Property/Rent unaffordable to Whom ?

We hear all the time about rising house prices
Then we hear about rents being "unaffordable" !

What I am wondering is "Whom are rents unaffordable for" in reality ?

At what point do/will you as a landlord decide to "pull the Pin' ?
When your ROI is barely 3% ?
We used to think 8% was the minimum...............

Sure I feel sorry for my friends who rent, they might whine about the cost of rent but they have annual holiday's, drive late model cars, have the latest BIG screen TV and are often dining out.......
So is the cost of rent really unaffordable, or is it poor budgeting ?

The cost of renting a house in Australia is now more expensive than ever

Sydney tenants face record high house rents, and even unit prices have stopped falling

 

I don't know. I'm no financial planner but there aren't many people that I've come across for whom I've struggled to work out a plan for, given what they have.

Working part time? No deposit? I can still help you strategise your way out. I think of it as a puzzle. A puzzle that a lot of people can't be bothered with.

 

The question really is about affordable housing, and there are two areas where people struggle.
1. The first is basic human need for a roof over the head. Some ppl can't afford that.
2. The second is about equity in life where purchase of a house gives ppl a great advantage, and it is simply those that cannot get finance (for whatever reason) that fall into this category.

The really sad stories are sometimes about an abused spouse who at a later age has found themselves on the street. The other really sad stories are about quite young ppl who have no home.

Many middle of the road ppl do complain about house prices, but AFFORDABLE housing is really seen as something that can (or could if we had the courage to create it) underpin and resolve some of the worst and deepest poverty that exists in our society.

 

You can buy a reasonable house in Perth for under 350k more of a roughy under $300k. Yet many in Perth say property is too expensive.

Many want bigger homes to rent but can only afford $350 a week. Many others complain Perth rent is too expensive

Not sure how you can make houses cheaper.
Cheaper land? Even prefab homes built in a factory end up being expensive.

 

Reduced expectations, just like the old days.

• Share a bathroom, bedroom
• Use the kitchen table for homework
• Put on a jumper
• Park on the street

 

Share the bath water?

 

I have a crazy idea: build QUALITY apartments. My apartment is only about 60sqm, a conversion from an old early 1900's mansion. It's so bright and airy, every room has line of sight into the living room so it feels way bigger than it actually is. It has 3.5 meter high ceilings, double brick walls so I don't hear a peep from the people next door. It feels like house-living. If apartments were built so that people would actually want to live in them that would fix a lot of issues. Right now we have houses and unlivable dog boxes. There's got to be a happy medium.

I've been drooling over this one for quite some time now. Build more of these and I think we fix a lot of issues:

Sold 6/2-4 Carrington Avenue, Strathfield NSW 2135 on 04 Dec 2020 - 2016620155 | Domain

 

Whatever floats your boat.

I prefer to shower with a friend

 

All except the affordability part of the problem.

 

Well the average apartment (in a "good" area) is what, 800k? The quality I'm talking about is probably $1m give or take. It's not "cheap" but it's certainly much more affordable than a house.

 

For the most part I agree.
Except for those claiming rental unaffordability when they have money for smokes, energy drinks, nice clothes and car........
Most people can afford housing, just NOT where or what they "want" !
That is the part that gets on my nerves.

Some people I know are so entitled about how expensive their rent is (while sipping their take away Latte and smoking) with no thought about the property owner
I recently explained to this friend/associate about my apartment purchased 3 years ago in Sydney, the rent is $555pw, but my total outgoings are more than double that per week (loan, water levy, body corporate, rates, insurance, management), so imagine buying in todays market..........

For those that really can't afford housing there's plenty of services.

Two of the step kids took off (16yo boy &17yo girl) both did some couch surfing, then ended up in and out of refuges (mainly because they didn't like the rules, the same one's they left home over) but eventually realized they had to or would be homeless, both went on to transitional housing $70pw week (from their dole) for a 1br apartment including all services, fridge and washing machine in Bankstown = deal (if you ask me)
We have kept the door open, but the independence that the dole has provided them means they will likely never return to us (or school, we hope but doubt either will get their life in order any time soon). !

 

I look at places like Canberra, and yeah, unaffordability is a genuine issue. Take a mimute to check out www.allhomes.com.au and see what is actually available for rent and for sale. It's expensive. And competition is fierce. You may have 30+ applications for a rental at the lower end of the market. And you know the best canditdates are being picked out first, which means those most in need have very little chance.
Lack of housing in general keeps demand well in excess of stock. And even outside of the ACT in the nearest surrounding towns, prices have swelled above affordability for many.

Now I am not complaining as such. I am one of the ones actively benefiting from the situation as it is. Much prefer being a landlord.
But really, the government really does need to step up at some point and actually do something to assist those many many people who have been completely priced out of the market, both with buying and with rent. Some more government housing would certainly go a long way towards turning the pressure down a bit.

It is one of the reasons we chose to leave Canberra. Because our kids are all growing older, and when they finish high school, there would simply be no real oppertunity for them to move out and become independent, whilst remaining local. We didn't want to have to support them all until they are well into their 30's. (Especially not in that small entry level house, we were living in).
Now we are in QLD, they have a lot more oppertunities open for them, with both buying and renting.