Sydney housing crisis tv show on tonight

My first home was $206,000... less than a deposit these days. Of course I only bought it 10 years ago...

 

To go one worse, my first place didn't even have a proper car space, it had an allocation in a car stacker! Often I'd go down to the garage to grab something out of my car quickly but it ended up being a 10-minute process because I had to fumble for my stacker key and hold it turned for ages while the lift lowered. And that was assuming no one on the lower stacker level had parked improperly, in which case I couldn't access my car at all!!

Then I found a place with a secure double garage inside a shared carpark. And now, after several years of keeping a positive mindset and never whinging, my own double garage on my own land.

 

Australia's population was 16M in 1986, today it is 24M... How can someone say they are entitled to buy in the same suburb that they grew up in that their parents bought 30 years ago when the population has doubled. Remember you are competing with people who have been working for more than 30 years (50yo) compared to your 10 years (30yo).

Look at Sydney urban sprawl since before 1917 (dark red) to the light pink being 1975-2005 and then what 2031 will be in yellow using projections of the last 30 years.


Source: https://www.accc.gov.au/system/files/Appendix C - Urban growth.pdf

 

That would have sucked!! I hear you!

But bad parking... I had scratched the whole side of my fairly new car one time getting the car into that car space it was that tight... and people would sometimes park me in when my car was in my parking space because they would park on the common property outside my car space... and occasionally I'd drive home and find someone else in my car space....there was no parking outside our block... #StrataCarparkingIssues... grrr.

But anyway, I can go one better now... I have a triple garage on my own land now

 

Soon Druie will be sooo desirable! Just think about the transport!!

 

A triple garage would severely increase my risk of making some bad impulse buying decisions Which is why I'm totally not checking domain for triple garage houses right now. Ooh what's my broker's number again.....

 

I can let you know where you can get a 650S on the cheap

 

What? If you double 16M you dont get 24M

 

What was your ratio of income to house price back then?

 

I didn't say that buying what you can afford is a new thing. My response was to @DhuCat's question about why should people have to be investors to get the property they want to live in. And the point I was trying to make is that yes, people may well need to do that because that's the reality of the times we live in. Years ago the done thing was to buy your PPOR first, not buy an IP first while renting. Whereas now, if people want to get ahead they'll need to seriously consider rentvesting first (or be creative e.g. joint ownership between relatives). If they don't want to do that, then they'll just have to buy what they can afford and accept that it won't be their dream house.

 

Can we turn back the clock? If the answer is no, then we all have to find ways to get what we desire. The days of one company employee is over. Job security is a thing of the past. We have to adapt quickly or we become irrelevant. So is the same for property. The landscape has changed and we have to change. No two ways about it. Sympathy isn't going to get us more international trades. Competitiveness does.

If $150k savings can't get you a house near city, you can't. It's about income and serviceability. That's reality. I rented in Artarmon in 2000 but I couldn't afford to buy...so I decided to buy in rockdale.. Not ideal but it's a start.

 

Yes, if they were to remove NG, they would need to reduce stamp duty/CGT.
BUT that's the states biggest cash cow at the moment.

 

For what it's worth, I don't believe this is a useful metric in isolation.

Other critically important things to view in conjunction:

• % of median price to median disposable household income
• % of household income to repayments on a median house
• % of household income required for deposit on median house etc

Some food for thought:



Note that equivalised disposable household income soared over 55% from 1995-2010? This isn't a one-off. It's a longterm trend. Not sold? Pull your smartphone from your pocket and tell me how much of your decades of annual salary you'd have needed to spend on that 30 years ago. Or...how about just to have a library containing the same information available via your web browser. Or a film collection like that you can access for free on YouTube? Need I go on?

And what's happened to rates?



Lets merge the two for the possibly the most useful chart you will see around the housing affordably discussion:



And extend a bit further:



Something to think about.

 

have no fear, Sydney and Melbourne price to income ratios are quite low compared to world cities....number 94 overall and nearly three times lower than London. Much lower than NY and LA as well.
Pretty sloppy journalism to compare Sydney P/I to that for entire countries like USA where 50% of people live in the sticks.

Property Prices Index 2016

 

Yep, none of them can be trusted.
What happened to that "temporary" budget repair levy?

 

Thanks for the maths update, didn't know this until you pointed it out.

If that is all you took away from my post I am glad.

 

This is amazing. Any chance of extending the graph out to 2016?

 

I didn't make it.

Here's some more context (going back and forward). Not identical metrics but still paints a picture: