Sydney is not as un-affordable?

Discussion in 'Property Market Economics' started by Noobieboy, 2nd Feb, 2019.

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Sydney is affordable?

  1. Very affordable

    6 vote(s)
    7.1%
  2. Somewhat affordable

    16 vote(s)
    19.0%
  3. Neither

    5 vote(s)
    6.0%
  4. Somewhat unaffordable

    20 vote(s)
    23.8%
  5. Very unaffordable

    37 vote(s)
    44.0%
  1. TMNT

    TMNT Well-Known Member

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    My point is, people have become more entitled, thats pretty much everyones point.

    Its all about changing expectations too.

    There will be a point when houses are so expensice that people will settle with apartments or townhouses and that wull become the norm
     
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  2. Mike A

    Mike A Well-Known Member Business Member

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    Yes i agree. I lived in makati Philippines for many years.

    I had friends who owned houses and land in Forbes park which was next door to makati and BGC both full of apartments.

    The average price of house and land was 10m usd. So Australia truly has nothing on some other places in the world.
     
  3. hammer

    hammer Well-Known Member

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    I suspect Sydney is there already.
     
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  4. kierank

    kierank Well-Known Member

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    When someone tells me that something is un-affordable, I ask them to tell me at what price would they consider it to be affordable AND then tell them to go away and quietly wait until the price comes down to that!!!

    I have family members still waiting to buy after 10, 20, ... years :eek:.

    Not a great strategy but, at least, I get some peace and quiet ;).
     
    Last edited: 3rd Feb, 2019
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  5. TMNT

    TMNT Well-Known Member

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    Imagine what it will be like in 10 yrs.

    Free standing homes in metro may be for the rich and famous or for old money
     
  6. Scott No Mates

    Scott No Mates Well-Known Member

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    They are old, deprecit shacks on the outskirts of Sydney where the population density resemble those of previous generations. Inner-city areas have, on the most part, become gentrified, the demographic has changed. FHB has, as always, sought cheaper housing on the fringes.

    What are the causes If the increases?
    • Demand - greater population
    • Better building standards
    • Higher expectations for newer premises
    • Incentives - FHBG, stamp duty concessions, tax relief
    • Economic - low interest rates, full employment
     
  7. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    The past two decade of price rises was largely a result pof expansionary credit policy carried out by RBA, we are already at lowest RBA rates we can be, well almost.
    Even after the recent falls we are still at a higher P2I ratio then even during last peaks, meanwhile our debts are at all time high, salary stagnant, What do you think will fuel the boom in next decade?
     
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  8. Joseph Skewes

    Joseph Skewes Well-Known Member

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    How are you measuring that people have become more entitled?

    Perhaps, due to worsening affordability, it only appears they are entitled because they want the same great housing experience of previous generations... in which case our views would be in alignment. Housing is less affordable and younger generations appear entitled for resenting that.
    I agree that if government policy continues unabated then cities like Sydney likely will increase in density of living, becoming even more unaffordable or where you just get a lot less for your dollars.
    Even at the very edges of suburban Sydney I doubt you would find many 3 bedroom houses (with a backyard) for 4x household income.
     
    Last edited: 3rd Feb, 2019
  9. Noobieboy

    Noobieboy Well-Known Member

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    Sydney is bound to become a high rise / high density city. Majority of large cities undergo this urbanisation process. As long as it’s an attractive job market and as long as there is population growth, density will increase.

    It doesn’t even have to be a great place to live, economy is the key. People will come for jobs, even if they hate living on top of each other.
     
  10. TMNT

    TMNT Well-Known Member

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    No idea, Im not a economist

    EVERY cycle we say the same thing
    Cant see it any different this time
     
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  11. TMNT

    TMNT Well-Known Member

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    Just general consensus of reading forums, news reports, testimonials, talking to agents, personal experiences

    Just like the smashed avocado phenomenon

    The previous generations did not prioritse a newish house or a media room (generally speaking)
     
  12. Joseph Skewes

    Joseph Skewes Well-Known Member

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    You are speaking in very broad terms that are impossible for you to support with data, but it reminds me that old people tend to complain (often unreasonably) about the attitudes of young people all through history ;)

    Every Every Every Generation Has Been the Me Me Me Generation - The Atlantic

    FWIW I'm a millennial and I don't know of anyone in my peer group who has a media room.
     
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  13. kierank

    kierank Well-Known Member

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    How about a million+ of you buggers in Sydney sell up over the next 6 months and buy in Brisbane?

    Then the following will happen:
    1. Sydney prices will crash and the place will become more affordable.
    2. Brisbane prices will increase and the place will boom.
    Everyone will then be very happy ;).

    But you won’t do it because you want to talk about problems and not solve them :eek:.

    Only stirring :D
     
  14. gary176

    gary176 Well-Known Member

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    What in everyone’s opinion should someone pay as a multiple of their household income...at current interest rates or 7% interest rates

    6 times current and 4 times @7%?
     
  15. hammer

    hammer Well-Known Member

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    Housing costs are supposed to be 33 percent of your income.

    Doesn't always work out like that but 33 percent is ideally what you should be aiming for.
     
  16. TMNT

    TMNT Well-Known Member

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    Of course, 75.45% of the statements on here arent or is nearly impossible to back up with stats

    And
    The children now love luxury; they have bad manners, contempt for authority; they show disrespect for elders and love chatter in place of exercise
     
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  17. spoon

    spoon Well-Known Member

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    Cities which are unaffordable are those which are small but have a high concentration of high value activities. Eg. London, Hong Hong, etc. Small land mass, large amount of high income earners. So if you are one of the low income individuals, bad luck. :confused:
     
  18. Cimbom

    Cimbom Well-Known Member

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    That's a really bad comparison. Makati is 21km2 in size and has a population of almost 600,000 people. That is half of the land area of the Wentworth electorate in Sydney (eastern suburbs) with a population about 50% more than the whole of Canberra. The population density is far higher than any suburb or place in Australia. How much is a house with a big block in Elizabeth Bay?
     
    Last edited: 4th Feb, 2019
  19. berten

    berten Well-Known Member

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    To be fair, #1. seems to be happening anyway :p
     
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  20. kierank

    kierank Well-Known Member

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    I am focussed on #2.

    Speeding up #1 would make more people happy :D and we would there sooner ;), say by the end of this FY :eek:
     
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