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ACT Housing the most affordable in the country?

By johnboy - 7 September 2006 73

The Chief Minister is claiming that the ACT has the most affordable housing in the nation.

Now before the reality shear consumes your mind It’s worth scrolling down the page and seeing where the statistics came from. It’s the Real Estate Institute of Australia’s Home Loan Affordability Indicator and, most importantly it measures affordability on the basis of income.

So because we have higher average wages in Canberra we get to screw the lower income earners extra hard in the housing market.

What’s Your opinion?

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73 Responses to
ACT Housing the most affordable in the country?
VYBerlinaV8 12:21 pm 08 Sep 06

Joker has the right idea. My wife and I lived in a rented shoebox for 3 years while we saved (yes, saved) for a house deposit. It was a bit crummy for a while, but has proved to be well worth it.
I am the same age as Nyssa.

nyssa76 12:20 pm 08 Sep 06

Joker, yes I can see myself riding to work, dropping 3 children off at school and daycare.

The only “debt” I have is HECS. I don’t owe money to anyone. I have savings, but still it isn’t enough as every time you get to the 15% (at least) deposit, the bloody prices go up again and so it starts all over again.

Living in Canberra is not cheap, renting is abysmal and people have to live here.

When will the Govt get the drift – more people = more money coming in = better economy. Not – raise land prices for a handful of people.

Joker 12:07 pm 08 Sep 06

Buying a house isn’t easy, this is what I did on a single income.
Pay off all debts ASAP! HECS etc
Live in a hovel for three years
Change jobs after two years take no leave and collect the holiday pay.
Don’t buy anything new or on credit
Buy close to your employment and ride a bicycle to work

snahon 11:55 am 08 Sep 06

The gov may have released some land cheaply but I don’t think there were too many lots that were actually available through the ballot ?

If houses prices continually increase, then affordability is decreased hence the number of renters increase and subsequently rental properties increase in rent amounts !

Gotta love spirals 🙂

nyssa76 11:44 am 08 Sep 06

10yrs ago I was 20 and was at Uni.

The way things are going, I’ll never be able to buy a house, even on two wages.

If the economy will suffer so badly with the cost of land dropping, why has the Govt released “cheap” land for low income earners?

Seriously, how many low income earners can afford to buy in Canberra even now?

Anyone who was born after 1975 is effectively screwed, that is, unless they are a rich bugger.

I won’t pay off my HECS debt for another 5yrs at least, and by then, the house prices would have soared again.

So the baby boomers can still enjoy a home of their own, no HECS debt and, for some, a bloody Govt pension.

If the Govt wants to get people to live in Canberra, they have to do something about the price of land here. They have to make sure schools aren’t closed – a great deterent to people with young families.

Makes me want to move elsewhere.

Big Al 11:41 am 08 Sep 06

Wasn’t there a Govt scheme to ballot cheaper blocks in subdivisions like Wells Station to first home buyers and lower income families – I’m sure I read somewhere that they had trouble getting enough people to take up the offer.

VY I’ve read about the predicted rental increases too – I think it was in the W/end Oz.

Thumper 10:59 am 08 Sep 06

I’m glad I bought 10 years ago because there is no way I could afford to buy anything now.

snahon 10:53 am 08 Sep 06

woops without adversely affecting the economy I meant.

snahon 10:51 am 08 Sep 06

Thats it VY, we want it all and we want it now !!!

Trouble is, land prices (on new estates) are quite expensive already so add the cost of construction and all of a sudden you have a 3 beddie dog box costing over $400K. Look at nth watson, etc.

Mind you these dog boxes are still larger then most houses built a generation ago (they just have no yard).

The influence the housing market has on the whole economy (directly or indirectly) is such that it is difficult for gov to release large land parcels at relative cheap prices with adversely affecting the economy.

VYBerlinaV8 9:52 am 08 Sep 06

I read recently (I think it might have been Australia Property Investor) that rental costs are expected to rise around 40% over the next four years, based on several analysts research. That sounds like a lot to me, but it does indicate which way things are headed. The local govt has got themselves into a bit of a spot because if they make land cheaper then they could crash the local property market, leading to low property values, and much lower rates. There are other effects also.

It’s all consistent with constantly declining housing affordability in western countries. That said, most peoples’ idea of a house is of a much higher standard than the expectation of a generation ago.

simto 8:33 am 08 Sep 06

It isn’t JUST this government, though, it’s a worldwide phenomenon. One of the things I noticed in watching “49 Up” was that participants commented on how hard it was to buy a house nowdays in Britain.

nyssa76 7:59 am 08 Sep 06

Ah, you’ve got to love the ACT Govt, they really know how to screw the little guys.

Housing affordability? Hell, I can’t afford a house of my own and it’s bullshit. It’s a piece of expensive dirt covered by bricks and mortar.

The Govt needs to check itself on the cost of land, they tax us enough (and still can’t do it right) yet they want us to pay more.

Live in Canberra? Yeah right, lower the cost of land prices and people might actually buy a house and free up the rental market – god knows it’s a bigger bitch than a mortage atm.

miz 7:51 pm 07 Sep 06

You are correct Johnboy about ACT Housing continuing to ‘screw the lower income earners extra hard’. I live here, I pay tax (on practically everything as I don’t earn enough to save much, so proportionally high GST). Everything here is user pays with no recognition as to how many people are relying on the one wage. Now my rent has gone up to full, it’s hardly worth my while working (APS 3) at all. They want me to pay more to get my kids to school as they are closing the local one; travel further to a library (I believe they are closing several); and are now telling me that I risk being evicted if I don’t get two weeks’ advance (full) rent to them pronto.

VYBerlinaV8 5:05 pm 07 Sep 06

House price affordability has been steadily declining for many decades, and will continue to decline. This has happened overseas, and will happen here. That said, affordability will still fluctuate, but in the longer term property prices will still trend up.

Bottom line – do whatever you can to try to get into a place of your own, because it’s not going to get any easier…

Thumper 4:25 pm 07 Sep 06

And yet the CM wants to bring people from Western Sydney here…

Western Sydney, where the average income is probably much, much lower than in canberra.

Makes a mockery of so called low house prices doesn’t it?

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