It's great life experience!
     
  12. HUGH72

    HUGH72 Well-Known Member

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    Edged is the right word, the renting population since the 90s has increased slightly from 28 to 31.4%.
    At some point in the future there will also be a massive transfer of stored wealth has many younger people will inherit the assets of their Baby boomer parents and the cycle continues.
     
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