Quote: (11-30-2015 06:47 PM)Rush87 Wrote:
You'll also find that most families in Australia purchased their real estate when it was the equivalent of around one years wages.
As a result many live at home or purely rent.
Hit the nail on the head. Young people are simply priced out. They may end up buying, but it'll be likely far away from the jobs, the CBD and trendy areas.
Quote: (11-30-2015 10:50 PM)worldtraveler3 Wrote:
Why has Australian property got expensive ?
I thought it was a huge country with only 20m population. Land is supposed to be cheap and abundant. Plenty of spaces to build not like Asian cities such as Hong Kong.
I could go on at great length about this but I'll try to be brief. Yes, there's plenty of land and a small population.... however:
1. Infrastructure = Our leaders lack vision and foresight. They have followed the American model of urban sprawl instead of the European model of public transport, cycling and smart cities.
2. Immigration = We have a very high immigration quota. Essentially both sides of government aim to create what they coined a "Big Australia". We are projected to reach 39.7m by 2055 according to the ABS. When new Australians arrive, they primarily settle in the major cities, further exacerbating the crowded centres and pushing property prices up. (https://theconversation.com/population-g...ions-38490)
3. Negative gearing = Investors can deduct their mortgage repayments etc from their tax.
4. Foreign Property Ownership = Foreigners can own property in Aus, Chinese citizens in particular feel their money is safer investing in Aus than at home. This year they invested $12.4 billion AUD. (http://www.abc.net.au/news/2015-10-12/se...na/6841810)
5. Urbanisation = Aus is one of the most urbanised countries in the world e.g. it doesn't make sense for most people to live in woop woop as there are few amenities and jobs there. Also bear in mind, Aus is the dryest continent in the world and a lot of the interior of the country is infertile, arid and barren soil.(https://en.wikipedia.org/wiki/Urbanization_by_country)
A solution to increase the population of country areas and also make it a viable option for home buyers would be to build high-speed rail especially between Sydney and Melb (and Brissy) so people could commute into the cities... but to be honest this will probably take our leaders 100 years to build because they are useless =)