Skip to content Skip to main navigation

Community

Donating over $1.5 million to 350
local Community Groups each year

How’s the affordability?

By johnboy - 4 January 2012 306

Apparently somewhere in the ACT Treasury resides a document claiming that Canberra is ‘Australia’s most affordable capital city’.

This has prompted the Liberals’ Vicki Dunne to let rip:

“In my electorate, the median house price in Canberra’s cheapest suburb of Charnwood is more than $160,000 higher than the equivalent suburb in Sydney (Canberra Times, 15 December 2011). In Dunlop, rates have increased by 132 per cent. This is anything but affordable and it’s time ACT Labor acknowledged this fact,” Member for Ginninderra Vicki Dunne said today.

“Overall, the average cost of a first home in Canberra has risen by more than $20,000 in the last financial year to over $400,000.

“Since ACT Labor came to power, ACT property rates and charges have increased by over 75 percent and rents have increased by 68 percent.

“ACT Labor is responsible for a substantial proportion of these cost pressures and if they can’t acknowledge the problem they can’t fix it.

At the heart of all this is an assumption that all people are on average or median incomes, where in fact the average is formed by a great number of people earning well under it.

Basically if you’re a double income public service family Canberra is quite affordable. And if you’re not then you should be.

What’s Your opinion?


Post a comment
Please login to post your comments, or connect with
306 Responses to
How’s the affordability?
arescarti42 9:22 pm 04 Jan 12

screaming banshee said :

God forbid people should start with a smaller property within their price range then build equity so down the track when dog and kids come along they can upgrade to a house.

NoImRight said :

So you agree its a choice issue then. I mean God forbid I should want a new BMW doesnt that become someone elses problem to make it affordable for me?

God forbid someone earning the average wage should be able to buy a house at the average price.

arescarti42 9:17 pm 04 Jan 12

“At the heart of all this is an assumption that all people are on average or median incomes, where in fact the average is formed by a great number of people earning well under it.

Basically if you’re a double income public service family Canberra is quite affordable. And if you’re not then you should be.”

This is the thing. Too bad if you work in retail or hospitality or something, you’re getting paid rest of Australia wages whilst paying Canberra prices.

I find it astonishing that the Liberals have the gall to criticise the government when they propose no legitimate solutions themselves, and in all likeliness would make no effort to do anything about it if they were the ones calling the shots.

EvanJames said :

How on earth do you afford a $400k house on $67k? Well, you don’t.

Actually I believe the done thing is to become a debt slave by taking on a ridiculously large mortgage and then start shitting bricks because you took on way too much debt.

Duffbowl 7:21 pm 04 Jan 12

davo101 said :

Ok, since Labor took office in 2002 the median house price has gone up from $200k to $550k and assuming that rates are levied as a cents per dollar value we would have expected them to go up 175%. Rents should also have increased 175% of the same period (to give the same return on the investment). Looks to me as if rates and rents are only going up at half the rate of the increase in house prices.

Rates are levied against land value, not the full property. There is an argument that the ACT’s policy for land release has caused land values to rise, therefore filling the coffers a little more. Meh.

I think they should be comparing the rate and rent increases against two sets of figures; overall ACT median income for the same period, and ACT median income without public service salaries. Not sure if the latter exists, and be buggered if I’d want to sort that spaghetti out.

screaming banshee 5:37 pm 04 Jan 12

God forbid people should start with a smaller property within their price range then build equity so down the track when dog and kids come along they can upgrade to a house,

Also, not having any idea about Sydney suburbs I’ve chosen one a random the same distance from Sydney’s CBD as Charny and the median value is $700,000. Whinge and moan all you like we’ve got it good here, if you thought it was better somewhere else I’m sure you would up and leave.

KB1971 5:24 pm 04 Jan 12

Pardon my ignorance but how does a government cause a massive rise in a greedy capitalist industry such as real estate?

When housing went berzerk around 2002 it wasnt just isolated to the ACT, we were well down on the list with the bigger cities going sky high. There were no political pressure then from memory, just greedy people.

EvanJames 5:07 pm 04 Jan 12

I’m sure Canberra is terribly affordable for these Working Families. If, however, you are a single on the average aussie income (not Canberra income), you are SOL. In Sydney and other capitals, there’s cheap options, little old fibro houses in Blacktown or whatever. here, the equivalent is Yass or Captain’s Flat. Not in Canberra. How on earth do you afford a $400k house on $67k? Well, you don’t.

The person in ACT Treasury is clearly a wanker, and probably has My Family stickers on their back window.

Chop71 4:55 pm 04 Jan 12
Chop71 4:39 pm 04 Jan 12

http://www.allhomes.com.au/ah/act/property-research/charnwood/121471712/top-50-sales

The top 10 houses on the list arn’t too bad. I suppose the buyers also thought that paying over 500k and one at $600k.

NoImRight 4:33 pm 04 Jan 12

Mess said :

NoImRight said :

The average cost of a first home has risen to $400000? Is this not a choice to some extent? Quick look on all homes shows a lot of properties well under that figure.

Most places listed under 400k are small townhouses and apartments. If you want a house with some sort of yard (because, god forbid, you may have/want pets, or to start a family) then you are looking at over $400k.

So you agree its a choice issue then. I mean God forbid I should want a new BMW doesnt that become someone elses problem to make it affordable for me?

amarooresident3 4:32 pm 04 Jan 12

Charnwood is less than 20 kms from the CBD (Civic). I’d challenge anyone to get a house the equivalent distance from the Sydney CBD for less than $400,000.

Mess 4:20 pm 04 Jan 12

NoImRight said :

The average cost of a first home has risen to $400000? Is this not a choice to some extent? Quick look on all homes shows a lot of properties well under that figure.

Most places listed under 400k are small townhouses and apartments. If you want a house with some sort of yard (because, god forbid, you may have/want pets, or to start a family) then you are looking at over $400k.

davo101 4:19 pm 04 Jan 12

In my electorate, the median house price in Canberra’s cheapest suburb of Charnwood is more than $160,000 higher than the equivalent suburb in Sydney

Turns out that the equivalent suburb in Sydney is Willmot about 29km from Parramatta or 52km from the CBD. There probably is a reason why the properties are cheaper in Willmot.

Canberra has a much smaller range in the quality of its housing stock which is why you’d expect the cheapest suburb in Canberra to be much closer to the median for the whole city than in a much larger city.

davo101 4:00 pm 04 Jan 12

Ok, since Labor took office in 2002 the median house price has gone up from $200k to $550k and assuming that rates are levied as a cents per dollar value we would have expected them to go up 175%. Rents should also have increased 175% of the same period (to give the same return on the investment). Looks to me as if rates and rents are only going up at half the rate of the increase in house prices.

It would also appear that the ACT Labor government has a lot more influence than you would expect. Not only have house prices increased by about 10% a year in Canberra, but also in most of the other capital cities.

The best bit of the press release was cut off, what the Liberal propose to do to help the situation:

cutting ground training and match fees by 50 per cent to help with the cost burden of junior sports.

Problem solved.

NoImRight 3:58 pm 04 Jan 12

The average cost of a first home has risen to $400000? Is this not a choice to some extent? Quick look on all homes shows a lot of properteis well under that figure.

zippyzippy 3:44 pm 04 Jan 12

Well this should be fun – let the political figure-fudging begin!

1 2 3 21

Related Articles

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2017 Riot ACT Holdings Pty Ltd. All rights reserved.
www.the-riotact.com | www.b2bmagazine.com.au | www.thisiscanberra.com

Search across the site