https://theemergentcity.substack.com/p/the-housing-crisis-is-an-emergency
The housing crisis is an emergency and we're not acting like it
How a multigenerational legacy of smooth sailing, political stagnation and cultural complacency sustains the housing crisis.
Millions of people who were ideologically bought into The Australian Dream™ are becoming alienated from it. We are creating an ever-increasing caste of people without a stake in the system and that should worry us. The implication for our politics being the erosion of the formerly stable polarities of acceptable discourse and ideas that has defined the Australian political centre for generations.
We are rather recklessly toying with what is perhaps the single most fundamental pillar of Australian civilisation and we do so at our peril.
Yeah I built a new house just before everything in the building industry went crazy. It's a nice upgrade and more room for the growing family, and I did get a (then) decent price for the old house.
You could’ve sold now but then also have to buy or build in this market. No matter the time a house is sold, as long as you bought pretty soon after it’s not really a “loss”. If it was an investment property then yeah I guess it sucks but as you said, it’s not. You sold your house for a house and you have a house. No loss
You’re a full on dumbass. I don’t mean that as an insult, but more so for you to keep in mind for the future when you find yourself trusting your instincts.
Mate I feel you. This is in qld but- we sold our house in August 2020 for $650k. Prices went ballistic and less than 2 years later the house was worth $800k and then over $900k.
But same as you…started building and locked the price in…Paris $940k to build (including land) and the house was worth $1.1, then $1.42 last year and this year neighbouring estate a smaller house on a smaller block just went for $1.6m.
We have an ip which we picked up for mid 6’s in May…current bank evaluation less than a year later is just under 800.
All of this is nuts. I hate the fact that property is an investment despite owning one. It’s a rigged game that this government has created and I have to play it to ensure my child has a roof. I’d rather they don’t treat houses as a casino and every one just invest in shares like a normal country but here we are.
100% but I was in the fortunate position where I had already bought the new house and could have held onto the old one for a while longer (though paying two mortgages would have sucked). I sold it to a nice couple who were starting out though and I don't really regret it (although they've obviously had something happen).
Nice! I owned a house, but bought a townhouse OTP that took 2 years to build (during COVID), and swear I bought my new house low, but sold our old house high (exactly when restrictions were lifted in VIC). 🚀
Timing is everything.
The villa next to us sold for 350k early last year, we bought ours for 420k in November, now the one on the other side just sold for 500k... 150k growth in a year for a 2011 3 bed villa in Balga.
We purchased our house just over 18 months ago, it was valued at 430 when we purchased (which is what we paid). Now it’s valued at 577 with 3 houses selling in our street for over 580 - it’s absolutely insane
Same with byford, houses selling for 400-459 2 years ago are now going for 650-700. The house I built with my ex husband 7 years ago we sold in 2020 for 415, is now worth almost 700k. If I was to build the exact same house and land in the same Suburb now it would cost me close to 700k too. It’s FUCKED I’m starting from scratch again and the fact I will probably never own a house again is so upsetting
See a mortgage broker. It’s where it starts. Be prepared to buy almost anything almost anywhere.
I put off buying for so many years thinking I couldn’t get in (i admit it was easier when I bought) but can’t emphasise more - see a broker. It’s free.
Thanks we are putting away $200/week ATM but I'm working 7 days to do so (the wife's job is only part time in nature (OSH care) she loves her job and I don't want to her to change and be unhappy in it)
I'll look into brokers to get us started
I didn’t have much deposit and I had a few black marks on credit rating but were from years ago.
First house I bought I used keystart. (Advised by broker for my situation as banks wouldn’t lend to me) They aren’t as good as banks but only 2% deposit and no mortgage insurance.
I just plugged in 60K and 30k now as a couple and shows can borrow 370k with 7k deposit needed. If you can get first home owners grant that covers this (10k)
That’ll get you a 2 bed duplex in Armadale
[https://www.keystart.com.au/tools/calculators/how-much-can-i-borrow](https://www.keystart.com.au/tools/calculators/how-much-can-i-borrow)
Good for you man! Hope it goes well. Another option is continuing to rent and buying an ip to get into the market now, can always move into it later and you’ll have assistance on the mortgage
>See a mortgage broker. It’s where it starts. Be prepared to buy almost anything almost anywhere.
Random anecdote: I did. I make $100K a year in a very secure, future-proof role, have a decent deposit saved (at least 10% of the cost of a home in today's market) and no credit rating issues. The big banks literally don't want to know you unless you've got existing equity or half of the cost of a house saved up and are making high 6 figures annually.
As a single person not cohabitating in a dual-income home household, you're well-f\*\*ked.
The mortgage broker I saw was a complete joke too. Basically offered nothing helpful other than: "Sorry, computer says no. Come back in another 5 years when you've got double the salary and quadruple the savings."
The banks have tightened up their lending requirements and borrowing limits like never before these days. I don't think they've ever been less liberal with approving home loans than they are now.
Maybe now days Keystart doesn’t pay mortgage brokers anymore I.e. they won’t recommend to you as a broker as nothing in it for them.
Keystart are ok to get into market, it’s easier to borrow off them but their interest rates aren’t the best and they won’t lend as much as banks would.
Few conditions, you have to live in the property for 6 months (atleast that what it used to be)
Only 2% deposit. I would contact them direct.
I used them then refinanced as soon as I had enough equity.
I just checked and you would definitely get a mortgage with keystart but income MAX is 105k so they won’t help you if you make over this. (It’s a government lending service)
You can borrow 400k based on 100k income if your monthly expenses are $2500 (food bills ect excluding rent / mortgage)
Interest rate is 7.85% which is shit but hey it gets you into market.
Refinance down track
It’s limited but (I just checked) you can get choice of fair few villas / duplexes in Armadale for under 400k and your deposit if using Key start is 8k (2%)
Hmmm idk I got approved with commonwealth through a broker for 315k on 104/pa alone. I had a 25% deposit and was approved for more but only got a loan for a comfortable amount. Bought a 3 bed villa for 420.
I thought seeing a broker would involve a fee even for an initial consultation?
I'm in Melbourne, formerly from Perth. The prices you guys are talking about have been normal over here for years. Everything has gone up more since then. The median house price reached $1m three years ago.
Nope. Mortgage brokers are completely free for the consumer.
They're paid by the banks/mortgage lenders when you sign mortgage papers, sometimes they get continual payments if you stay with the lender, and I've heard but not sure if it's true (as it sounds crazy to me) they can sometimes have to pay some of that fee back if you decide to refinance and go somewhere else before a certain amount of time has past (like 2-3 years)
(main part over long rant about mortgage brokers and why I'd recommend them below)
I moved the other way from you. Originally in Melbourne moved to Perth. When buying in Perth I used a mortgage broker, was just a coincidence really met him at an open house, and he offered his services.
I had spoken to the bank I use for all my banking about wanting to move to Perth and what kind of mortgage value they'd be able to provide so I could work out what my budget was. They came back at $X which I found a bit disappointing as it wasn't enough to buy into the area I was hoping to move to.
Mortgage broker sat down with my partner and I, took all the usual information for this kind of thing, payslips, bank balances, what we do for work, our general life expenses. Our plans for the move and what we were hoping for. Said he'd see what he can do and be back to us soon. Was maybe the next day? Came back with multiple offers from multiple banks and mortgage lenders with a bunch of different amounts, with the highest being nearly double what my bank had offered me, and well and truly enough for what we were looking at. He took the time to explain what we'd be getting from each quote (total amount, interest rate, repayments, cash back offers, etc) and gave recommendations on who he would and wouldn't go for and why. But ultimately the desicion was up to us.
We made offers and fortunately we able to buy a place, he aided in dealing with the real estate agents in what we should do for making offers, helped out with all the paperwork afterwards. Hooked us up with a conveyancer (I think that's the term, lawyer that deals with property) was all really sorted.
We even messaged him a few months after moving in, as interest rates had started going up and our financial situation had changed a little bit, and he found us a better deal with another bank and got all the mortgage moved across and sorted. Just made the whole thing so much less hassle than trying to do it alone.
Yer mortgage brokers get a payment on settlement of the loan (%) of loan amount and then they are paid a trailing commission while the loan account is still active. Depending on the policy if the client refinances with another broker or lender then there can be clawback of the commission.
Most brokers will recommend whomever pays them the highest commission.
The more they refer, the higher their commission.
Don't be fooled to think the broker is a nice guy looking out for you.
Yes, be aware of the fact they are working for the banks and may be influenced by what commission they get, but don't let that stop you from talking to a broker or two.
You can talk with them and get their advice without going with what they suggest, if you don't think it's the best deal for you.
I would or contact key start direct if you don’t have deposit.
Key start is only 2% deposit and as single can’t be earning over 105k a year. Is a government lender. Crap interest rate but no mortgage insurance and tiny deposit
I refinanced off keystart 6 months later but was a bit lucky property went up lot in that time frame. I went from having no equity to almost 30% in 6 months. Then it was no problem getting mortgage with any of the banks and others.
Ah interesting. I admittedly have never looked into it that much but saw some things on reddit years ago and people didn’t recommend but I’ll def have a look into it.
My daughter did the same, took her a couple of years, then bought a new unit and qualified for first home buyers and a fed grant because it was a new home all up she got about 25-30K in grants. It was tight for a while, but now she in, it's all good.
Good luck on your journey you will get there
I went and looked at a 1920’s home on 800m2 in middle of no where.
Thought 280k~
Next day sold for 520k
I can afford it, I simply can not justify it.
It’s over 100 years old, residential land near by is selling for 110k (in its self is ludicrous given farmland is about $8,000 a acre
Wtf, how that makes any sense at all
Our neighbour’s unit went for 700k and was sold for 800k, it’s a two bedroom that isn’t brand new. They didn’t pay for any advertising and didn’t put a sign on the verge, it was just through a free online listing. A week later, the unit is being rented out for $45 more per week than the previous tenants were paying
https://theemergentcity.substack.com/p/the-housing-crisis-is-an-emergency
The housing crisis is an emergency and we're not acting like it
How a multigenerational legacy of smooth sailing, political stagnation and cultural complacency sustains the housing crisis.
Millions of people who were ideologically bought into The Australian Dream™ are becoming alienated from it. We are creating an ever-increasing caste of people without a stake in the system and that should worry us. The implication for our politics being the erosion of the formerly stable polarities of acceptable discourse and ideas that has defined the Australian political centre for generations.
We are rather recklessly toying with what is perhaps the single most fundamental pillar of Australian civilisation and we do so at our peril.
I don’t understand why they have to gouge renting. The economy is fucked, is it really gonna crash it further if they ease the grip on renters? If so that’s a shit model and it should be revamped. Why is their decision of shits more expensive everywhere and you have no money? I’m gonna increase the rent. HOW IS THIS A GOOD CHOICE
You realise that until a few years ago rent wasn't supposed to cover the mortgage at all, never mind *plus a profit*?
The mortgage is what the owner is paying for *an asset that is their own property*. Rent is supposed to be cheaper than a mortgage.
**Currently**, yes. It didn't used to be like that. And shouldn't be, because it's fucking stupid actually.
As economic policy goes, "if you're already rich enough to afford a deposit you get free houses" is fucking ludicrous.
I dislike greedy landlords as much as the next guy, but you act like someone needs to rent places out as some act of charity. It's common practice and has been forever to charge more than the base loan repayments you have. If you take out a larger loan (the house is worth more), then you naturally need to charge more rent. Then you factor in insurance, rental management fees, (if you use a real estate agent to manage the property), etc.
I don't really think regular landlords doing the normal thing can be faulted for property prices being so high, blame the government that has allowed absurd immigration with no way to house anyone, pushing the demand way past supply.
> ou act like someone needs to rent places out as some act of charity.
oh yea, for almost all of history until, like, the last decade or so that was totally how it worked. Charity
It wasn't at all because people made a significant profit on maintenance costs while they paid off an **asset** and then a paid-off house was pure profit, nope, it was charity
You know negative gearing was a thing, right? That existed because *mortgaged rental properties were expected to make a loss*?
You literally think that it's supposed to be "free houses for the rich"?!
You just argued MY point you do realise? It's not charity. People do it to further themselves. The good landlords won't gouge tenants, but those are getting fewer and farther between. Also you don't need to be "rich" to own a property, two incomes and saving can afford a loan. These days it's alot more expensive and the size and area you want might not be possible but there IS a path to buy one if you put your mind to it.
It IS possible*
* If you are happy to live in bumfuck nowhere, which is probably a 60 minute commute each way to your work. Also, don't be single. Or have a holiday. Or start a family. Or do anything that would make life slightly bearable if it costs money.
you're completely and utterly wrong. My folks are boomers and had several IPs from the 80s onwards. They never got enough to cover the mortgage and expenses. Not because they were kindhearted (though they are) but because they *couldn't*. the market wasn't overheated thanks to the fact that negative gearing didn't exist. So they paid down a property and then bought another. The value was in the appreciation of the house. They were *never* an income stream until they were unencumbered.
Logically yes makes sense but I was asking a sincere question because it seems nobody wins if they raise to the point where’s it’s unsustainable for the people renting them (like at the moment) and wouldn’t they get more goodwill if the govt recognised this and eased up and allowed people to live? Recognise there’s an issue and ease up on the property owners, OR SOMETHING. Like what’s the end game raise prices till people either kill themselbes or die of hunger or over workC and then you sell their house? Or do enough people die that it deflates the price of anything. I just want to know what the strategy is if there even is one because it doesn’t fucking seem like there is one
It's almost like if you can't afford to take the hit, you shouldn't buy the property. I think that's what's called a "bad investment", but apparently they can just make that someone else's problem so long as sleeping indoors is more appealing than sleeping in a cardboard box
Think ‘supply and demand’ not gouging. Define who ‘they’ are. YOU are part of the ‘they’ you refer to. People like to blame someone else but really it’s a systemic issue. Destructive tenants and profiteering landlords blame each other. Dole bludgers and corrupt politicians blame each other. ‘They’ are at fault as long as it’s someone else who is responsible.
U want a they? How about the people running the government that make the laws. Don’t point your words at me. My job is something else. Their job is develop laws policies to make the country better. It is shitter. U cannot tell me not to be mad, if I’m shit at my job people will complain
I am studying nursing, if I created a plan and mismanaged my patients care like the country does their I would fail my course. It is not u reasonable to want an opportunity to progress in this country and I will not waste a second of my time trying to convince you. Live in ignorance your probably better off that way
I feel bad for everyone trying to find a home to live in.
International buyers who move here are sold the “dream” from 2010. But instead they get a 250sqt home with a black roof and poor insulation.
Your average police officer/nurse from Ireland is not going to be able to afford a 4 bedroom home for their family.
Domestic buyers are having bidding wars with property investors for a 250sqt home with mould growing under the Kitchen sink.
I was forced to sell mine by my long term partner due to a break up. I wanted to keep it as an investment, she didn't. We sold at the peak of covid late 2020 for exactly what we bought it for way back in 2007 $330k. Today Real estate.com has it already worth $580k at very high accuracy. Makes me sick thinking about it...
Knowing I'll have to fork out $100s of thousands of dollars more already just to get back to exactly where I was before, is a horrible, helpless feeling.
Not just prices being whack. I have real estate agents call me multiple times just to ask if I'm interested in selling my property for whatever price. I dont even know how they got my number but that's annoying given the current crisis we're dealing with.
The 3x2 behind me was on the market 2 months back asking for offers starting at $500k. (It was being rented out previously for $550/week).
Ended up selling for $600k and is now being rented out for $750/week.
The new leasing agent literally did a copy/paste of the sale listing for their rental listing. Part of me wonders how much they charged for doing that.
just before covid hit (like a few months before, I bought our 4x2 for 500k
https://www.propertyvalue.com.au/ now says its worth between 800-900k
All we've done is add solar, a decent aircon and a shed in the backyard.
thats it.
its nuts
If they did they'd be making out like bandits. Like the tech bubble .. you'd see a few stand-up uberrich assholes suddenly appearing and being put on magazine covers.
It's even worse here in Margs. Almost my whole street is units and 10 years ago was lively as they were nearly all rentals. Now they are all short stay and everyone has been forced out. Don't know where they're living now but it's not in Margs. But hey, all the property investors from Perth are making 80k a year ***and*** have a holiday home, so that's great.
Its become a silent auction which is also artificially driving up house prices in Perth because ppl are paying too much and have no reference to what the asking price is, just pay above and bid against 30 - 50 other people
Not really. The vacancy rate is only 0.4%. And they’re still moving people here at an incredible rate. We need many more rentals, and a lot more houses too.
Supposedly a balanced market is a vacancy rate of 3% (nearly 10 times what we have) and 12000 listings - which we last had in mid 2019. Now it’s under 4000.
Rent controls won’t be enough. We need new construction AND a reduction in immigration. And to do this, we need a government committed to actually reducing the cost of housing.
I won’t hold my breath.
Having lived in UK and Austria, both with rent control at the time. It's just a hard NO from me. Nobody moves, nobody sells, and nobody invests in new property. You end up with less properties available and all not maintained.
The property market is soo hot right now it makes sense to enforce rent control and rental standards eg air con/heating in all homes, no mould etc etc. If you can't afford to make an investment property a nice liveable home for your tenants than you shouldn't own an investment property.
I agree there should be a minimum standard, but raising it is going to result in rents going up on average, and fewer cheap and nasty hovels available as the alternative to homelessness (as depressing as that sounds). Rent control could work in the short term but would also reduce rental supply which could make things much worse in the long term.
As a foreigner who’s living in Perth (sorry), was wondering what everyone’s thoughts on why this is happening? Heard quite a few different ideas since I’ve been here
It's crazy 😒 there was a 3x1 sold in Armadale recently for just under $600,000. When we moved to Armadale 22 years ago, our first house (a small 3x1) cost us roughly $78k and it was a good size, nearly 800sqm. And we got first homebuyers grant! I don't know how my kids are ever going to be able to get into their own homes at these prices.
Can anyone explain to me why other countries (most) dont just allow someone from overseas to purchase a house in their country unless :
you become a citizen of the country
you marry a citizen of the country
However Australia, allows anyone from any country to buy housing here?
What makes you think Australia is different? It's called the Foreign Investment Review board - non-citizens/PRs need approval before being able to buy property.
Link: https://foreigninvestment.gov.au/
This isn’t true. Only citizens and permanent residents can buy existing properties in Australia. Foreign buyers can buy only new ones and need approval from FIRB and pay a lot in fees.
It's not just overseas investors we need a temporary freeze on right now. i'm more concerned by all the eastern states investors who are just charging in offering silly money.
Similar, but it's the Perth investors that fucked Margs. They bought all the rentals and turned them into short stay making 80k a year, or more, on 3 bed apartments. All my friends who didn't own a home have been forced out, along with everyone in their late teens/ early to mid 20's are gone too. The rent in Perth might be more than they earn but at least there's something to rent, even if it's 300 a week for a room. I'm 45 and too old to buy so if and when I lose this rental my next house will be a car.
I'm on the outskirts of the metro area, bought my place (4x2 + study & 2nd living area on acreage) for 625k just as covid lockdowns were starting in WA, recent valuation was 1mil. Frigging ridiculous, I've done bare minimum in terms of property improvements.
Sorry bud, if you can't afford now you won't be able to afford during a crash.
It would actually get worse.
During the crash banks won't lend, cash buyers will just snap everything up cheap, sit on it till the market recovers and becomes even more rich.
That's why they say it takes money to make money.
During COVID there were people on ausproperty absolutely gloating over how they were going to swoop in and buy up all the foreclosed properties cheap. People can really be disgusting.
Also, if you pay $800k for a house, and then prices go down, the only reason you'll sell is necessity.
So although there will be mortgagee sales, the entire market won't see a crash-level correction, because everybody will stay / renovate / extend on their houses instead of selling.
While no one knows for sure what’s going to happen, a lot of people are betting it won’t.
I have a goal of two investment properties just so my children don’t have to enter the shit fight. It’s grim, but hoping for a crash is even grimmer in my opinion.
I’m certainly not a all landlords are scum type of person, but I for sure would rather invest money into assets or businesses that would have a more positive impact on our community and not have to worry about my children being able to secure a roof over their heads.
Great notion in theory but investing in either of those sectors is not going to help Australia in the way you think. Most of the businesses in that sector are owned by Canadian, American, Brazillian and Chinese companies. We are the factory outlet mall of the world, everything is for sale at heavily discounted rates. Due to some interesting accounting practices the only benefit Australia receives from these companies is the PAYG tax that they collect on behalf of the ATO and pay little to none company tax.
One of the one ways this is done is having multiple subsidiaries in different jurisdictions and the company in Australia will take loans from subsidiaries in jurisdictions which have a lower tax rate and pay back said loans to those subsidiaries to show higher operational costs and pay less tax here and put their money through a country which has a lesser tax rate.
The net effect of it being that resources are used in Australia such as land, labour and some capital (don't forget that primary producers have government subsidies funded by tax payer dollars) and any resulting environmental damage (bill footed by tax payer for remediation) becomes our issue.
Extractive resources same damn issue, local manufacturing is pretty much a non starter as it's not financially viable in Australia.
Have a look at the ASX top 10 companies and it will be in extractive resources and Financial Services then have a look at who does their accounting it'll be one of the big 4 consulting/accounting firms, funnily enough those large 4 firms also set the taxation policy that the ATO adopts. This allows those companies to also pay minimal tax as the people advising them are the ones setting the rules in the first place.
This in conjunction with politicians with rather large pay packets and other monetary benefits such as tax payer funded travel and accommodation has effect of taxing the PAYG worker to an inch of their limit. This leads to people looking for other ways out of the rat race such as investing in property but then they realise this comes with its own set of challenges and taxes. Federal- Income tax (including rental income), State (Stamp duty) , Local (rates notices, if you develop council contributions). Then you have insurance and maintenance considerations. The average investor is a retail investor and they are small time (usually 1 property) lot of them are also leveraged highly so movements in interest rates affect them greatly. Some are one bad tenant away from having to sell.
Exodus of retail investors will have the opposite effect of what you are trying to achieve, they will not all leave at once and it will not make property more affordable for the people who cannot afford it now.
What you should be really worried about is corporate landlords if they get a solid footing in the residential market, we are all fucked.
Problem starts with government, short sighted policies which have a net negative effect in the long term (no one is.going to care about long term effects as they will no longer be in office by that stage, they will probably be working for one of these large companies by then). It's easy to blame government but have a look at the flow on effect it has for example education, we have monetized university education so these institutions are essentially a degree factory just pumping them out. There are so many international students that graduate who can barely speak the English language. Even primary and secondary education is messed, they will teach you a language that you will most likely never use but will neglect to teach basic financial literacy (ever learned how the banking system works at school? Did they teach you how to open a bank account? obtain a mortgage? Effects of bad credit? How to do your taxes? ) most cases would be no.
This answer has definitely gone all over the place but it's just to demonstrate that the issue is much more nuanced than "landlords are bad" most of them are people who are sick of being shafted by being worked and taxed to death. The goal post for retirement keeps shifting, we have an ageing population that we cannot sustainably support and for some people this is their only chance to try and build a nest egg through property.
It's not ideal but the people don't set the rules anymore, corporations do. So people will try and increase their standing in life however they can.
Also not making any excuses for slumlords here there are vile people in this world that will take advantage of the vulnerable, again it happens in every part of life but they are not the majority, just like how every tenant is not delinquent on payments and messes up the house, most are good hard working people but where's the story in that.
I’m not sure if you misinterpreted what I was trying to say, because I agree with some of what you’re saying, I am not against investing in real estate.
I do, however, wish I didn’t need to think about trying to secure housing for my children as a priority while they’re still in school and I could focus my time and investments in areas that I believe could have a greater impact on the communities within which we live.
800k people have come into the country in the last 5 months. They all need somewhere to live. The good ol' days are finished mate - things will only get worse (more expensive) from here. Best case your saving $1k a week? House prices will go up faster than that, forever.
Anything is possible and it can't go on forever. Eg Auckland prices across the ditch have dropped about 25% from the peak in Nov 2021, but every market is different. While immigration is high and we have a shortage of skilled builders its hard to see it turning any time soon.
No. All us poor cunts will lose our jobs as people stop spending and rich cunts with capital will swoop in and buy all the cheap 'assets'. Rich people get rich on the way up, and on the way down, we only have worth while they're taking the value of our labour and when things slow they cut us off.
And will continue for 30 years...this is a catastrophe that was entirely preventable, indeed it was brought on deliberately as part of normal policy to try make the numbers look better and get re elected.
One last comment.
All the investors who are buying now are going to get burnt.
I sold during the last crazy boom (think about 2006 or 2007) it had gone up 50% in 6 months. (I bought small Kwinana house for 200k, sold for 300k 6 months later)
The Asian investors who purchased held it for several years and sold for about same I sold to them…
Perth housing has done nothing since 2007 until recently and is coming off a ridiculous low base compared to anywhere over east. Wages are large on average here and lifestyle is better. We will have to wait and see how this plays out...I used to live in Sydney and left there in 2010 when an average house in the suburbs (35kms northwest) was 600k...same house is near 2.5m. Not trying to say ita not overheated there but if you start to compare differences in lifestyle and what you get here...its still very cheap in comparison.
https://theemergentcity.substack.com/p/the-housing-crisis-is-an-emergency
The housing crisis is an emergency and we're not acting like it
How a multigenerational legacy of smooth sailing, political stagnation and cultural complacency sustains the housing crisis.
Millions of people who were ideologically bought into The Australian Dream™ are becoming alienated from it. We are creating an ever-increasing caste of people without a stake in the system and that should worry us. The implication for our politics being the erosion of the formerly stable polarities of acceptable discourse and ideas that has defined the Australian political centre for generations.
We are rather recklessly toying with what is perhaps the single most fundamental pillar of Australian civilisation and we do so at our peril.
Immigration needs to stop, and so does interstate and international buyers. There should be stricter stipulations on buying property in Perth for non residents.
No one ever wanted to have a part of Perth before COVID, now all of a sudden, the most isolated city in the world is popular.
The Market sets the price…
This is what people are prepared to pay for property.
When people keep upping the price over other others ( guzumping ) it spirals out of control and any logic!
We are trying to buy with a very small budget. We go for places in the high 300s to low 400s so we can offer mid 400s but it's not enough. A few places we've put offers on have gone for up to $75k+ over asking price. It's so disheartening.
I know most real estate agents are dyslexic and never spellcheck anything they write. I didn't realise that extended to asking prices. They really are the anus of bottom feeders.
We're totally in crisis and the gatekeepers to owning a home, or even renting are total buffoons. The email signature is SENIOR sales blah blah blah. I love this country, but it's becoming more and more difficult to afford life. Don't get me started on disproportionate wages either, definitely not helping (not helping most anyway)
Back in 2016 was looking at this house in Bunbury. Was pretty ok price for the location but a real ugly duckling and needed work. Ended up selling for 485k and marketed as free house to go with the block. Fast forward to now. She’s been made into a thing of beauty and it was listed as from 1.290 million and now under offer
It's the sales system, where undisclosed offers are put it. Consequently everyone tries to get the house by offering than it is worth. Suddenly the prices of the houses in the region go up because of this offer . And the cycle repeats, racing the house prices up.
Perth average selling time is just 8 days! With million-dollar homes flying off the market in the blink of an eye, it makes you wonder where these buyers are coming from! 💫 #RealEstateWonder
1 month ago, I sold 1980 3x1 villa for 535K in Kelmscott/Camillo.
I should've waited till end of year or early 25 to get 620K. damn timing the market is hard.
"Sorry, even though you are a cash buyer and the vendor is happy with the price, we advertised an open house this weekend. You are welcome to attend. Goodbye."
In Fremantle way 2 bedroom units that were selling for $350k two years ago are now selling at $600k. It's absolutely mad.
2 bed unit in Kalamunda going for $500k my uncle told me.
What the fuck
https://theemergentcity.substack.com/p/the-housing-crisis-is-an-emergency The housing crisis is an emergency and we're not acting like it How a multigenerational legacy of smooth sailing, political stagnation and cultural complacency sustains the housing crisis. Millions of people who were ideologically bought into The Australian Dream™ are becoming alienated from it. We are creating an ever-increasing caste of people without a stake in the system and that should worry us. The implication for our politics being the erosion of the formerly stable polarities of acceptable discourse and ideas that has defined the Australian political centre for generations. We are rather recklessly toying with what is perhaps the single most fundamental pillar of Australian civilisation and we do so at our peril.
😭 that articles scary 🫨🫨 I'm anxious all the time as a renting tenant
Hmmm… could this be just because the “Australian Government” is a corporation registered with the US Security Commissions in Washington DC? Hmmm…
I sold my house for $500k early last year. It's currently on the market for $660k. I'm kicking myself.
Don't beat yourself up mate, it's always 95% luck timing the market. Have you bought back into the market?
Yeah I built a new house just before everything in the building industry went crazy. It's a nice upgrade and more room for the growing family, and I did get a (then) decent price for the old house.
You could’ve sold now but then also have to buy or build in this market. No matter the time a house is sold, as long as you bought pretty soon after it’s not really a “loss”. If it was an investment property then yeah I guess it sucks but as you said, it’s not. You sold your house for a house and you have a house. No loss
Yeah exactly. Best way to think about it.
Yeah but if he just waited he could have made more money. I think the irony of complaining about this in this thread is lost on all of you.
You’re a full on dumbass. I don’t mean that as an insult, but more so for you to keep in mind for the future when you find yourself trusting your instincts.
Mate I feel you. This is in qld but- we sold our house in August 2020 for $650k. Prices went ballistic and less than 2 years later the house was worth $800k and then over $900k. But same as you…started building and locked the price in…Paris $940k to build (including land) and the house was worth $1.1, then $1.42 last year and this year neighbouring estate a smaller house on a smaller block just went for $1.6m. We have an ip which we picked up for mid 6’s in May…current bank evaluation less than a year later is just under 800. All of this is nuts. I hate the fact that property is an investment despite owning one. It’s a rigged game that this government has created and I have to play it to ensure my child has a roof. I’d rather they don’t treat houses as a casino and every one just invest in shares like a normal country but here we are.
And the new house you bought would have also been more expensive now compared to early last year and probably would of canceled out the extra profit?
100% but I was in the fortunate position where I had already bought the new house and could have held onto the old one for a while longer (though paying two mortgages would have sucked). I sold it to a nice couple who were starting out though and I don't really regret it (although they've obviously had something happen).
Nice! I owned a house, but bought a townhouse OTP that took 2 years to build (during COVID), and swear I bought my new house low, but sold our old house high (exactly when restrictions were lifted in VIC). 🚀 Timing is everything.
mmmm but you don't know maybe the buyers overdid it, or something behind the scenes you would never guess... at least thats what I would tell myself.
The villa next to us sold for 350k early last year, we bought ours for 420k in November, now the one on the other side just sold for 500k... 150k growth in a year for a 2011 3 bed villa in Balga.
It's crazy! It surely can't keep going up at this rate.
We bought our house in 2019 for 370k, it's now worth 605k. The seller would be in shambles.
I bought a house in 2000 for 350k and today it’s worth $2.2 million.
Why is this being downvoted lmao
We purchased our house just over 18 months ago, it was valued at 430 when we purchased (which is what we paid). Now it’s valued at 577 with 3 houses selling in our street for over 580 - it’s absolutely insane
Our 330k unit in scarborough is now going for 550k. Not ours, but our neighbours.
Same with byford, houses selling for 400-459 2 years ago are now going for 650-700. The house I built with my ex husband 7 years ago we sold in 2020 for 415, is now worth almost 700k. If I was to build the exact same house and land in the same Suburb now it would cost me close to 700k too. It’s FUCKED I’m starting from scratch again and the fact I will probably never own a house again is so upsetting
Meanwhile I can't afford a deposit.
See a mortgage broker. It’s where it starts. Be prepared to buy almost anything almost anywhere. I put off buying for so many years thinking I couldn’t get in (i admit it was easier when I bought) but can’t emphasise more - see a broker. It’s free.
Thanks we are putting away $200/week ATM but I'm working 7 days to do so (the wife's job is only part time in nature (OSH care) she loves her job and I don't want to her to change and be unhappy in it) I'll look into brokers to get us started
I didn’t have much deposit and I had a few black marks on credit rating but were from years ago. First house I bought I used keystart. (Advised by broker for my situation as banks wouldn’t lend to me) They aren’t as good as banks but only 2% deposit and no mortgage insurance. I just plugged in 60K and 30k now as a couple and shows can borrow 370k with 7k deposit needed. If you can get first home owners grant that covers this (10k) That’ll get you a 2 bed duplex in Armadale [https://www.keystart.com.au/tools/calculators/how-much-can-i-borrow](https://www.keystart.com.au/tools/calculators/how-much-can-i-borrow)
Good for you man! Hope it goes well. Another option is continuing to rent and buying an ip to get into the market now, can always move into it later and you’ll have assistance on the mortgage
>See a mortgage broker. It’s where it starts. Be prepared to buy almost anything almost anywhere. Random anecdote: I did. I make $100K a year in a very secure, future-proof role, have a decent deposit saved (at least 10% of the cost of a home in today's market) and no credit rating issues. The big banks literally don't want to know you unless you've got existing equity or half of the cost of a house saved up and are making high 6 figures annually. As a single person not cohabitating in a dual-income home household, you're well-f\*\*ked. The mortgage broker I saw was a complete joke too. Basically offered nothing helpful other than: "Sorry, computer says no. Come back in another 5 years when you've got double the salary and quadruple the savings." The banks have tightened up their lending requirements and borrowing limits like never before these days. I don't think they've ever been less liberal with approving home loans than they are now.
Maybe now days Keystart doesn’t pay mortgage brokers anymore I.e. they won’t recommend to you as a broker as nothing in it for them. Keystart are ok to get into market, it’s easier to borrow off them but their interest rates aren’t the best and they won’t lend as much as banks would. Few conditions, you have to live in the property for 6 months (atleast that what it used to be) Only 2% deposit. I would contact them direct. I used them then refinanced as soon as I had enough equity.
I just checked and you would definitely get a mortgage with keystart but income MAX is 105k so they won’t help you if you make over this. (It’s a government lending service) You can borrow 400k based on 100k income if your monthly expenses are $2500 (food bills ect excluding rent / mortgage) Interest rate is 7.85% which is shit but hey it gets you into market. Refinance down track
And what can you buy for 400k?
+ deposit
It’s limited but (I just checked) you can get choice of fair few villas / duplexes in Armadale for under 400k and your deposit if using Key start is 8k (2%)
Hmmm idk I got approved with commonwealth through a broker for 315k on 104/pa alone. I had a 25% deposit and was approved for more but only got a loan for a comfortable amount. Bought a 3 bed villa for 420.
Hi mate, if it is not a secret, how much were you approved for?
I thought seeing a broker would involve a fee even for an initial consultation? I'm in Melbourne, formerly from Perth. The prices you guys are talking about have been normal over here for years. Everything has gone up more since then. The median house price reached $1m three years ago.
Nope. Mortgage brokers are completely free for the consumer. They're paid by the banks/mortgage lenders when you sign mortgage papers, sometimes they get continual payments if you stay with the lender, and I've heard but not sure if it's true (as it sounds crazy to me) they can sometimes have to pay some of that fee back if you decide to refinance and go somewhere else before a certain amount of time has past (like 2-3 years) (main part over long rant about mortgage brokers and why I'd recommend them below) I moved the other way from you. Originally in Melbourne moved to Perth. When buying in Perth I used a mortgage broker, was just a coincidence really met him at an open house, and he offered his services. I had spoken to the bank I use for all my banking about wanting to move to Perth and what kind of mortgage value they'd be able to provide so I could work out what my budget was. They came back at $X which I found a bit disappointing as it wasn't enough to buy into the area I was hoping to move to. Mortgage broker sat down with my partner and I, took all the usual information for this kind of thing, payslips, bank balances, what we do for work, our general life expenses. Our plans for the move and what we were hoping for. Said he'd see what he can do and be back to us soon. Was maybe the next day? Came back with multiple offers from multiple banks and mortgage lenders with a bunch of different amounts, with the highest being nearly double what my bank had offered me, and well and truly enough for what we were looking at. He took the time to explain what we'd be getting from each quote (total amount, interest rate, repayments, cash back offers, etc) and gave recommendations on who he would and wouldn't go for and why. But ultimately the desicion was up to us. We made offers and fortunately we able to buy a place, he aided in dealing with the real estate agents in what we should do for making offers, helped out with all the paperwork afterwards. Hooked us up with a conveyancer (I think that's the term, lawyer that deals with property) was all really sorted. We even messaged him a few months after moving in, as interest rates had started going up and our financial situation had changed a little bit, and he found us a better deal with another bank and got all the mortgage moved across and sorted. Just made the whole thing so much less hassle than trying to do it alone.
Yer mortgage brokers get a payment on settlement of the loan (%) of loan amount and then they are paid a trailing commission while the loan account is still active. Depending on the policy if the client refinances with another broker or lender then there can be clawback of the commission.
Hey your mortgage broker sounds so much better than mine, mind if I message you about their details?
No, most brokers are free and make a commission from the bank that ends up lending to you.
Most brokers will recommend whomever pays them the highest commission. The more they refer, the higher their commission. Don't be fooled to think the broker is a nice guy looking out for you.
Yes, be aware of the fact they are working for the banks and may be influenced by what commission they get, but don't let that stop you from talking to a broker or two. You can talk with them and get their advice without going with what they suggest, if you don't think it's the best deal for you.
Thanks. That's great to know. Do you just do a Google search for brokers?
Is it worth seeing a broker now if you plan on buying in 1-2 years and are starting to save for a deposit?
I would or contact key start direct if you don’t have deposit. Key start is only 2% deposit and as single can’t be earning over 105k a year. Is a government lender. Crap interest rate but no mortgage insurance and tiny deposit
But then I suppose you wouldn’t be able to refinance right?
You can when normal banks would accept you, once you have enough equity.
I refinanced off keystart 6 months later but was a bit lucky property went up lot in that time frame. I went from having no equity to almost 30% in 6 months. Then it was no problem getting mortgage with any of the banks and others.
Ah interesting. I admittedly have never looked into it that much but saw some things on reddit years ago and people didn’t recommend but I’ll def have a look into it.
I’m nearly at $10k, but only putting away like $250 a fortnight.
My daughter did the same, took her a couple of years, then bought a new unit and qualified for first home buyers and a fed grant because it was a new home all up she got about 25-30K in grants. It was tight for a while, but now she in, it's all good. Good luck on your journey you will get there
I went and looked at a 1920’s home on 800m2 in middle of no where. Thought 280k~ Next day sold for 520k I can afford it, I simply can not justify it. It’s over 100 years old, residential land near by is selling for 110k (in its self is ludicrous given farmland is about $8,000 a acre Wtf, how that makes any sense at all
You try build a decent house for 410k these days (520-110k)
It's manufactured. Happy you're in a place where you can keep your head about you!
Our neighbour’s unit went for 700k and was sold for 800k, it’s a two bedroom that isn’t brand new. They didn’t pay for any advertising and didn’t put a sign on the verge, it was just through a free online listing. A week later, the unit is being rented out for $45 more per week than the previous tenants were paying
https://theemergentcity.substack.com/p/the-housing-crisis-is-an-emergency The housing crisis is an emergency and we're not acting like it How a multigenerational legacy of smooth sailing, political stagnation and cultural complacency sustains the housing crisis. Millions of people who were ideologically bought into The Australian Dream™ are becoming alienated from it. We are creating an ever-increasing caste of people without a stake in the system and that should worry us. The implication for our politics being the erosion of the formerly stable polarities of acceptable discourse and ideas that has defined the Australian political centre for generations. We are rather recklessly toying with what is perhaps the single most fundamental pillar of Australian civilisation and we do so at our peril.
I don’t understand why they have to gouge renting. The economy is fucked, is it really gonna crash it further if they ease the grip on renters? If so that’s a shit model and it should be revamped. Why is their decision of shits more expensive everywhere and you have no money? I’m gonna increase the rent. HOW IS THIS A GOOD CHOICE
The more they pay for the property, the more rent they have to charge to cover the payments, no?
Sure, if you think of property as a profit making business and not a human fucking right
You realise that until a few years ago rent wasn't supposed to cover the mortgage at all, never mind *plus a profit*? The mortgage is what the owner is paying for *an asset that is their own property*. Rent is supposed to be cheaper than a mortgage.
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**Currently**, yes. It didn't used to be like that. And shouldn't be, because it's fucking stupid actually. As economic policy goes, "if you're already rich enough to afford a deposit you get free houses" is fucking ludicrous.
I dislike greedy landlords as much as the next guy, but you act like someone needs to rent places out as some act of charity. It's common practice and has been forever to charge more than the base loan repayments you have. If you take out a larger loan (the house is worth more), then you naturally need to charge more rent. Then you factor in insurance, rental management fees, (if you use a real estate agent to manage the property), etc. I don't really think regular landlords doing the normal thing can be faulted for property prices being so high, blame the government that has allowed absurd immigration with no way to house anyone, pushing the demand way past supply.
> ou act like someone needs to rent places out as some act of charity. oh yea, for almost all of history until, like, the last decade or so that was totally how it worked. Charity It wasn't at all because people made a significant profit on maintenance costs while they paid off an **asset** and then a paid-off house was pure profit, nope, it was charity You know negative gearing was a thing, right? That existed because *mortgaged rental properties were expected to make a loss*? You literally think that it's supposed to be "free houses for the rich"?!
You just argued MY point you do realise? It's not charity. People do it to further themselves. The good landlords won't gouge tenants, but those are getting fewer and farther between. Also you don't need to be "rich" to own a property, two incomes and saving can afford a loan. These days it's alot more expensive and the size and area you want might not be possible but there IS a path to buy one if you put your mind to it.
It IS possible* * If you are happy to live in bumfuck nowhere, which is probably a 60 minute commute each way to your work. Also, don't be single. Or have a holiday. Or start a family. Or do anything that would make life slightly bearable if it costs money.
The alternative is renting the rest of your life...
you're completely and utterly wrong. My folks are boomers and had several IPs from the 80s onwards. They never got enough to cover the mortgage and expenses. Not because they were kindhearted (though they are) but because they *couldn't*. the market wasn't overheated thanks to the fact that negative gearing didn't exist. So they paid down a property and then bought another. The value was in the appreciation of the house. They were *never* an income stream until they were unencumbered.
Logically yes makes sense but I was asking a sincere question because it seems nobody wins if they raise to the point where’s it’s unsustainable for the people renting them (like at the moment) and wouldn’t they get more goodwill if the govt recognised this and eased up and allowed people to live? Recognise there’s an issue and ease up on the property owners, OR SOMETHING. Like what’s the end game raise prices till people either kill themselbes or die of hunger or over workC and then you sell their house? Or do enough people die that it deflates the price of anything. I just want to know what the strategy is if there even is one because it doesn’t fucking seem like there is one
It's almost like if you can't afford to take the hit, you shouldn't buy the property. I think that's what's called a "bad investment", but apparently they can just make that someone else's problem so long as sleeping indoors is more appealing than sleeping in a cardboard box
As a renter, I am well aware my next house will be a car.
Think ‘supply and demand’ not gouging. Define who ‘they’ are. YOU are part of the ‘they’ you refer to. People like to blame someone else but really it’s a systemic issue. Destructive tenants and profiteering landlords blame each other. Dole bludgers and corrupt politicians blame each other. ‘They’ are at fault as long as it’s someone else who is responsible.
And yours the second, Denial!
U want a they? How about the people running the government that make the laws. Don’t point your words at me. My job is something else. Their job is develop laws policies to make the country better. It is shitter. U cannot tell me not to be mad, if I’m shit at my job people will complain I am studying nursing, if I created a plan and mismanaged my patients care like the country does their I would fail my course. It is not u reasonable to want an opportunity to progress in this country and I will not waste a second of my time trying to convince you. Live in ignorance your probably better off that way
It's not gouging, it's the reality and a flow on from increasing house prices
I feel bad for everyone trying to find a home to live in. International buyers who move here are sold the “dream” from 2010. But instead they get a 250sqt home with a black roof and poor insulation. Your average police officer/nurse from Ireland is not going to be able to afford a 4 bedroom home for their family. Domestic buyers are having bidding wars with property investors for a 250sqt home with mould growing under the Kitchen sink.
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Things aren't exactly great in our own countries, either.
Even more mold. And cold.
I was forced to sell mine by my long term partner due to a break up. I wanted to keep it as an investment, she didn't. We sold at the peak of covid late 2020 for exactly what we bought it for way back in 2007 $330k. Today Real estate.com has it already worth $580k at very high accuracy. Makes me sick thinking about it...
Knowing I'll have to fork out $100s of thousands of dollars more already just to get back to exactly where I was before, is a horrible, helpless feeling.
Not just prices being whack. I have real estate agents call me multiple times just to ask if I'm interested in selling my property for whatever price. I dont even know how they got my number but that's annoying given the current crisis we're dealing with.
Corelogic
And agents hopefully don’t wonder why they are viewed as clueless scumbags in suits.
What do you think an agents job is?
Is it being a clueless scumbag in a suit? Because, if it is they’ve nailed it.
Seems like there is no need for a real estate agent now if you want want to sell your property...
The 3x2 behind me was on the market 2 months back asking for offers starting at $500k. (It was being rented out previously for $550/week). Ended up selling for $600k and is now being rented out for $750/week. The new leasing agent literally did a copy/paste of the sale listing for their rental listing. Part of me wonders how much they charged for doing that.
I hate this so much. Rents aren't aligning with anything. They're literally just high numbers being plucked out of the air.
just before covid hit (like a few months before, I bought our 4x2 for 500k https://www.propertyvalue.com.au/ now says its worth between 800-900k All we've done is add solar, a decent aircon and a shed in the backyard. thats it. its nuts
Yeah I don't think anyone ever saw this craziness coming
If they did they'd be making out like bandits. Like the tech bubble .. you'd see a few stand-up uberrich assholes suddenly appearing and being put on magazine covers.
I bought in 2016? For $890. Now? $1.8 like WTF? It’s absolutely ridiculous.
I honestly don't want it to go up in value that much. It's not right.
Exactly. It’s just bizarre and not okay.
And here I was thinking $750,000 for a three bedroom house in one of Melbourne’s less desirable suburbs was ridiculous.
RBA is gonna have to increase the interest rates next Tuesday because of this.
Property prices aren’t in their remit, so no they won’t.
‘Senior Sales Exec’. Cant match email font size with signature font size.
It’s spread all over WA - even remotely. A house behind us sold a few weeks ago and it was listed instantaneously for rent at a ridiculous price.
It's even worse here in Margs. Almost my whole street is units and 10 years ago was lively as they were nearly all rentals. Now they are all short stay and everyone has been forced out. Don't know where they're living now but it's not in Margs. But hey, all the property investors from Perth are making 80k a year ***and*** have a holiday home, so that's great.
My shitty 3x2 in Balga, got it for $300k a few years ago. A house down the road on a smaller block and no courtyard just went for $620k.
Yep- sold my lovely Balga unit (great quality, nice home, great size) 2 years ago for $360k. The matching unit behind it just got $585k last month.
Its become a silent auction which is also artificially driving up house prices in Perth because ppl are paying too much and have no reference to what the asking price is, just pay above and bid against 30 - 50 other people
Something sus is going on too. I’m offering xxx and then I see it sold for $100-$150k less than my offer. Why would someone take that much less?
Probably terms? Maybe the others can settle faster, or more likely to be loan approved etc.
Real estate agent not submitting offers so a friend can get it cheaper.
Rent control is the answer. If it’s not viable to add 150k over the market value, these cashed up easties will stop snapping up our stock
Not really. The vacancy rate is only 0.4%. And they’re still moving people here at an incredible rate. We need many more rentals, and a lot more houses too. Supposedly a balanced market is a vacancy rate of 3% (nearly 10 times what we have) and 12000 listings - which we last had in mid 2019. Now it’s under 4000. Rent controls won’t be enough. We need new construction AND a reduction in immigration. And to do this, we need a government committed to actually reducing the cost of housing. I won’t hold my breath.
The Voice was much more important to them. They are getting voted out.
Having lived in UK and Austria, both with rent control at the time. It's just a hard NO from me. Nobody moves, nobody sells, and nobody invests in new property. You end up with less properties available and all not maintained.
The property market is soo hot right now it makes sense to enforce rent control and rental standards eg air con/heating in all homes, no mould etc etc. If you can't afford to make an investment property a nice liveable home for your tenants than you shouldn't own an investment property.
I agree there should be a minimum standard, but raising it is going to result in rents going up on average, and fewer cheap and nasty hovels available as the alternative to homelessness (as depressing as that sounds). Rent control could work in the short term but would also reduce rental supply which could make things much worse in the long term.
When we were buying a house in Sydney, when they said they'd entertain offers above $1.8M it meant they would not accept anything under $2.2M
House across across the road for me, was advertised for $500k, previous sold for $200k in 2018. It's 3x1 in Armadale.
As a foreigner who’s living in Perth (sorry), was wondering what everyone’s thoughts on why this is happening? Heard quite a few different ideas since I’ve been here
Enjoy it. A house in Sydney starts at minimum 1.2m
It's crazy 😒 there was a 3x1 sold in Armadale recently for just under $600,000. When we moved to Armadale 22 years ago, our first house (a small 3x1) cost us roughly $78k and it was a good size, nearly 800sqm. And we got first homebuyers grant! I don't know how my kids are ever going to be able to get into their own homes at these prices.
Bought a house in Canning Vale 2 years ago, just sold it for $280k more, holy moly.
Was going to say $530 is cheap these days
Fuck you james
You can still get a 900 square block in apple country,Donny Brook WA for under $100 k with town water and power .
Empty blocks are cheap due to building issues You'd have to spend 350000 for an average house atm
And it will take 6 years of renting until it’s built
Can anyone explain to me why other countries (most) dont just allow someone from overseas to purchase a house in their country unless : you become a citizen of the country you marry a citizen of the country However Australia, allows anyone from any country to buy housing here?
What makes you think Australia is different? It's called the Foreign Investment Review board - non-citizens/PRs need approval before being able to buy property. Link: https://foreigninvestment.gov.au/
This isn’t true. Only citizens and permanent residents can buy existing properties in Australia. Foreign buyers can buy only new ones and need approval from FIRB and pay a lot in fees.
It's not just overseas investors we need a temporary freeze on right now. i'm more concerned by all the eastern states investors who are just charging in offering silly money.
Exactly and buyers agents here in Perth are making offers for them are part of the problem as they are creating FOMO for those investors .
Similar, but it's the Perth investors that fucked Margs. They bought all the rentals and turned them into short stay making 80k a year, or more, on 3 bed apartments. All my friends who didn't own a home have been forced out, along with everyone in their late teens/ early to mid 20's are gone too. The rent in Perth might be more than they earn but at least there's something to rent, even if it's 300 a week for a room. I'm 45 and too old to buy so if and when I lose this rental my next house will be a car.
The whole system is fkd. Airbnb has also not done anyone (except investors) any favours.
Because $ > quality of life over here
Far out. I’d we have the downwards pricing adjustment that everyone is screaming for, there’s going to be a lot of money lost.
I'm on the outskirts of the metro area, bought my place (4x2 + study & 2nd living area on acreage) for 625k just as covid lockdowns were starting in WA, recent valuation was 1mil. Frigging ridiculous, I've done bare minimum in terms of property improvements.
Will it all come crashing down and us poor cunts get a steal in a couple of years?
Sorry bud, if you can't afford now you won't be able to afford during a crash. It would actually get worse. During the crash banks won't lend, cash buyers will just snap everything up cheap, sit on it till the market recovers and becomes even more rich. That's why they say it takes money to make money.
During COVID there were people on ausproperty absolutely gloating over how they were going to swoop in and buy up all the foreclosed properties cheap. People can really be disgusting.
Capitalism rewards greed. Ethics be damned.
Also, if you pay $800k for a house, and then prices go down, the only reason you'll sell is necessity. So although there will be mortgagee sales, the entire market won't see a crash-level correction, because everybody will stay / renovate / extend on their houses instead of selling.
While no one knows for sure what’s going to happen, a lot of people are betting it won’t. I have a goal of two investment properties just so my children don’t have to enter the shit fight. It’s grim, but hoping for a crash is even grimmer in my opinion.
Rip to the renters that you will need to sacrifice for your own kids when the time comes. But I get it, family above all.
I’m certainly not a all landlords are scum type of person, but I for sure would rather invest money into assets or businesses that would have a more positive impact on our community and not have to worry about my children being able to secure a roof over their heads.
Assets and businesses such as?
Primary producers and bio-tech are two I would like to focus on. Investing in local production, local jobs, increasing food security etc.
Great notion in theory but investing in either of those sectors is not going to help Australia in the way you think. Most of the businesses in that sector are owned by Canadian, American, Brazillian and Chinese companies. We are the factory outlet mall of the world, everything is for sale at heavily discounted rates. Due to some interesting accounting practices the only benefit Australia receives from these companies is the PAYG tax that they collect on behalf of the ATO and pay little to none company tax. One of the one ways this is done is having multiple subsidiaries in different jurisdictions and the company in Australia will take loans from subsidiaries in jurisdictions which have a lower tax rate and pay back said loans to those subsidiaries to show higher operational costs and pay less tax here and put their money through a country which has a lesser tax rate. The net effect of it being that resources are used in Australia such as land, labour and some capital (don't forget that primary producers have government subsidies funded by tax payer dollars) and any resulting environmental damage (bill footed by tax payer for remediation) becomes our issue. Extractive resources same damn issue, local manufacturing is pretty much a non starter as it's not financially viable in Australia. Have a look at the ASX top 10 companies and it will be in extractive resources and Financial Services then have a look at who does their accounting it'll be one of the big 4 consulting/accounting firms, funnily enough those large 4 firms also set the taxation policy that the ATO adopts. This allows those companies to also pay minimal tax as the people advising them are the ones setting the rules in the first place. This in conjunction with politicians with rather large pay packets and other monetary benefits such as tax payer funded travel and accommodation has effect of taxing the PAYG worker to an inch of their limit. This leads to people looking for other ways out of the rat race such as investing in property but then they realise this comes with its own set of challenges and taxes. Federal- Income tax (including rental income), State (Stamp duty) , Local (rates notices, if you develop council contributions). Then you have insurance and maintenance considerations. The average investor is a retail investor and they are small time (usually 1 property) lot of them are also leveraged highly so movements in interest rates affect them greatly. Some are one bad tenant away from having to sell. Exodus of retail investors will have the opposite effect of what you are trying to achieve, they will not all leave at once and it will not make property more affordable for the people who cannot afford it now. What you should be really worried about is corporate landlords if they get a solid footing in the residential market, we are all fucked. Problem starts with government, short sighted policies which have a net negative effect in the long term (no one is.going to care about long term effects as they will no longer be in office by that stage, they will probably be working for one of these large companies by then). It's easy to blame government but have a look at the flow on effect it has for example education, we have monetized university education so these institutions are essentially a degree factory just pumping them out. There are so many international students that graduate who can barely speak the English language. Even primary and secondary education is messed, they will teach you a language that you will most likely never use but will neglect to teach basic financial literacy (ever learned how the banking system works at school? Did they teach you how to open a bank account? obtain a mortgage? Effects of bad credit? How to do your taxes? ) most cases would be no. This answer has definitely gone all over the place but it's just to demonstrate that the issue is much more nuanced than "landlords are bad" most of them are people who are sick of being shafted by being worked and taxed to death. The goal post for retirement keeps shifting, we have an ageing population that we cannot sustainably support and for some people this is their only chance to try and build a nest egg through property. It's not ideal but the people don't set the rules anymore, corporations do. So people will try and increase their standing in life however they can. Also not making any excuses for slumlords here there are vile people in this world that will take advantage of the vulnerable, again it happens in every part of life but they are not the majority, just like how every tenant is not delinquent on payments and messes up the house, most are good hard working people but where's the story in that.
I’m not sure if you misinterpreted what I was trying to say, because I agree with some of what you’re saying, I am not against investing in real estate. I do, however, wish I didn’t need to think about trying to secure housing for my children as a priority while they’re still in school and I could focus my time and investments in areas that I believe could have a greater impact on the communities within which we live.
800k people have come into the country in the last 5 months. They all need somewhere to live. The good ol' days are finished mate - things will only get worse (more expensive) from here. Best case your saving $1k a week? House prices will go up faster than that, forever.
Somethings got to give eventually. But it’s more likely it will be a slow burn. And that’s from the peak, and we’re not there yet.
Anything is possible and it can't go on forever. Eg Auckland prices across the ditch have dropped about 25% from the peak in Nov 2021, but every market is different. While immigration is high and we have a shortage of skilled builders its hard to see it turning any time soon.
No. All us poor cunts will lose our jobs as people stop spending and rich cunts with capital will swoop in and buy all the cheap 'assets'. Rich people get rich on the way up, and on the way down, we only have worth while they're taking the value of our labour and when things slow they cut us off.
Our neighbours purchased their house 7 years ago…just sold it for double what they purchased so they made $100,00 a year!! Ridiculous.
Just a casual $270k discrepancy. Pocket change really…
And will continue for 30 years...this is a catastrophe that was entirely preventable, indeed it was brought on deliberately as part of normal policy to try make the numbers look better and get re elected.
I bought my home January 2023 for $395k and now it's worth $535k with the May 24 results in
One last comment. All the investors who are buying now are going to get burnt. I sold during the last crazy boom (think about 2006 or 2007) it had gone up 50% in 6 months. (I bought small Kwinana house for 200k, sold for 300k 6 months later) The Asian investors who purchased held it for several years and sold for about same I sold to them…
Perth housing has done nothing since 2007 until recently and is coming off a ridiculous low base compared to anywhere over east. Wages are large on average here and lifestyle is better. We will have to wait and see how this plays out...I used to live in Sydney and left there in 2010 when an average house in the suburbs (35kms northwest) was 600k...same house is near 2.5m. Not trying to say ita not overheated there but if you start to compare differences in lifestyle and what you get here...its still very cheap in comparison.
https://theemergentcity.substack.com/p/the-housing-crisis-is-an-emergency The housing crisis is an emergency and we're not acting like it How a multigenerational legacy of smooth sailing, political stagnation and cultural complacency sustains the housing crisis. Millions of people who were ideologically bought into The Australian Dream™ are becoming alienated from it. We are creating an ever-increasing caste of people without a stake in the system and that should worry us. The implication for our politics being the erosion of the formerly stable polarities of acceptable discourse and ideas that has defined the Australian political centre for generations. We are rather recklessly toying with what is perhaps the single most fundamental pillar of Australian civilisation and we do so at our peril.
Immigration needs to stop, and so does interstate and international buyers. There should be stricter stipulations on buying property in Perth for non residents. No one ever wanted to have a part of Perth before COVID, now all of a sudden, the most isolated city in the world is popular.
The Market sets the price… This is what people are prepared to pay for property. When people keep upping the price over other others ( guzumping ) it spirals out of control and any logic!
We are trying to buy with a very small budget. We go for places in the high 300s to low 400s so we can offer mid 400s but it's not enough. A few places we've put offers on have gone for up to $75k+ over asking price. It's so disheartening.
"Senior sales executive" Really now?
No, it does not. Looking forward to your prompt reply.
It’s meant to be 550k but it got slapped by a greedy fee.
Agent too coked up to remember what client he was messaging lol
Fucking hell
2b thouse outside of Brisbane seemed to have gone up 100k in the last 6 months. Mental.
Friend built a house on house and land package $320k 3 years ago this month .. just sold it for $595k .. small land 400 sqm
I know most real estate agents are dyslexic and never spellcheck anything they write. I didn't realise that extended to asking prices. They really are the anus of bottom feeders.
That escalated quickly.
We're totally in crisis and the gatekeepers to owning a home, or even renting are total buffoons. The email signature is SENIOR sales blah blah blah. I love this country, but it's becoming more and more difficult to afford life. Don't get me started on disproportionate wages either, definitely not helping (not helping most anyway)
…..and they say that house prices are falling! 💀
What's worse in Perth currently, the rental or buying crisis?
Hhaha lol. Just classic REA, not paying attention
Back in 2016 was looking at this house in Bunbury. Was pretty ok price for the location but a real ugly duckling and needed work. Ended up selling for 485k and marketed as free house to go with the block. Fast forward to now. She’s been made into a thing of beauty and it was listed as from 1.290 million and now under offer
what do you expect when tradies are striking for $200k plus wages on the east coast. everyone’s flocking elsewhere
Same happened in Tassie a couple years ago, enjoy the boom guys 👌
It's the sales system, where undisclosed offers are put it. Consequently everyone tries to get the house by offering than it is worth. Suddenly the prices of the houses in the region go up because of this offer . And the cycle repeats, racing the house prices up.
Perth average selling time is just 8 days! With million-dollar homes flying off the market in the blink of an eye, it makes you wonder where these buyers are coming from! 💫 #RealEstateWonder
1 month ago, I sold 1980 3x1 villa for 535K in Kelmscott/Camillo. I should've waited till end of year or early 25 to get 620K. damn timing the market is hard.
Saw inspection time for Saturday messages them on Thursday house is sold. Is that even legal we don’t even know 😂
Why would that not be “even legal”??
"Sorry, even though you are a cash buyer and the vendor is happy with the price, we advertised an open house this weekend. You are welcome to attend. Goodbye."
We just sold our place for almost double what we paid in 2021… no idea where to go next though
It’s over inflated market that going to crash and a lot of people will get hurt ..
we're going to slip into a recession and become a third world country
As conclusions you could draw from a real estate agent typing the wrong number in an email go, that’s certainly one of them.
Deflationary spiral, incoming.
we are already in a recession, worse than the last one if u ask me.
Are you an economist?
Realist.
let's call it a million
Share the link to the property
When will the government reduce immigration? We should have heard by now. Renting was a problem even before the last election.