The Australian Housing Crisis Just Got Worse.

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Australia, and many other countries such as the U.S are facing a housing affordability crisis. The average home price in some cities is now 10-15 times the average household income. And at the same time, interest rates are at the highest point in over a decade. But if buying a home is so unaffordable, why are prices still going up so fast? Why are they expected to continue rising for the foreseeable future? And if you’re in the market to buy a property, should you buy now or wait for conditions to improve?

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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.

[surferrosa]

I bought my home on the Gold Coast for just 8 grand. I moved in a month ago. It is a 2006 Honda Accord.

[viviancarolgioao]

As someone living in Sydney. These are the things i realise, house prices and cost of living is insane and salary will never catch up taxation system here are meant to never make you rich. The wage gap in Australia is growing wider and wider, meaning no matter how hard you work a job, it's not enough to keep up even before inflation, more and more people might face a tough time in retirement.

[andrew.alonzo]

The housing market here over the last 7-8 years is unlike anything i have ever seen. Homes that were bought for $130k in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you have got better average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[Enidscake]

Govm in Australia will never fix housing affordability because most of them own investment properties and get tax breaks for them.

[muaminhugsy]

Damn, I knew I should have bought a house instead of being in year 3 :’(

[dotalol]

Don't forget the average household income is pretax income, but the house price is aftertax money with stamp duty etc on top, so if you calculated it that way, would be more than 10-15 times

[smellybox]

My issue with the housing crisis is I feel it is all artificial. The government will do their very best to prevent prices going down.

[davesboatingfishing]

As a home owner, id say prices went up hard due to the influx of overseas money, especially those that came here to "hide" their money in property, and most of them didnt care about the proce or just outbid the rest of us.
Demand and availability....yeah...30, 000 new homes a year and a 300, 000 immigration.
No chance of affording a place anymore.

[tranquilitybase]

Australia also allows non-residents to buy property. A significant number of properties are being bought by overseas investors that have never lived and never intend to live in Australia; being kept vacant to be flipped for future profit. Inner city apartments on the east coast in particular are notorious for this.

[PyjamaLlama]

My parents bought our 7BR family home in Melbourne 1988 for $138, 000.

The fact that doesn't even equal a house deposit for a 3BR home these days is absolute bonkers

[davidlp]

This video didn't mention that there is a state 'transfer duty' of property deeds when you buy a property, more commonly known as 'stamp duty' here in Australia. Each state is a bit different, but here in NSW for a house over $1, 168, 00 (which in Sydney is basically all of them). Stamp duty is $47, 295 plus $5.50 for every $100 over $1, 168, 000 ON TOP of the principle to purchase the house. Then there's lawyer fees, moving fees, inspection fees, real-estate fees etc etc. So that can add another 100k easy to a 1.3 million house. This is another reason that state governments LOVE insanely expensive housing, because they make an absolute FORTUNE in stamp duty tax coffers, and they are hopelessly addicted to this $$$$ scheme.

[UberMick]

The other issue keeping prices high is the government not reducing immigration, maintaining record high immigration is ensuring the demand outweighs supply. And also governments acting slowly on development approval and land releases adds to this issue. We basically need the government to recognise they are the biggest part of the problem and do something about it, issue there is many MPs have property portfolios so you are asking them to take actions that will negatively impact their personal wealth... This is exactly why members of parliament should not be allowed to invest in the stock market or property because when they do it creates a conflict of interest.

[Shard]

Australia needs to crack down on the artificial scarcity and thus artificially high prices of housing. This far and no further. However, every time the ruling party even thinks about doing that, figures of the realestate business and property developers and career landlords make sure they won't go through with it.

[cheesymcnuggets]

What's sad is that all the young adults and mid to late teenagers have already given up on ever buying a house, it's out of reach for 90% of us so why bother. Even if the housing market was half of the value it is now, it's still scary. All we can hope now is that we never go homeless. I always thought owning a home was one of our rights to live but it seems I was wrong. At this point it'd be safer to move out into the middle of nowhere and build your own house with nothing but primitive tools but even land is absurdly priced. A single person can work there entire life and only have a fraction of what they need to afford a home... the real question is, will the housing market ever improve in that person's lifespan... Will the market ever drop to the point where a house is within reach for a single person who earns minimum wage? The fact that it doesn't seem like they even should be able to afford a house is part of our problem, who cares about the job itself, anyone who dedicates 40 hours a week to society at the very least deserves the right to live comfortably but that is not currently the world we live in.

[jacintatate]

so sad, all my neighbours here in Melbourne aren't even here. They live in china and invest their money in australian houses. Immigration has not helped.

[Spratdragon]

My uncle in the 90s. A 24 year old apprentice sparky. Bought a house on his own in Richmond. Unbelievable

[KendoOCE]

As an Aussie this was great, I would love more high quality videos on the Aussie market like this here on YouTube. Mad appreciated!

[notvosswater]

My dad in the early 2000s managed to buy a home, supporting mum, and three kids at the same time.. he worked 2 jobs and it killed him but that would not even be close to being possible these days.

[Hans-zw]

There's also the quality of the properties which is falling because developers are getting squeezed and materials are getting harder to access, and there's the projected cost in property taxes which is probably going to keep getting raised because it's one of the only things the country has left to tap into. At the end of the day, it's worth considering whether you're getting value for money and what else you could do with that money, following everyone else chasing momentum just means you're part of the bubble.

[ML]

I've been applying for flats/houses for over 3yrs!! Ive neen living in backpackers accommodation, Motel (too expensive long-termat $130per night, couch surfed for a year, now pay $350 for a room in a closed down hotel. When you go see a rental and 'rich well off' offers 6months in advance how can the average person EVER get accepted?!! F Air B&B too!! They get a week's rent in a night why would they rent it out. How can i ever get a home to be the nanny my grandchildren deserve with this crazy rental market atm!!