Why Did Home Ownership Fall??????

Discussion in 'Property Market Economics' started by MTR, 2nd Mar, 2017.

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  1. MTR

    MTR Well-Known Member

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    Renting Into Retirement, Something Else Millennials Have to Look Forward to - CATALOGUE MAGAZINE (catalogue magazine, 9 months ago)

    Extract

    According to Domain, the most recent research from the Australian Housing and Urban Research Institute shows a surge in the proportion of long-term tenants renting for 10 years or more. In fact, a third of all private renters were long-term in 2013, which was up from 25 per cent two decades ago. “Income support systems are premised on outright [home] ownership and therefore Australian pensions tend to be much lower than equivalent countries,” Swinburne University housing professor Terry Burke explains. “So if you are still a renter, by the time you retire, you can be in real financial stress to cover the rent.” Think that sounds dire? You would be right — although there is a silver lining.
     
  2. MTR

    MTR Well-Known Member

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    More to the point, got any stats on this??
     
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  3. AlbertWT

    AlbertWT Well-Known Member

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    Simple,

    It's because the price is too expensive, especially in Sydney and Melbourne. Plus some people that I know, does not like to spend too much time maintaining the garden, etc... therefore they go with Town House or apartment at least.
     
  4. MTR

    MTR Well-Known Member

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    Perhaps rent where you want to live, close to transport, desirable locations where there is community spirit, after all living is about lifestyle. Inner city pockets which are no longer affordable for many. If you cant afford to buy this is perhaps the way to go.

    I think rents in Melb are very reasonable, compared to Syd?
     
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  5. Cimbom

    Cimbom Well-Known Member

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    Mobile phones? Seriously? I'm sure that $40/month would go a long way when trying to save a 100-150k deposit to buy the average unit in Sydney which is now about 700k. Not to mention that they are pretty much a requirement now for most working people.

    Young people are now travelling more and spending on trinkets because paying a mortgage and owning a house seems so out of reach. I've seen this even among colleagues who already own a property - the balance of the mortgage is so high that they feel demoralised.

    They are going to put money away for decades to pay for a property that is quite likely to be worse (smaller, lower quality, less ideally located) than what even very low income earners of their parents generation would have lived in and these are people with good jobs. All the romanticisation of the past doesn't change the facts. This doesn't take into account the huge casualization of the workforce (over 30% of young people are now under/unemployed), stagnation of wages and big increase in the overall cost of living.

    I'm not saying it's impossible - I purchased two properties by my mid-20s (not in Sydney) but I can certainly understand why young people, particularly in Sydney and Melbourne, would feel this way. To claim it's some kind of desirable lifestyle choice to not buy a property is very simplistic.
     
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