Sydney's housing affordability crisis for low income earners is spreading, Anglicare finds Read mor

You said price reduction would be driven by high interest rates of 19%.

Once the rates calm down the price will return to the $1m

People don't generally use the words I have $500k cash to buy a property with no debt and housing is unaffordable in the same sentence.


So yer one more question when does it get more affordable?

 

Barnsie

That may suit you but as per the thread topic how will that assist low income earners?

 

No you 'want' cheap housing what you 'need' is another hobby.

 

Well it all depends on how low the price can fall. If it'll fall as much as it is now in some mining towns, it can become affordable to a low income earner.

 

Are you Jonathan Tepper?

 

Barnsie

Even at $250,000, 4% vs 18% interest, the $250,000 is more expensive.

Straws and clutching come to mind.

 

NO, I don't want cheap housing. But I don't think that the median price of a house in Sydney which is a million is fair, when a better house with a bigger land component is 4 times cheaper in places like Texas.
So there are instruments that make housing more affordable. Why not use them.

 

ok keep suggesting non viable solutions to a wider spread affordability issue for low income earners that only help people like you and not the very same low income earners that are the topic of conversation.

why not suggest wagyu beef discounts for the homeless?

besides havent you said you aren't interested in residential property anymore? just trolling then?

 

Remember what was a median in Sydney in 88' around 120k. Were people buying - yes. Was it more affordable - yes.

 

isn't this work of supply and demand? how is it unfair? what instruments are you referring to make housing affordable? Why are you comparing Australian property with Texas?

 

Correlations like this make no sense to me. Housing prices are a function of supply and demand. There is finite supply in the spot where excessive demand is found in a state with employment and enough wealth to push the price where it is. How this has anything to do with Texas is beyond me.

 

Jinx

 

I'm not trolling. I'm not interested in residential prices because of CHEAP credit. I cannot afford a big number of properties because of that anymore. I'm outpriced.

 

Just to compare apples with apples. People can have the same standard of living and still have property prices at a completely different level.

 

It's not supply and demand. It's CHEAP lending first of all.

 

This is cruel surely we should pair a nice Shiraz with it.

 

cheap lending would have helped you to acquire more properties in the last few years but you only want to pay in cash? Now you are blaming cheap lending because others saw the opportunities to buy, therefore push prices and you sat there, still thinking of paying in cash and not use leverage? now you want high interest rates and home buyers to default, so you can get properties at a cheap? that's how it comes across to me, missed opportunities.

 

And that chain of events where interest rates stayed too high for too long lead many to financial ruin.
The deep recession which followed meant that
unemployment was sky high and this sequence of events affected the lives of many for the next decade.
Financial institutions like The State Bank of Victoria, Pyramid Building Society and The State Bank of South Australia all collapsed.

Unemployment reached 11%, the highest in Australia since the Great Depression.

That's not a solution.

 

Could have used Tasmania as an alternative apple

 

No. I will just put the money where I can afford it - overseas.