Housing problems solved by offering sufficiently unattractive houses?

johnboy 20 May 2009 55

The ABC delivers us a masterclass in spin based governance. Jon Stanhope is proclaiming success for his multi-faceted housing strategy.

The basis for this claim?

    Sixty cheaper house and land packages were offered for sale at the Brindabella estate at West Macgregor, but Mr Stanhope says only a third were sold.

    The Chief Minister says the clearance rate proves the Government’s affordable housing strategy is meeting demand.

So very few people want to by horrible houses at the edge of no-where and your work is done?

And while we’re at it houses around $360,000 are cheap? You’re not exactly on the bones of your arse if you can swing that kind of finance.

Talk about massaging expectations beyond the event horizon.

2 bedroom flats with rent-to-own schemes, now that’s affordable housing.


What's Your Opinion?


Please login to post your comments, or connect with
55 Responses to Housing problems solved by offering sufficiently unattractive houses?
Filter
Order
peterh peterh 4:49 pm 20 May 09

VYBerlinaV8_the_one_they_all_copy said :

If the ACT Govt wanted to do something really productive for home buyers they could P*SS OFF STAMP DUTY ALTOGETHER. What the hell is it for anyways? Putting a huge dent in the substantial amount of money you’ve saved for a deposit?

This, unfortunately, would be a good way of increasing the value of most properties by 2.5%.

but at least it would be all part of the loan, not a separate slug in the guts when you have finalised your finances with the bank.

AngryHenry AngryHenry 4:46 pm 20 May 09

VYBerlinaV8_the_one_they_all_copy said :


This, unfortunately, would be a good way of increasing the value of most properties by 2.5%.

I honestly don’t get it, it is a very new experience for me and being a fairly logical and reasonable person I find a lot of things with buying a house beyond logic and reason.

I can’t help but look at it sometimes like they’re screwing you as soon as you even think about buying something. Then I go back to basically throwing my money into the bottomless pit of rent.

And then I drink, heavily…

VYBerlinaV8_the_one_they_all_copy VYBerlinaV8_the_one_they_all_copy 4:37 pm 20 May 09

If the ACT Govt wanted to do something really productive for home buyers they could P*SS OFF STAMP DUTY ALTOGETHER. What the hell is it for anyways? Putting a huge dent in the substantial amount of money you’ve saved for a deposit?

This, unfortunately, would be a good way of increasing the value of most properties by 2.5%.

AngryHenry AngryHenry 4:24 pm 20 May 09

Thumper said :

I agree with you on that point Chewy, it shouldn’t have been developed in my view either.

Me too. You go out there and take a look. It’s just crap, it really is. I’ll be looking for something substantially older in an established suburb.

Thumper Thumper 4:22 pm 20 May 09

I agree with you on that point Chewy, it shouldn’t have been developed in my view either.

AngryHenry AngryHenry 4:16 pm 20 May 09

MacGregor has powerlines running right through it and a massive substation smack dab either in the middle or on the edge of it (I can’t remember, it was a pretty forgettable experience visiting one of those display homes). The place sucked. I wouldn’t want to bring up a family under those powerlines.

“Wow, your kids craniums just wont stop growing will they? They’re humungous, and their hair seems to be falling out!”

“Yeah, we’re from MacGregor! What’s your excuse?”

“Oh I’m just old and have been yammering on about how things were harder back in my day.”

If the ACT Govt wanted to do something really productive for home buyers they could P*SS OFF STAMP DUTY ALTOGETHER. What the hell is it for anyways? Putting a huge dent in the substantial amount of money you’ve saved for a deposit?

As someone who has worked extremely hard to get to a stage where they are almost capable of buying into the market I find the whole situation extremely disheartening.

chewy14 chewy14 4:08 pm 20 May 09

Jim Jones said :

chewy14 said :

Thumper said :

Close to sewage treatment plant

Absolutely nowhere near it actually…

<5kms. For a major treatment plant thats pretty close, although most of Holt is actually closer.
and as mentioned earlier, possible odours from Parkwood eggs.

You’re infinitely more likely to get noxious odours close to the city.

Seriously bud, if you don’t like the area or whatever, fine. But ‘possible odours’ is complete tripe.

The reason i don’t like the area is because it was never meant to be developed.
The area was designed (along with the small industrial area) as an infrastructure corridor, with a buffer zone to the suburbs. The buffer is now gone.
I don’t want to hear any complaints from the people who choose to live there in the future.

Jim Jones Jim Jones 3:26 pm 20 May 09

chewy14 said :

Thumper said :

Close to sewage treatment plant

Absolutely nowhere near it actually…

<5kms. For a major treatment plant thats pretty close, although most of Holt is actually closer.
and as mentioned earlier, possible odours from Parkwood eggs.

You’re infinitely more likely to get noxious odours close to the city.

Seriously bud, if you don’t like the area or whatever, fine. But ‘possible odours’ is complete tripe.

monomania monomania 3:22 pm 20 May 09

Entry level housing is too much if the land price is being inflated as a general revenue raising measure by government. A tax. Under these circumstances those getting into housing are subsidising previous buyers (who paid only what the land cost to develop) by causing the value of housing to rise excessively and having others (first home buyers and renters) keep down the rates and taxes they would need to pay if it wasn’t being ripped off those not yet in the market or who got into the market later.

The people who profit most are the developers and investors. We paid virtually nothing for our land 25 years ago. If we sell we have to buy elsewhere at the same inflated prices.

JimT JimT 3:08 pm 20 May 09

chewy14 said :

Thumper said :

Close to sewage treatment plant

Absolutely nowhere near it actually…

<5kms. For a major treatment plant thats pretty close, although most of Holt is actually closer.
and as mentioned earlier, possible odours from Parkwood eggs.

Never had any problems with odours from Parkwood or the treatment plant (or the former landfill, or current organic recycling depot), and I’ve been in my place since October 08.

chewy14 chewy14 2:27 pm 20 May 09

Thumper said :

Close to sewage treatment plant

Absolutely nowhere near it actually…

<5kms. For a major treatment plant thats pretty close, although most of Holt is actually closer.
and as mentioned earlier, possible odours from Parkwood eggs.

Thumper Thumper 2:15 pm 20 May 09

Close to sewage treatment plant

Absolutely nowhere near it actually…

VYBerlinaV8_the_one_they_all_copy VYBerlinaV8_the_one_they_all_copy 1:46 pm 20 May 09

Australian houses are massively over priced compare to what you can get for similar money elsewhere.

That’s a big generalisation, and not necessarily true. Let’s break it down into something more manageable. How many western countries have more affordable housing in their capital cities? We might be hearing about ‘price crashes’ on the news, but go and try to buy good quality property in inner London, for example, and tell me what the prices are like…

I’ve said this before, but I’ll repeat it for simplicity: the market is just past the top of the cycle, there’s no point comparing it with ten years ago when it was at the bottom of the cycle. Prices won’t grow much over the next few years, I think, but this just builds us towards the next boom.

You only need your property to increase in value by an average 5% per year for the value to double every 14 years! When inflation is a couple of percent (at least), and new houses are built out at the suburban edges, even this rate of growth is easy to achieve.

In a couple of generations, Australian cities will be like much of Europe – a small percent of the population are the landlords, and everyone else rents.

powell01 powell01 1:38 pm 20 May 09

Having purchased a house recently, we looked at West Macgregor. While I had no problem with the houses in West Macgregor, my wife did. And apart from very few houses in canberra, there were none below the 360,000 mark. We lost out on a few that were listed at or close to the 370,000 mark but ended up going for closer to 395,000.

Before any says something, we walked away from quite a few that were in my uneducated opinion, overpriced. Having said that, yes most people inlcuding my wife, want the ensuite, double garage, big yard etc because that is what they grew up with in the established suburbs. But some of the properties out there are overpriced for the market and anyone who says otherwise hasn’t been looking seriously at buying.

p1 p1 1:26 pm 20 May 09

Close to sewage treatment plant and possible odours.

I suspect that odours from the Parkwood Chicken place, or the former landfill, or the organic waste recycling might all be a bigger problem then the LMWQCC.

p1 p1 1:19 pm 20 May 09

And only 1 minute to the sewage treatment plant.

Wow, you must break the speed limit even more then me….

Before buying a house a couple of months ago we considered West McGregor.

What we did buy was…

Similar sized house,
Thirty years older,
Couple of suburbs closer in,
Little bit more money,
Over twice the size block,
very nice established gardens,

We weighed up all these things and made our choices. The cost is more then we would like to be paying, but with the consideration of kids in the near future (not just yet), we didn’t want to be in a 2br flat or town house and wanting to move in five years, when there were many other things in our lives.

screaming banshee screaming banshee 1:19 pm 20 May 09

Australian houses are massively over priced compare to what you can get for similar money elsewhere.

out comes the old….if you don’t like it leave. Seriously though if you discount recent collapses in some markets, where can you buy housing with comparable amenity and quality of life for significantly cheaper than Australia. If you dare say US then I will ask you to please go there……..but leave riotact, I need somewhere to vent and rant

And that’s the reverse of the situation just a generation ago.

The real blame lies with the failure of funding to state governments ever since the feds took the income tax powers in WWII.

not sure i understand what this might have changed and frankly wonder why we have a mid level government anyway

But shouting and what you think of as stupid kids won’t make housing any better value in this country.

who’s shouting?

chewy14 chewy14 1:04 pm 20 May 09

Jim Jones said :

chewy14 said :

Thumper said :

West Macgregor is 15 minutes from the city centre. On a bad run it may take you 20 minutes.

And only 1 minute to the sewage treatment plant.
Ah the serenity.

You’ve never been there, have you?

Yes i have. I looked around all the houses in this development, and have been in the area playing golf at the Belconnen club many times.

Bad Location
High Voltage Sub station
Close to sewage treatment plant and possible odours.
Overpriced (my opinion)

These houses may be good for some, but i think ill look elsewhere.

mred mred 1:02 pm 20 May 09

Every generation faces similar issues with buying into housing. It just feels a bit rough right now because of the recent housing boom. This isn’t the first boom and it won’t be the last. The people complaining now that things are unfair will be the same people who won’t have the money or won’t see the value in buying when prices are more reasonable.

Most people who own there own house made huge sacrifices to do so.

johnboy johnboy 1:01 pm 20 May 09

Australian houses are massively over priced compare to what you can get for similar money elsewhere.

And that’s the reverse of the situation just a generation ago.

The real blame lies with the failure of funding to state governments ever since the feds took the income tax powers in WWII.

But shouting and what you think of as stupid kids won’t make housing any better value in this country.

CBR Tweets

Sign up to our newsletter

Top

Search across the site