Home ownership rates

Home ownership rates in both Australia and the UK continue to fall as house prices force many into having to permanently rent with no prospect of being able to get into the housing ladder. Australia has the 3rd worst housing affordability rating behind only New Zealand and Canada.

We all love the fact that our house is now worth X% more than when we bought them but I guarantee few of us spend much time thinking about the growing number that are being priced out of the market.

Australia has seen home ownership rate drop to 67% and 63% respectively from highs of well into the 70s.

I'm not really sure what the answer is, you can't force prices down and certainly not by a significant amount.

Countries such as Germany have ownership levels around 50% and renting permanently is considered normal.

Would it be best if we had an attitude change and not put so great an importance on owning our own house ?

I think for those of us that emigrate with very little money we absolutely know what it's like to be priced out of the market. Fortunately cutting our cloth and working very hard meant we were able to ge back on the property ladder. Reducing our mortgage has been relatively easy thankfully, Australia has been very good to us. Unfortunately we had to remortgage in the UK so had a huge mortgage and we certainly would never want to be in that position again. I know many families who are unable to buy both here and in the UK, however renting was unusual where we came from in the UK unless it was a Council House whereas here it seems to be the norm.

Home ownership rates in both Australia and the UK continue to fall as house prices force many into having to permanently rent with no prospect of being able to get into the housing ladder. Australia has the 3rd worst housing affordability rating behind only New Zealand and Canada.

We all love the fact that our house is now worth X% more than when we bought them but I guarantee few of us spend much time thinking about the growing number that are being priced out of the market.

Australia has seen home ownership rate drop to 67% and 63% respectively from highs of well into the 70s.

I'm not really sure what the answer is, you can't force prices down and certainly not by a significant amount.

Countries such as Germany have ownership levels around 50% and renting permanently is considered normal.

Would it be best if we had an attitude change and not put so great an importance on owning our own house ?

Good post Bristol ,and something very much in my thoughts .

Iam sure when i was in Austria ,someone told me 100 yr mortgages were available ,and houses were passed down the family .

That seems sensible .

Good post Bristol ,and something very much in my thoughts .

Iam sure when i was in Austria ,someone told me 100 yr mortgages were available ,and houses were passed down the family .

That seems sensible .

Yes that would be an option for sure, not something I have heard off.

We do consider ourselves fortunate not to have a mortgage. We got in just before things went silly in Australia and houses were doubling in price within a few years.

But then many are buying property for investment. My son tells me that two of his workmates in their 20 s have just bought apartments. Getting discounts on stamp duty and first time buyer grant etc. they will need tenants to pay the mortgage though.

These properties will not increase in value and imho were overpriced................

Funny I have this overwhelming feeling of déjà vu. People though it would not crash in the U.K. But............

Only when the tide goes out can you see who isn't wearing pants...................

Property booms fuelled by debt can only end one way.......

Home ownership rates in both Australia and the UK continue to fall as house prices force many into having to permanently rent with no prospect of being able to get into the housing ladder. Australia has the 3rd worst housing affordability rating behind only New Zealand and Canada.

We all love the fact that our house is now worth X% more than when we bought them but I guarantee few of us spend much time thinking about the growing number that are being priced out of the market.

Australia has seen home ownership rate drop to 67% and 63% respectively from highs of well into the 70s.

I'm not really sure what the answer is, you can't force prices down and certainly not by a significant amount.

Countries such as Germany have ownership levels around 50% and renting permanently is considered normal.

Would it be best if we had an attitude change and not put so great an importance on owning our own house ?

What has been the drop in the UK?

It's only really since the 80's and Thatcher that home ownership in the UK has become the thing to do. Before then levels were lower iirc. The great council house sell off, the Right To Buy scheme and all that really kicked it off. I remember it well but if you were in Aus growing up or living then you might not be familiar with the changes that went on?

This was an article about it from last year. Worth a read https://www.theguardian.com/society/2015/aug/26/right-to-buy-margaret-thatcher-david-cameron-housing-crisis

Honestly, I don't get the fuss about the housing ladder and all that but the last 35 years or so has seen the UK change. Lots of Europe hasn't moved away from renting like the UK did and their rental rates and set ups are far better IMHO. You can rent long term, there are rent controls so areas are balanced, not out of control prices all over pricing lots out. Its a good way for people to continue to mix, live in neighbourhoods and I think the UK lost the plot with the home ownership thing back in the 80's.

As to the Aus set up I don't know when or if it expanded or blew up in the same way as the UK or if its been a more gradual climb.

Lots of young Aussies are buying an investment property to get them started in property then moving onto their own home later on.

Where we lived in the UK was blooming pricey where we lived and honestly, it was a struggle to upsize house size as the jump in price from the amount of bedrooms and slightly bigger house was big and we simply could not make that big financial jump, Might also explain why so many people opt to build extensions or into their roof space as they cannot afford to upsize to an actual bigger house. Most of our friends had to do this and build an extra bedroom and living space in their back garden or go into the loft for an extra bedroom as they just could not afford the big jump in house prices for that extra room and/or living space. So now have tiny back gardens but an extra room upstairs and down.

Here in our part of Aus we've found it far more choice in terms of variation of property sizes, blocks of land etc compared to what we had available to us in our part of UK for a similar budget. We live on a 750m block with garden on all 4 sides in a lovely location on a very quiet cul de sac on the edge of the countryside. Car port, separate double garage, 3 beds and 2 bathrooms. Paid about the same for it than what a 3 bed, one bath semi with single garage in the middle of a long busy street cost in our part of the UK.

Home ownership rates in both Australia and the UK continue to fall as house prices force many into having to permanently rent with no prospect of being able to get into the housing ladder. Australia has the 3rd worst housing affordability rating behind only New Zealand and Canada.

We all love the fact that our house is now worth X% more than when we bought them but I guarantee few of us spend much time thinking about the growing number that are being priced out of the market.

Australia has seen home ownership rate drop to 67% and 63% respectively from highs of well into the 70s.

I'm not really sure what the answer is, you can't force prices down and certainly not by a significant amount.

Countries such as Germany have ownership levels around 50% and renting permanently is considered normal.

Would it be best if we had an attitude change and not put so great an importance on owning our own house ?

Although our house has gone up some 300% from purchase, I for one don't love it at all. In fact the diabolical housing situation is my on going rant for a number of years now.

Actually, I know Germany well. Things are changing there with the mass immigration of recent years, combined with next to no interest rate, housing has become an enticement as an area to invest money in, which has seen prices rise. Germany has very strong rental protection laws , unlike the Wild West approach in practice in much of Australia, which is stopping it from going completely over to the Anglo Saxon disease, as I call it, all too evident in UK, New Zealand, Australia and Canada (with a sprinkling of European countries as well)

WE in Australia are setting ourselves up for a spectacular fail. The answers in part are too control speculation. Especially overseas buyers that have grossly distorted the market. Bring immigration under control. Call an end to the Real Estate and associated interests dictating policy. (media heavily influenced by real estate interests) Tax empty houses after a period of time. Tax vacant land not built on after a period of time. Stop the rot and pull the rug on GST. Capital Gains Tax could be restored to the full amount before it was halved b the Howard government. There's so much that could be said.

Housing has become the mainstay of the economy that replaced mining. We have a serious unaffordable problem in this country. I can compare the rates with say 1990 when interest rates went sky high.

Stats show average incomes have increased by 86% from $800 in say 98

to $1,500 in 2016 but house prices have increased 172% .

Compare mortgage repayments.

In 1990 $140,000 K (priced house at median price)was1,080 monthly at prevailing interest rate.

In 2016 $566,000 K (priced house at median price) at the far less mortgage rate of 3.8% amounts to $2,935 monthly repayment rate.

Wait to interest rates rise. Watch the banks raise rates regardless of RBA to protect assets. All too much being tied up in 'easy money' home loans.

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But then many are buying property for investment. My son tells me that two of his workmates in their 20 s have just bought apartments. Getting discounts on stamp duty and first time buyer grant etc. they will need tenants to pay the mortgage though.

 

These properties will not increase in value and imho were overpriced................

 

Funny I have this overwhelming feeling of déjà vu. People though it would not crash in the U.K. But............

 

Only when the tide goes out can you see who isn't wearing pants...................

 

Property booms fuelled by debt can only end one way.......

Speculation destroying the Australian housing fiasco. People paying over the top betting on ever higher gains. It has to end in tears and with so much of this nation's wealth tied up in unproductive housing at government and industry encouragement. Clueless being the call with regards of what to do now we are in such an unholy mess.

The fact the wages are stagnating and house prices continue to rise in the main two centres is very grim. Has there ever been a time when the vast majority of citizens could ill afford to buy in these places?

A lifetime of wage slavery to pay of a loan? What sort of life is that?

Where is the demand for better? The anger? Has the Great Australian sense of Apathy won out yet again?

Where is the demand for better? The anger? Has the Great Australian sense of Apathy won out yet again?

No, speculation has. Apathy doesn't enter into it. As long as there are people with the financial means who are prepared to invest in property, the market will be fueled by that. The speculators need a huge hit but sadly, no government of any persuasion, will give them that. I have seen and read plenty of outcry from the media and public with regards to housing prices, so I doubt very much that apathy is the problem. There's only so much the average Joe Blow can do to alter the situation via the ballot box.

Although our house has gone up some 300% from purchase, I for one don't love it at all. In fact the diabolical housing situation is my on going rant for a number of years now.

Actually, I know Germany well. Things are changing there with the mass immigration of recent years, combined with next to no interest rate, housing has become an enticement as an area to invest money in, which has seen prices rise. Germany has very strong rental protection laws , unlike the Wild West approach in practice in much of Australia, which is stopping it from going completely over to the Anglo Saxon disease, as I call it, all too evident in UK, New Zealand, Australia and Canada (with a sprinkling of European countries as well)

 

WE in Australia are setting ourselves up for a spectacular fail. The answers in part are too control speculation. Especially overseas buyers that have grossly distorted the market. Bring immigration under control. Call an end to the Real Estate and associated interests dictating policy. (media heavily influenced by real estate interests) Tax empty houses after a period of time. Tax vacant land not built on after a period of time. Stop the rot and pull the rug on GST. Capital Gains Tax could be restored to the full amount before it was halved b the Howard government. There's so much that could be said.

As well as German friends who rent it's also quite common in Holland. All living in very nice places at very reasonable rent. Also had friends who lived for years in a rent controlled flat in New York.

What's badly needed is a lot more state housing for low earners. Just behind where we live there are a couple of dozen small state owned houses in a cul de sac. No bogans there and they all seem very quiet and well behaved - not like the reputation you hear a lot of about state housing occupants. Further up the street there is a clutch of little cottage styled houses - again owned by the state. They are all very neat and tidy with lovely little gardens. Over in East Devonport there is a lot more state housing or housing commission homes. Some brand new ones have just been built.

It is supply and demand though.

The seller always sells for what the buyer will pay and people keep bidding up prices and the houses sell.

I am amazed as you cannot buy a house in my suburb for under $1M anymore but I go to auctions and young families are buying very keenly.

Many are asians if that has any relevance but not all.

I am thankful I am not trying to buy now, but people are prepared to pay these high prices and while that remains true the prices won't fall.

No, speculation has. Apathy doesn't enter into it. As long as there are people with the financial means who are prepared to invest in property, the market will be fueled by that. The speculators need a huge hit but sadly, no government of any persuasion, will give them that. I have seen and read plenty of outcry from the media and public with regards to housing prices, so I doubt very much that apathy is the problem. There's only so much the average Joe Blow can do to alter the situation via the ballot box.

Apathy certainly does. It has long been an Australian curse. Of course greed and smug self centeredness plays a large part as well. People that have seen their houses increase by insane multitudes are hardly going to complain about their predicament.

But the increasing numbers being kept out of the market should be. At least applying pressure on politicians to altar course. WE need to get away from speculative housing and returning to the fundamentals of housing. A place to nest and find a sense of belonging and security.

The lack of security in the rental market should be a prime issue as well.

Governments will react if challenged. A docile population is a governments delight. The people need to demand better.

It is supply and demand though.

The seller always sells for what the buyer will pay and people keep bidding up prices and the houses sell.

 

I am amazed as you cannot buy a house in my suburb for under $1M anymore but I go to auctions and young families are buying very keenly.

Many are asians if that has any relevance but not all.

 

I am thankful I am not trying to buy now, but people are prepared to pay these high prices and while that remains true the prices won't fall.

It is not really supply and demand though. Yes the government may run that line, but high immigration growth feeds the housing Ponzi, as does overseas investment. The government has put to much again into one basket and will get stung.

Housing has replaced the resource boom.....but got out of hand. Prices will certainly fall. The question is by how much and when?

Seems every other person has investment property in their super.

Luckily Brisbane still quite affordable if outside the very inner suburbs.

As well as German friends who rent it's also quite common in Holland. All living in very nice places at very reasonable rent. Also had friends who lived for years in a rent controlled flat in New York.

 

What's badly needed is a lot more state housing for low earners. Just behind where we live there are a couple of dozen small state owned houses in a cul de sac. No bogans there and they all seem very quiet and well behaved - not like the reputation you hear a lot of about state housing occupants. Further up the street there is a clutch of little cottage styled houses - again owned by the state. They are all very neat and tidy with lovely little gardens. Over in East Devonport there is a lot more state housing or housing commission homes. Some brand new ones have just been built.

Same in France. In fact in France, Paris at least when I lived there, the system being corrupt had high earning professionals living in cheap rented 'council flats'. Question of influence with Town Hall, knowing the right people and so on. The poorer got it appeared far worse areas outside of the Paris metro area .....

Surely rent controls as in Germany would be enough and create a wider availability than purely building council/state houses, prone to politics anyway? (I mean neoliberal's selling off state assets on the cheap to sitting tenants)

The WA government are boosting the first home owners grant from $10,000 to $15,000 so that will be welcome news to first home buyers.

http://www.abc.net.au/news/2016-12-27/first-home-buyers-to-get-extra-5000-for-new-homes-in-wa/8149720

The main problem in Melbourne is foreign investment. For every local person bidding at auction there is a Chinese investor who comes in over the top of the highest bidders. They don't even live here and yet the government stands by and lets it happen. Appalling.

The WA government are boosting the first home owners grant from $10,000 to $15,000 so that will be welcome news to first home buyers.

 

http://www.abc.net.au/news/2016-12-27/first-home-buyers-to-get-extra-5000-for-new-homes-in-wa/8149720

Horrible news. Just kicks the can further. As if debt of the personal kind wasn't already too high. Says more about the state of the WA economy and falling house market than much else. The best way to allow housing to become more affordable is not to entice more debt, but allow prices to fall. How much longer must we live in a controlled economy when it cones to housing?

The main problem in Melbourne is foreign investment. For every local person bidding at auction there is a Chinese investor who comes in over the top of the highest bidders. They don't even live here and yet the government stands by and lets it happen. Appalling.

Appalling indeed and a one way street. Who said capitalism will eat itself? The government in its wisdom has recently made it even easier for Chinese (in the main) investors, by allowing those whom school their kids from Year 1 to purchase property.

At least in WA overseas investors have not been enticed in quite the same way, although not for want of trying though.

Home ownership rates in both Australia and the UK continue to fall as house prices force many into having to permanently rent with no prospect of being able to get into the housing ladder. Australia has the 3rd worst housing affordability rating behind only New Zealand and Canada.

We all love the fact that our house is now worth X% more than when we bought them but I guarantee few of us spend much time thinking about the growing number that are being priced out of the market.

Australia has seen home ownership rate drop to 67% and 63% respectively from highs of well into the 70s.

I'm not really sure what the answer is, you can't force prices down and certainly not by a significant amount.

Countries such as Germany have ownership levels around 50% and renting permanently is considered normal.

Would it be best if we had an attitude change and not put so great an importance on owning our own house ?

Most houses are bought by people to live in

you could start by putting a massive tax on empty properties. Too many people buying houses just as a place to dump money and no interest in renting them out.

Should be a tax on empty housing after a certain duration. As mentioned on similar post.

Most houses are bought by people to live in