Australian houses dearest

[lyndalelodge]

After more than 25 years my husband who is a tradie has in excess of $800,000 in super which is slightly more than the $70 - $100K... I havent checked the mattress yet though, I appear to sleep well:wink:

 

Show off!!!!:tongue: (just jealous!!)

[Guest siamsusie]

Show off!!!!:tongue: (just jealous!!)

 

Not my hard work Lyndale, my OH's:tongue:... one would have to wonder the true meaning of my marriage eh:laugh:... he always said "you married me for my marble table and the Super":embarrassed::elvis:...

[Guest famousfive]

If housing was affordable here you would not have so many families struggling.Every week we read of people affected by rising interest rates,electricity,childcare and general cost of living.More and more young people are priced out of the housing market and many families struggle to pay the bills. More people have no choice but to rent and this also puts a strain on the rental market,especially in the cities.A sure indication of high house prices,and often low wages, is the fact that a large percentage of mortgages are serviced by 2 incomes because one is not sufficent.This is very like what happened at home in ireland,a lot of families had to have two incomes to pay for overly priced houses so when things went bad there were a lot of people who were already stretched to the max who inevitably went under.Many homeowners in aus are now finding themselves in the same position,they are so stretched financially that they have no wriggle room and the smallest of interest rises can have a dramatic effect.There are of course areas with affordable houses but usually they are in areas where a lot of people would struggle to find work,not the type of places that give you the best opportunity when migrating and starting over.

[Guest justlookin]

That's in Broken Hill, I can only assume you have never been to Broken Hill ? There is a VERY good reason it is that cheap.

 

Have a look at this place 11 Boughtman Street, Broken Hill, NSW 2880 - House for Sale #106874357 - realestate.com.au

 

$265k for a 4x2 easily affordable for the average wage earner.

[Paul1Perth]

I think another reason new buyers are struggling is their outgoings before even thinking about a mortgage. When we were looking and trying to save up we didn't have mobile phone bills, laptop rental etc. to sort out every month.

 

We had a phone at home which our parents paid for, didn't have to worry about laptops so had the choice of stopping in and saving seriously.

 

The new buyers and younger people I meet wouldn't dream of getting a first time buy like the one we had to get to be in the game. We had to replaster the whole place, rewire, new kitchen, new bathroom, decorate and did it all ourselves as we couldn't afford anyone to do it for us.

 

New buyers now want a 3 x 2 minimum, garage, pool, plasmas in every room and they want it now. Not prepared to save up for a couple of years. Peoples expectations will have to change I fear.

[fish.01]

The best figures that I've been able to find are that the median Sydney income is around $82K, and the median house price is $634K. (Different indices have different values.)

 

At current interest rates, a 90% mortgage for an average house would cost about $50K a year. This would be 61% of a typical household's income, and the median wage is actually somewhat lower than this again.

 

Or to put it another way, mortgage stress is defined as the point where houses become unaffordable. Prices would have to half to get down to this level.

 

Whilst I agree that there will be Aussies with a decent stash of cash or investments, I doubt that they are in the majority. I heard that workers typically have $70K to $100K in their superannuation fund as they approach retirement, which isn't consistent with the odd half million dollars hidden under their mattress. :biglaugh:

 

Personally, I'd advise renting rather than buying. If you get caught on the wrong side of a downturn in the housing market then it could take ten or twenty years to dig yourself out of the hole.

 

For those on average income with little savings it makes sense that they couldn't afford the average house.

 

Not sure why the amount people have in super is inconsistent with a lot of equity in their home?

 

The average mortgage is similar to the uk average mortgage. Your figures prove that on average people are not borrowing those sort of 90% amounts on those figures as they are impossible to support - even if a bank would give it to you.

[Life on easy street]

I have always said that houses are very expensive in Oz, thanks for the link.

 

It is only since 2003 that prices have dramatically increased

 

In some areas nearly 3 times the cost in Australian dollars!

[Joebloggs]

BUT, if the average house price is $634k, then the house next door to to the $265k house must cost £1,003k (on average) and this is certainly out of reach of the average earner.:eek:

 

The problem isn't that there are affordable houses out there, it's that there aren't enough of them to go around.:sad:

 

Have just noticed where this house is!! Not wanting to detract from anyone who lives there as I'm sure it's very nice, but it's probably not too high up on the average persons list of places to live, which probably explains the price and makes me think your post was maybe a bit tongue in cheek! :rolleyes:

 

well is an average sized house 4 Bedrooms and 2 bathrooms, so what if its in Broken Hill its still pretty affordable.

[Joebloggs]

That's in Broken Hill, I can only assume you have never been to Broken Hill ? There is a VERY good reason it is that cheap.

 

Why have you?

 

Been there a few times, been all over in fact. Sure Broken Hill would not be at the top of everyones list but whats the point of complaining that houses in Australia are expensive when that is not true.

 

Sure thats like saying that there is a VERY good reason why houses in the UK are cheap as long as they are not in Knightsbridge, Belgravia or Kensington.

[Life on easy street]

I think another reason new buyers are struggling is their outgoings before even thinking about a mortgage. When we were looking and trying to save up we didn't have mobile phone bills, laptop rental etc. to sort out every month.

 

We had a phone at home which our parents paid for, didn't have to worry about laptops so had the choice of stopping in and saving seriously.

 

The new buyers and younger people I meet wouldn't dream of getting a first time buy like the one we had to get to be in the game. We had to replaster the whole place, rewire, new kitchen, new bathroom, decorate and did it all ourselves as we couldn't afford anyone to do it for us.

 

New buyers now want a 3 x 2 minimum, garage, pool, plasmas in every room and they want it now. Not prepared to save up for a couple of years. Peoples expectations will have to change I fear.

 

I have to disagree.

 

The difference in price between house that requires a lot of work doing to it is typically Up to 30% with the odd exception.

 

At today’s prices even a house to requiring lots work is way out of reach of a typical family on a single

Average wage.

 

This was not the case 10 years ago in the U.K and Australia.

[Joebloggs]

It's in Broken Hill for pity's sake. What is the average wage in Broken Hill? Do they even have jobs in Broken Hill?

 

Well if you were earning $70K as a electrician in Sydney and trying to buy a 4x2 house for $750K you would probably struggle, if you did the same job in Broken Hill for only $50K you probably could afford a 4x2 at $265K. End of the day they probably need electricians in Broken Hill.... last time I was there people had light bulbs rather than tilly lamps.

 

Like you say if you want to live in LaLa land then look for a better paying job, otherwise you just have to cut your cloth to suit.

 

Economics 101

[Addy]

I think we are at the tipping point too. This item was published yesterday;

 

Housing market conditions 'tipped to worsen' | News.com.au

 

HOUSING market conditions are expected to worsen over the next 12 months, following last year's interest rate rises and ongoing tight credit conditions.

 

Today this article was published;

 

Home owners brace for $200-a-month mortage rise | News.com.au

 

HOME loan borrowers will have to cough up an extra $200 in monthly mortgage repayments by the end of this year or early next, according to a leading economic forecaster.

Though the official interest rate is all but assured to stay on hold in February, Access Economics predicts variable mortgage rates will rise one percentage point by late 2011 or early 2012, reported the Herald Sun.

This would bring the average standard variable rate to 8.8 per cent, and lift monthly repayments on a typical $300,000 home loan to $2476 from $2275.

 

People aren't buying because they are scared that interest rates are going to go up. therefore there is more property on the market. I believe there is 44% more for sale now than at this time last year. I have noticed many more houses on the market in my area. Obviously some sell quickly, but those who are desperate to sell will reduce their prices to get the sale. Then the slide starts. The auction results for most of the country have not been released for January as yet either. I suspect they will be low.

[lyndalelodge]

Well if you were earning $70K as a electrician in Sydney and trying to buy a 4x2 house for $750K you would probably struggle, if you did the same job in Broken Hill for only $50K you probably could afford a 4x2 at $265K. End of the day they probably need electricians in Broken Hill.... last time I was there people had light bulbs rather than tilly lamps.

 

Like you say if you want to live in LaLa land then look for a better paying job, otherwise you just have to cut your cloth to suit.

 

Economics 101

 

Unfortunately I don't think there are enough jobs or houses in Broken Hill, or other similar areas to satisfy the number of people looking at that price range. That's why the AVERAGE house price is 6 x earnings. Broken Hill, etc is already factored into the equation.

 

The slightly scary thing here is that you are quoting a place in the middle of the country as being affordable to someone earning $50k (is that an average salary in Broken Hill?), despite the fact the house is still worth more than 5 times that?!:eek:

 

If that's where people have to go to get a house worth 5 x salary instead of 6 x salary (or more), then that is very worrying. Where are the houses that are an average of 2.5 or 3 x salary, which is what most people would call affordable?

[rockola57]

Could yer be asred?The stress of it all.Buying a house now in OZ is anathema to me and her.Why bother with it all when the reason we came here was to get away from all that!Personally ,it's better for us to rent,no one here gives a shoyt anyway,except the poms!:confused::wink:

[fish.01]

Could yer be asred?The stress of it all.Buying a house now in OZ is anathema to me and her.Why bother with it all when the reason we came here was to get away from all that!Personally ,it's better for us to rent,no one here gives a shoyt anyway,except the poms!:confused::wink:

 

I'm an Aussie and I care....buy a house ya bum :biglaugh:

[Petals]

What we do not know is the hidden figures of mortgage stress, the reason I am writing this is because I was out with Mum the other day and friend said neighbours were selling because they could not afford the mortgage.

 

If there is no contingency available and its a week to week situation often that is people's only option. So watch the sale numbers in your areas.

 

Also marriages break up with the strain and houses go on the market.

 

Houses do need to become more affordable but to do that a lot will end up with no equity, caught between rock and a hard place.

[Bobj]

Unfortunately I don't think there are enough jobs or houses in Broken Hill, or other similar areas to satisfy the number of people looking at that price range. That's why the AVERAGE house price is 6 x earnings. Broken Hill, etc is already factored into the equation.

 

The slightly scary thing here is that you are quoting a place in the middle of the country as being affordable to someone earning $50k (is that an average salary in Broken Hill?), despite the fact the house is still worth more than 5 times that?!:eek:

 

If that's where people have to go to get a house worth 5 x salary instead of 6 x salary (or more), then that is very worrying. Where are the houses that are an average of 2.5 or 3 x salary, which is what most people would call affordable?

 

The average wage in the UK is,"

Average Salary

 

 

 

 

 

£23,450

 

The average UK house price is,"

 

UK House Prices

 

 

Average house price

£246,387

House type Average price Detached £352,699 Semi-detached £210,320 Terrace £200,044 Flat £227,592

Just about 10 x

 

 

*****************************************

Average full-time earnings in Australia were $64,641 per annum in 2010. (According to the Bureau of Statistics.)

 

These were the median house prices across Australia’s five biggest cities rounded to the nearest grand……

 

 

• Sydney: $577,000

• Melbourne: $492,000

• Perth: $475,000

• Brisbane: $452,000

• Adelaide: $379,000

 

Average about 7.4 x

 

What about the Australian country towns to live and work in??? Some magnificent places and wages that are extremely 'liveable.' Excellent properties to be had, quite often with pool and acreage and up to 35 minutes commuting to the town CBD.

 

Cheers, Bobj.

[lyndalelodge]

Where you getting your average house price Bobj, I've never heard it quoted that high before?! Last I heard was around the £160k mark.

 

Not sure about salaries, but I think you might be slightly on the low side there as well.

 

Off out for a pint just now and will investigate more on my return

[Bobj]

Where you getting your average house price Bobj, I've never heard it quoted that high before?! Last I heard was around the £160k mark.

 

Not sure about salaries, but I think you might be slightly on the low side there as well.

 

Off out for a pint just now and will investigate more on my return

 

Here you go, mate:

 

BBC NEWS | In Depth | UK House Prices | Overview

 

Cheers, Bobj.

[lyndalelodge]

http://www.statistics.gov.uk/downloads/theme_labour/ASHE-2010/tab1-7a.xls

Average salary = £26,510

 

Land Registry : House prices

Average House price = £164,773

 

Therefore 6.2 x salary

 

I think what this proves is that to some extent you have to take the statistics with a pinch of salt.

 

Basically, houses in the UK and Oz are both extremely unaffordable to the average person and depending on which survey you look at, either country can be the worst. But the bottom line is that neither of them are anywhere near the comfort zone for the 'masses'.

[Petals]

We need to live a life as well as pay the mortgage as its our lifestyle that makes us content. I personally could become to hate a house that was taking away my lifestyle because I had overspent.

 

We bought the cheapest house in the street for our first home, we could have got a more expensive one but we did not want to be that much in debt. Same when we built this house we could have made it into a real estate agents dream home but we just made it a home. We did not want to spend oodles of money.

 

Problem is a lot of people are like us but now they do not have the opportunity to get a home at all as the deposit they need to pay and the price for the humble home is way overpriced these days.

 

Our children should not have to wait till we pop our clogs to get a foot on the ladder. If they do then we are going backwards to mid 20th century.

[Joebloggs]

Unfortunately I don't think there are enough jobs or houses in Broken Hill, or other similar areas to satisfy the number of people looking at that price range. That's why the AVERAGE house price is 6 x earnings. Broken Hill, etc is already factored into the equation.

 

The slightly scary thing here is that you are quoting a place in the middle of the country as being affordable to someone earning $50k (is that an average salary in Broken Hill?), despite the fact the house is still worth more than 5 times that?!:eek:

 

If that's where people have to go to get a house worth 5 x salary instead of 6 x salary (or more), then that is very worrying. Where are the houses that are an average of 2.5 or 3 x salary, which is what most people would call affordable?

 

My house in Sydney is about 5 x salary but my home loan is 3.2 x my salary. The majority of people I know would be in the same boat, Australia is a typical society it has people who can afford and people who can't. If you are want to live in a desirable area then get a better paying occupation.

[lyndalelodge]

My house in Sydney is about 5 x salary but my home loan is 3.2 x my salary. The majority of people I know would be in the same boat, Australia is a typical society it has people who can afford and people who can't. If you are want to live in a desirable area then get a better paying occupation.

 

It's always difficult to comment on people's individual circumstances, but certainly where i live in the UK, the same situation exists.

 

The reason I feel it exists is that a large number of people (say, the over 35's) have been able to get on the 'ladder' a few years back when the 'value/salary' was lower and they have benefited from a dis-proportionate increase in property value compared to salary, meaning quite often as they enter their 40's they have been promoted to better paying jobs and have a decent deposit coming from their last house. Certainly, I am in that boat, as are most of my friends and a large % of folk I know.

 

The problem as I see it largely looms for the younger generation who struggle to make the first step as it is far higher now than it was when I took it.

 

Obviously folk have to 'cut their cloth' accordingly and work harder to earn better if they want the nice house. But if they can't make the first step on the ladder it becomes very difficult to save for a deposit as their savings are eroded by house inflation, hence the vicious circle that we are increasingly finding the UK/Austrlia are in. Without a price correction, the younger generation, in general, will find it increasingly difficult to ever buy a house. However, it's a market economy and it's tough and that's life!! It's not nice, but......

[Quinkla]

If you are want to live in a desirable area then get a better paying occupation.

I'm surprised everyone doesn't do this.

[Petals]

It's always difficult to comment on people's individual circumstances, but certainly where i live in the UK, the same situation exists.

 

The reason I feel it exists is that a large number of people (say, the over 35's) have been able to get on the 'ladder' a few years back when the 'value/salary' was lower and they have benefited from a dis-proportionate increase in property value compared to salary, meaning quite often as they enter their 40's they have been promoted to better paying jobs and have a decent deposit coming from their last house. Certainly, I am in that boat, as are most of my friends and a large % of folk I know.

 

The problem as I see it largely looms for the younger generation who struggle to make the first step as it is far higher now than it was when I took it.

 

Obviously folk have to 'cut their cloth' accordingly and work harder to earn better if they want the nice house. But if they can't make the first step on the ladder it becomes very difficult to save for a deposit as their savings are eroded by house inflation, hence the vicious circle that we are increasingly finding the UK/Austrlia are in. Without a price correction, the younger generation, in general, will find it increasingly difficult to ever buy a house. However, it's a market economy and it's tough and that's life!! It's not nice, but......

 

I agree but its a much harder life as when we were young there was more social housing available for people who were unable to get on the first rung, social housing has been eroded and now we have waiting lists years long.

 

People have to live somewhere and if we do not provide housing in a first world country then we should not be called one. I am not an advocate of cradle to the grave welfare but if employers want to pay low wages there has to be a balance or else we do not have a society at all.