Australian homes the world's least affordable, survey says

Really sux, have to spend $500,000 to get anything half decent in Sydney and 30years paying it off.
www.news.com.au...

The least affordable place to live in the world is Los Angeles, but because Australia has the most cities - 18 - in the top 50, it is the least affordable nation for housing.

"There are no affordable markets in Australia and there are no moderately unaffordable markets. Twenty-five of the 28markets are rated severely unaffordable.

"On average, Australian families are forced to spend 6.1 times their entire household income to buy a typical home compared to 3.1 times in Canada and 3.6times in the US, and that's before interest charges.

reply to post by wycky

The Australian housing market is way way way overdue for a correction.

reply to post by troubleshooter


Which will make the economy even worse, alot of people will lose alot of money.

www.dailyreckoning.com.au...

See the link; it details at least in part, how this has come about and how untrustworthy Real Estate agents truly are. Liars and swindlers.

Id agree that The "Australian Dream" is now a distant memory. I wonder how the rest of the world is doing in times such as these.

Unless you have 2 fairly generous incomes, it is difficult to purchase and run a household to the point where you aren't being run into the ground.

My wife and i recently purchased a relatively small block of land and pre-established house (290 square M) and paid Just under $500,000. This house was nothing special, in fact it was a 3 Bedroom, 1 Bathroom plain brick house.

Our lives were really becoming a matter of work, sleep, work sleep etc The weekend we spent trying to do the place up so we could sell it and make a profit, however by the time we had finished, the housing boom was over and people were literally telling us what they would pay for it.

We found it so difficult, even though we have a combined income of over 100,000k per year - so much so that after 2 years, we simply sold it and moved into a smaller more "affordable" house, just to get the enjoyment back in our lives and at least have a small component of "Expendable" income.

Perth WA has some of the most expensive land for sale in Australia.

Guess I'll be living with my mum for the rest of her life.

Honestly, how can people afford to buy a house? I'll probably end up living in a motor home parked on the beach.

reply to post by tim1989

I've done both of what you say, just bought a house for the first time.....now facing moving back with mum cos no money for a campervan. I miss the freedom of the campervan.........that's my great aussie dream now. Believe me, you'll be much happier, have more money and time and enjoy your life much more, and if you don't like your neighbours....it's heaps easier to move!

Originally posted by tim1989
Guess I'll be living with my mum for the rest of her life.

Honestly, how can people afford to buy a house? I'll probably end up living in a motor home parked on the beach.

Its very difficult and you still need to save up for a 20% deposit so that's $100k for a $500k loan.

A motor home parked on the beach sounds awesome, want a neighbour???

Originally posted by wycky

Originally posted by tim1989
Guess I'll be living with my mum for the rest of her life.

Honestly, how can people afford to buy a house? I'll probably end up living in a motor home parked on the beach.

Its very difficult and you still need to save up for a 20% deposit so that's $100k for a $500k loan.

A motor home parked on the beach sounds awesome, want a neighbour???

you don't have to save 20% if you purchase LMI (Lenders Mortgage Insurance) which is added to the loan.

Extortion, though the legal kind.

Hate to post this again but;

This link "http://www.dailyreckoning.com.au/reports/property-swindle.pdf" not only details the R.E agents as swine, but also interest rate rises over the past 40 or so years and the effects it has had on necessary income and standard of living of a person or persons wanting to purchase land.

If you are contemplating purchasing land, read this, if i had - i might have reconsidered our position at the time.

Here in the US I sold my home just in time and bought a used 36 foot 5th wheel with 3 slide outs for less than 10000$. We live in a great campground near Lake Michigan for 300$ lot rent a month. I bought a building in town to keep the toys in for 200$ more per month and rent space out in it to other retired people in the park. Get a camper and relax.

reply to post by wycky


and I though Los Angeles had problems. Looks like Australia has been given a raw deal and is forced to take it in the pooper.:shk:

That is pretty terrible.

I'm pretty sure that the average price for a house in the UK is roughly ten times that of the average wage per annum. I have no sources for this, I'm just going on the assumption that on average a house costs £250-300K and the average wage of someone in the UK is 27K per annum. I'm pretty sure the household income is hovering at around £40K p/year for families where both parents work.

I'm so completely fed up of people accepting things as they are and not pushing for change. It seems crazy to me that the average cost of a house can be that much more than the populace can afford and nobody REALLY gets angry about it.

Originally posted by Dookzor
That is pretty terrible.

I'm pretty sure that the average price for a house in the UK is roughly ten times that of the average wage per annum. I have no sources for this, I'm just going on the assumption that on average a house costs £250-300K and the average wage of someone in the UK is 27K per annum. I'm pretty sure the household income is hovering at around £40K p/year for families where both parents work.

I'm so completely fed up of people accepting things as they are and not pushing for change. It seems crazy to me that the average cost of a house can be that much more than the populace can afford and nobody REALLY gets angry about it.

Currently Vancouver Canada is the least affordable in the world followed by a bunch of Auzzies (and others) and Victoria BC where I live on the island is number 8.

Bubblishish anyone - lol



[edit on 10-2-2010 by leo123]

a few months ago I sat down with my bank and tried to work it out.
Here are the figures

1. I needed 10% deposit.
$440,000.00 mortgage = $44,000.00 deposit.

If I was borrowing MORE than 85% of the loan, I had to pay $15,000 mortgage insurance UP FRONT. This couldnt be added to the loan.

So, $44,000.00 deposit + $15,000.00 mortgage insurance =

thats just to get in.

BUT, the government will give you $12500 first home buyers grant, AND Pay your stampduty, which in itself is about $20,000.00

Who has $69,000.00 lying about to get a home?
Especially when rents are ASTRONOMICAL?