deryans

Adelaide now one of the least affordable cities in the world in which to buy a house

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    http://indaily.com.au/opinion/2016/02/17/sa-planning-policies-make-housing-unaffordable/

     

    Demographia’s research shows that the typical Adelaide house costs 6.4 times the median household income. By contrast, the typical house in New York is 5.9 times that mega-city’s median household income.

     

    • Adelaide is now one of the least affordable cities in the world in which to buy a house. On a scale of 367 cities assessed, Adelaide sits near the bottom as the 321st least affordable city in which to buy a house. The rankings are calculated by comparing the median household income ($66,700pa) and median house prices ($430,000) against those in the other markets. The median price of a house in Adelaide is 6.4 times the median wage compared to 2.9 times in 1980 (according to Reserve Bank data);
    • In contrast, Adelaide’s US Sister City, Austin (Texas), has an almost identical US dollar Median Household Income ($65,800 pa) but a significantly lower Median House Price ($264,000). Austin’s economy is currently rated number 1 in the US, has an average economic growth of 5.7 per cent over 10 years and job growth of just under 11 per cent over 5 years. The median price of a house in Austin is 4.0 times the median wage, compared to Adelaide’s 6.4.

     

    This is in keeping with one of our reasons for leaving adelaide, we saw this coming, even in Sydney our ratio was approx 5.1 times (on a good salary)when we were there, but this rose to 5.3 and up to 6 in adelaide as the pay is considerably less and the relative cost of housing (considering the employment market) and the restrictions mentioned above take effect.

     

    By contrast , it is floating around 4.5 where we are here in SE UK , considering the income potential, public transport and living outside the major cities, you get alot for your money.

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    Try the SW of the UK where I moved from - very different story from the SE. Our house in the lovely wine region of McLaren Vale occupies 3 times the land of what we had in Devon, is twice the actual house and cost us less money in comparison. Oh, and I am paid better in Adelaide than I was in Exeter.

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    Try the SW of the UK where I moved from - very different story from the SE. Our house in the lovely wine region of McLaren Vale occupies 3 times the land of what we had in Devon, is twice the actual house and cost us less money in comparison. Oh, and I am paid better in Adelaide than I was in Exeter.

     

    That's similar to us Zebedee. South west area is pricey house wise compared to salaries and so on.

     

    There are affordable areas for many in which to buy a house here I think. Not everyone wants or can afford the eastern suburbs here which are very expensive to buy in. I love the eastern suburbs but we couldn't afford to buy there. I'd perhaps not justify the expense even if we could. I love where we live now in the foothills. Some of the western coastal suburbs are a high price too to buy in. Look further out and there are still good options. Many migrants opt for the southern coastal suburbs and elsewhere as they are affordable and many are good to live in and if it suits your wants and needs then thats a good thing in my book. OK the commute to work can be half an hour or a bit more depending on where you are exactly but for me, given that was about what it was for us in England anyways, its no real difference if we do need to commute. It sure as hell beats the 4-5 hour total daily commute my husband was doing for 6 months when he was offered a job in Bristol but we were living in West Somerset :goofy:

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    Totally right Snifter - it's easy to make statistical comparisons but the SE of the UK and Adelaide don't even come close to a like for like comparison and you are right that there are plenty of areas which are decent and more affordable in Adelaide.

     

    The SE of the UK itself has a huge variety of places as well - so house prices will massively vary there. My mum and dad moved from Epsom when I was 13 to Cornwall (thank goodness) and you cannot say you would get a lot for your money there - house prices are extremely high. And it's not even a place I would consider as nice.

     

    Got this weekend planned up nicely - weather is looking good (as it normal is) so probably take the dog out on a bush walk on Saturday followed by some snorkeling on Sunday, can't do that in Epsom :wink:

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    We struggled to buy a house when we were younger. I see the same struggle with my own children today.

    The struggle isn't affordability in Adelaide though...it's the lending criteria following the global financial crisis (deposit) and that terrible tax...stamp duty!

     

    The difference in repayments compared to rental payments isn't too great and affordability isn't the issue for them even though they are low income earners. If they could save for the deposit and the stamp duty there would be so many homes that they could comfortable buy by swapping rent for mortgage payments.

    I have friends who moved here from West Yorkshire 2 years ago and have recently bought a house in Flagstaff for $500,000. 4 beds, 2 living areas, pool, deck etc etc...your typical Aussie home. Both of them are self employed (he's a joiner) and their repayments are $100 pw more than they were paying in rent (they bought their rental).

    "Lies, damned lies, and statistics"...the reality is often very different.

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    We struggled to buy a house when we were younger. I see the same struggle with my own children today.

    The struggle isn't affordability in Adelaide though...it's the lending criteria following the global financial crisis (deposit) and that terrible tax...stamp duty!

     

    When my mum and dad bought their first house 40+ years ago my dad sold his car to put towards the deposit as that was the only asset he had of any value.

     

    Article in the paper today regarding the requirement to have a bigger house deposit.....

     

    House Deposit.jpg

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    When my mum and dad bought their first house 40+ years ago my dad sold his car to put towards the deposit as that was the only asset he had of any value.

     

    Article in the paper today regarding the requirement to have a bigger house deposit.....

     

    [ATTACH=CONFIG]9655[/ATTACH]

     

    That's what we did!

    We had a VW Kombi and it was sold to find money for our first house. My OH worked multiple jobs and it was SO difficult.

     

    My kids want to use my home as surety for their purchase! The mortgage is only $30 pw more than they are paying in rent though...

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    We struggled to buy a house when we were younger. I see the same struggle with my own children today.

    The struggle isn't affordability in Adelaide though...it's the lending criteria following the global financial crisis (deposit) and that terrible tax...stamp duty!

     

    The difference in repayments compared to rental payments isn't too great and affordability isn't the issue for them even though they are low income earners. If they could save for the deposit and the stamp duty there would be so many homes that they could comfortable buy by swapping rent for mortgage payments.

    I have friends who moved here from West Yorkshire 2 years ago and have recently bought a house in Flagstaff for $500,000. 4 beds, 2 living areas, pool, deck etc etc...your typical Aussie home. Both of them are self employed (he's a joiner) and their repayments are $100 pw more than they were paying in rent (they bought their rental).

    "Lies, damned lies, and statistics"...the reality is often very different.

     

    Re Stamp Duty: is it my dodgey memory.....but didn't the Pollies promise that part of the the trade off for the GST would be the abolition of Stamp Duty??

     

    JB

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    Re Stamp Duty: is it my dodgey memory.....but didn't the Pollies promise that part of the the trade off for the GST would be the abolition of Stamp Duty??

     

    JB

     

    They did.

    It seems to have slipped from peoples memories.

    When sales tax was brought in they compensated for stamp duty by giving first time home owners the homes owners allowance... they still give the first time home owners allowance but only but new build properties. If you buy an existing property you still get slugged with stamp duty without having any allowance to offset it.

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    can't imagine what sort of house I'd get in Sydney or Melbourne or Perth for $430,000. If you could find one you'd be at least one to two hours drive out of town, surely?

     

    As for Austin, Texas....wasn't the whole of the US Housing Market blitzed in the GFC?

     

    JB :swoon:

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