Australia Rental Prices a Joke

[Guest The Pom Queen]

​PRIVATE rental accommodation is largely out of reach for anyone receiving government payments, Anglicare Australia Executive Director, Kasy Chambers said today.

 

On Saturday April 13, the Anglicare network surveyed 56,414 rental properties across Australia and their Rental Affordability Snapshot report revealed less than one per cent of properties listed were suitable for people on Newstart allowance, parenting payment, aged pension or disability support pension.

 

An affordable rental was defined as one that takes up less than 30 per cent of the household's income.

 

Less than one per cent of listed rental properties nationally were affordable or suitable for single parents with children receiving Government benefits, irrespective of pension or allowances.

 

Only 8.5 per cent of listed rentals were suitable for a family of four where both parents were earned minimum wage and 2.1 per cent of properties were suitable for couples living on the aged pension.

 

Suitable rentals in capital cities were harder to find.

 

Brisbane and Hobart were the only two capital cities with rentals suitable for people on Newstart or Youth Allowance, with three percent of listings suitable in Hobart and one per cent in Brisbane.

 

Of about 15,000 regional properties surveyed, the proportion of suitable rentals did not rise above three per cent for any Government benefit and was about six per cent for minimum wage singles with children.

 

Ms Chambers said the results were shocking.

 

"Every year we release these distressing figures in the hope to unearth the broad based social and political will to ensure a supply of secure and adequate housing,'' she said.

 

"But it seems Australia is instead building more inequity, social division and economic inefficiency into the way we live together.

 

"This is a shameful reflection on a country that performs exceptionally well in measures of well-being compared to other OECD countries."

 

Ms Chambers has called on the Federal Government to immediately increase allowances by $50 a week and index them in line with average weekly earnings.

 

She has urged the government to investigate the effectiveness of the Commonwealth Rent Assistance and would like it to target the latest round of the National Rental Affordability Scheme to ease the pressure at the lower end of the private rental market.

 

She also wants the government to investigate legislation and regulations constraining investment and growth in the housing market.

[Guest chris955]

Housing in Australia is totally out of control whether it is the rental sector or over inflated buyers market.

[Bromney]

Couldn't agree more as someone looking to get a place. We can afford the rent but it is so astrnomical for what you get.

[Floplo]

As is housing in the UK....

 

main difference is that in Australia you have substantially higher share of the population living in large metropolitan cities with corresponding higher housing prices.

 

(though I am bracing myself for even worse building quality once I get to Australia, though given the low quality in the UK I don't expect it will be too bad. But that's material for a whole different thread)

[Guest chris955]

This thread isnt about the UK and has no relevance to those struggling with high rent.

[simmo]

I remember hunting for rentals when I first arrived in Australia and couldn't believe the state of some of the properties presented to us! I'm sure most wouldn't have passed a basic structural survey, most looked like they hadn't been touched since the 70s.

[Floplo]

ok, I reformulate....

 

the appearance of high housing prices is predominantly a compositional effect due to the high degree of metropolitan urbanization in Australia. This urbanization forces a larger number of the population to accept a different housing cost / location amenity trade-off than they would prefer. This is in contrast to countries of similar economic and social make-up with a substantially lower degree of metropolitan urbanization. Futhermore the selection and use of particular statistical measures is often biased towards the pre-existing view of the authors of these studies, implying that the impression created through their publication does not adequately reflect the underlying reality.

[Sammy1]

As is housing in the UK....

 

main difference is that in Australia you have substantially higher share of the population living in large metropolitan cities with corresponding higher housing prices.

 

(though I am bracing myself for even worse building quality once I get to Australia, though given the low quality in the UK I don't expect it will be too bad. But that's material for a whole different thread)

 

I disagree, I have lived in regional Australia and the outback for many years and now I live in Perth. I will tell you straight away that rents are hugely expensive in the country too. As for remote? Well they are out of this world.

[Sammy1]

ok, I reformulate....

 

the appearance of high housing prices is predominantly a compositional effect due to the high degree of metropolitan urbanization in Australia. This urbanization forces a larger number of the population to accept a different housing cost / location amenity trade-off than they would prefer. This is in contrast to countries of similar economic and social make-up with a substantially lower degree of metropolitan urbanization. Futhermore the selection and use of particular statistical measures is often biased towards the pre-existing view of the authors of these studies, implying that the impression created through their publication does not adequately reflect the underlying reality.

 

Not necessarily correct.Read my previous comment.

Edited May 4, 2013 by Sammy1

[Bromney]

I find it astounding that anyone could justify these prices. A 2 bed flat 9 miles away from central London can be had for around 250k (GBP) while a similar in Sydney (same distance from CBD) would cost you around 600k (about 414k GBP). Who on Earth can afford these places? Surely it all over valued and will decline at some point? I don't believe it's sustainable.

[dmjg]

I find it astounding that anyone could justify these prices. A 2 bed flat 9 miles away from central London can be had for around 250k (GBP) while a similar in Sydney (same distance from CBD) would cost you around 600k (about 414k GBP). Who on Earth can afford these places? Surely it all over valued and will decline at some point? I don't believe it's sustainable.

 

How long are you prepared to wait?

[Guest chris955]

They cant be justified, it is impossible and definitely not sustainable.

 

I find it astounding that anyone could justify these prices. A 2 bed flat 9 miles away from central London can be had for around 250k (GBP) while a similar in Sydney (same distance from CBD) would cost you around 600k (about 414k GBP). Who on Earth can afford these places? Surely it all over valued and will decline at some point? I don't believe it's sustainable.

[Bromney]

Good question hence I'm in a quandary at the moment. Looking at to buy properties but the value placed on it vs the quality (imho) doesn't seem justifiable but then paying $500 a week for a 1 bed rental seems equally crazy! Luckily I have family willing to let me stay rent free but I think I'll most likely rent as I'm simply not convinced this bubble is going to keep growing.

[Jacaranda]

How do people manage paying those rents on casual work?I think I'd find it heaps stressful tbh!

[Guest chris955]

How do people manage paying those rents on casual work?I think I'd find it heaps stressful tbh!

 

Well the problem seems to be that many are only just managing.

[Peach]

I find it astounding that anyone could justify these prices. A 2 bed flat 9 miles away from central London can be had for around 250k (GBP) while a similar in Sydney (same distance from CBD) would cost you around 600k (about 414k GBP). Who on Earth can afford these places? Surely it all over valued and will decline at some point? I don't believe it's sustainable.

 

Using the current GBP to AUD exchange rate to compare prices isn't sustainable. People earning and spending AUD are the ones who can afford Sydney prices. Simple really.

[Guest chris955]

Using the current GBP to AUD exchange rate to compare prices isn't sustainable. People earning and spending AUD are the ones who can afford Sydney prices. Simple really.

 

Well the problem seems to be more and more people cant afford it.

[Peach]

Well the problem seems to be more and more people cant afford it.

 

Except when the shoe is on the other foot and you are telling the world how cheap the UK is. Even within my family I know plenty of people who are struggling to afford UK prices...

[Guest chris955]

Except when the shoe is on the other foot and you are telling the world how cheap the UK is. Even within my family I know plenty of people who are struggling to afford UK prices...

 

​How on earth is that relevant to anything ?

[Peach]

​How on earth is that relevant to anything ?

 

My point is that there are very few cheap places left in the world. I commented that someone comparing UK & Sydney prices using the current exchange rate was a poor measure. London housing is expensive if you're an average Joe employee earning GBP. Sydney prices are expensive if you're are an average Bruce earning AUD. Yet in both countries property still gets bought and certain demographics thrive. Your statement that more and more people can't afford it applies to both countries - and I think you're deaf and blind to that fact.

Edited May 4, 2013 by Peach

[Guest chris955]

Have a look at the thread title and perhaps read the story.

[starlight7]

I guess the only way to cope is to go further out. I know with Melbourne it is much cheaper if you live a 45-50 minute train ride from the CBD. Not super cheap but still a lot cheaper than close in. Not so sure about Sydney, think you might have to go even further out.

[Peach]

Have a look at the thread title and perhaps read the story.

 

I did. And my response to the thread was to your post

They cant be justified, it is impossible and definitely not sustainable.

suggesting you should perhaps take a step back and look at the bigger picture. But who am I trying to kid that you'll ever take the blinkers off...

[Bromney]

Using the current GBP to AUD exchange rate to compare prices isn't sustainable. People earning and spending AUD are the ones who can afford Sydney prices. Simple really.

 

Fair enough, maybe I shouldn't be comparing GBP to AUD. I guess it's a little hard to not draw comparisons as the chunk of my savings are in GBP. Although I'm earning AUD it'll be some time if I have to purely rely on my AUD to save up for a place.

[Peach]

Fair enough, maybe I shouldn't be comparing GBP to AUD. I guess it's a little hard to not draw comparisons as the chunk of my savings are in GBP. Although I'm earning AUD it'll be some time if I have to purely rely on my AUD to save up for a place.

 

Absolutely, if the £ had not collapsed in 2007 your saving would be worth 25 - 33% more. If you wound back to 2002, a £ was worth nearly $3AUD.. I wish I'd bought an investment property here in 2002 rather than a home in the UK...