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An average of $40,000 is hardly enough to put a dent in a mortgage that is over a million dollars and make it affordable. I agree with you large inheritances may be a good factor but that also depends how many children it is spread over. As for claiming it is affordable. More and more young people are not able to buy a home in Australia. The data shows this and it's quite significant. The IMF has Australia down as the second highest country behind Canada for housing market risk due to having among the highest income to debt ratio. Let's see what happens if unemployment truly does climb to over 4%. I wouldn't say we are over the worst yet. It all depends on how far the economy will be pushed
A lack of supply is the only thing that has kept the Sydney market relatively high as it has other markets across Australia
40k is a good contribution towards a deposit. In Sydney you can buy a nice two bedroom apartment near the train station for around $600k. Twenty percent of people in Sydney live in apartments and even fifty years ago, most young people started here with an apartment. Many parents give a lot more assistance and in some expensive private schools seventy percent of fees are invoiced straight to the grandparents.
Then there are the many who live in properties owned by their parents or even grandparents. Some may pay rent, some not.
Many people in their twenties have no interest in buying property. People are much longer studying than in the past, when the majority of young people left school at 15. Many want to head off overseas in their twenties. Our nephew, late twenties, has a very well paid permanent position but will not consider purchase.
All property prices are governed by supply and demand. Keep in mind that families with high double incomes are able to pay a much higher proportion of their income to a mortgage. And here it is absolutely the norm for both partners to be working. Stay at home mothers are mostly very wealthy or very poor.
40k is a good contribution towards a deposit. In Sydney you can buy a nice two bedroom apartment near the train station for around $600k. Twenty percent of people in Sydney live in apartments and even fifty years ago, most young people started here with an apartment. Many parents give a lot more assistance and in some expensive private schools seventy percent of fees are invoiced straight to the grandparents.
Then there are the many who live in properties owned by their parents or even grandparents. Some may pay rent, some not.
Many people in their twenties have no interest in buying property. People are much longer studying than in the past, when the majority of young people left school at 15. Many want to head off overseas in their twenties. Our nephew, late twenties, has a very well paid permanent position but will not consider purchase.
All property prices are governed by supply and demand. Keep in mind that families with high double incomes are able to pay a much higher proportion of their income to a mortgage. And here it is absolutely the norm for both partners to be working. Stay at home mothers are mostly very wealthy or very poor.
Just to let you know its actually 30.7% for greater Sydney per the 2021 census. It wont be long before seperated private dwellings will fall below 50% of the housing stock for greater sydney if current trends continue.
For comparision Melbourne was 15.6%, Brisbane 14.7%, Perth 7.6% and Adelaide 8.2%,
My first purchsase as an appartment almost 20 years ago, and I still own it
Last edited by danielsa1775; 09-04-2023 at 07:27 PM..
All property prices are governed by supply and demand.
While that is broadly true, the supply and demand of property is quite affected by government policy. I can't knock over my house and build a block of apartments in its place etc. Similarly, negative gearing puts an investor at a significant advantage to a owner-occupier. If we had perfect supply and demand we'd probably have significantly worse cities to live in. So I'm not anti-restrictions within reason. When I see things like this though...Do we really need to preserve a bunch of substations that look like public toilets or is it all about weaponising heritage laws?
One of my good friends is a property developer. Local governments impose ridiculous restraints on any development and Inner West Council is easily the worst offender. They realise there are no votes in development.
While that is broadly true, the supply and demand of property is quite affected by government policy. I can't knock over my house and build a block of apartments in its place etc. Similarly, negative gearing puts an investor at a significant advantage to a owner-occupier. If we had perfect supply and demand we'd probably have significantly worse cities to live in. So I'm not anti-restrictions within reason. When I see things like this though...Do we really need to preserve a bunch of substations that look like public toilets or is it all about weaponising heritage laws?
One of my good friends is a property developer. Local governments impose ridiculous restraints on any development and Inner West Council is easily the worst offender. They realise there are no votes in development.
Even In Brisbane city most of the dwellings been contructed are in the form of appartments from re-zoned industrial or commerical land, while most of the old quarter acre blocks with the Queenslanders siitting on it are now heritage listed (and very expensive to buy).
Woolworths own a large parcel of land which is litterally 100 m from our own home (Currently its rented to a used car yard), woolworths itself wants to build a metro store and 100 appartments on it. However we have the mandatory one or two resident nimby's who have held it up for years.
Last edited by danielsa1775; 09-04-2023 at 10:05 PM..
40k is a good contribution towards a deposit. In Sydney you can buy a nice two bedroom apartment near the train station for around $600k. Twenty percent of people in Sydney live in apartments and even fifty years ago, most young people started here with an apartment. Many parents give a lot more assistance and in some expensive private schools seventy percent of fees are invoiced straight to the grandparents.
Then there are the many who live in properties owned by their parents or even grandparents. Some may pay rent, some not.
Many people in their twenties have no interest in buying property. People are much longer studying than in the past, when the majority of young people left school at 15. Many want to head off overseas in their twenties. Our nephew, late twenties, has a very well paid permanent position but will not consider purchase.
All property prices are governed by supply and demand. Keep in mind that families with high double incomes are able to pay a much higher proportion of their income to a mortgage. And here it is absolutely the norm for both partners to be working. Stay at home mothers are mostly very wealthy or very poor.
Apartment living, not long ago scorned at by most Australians has increasingly been seen as the way to live, due to lack of affordability.
$40,000 contribution, is only good if buyers possess a fairly hefty deposit of their own.
One can hardly blame Australians in their twenties having a lack of interest in buying a property, but here in Perth at least, the interest is maintained. Good' incomes' are being made in the 'alternative' economy.
We have loads of young people only working part time or indeed staying home but making money.
Many drive cars well above what I could have afforded at twenty four. I find them probably more conservative in outlook and desire quite expensive things. But at the same time gain it by ease.
Earlier generations headed off overseas for far greater durations of time IMO. These go for shorter bursts, but probably would turn their noses up at some of the places earlier generations stayed or work for the low wages, which was pretty much the norm in places like London. Obviously life was different last century. Easy to pick up both a job and a rental and house prices were very affordable. Even with a high interest rate in the early 90's , the wage/price ration was not bad.
40k is a good contribution towards a deposit. In Sydney you can buy a nice two bedroom apartment near the train station for around $600k. Twenty percent of people in Sydney live in apartments and even fifty years ago, most young people started here with an apartment. Many parents give a lot more assistance and in some expensive private schools seventy percent of fees are invoiced straight to the grandparents.
Then there are the many who live in properties owned by their parents or even grandparents. Some may pay rent, some not.
Many people in their twenties have no interest in buying property. People are much longer studying than in the past, when the majority of young people left school at 15. Many want to head off overseas in their twenties. Our nephew, late twenties, has a very well paid permanent position but will not consider purchase.
All property prices are governed by supply and demand. Keep in mind that families with high double incomes are able to pay a much higher proportion of their income to a mortgage. And here it is absolutely the norm for both partners to be working. Stay at home mothers are mostly very wealthy or very poor.
Prices are influenced by government policy. Things like the changes to the capital gains tax , is what sent house prices sky rocketing in the early 2000s. In fact it led to the end of affordable housing for many. Housing moved to being an investment towards wealth creation and not simply a vehicle to raise a family, have security of tenure together with the knowledge of slow but steady growth and most of all affordable to most all people.
Reform is badly needed, but best not to hold your breath. NG should have been long done away with as works in favour of richer people with investment properties, against those wanting to buy to settle at an affordable p[rice.
Life should be far more than paying a mortgage into retirement. Renting should be a feasable option, like Europe, for those that prefer not to purchase own house.
Prices are influenced by government policy. Things like the changes to the capital gains tax , is what sent house prices sky rocketing in the early 2000s. In fact it led to the end of affordable housing for many. Housing moved to being an investment towards wealth creation and not simply a vehicle to raise a family, have security of tenure together with the knowledge of slow but steady growth and most of all affordable to most all people.
Reform is badly needed, but best not to hold your breath. NG should have been long done away with as works in favour of richer people with investment properties, against those wanting to buy to settle at an affordable p[rice.
Life should be far more than paying a mortgage into retirement. Renting should be a feasable option, like Europe, for those that prefer not to purchase own house.
But renting is not a feasible option, certainly not for the entirety of one’s working life.
Unless you are happy to retire into a housing commission estate, or worse - homeless.
Everything in Australia is geared towards home ownership.
Just to let you know its actually 30.7% for greater Sydney per the 2021 census. It wont be long before seperated private dwellings will fall below 50% of the housing stock for greater sydney if current trends continue.
For comparision Melbourne was 15.6%, Brisbane 14.7%, Perth 7.6% and Adelaide 8.2%,
My first purchsase as an appartment almost 20 years ago, and I still own it
Thanks for the update, I only did a quick search. Saw an acquaintance this afternoon, recently widowed. Searching in our area for a villa, not townhouse, and hardly any availability as everything being built are two level townhouses. Or apartments, which many like but not all. Ideally, a wide range of options are needed.
While that is broadly true, the supply and demand of property is quite affected by government policy. I can't knock over my house and build a block of apartments in its place etc. Similarly, negative gearing puts an investor at a significant advantage to a owner-occupier. If we had perfect supply and demand we'd probably have significantly worse cities to live in. So I'm not anti-restrictions within reason. When I see things like this though...Do we really need to preserve a bunch of substations that look like public toilets or is it all about weaponising heritage laws?
One of my good friends is a property developer. Local governments impose ridiculous restraints on any development and Inner West Council is easily the worst offender. They realise there are no votes in development.
Georges River Council very difficult to deal with too. Our friend is trying to subdivide a large block in that area and construct a duplex. The subdivision alone is taking literally years. Sutherland Shire Council are somewhat easier, the Mayor is right wing (wanting to run for Cook when we get rid of Scott Morrison) but we also do not have the heritage issues of closer in areas.
Yes, it would be tragic to knock down any more of, for example, Woollahra, but common sense does need to prevail with heritage laws.
I was reading a history of Cronulla originally written in about 1924. The writer advocated extending the existing parks right around the peninsula, building flats on the higher ground in the middle of the peninsula to maximise their view, and having lower density residential on the rest. If only someone had listened, but even then it was too politically difficult.
But renting is not a feasible option, certainly not for the entirety of one’s working life.
Unless you are happy to retire into a housing commission estate, or worse - homeless.
Everything in Australia is geared towards home ownership.
It is but time for that to change. Buying simply is not affordable to an increasing number of people. But besides that allow people the choice. As is the case in Europe.
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