All Topics / General Property / Is property really unaffordable?

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  • Profile photo of maz_lcmaz_lc
    Member
    @maz_lc
    Join Date: 2011
    Post Count: 8

    When we are talking about affordabilty, we are talking about the percentage of income you are spending on your property.

    I think we all are all aware that the average person (single or family) with a property is spending 50% of their household income. Which is much higher than in the past. 
    I think it is unrealistic to expect that low income earners, i.e. a family on minimum wage, should be able to afford property.

    I was one of the lucky ones growing up. I came from one of these low income familes (single-parent), the majority of income for our family came from the Government (yes taxes). My Mum rented the property that was brought whilst being married. We then rented somewhere cheaper. So therefore the property was paying for itself, even though there was no extra money to put into the mortgage.
    I grew up with one pair of shoes to wear all year around and clothes that were worn by my other siblings before me.
    The rules for property owners changed, I recall it being the early 90's, we then had to move into the property. My sibling's were old enough to care for me by this stage. So my mum worked part time whislt getting a degree at University. So for years later she was able to increase this minimum wage and get a job as a skilled worker.
    Now she owns two properties and is about to retire. However super remains a problem.

    If this property wasn't purchased before my parents seperated, my mum would barely have any investment and also barely any super. So her retirement age would be a struggle.

    However not every family is this lucky. That is why there is a rental market. Without people who are required to rent we would struggle to make an investement out of our properties. (I am aware many people rent due to other circumstances).

    I work hard every day to improve my skills, so every year I can attempt to earn more than a 2.5% increase in my pay.

    I am only 28. My boyfriend and I both have a seperate mortgage and two new cars. All of my friends, some who live in the North of Sydney, Inner West, Eastern Suburbs and Western Suburbs. All have a mortgage or two!

    In my 'world', yes property is very affordable. I think that people my age just want it all. By that I mean new clothes, new furniture, new car, a house to live in, a house to rent out and most of all a family. This is why the trend now is to live with your parents for longer and put off having kids until your older.

    Spending 50% of my salary is not a struggle for me or people I know. However there are plenty of people who do spend 50% of their salary and the money they have left does not cover the cost of living. These are the people that should have just rented.

    Housing is not affordable for everyone but if your complaining about it and think you aren't getting a fair deal, then maybe you should look at what it is that you want and strive to get it.. My advice for low income earners is to look for occupations that are in desperate need of skilled workers and then get the appropriate education to become that skilled worker. In the meantime live in an area where you can live within you means. Visit the below link to view Australia current skill shortages, which all are above the minimum wage.

    http://www.deewr.gov.au/Employment/LMI/SkillShortages/Pages/SkillShortageLists.aspx

    Profile photo of OceanArchitecturalOceanArchitectural
    Member
    @oceanarchitectural
    Join Date: 2011
    Post Count: 31

    Housing is affordable. Buying a mcmansion for your first home is not.

    I come from a family of 7, and we happily lived together on a 650m block of land in a 3BR, 1 bath, single story, 120m house.

    By way of comparison, many of my associates/friends/schoolmates demand a 2 story, 350m+, 3/4BR, 2 bathroom house at a minimum – decked out with plasma televisions/pools/spa baths of course.

    I think that the concept of affordability has changed largely due to changes in expectations.

    Profile photo of stefalexstefalex
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    @stefalex
    Join Date: 2006
    Post Count: 7
    Profile photo of NSW2011NSW2011
    Member
    @nsw2011
    Join Date: 2011
    Post Count: 36

    I am no expert by any means but I think the issue for me is not that housing is unaffordable but in certain areas of Sydney where I live, it's overvalued. Some people are falling into the trap of buying properties particularly off the plan that are worth less than what they bought it for when the apartments are completed. You have to be careful of buying a property that has negative equity. Property owners can ask for inflated prices but I see more and more instances of where there properties are being listed for longer and there are reductions in prices of $10k or more.

Viewing 4 posts - 41 through 44 (of 44 total)

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