TJC1 Posted April 7, 2013 Share Posted April 7, 2013 Thought I'd share this with you. Australia's housing affordability issue over the past decade, but could easily apply to the UK. Oh man, I'm tired. I'm tired of the endless emails from my ever-optimistic girlfriend. The ones with links to real estate listings of rundown, two-bedroom, inner-city dives that neither of us really want to live in and, together, we can't actually afford. I'm tired of the weekends spent travelling from one underquoted property to the next, only to be left feeling like an idiot when an auction opens above what would have been our final limit. I'm tired of the car trips back to our rented home, with my hopeful girlfriend talking about how the next property might be the one where we can raise some kids together. I'm tired of explaining to my peers how negative gearing works, and then explaining why allowing investors to speculate on the housing market is to the detriment of our generation. I'm tired of the politicians who have consistently avoided addressing Australia's housing affordability issue over the past decade. I'm frustrated by the affordability studies commissioned by the government that recommend an adjustment or cessation of negative gearing, only for the same politicians who commissioned the report to ignore these recommendations. I'm bemused by the existence of the Foreign Investment Review Board, and the government's argument that ''foreign investment in residential real estate should increase Australia's housing stock''. I understand our politicians' motivation for not wanting to improve affordability, but it doesn't make it any easier to accept. On the one hand, you have young first home buyers who are somewhat naive, attempting to enter the housing market with huge mortgages without questioning why owning a modest home is near impossible in this city. On the other, you have an ageing population that needs to retire. If the value of their biggest asset goes up when they sell it to downsize, they have more dollars to fund their retirement. These baby boomers are also likely to be investors, and taking away the tax breaks that come along with speculating on the housing market would inevitably lead to backlash on election day. You have to ask, if those being duped are too naive to complain, and those profiteering are too valuable to upset, is housing affordability a problem for our politicians, or a gift? I'm tired of the subsequent lack of enforcement of regulation in the real estate industry. I'm tired of the sharks and the spruikers and the snake oil salesmen. I'm tired of the media coverage of this issue that consistently goes to these same people for ''expert comment'', and I'm sick of reading about how the market is about to ''pick up'' and that ''now is the time to buy''. I'm outraged when I read the occasional report that goes so far as to make the argument that those of us that belong to Generation Y (the renting generation) are too greedy and lazy to know what's good for us. The irony of such a statement is not lost on me. I'm saddened that both my girlfriend and I will have no choice but to work well into our 30s so we can squirrel together a deposit for that two-bedroom dive she's so sure is just around the corner. I'm saddened we are being made to delay starting a family, when it's all she wants. And I'm saddened that so many people who are approaching retirement will react to this with a ''cry me a river'' statement, when they know full well they never had it this tough. I'm tired, and I want to rest my head on a pillow on a bed in a home my optimistic girlfriend and I can call our own. I'm tired. And we haven't even had kids yet. Tom Whitty is a TV producer and freelance writer. Read more: http://www.smh.com.au/comment/sick-and-tired-of-chasing-dreams-of-finding-a-home-20130404-2h9i4.html#ixzz2Ph5uQ4mH I'm tired of yo whinging. Get over it! Link to comment Share on other sites More sharing options...
londomollari Posted April 7, 2013 Share Posted April 7, 2013 Thought I'd share this with you. Australia's housing affordability issue over the past decade, but could easily apply to the UK. Oh man, I'm tired. I'm tired of the endless emails from my ever-optimistic girlfriend. The ones with links to real estate listings of rundown, two-bedroom, inner-city dives that neither of us really want to live in and, together, we can't actually afford. I'm tired of the weekends spent travelling from one underquoted property to the next, only to be left feeling like an idiot when an auction opens above what would have been our final limit. I'm tired of the car trips back to our rented home, with my hopeful girlfriend talking about how the next property might be the one where we can raise some kids together. I'm tired of explaining to my peers how negative gearing works, and then explaining why allowing investors to speculate on the housing market is to the detriment of our generation. I'm tired of the politicians who have consistently avoided addressing Australia's housing affordability issue over the past decade. I'm frustrated by the affordability studies commissioned by the government that recommend an adjustment or cessation of negative gearing, only for the same politicians who commissioned the report to ignore these recommendations. I'm bemused by the existence of the Foreign Investment Review Board, and the government's argument that ''foreign investment in residential real estate should increase Australia's housing stock''. I understand our politicians' motivation for not wanting to improve affordability, but it doesn't make it any easier to accept. On the one hand, you have young first home buyers who are somewhat naive, attempting to enter the housing market with huge mortgages without questioning why owning a modest home is near impossible in this city. On the other, you have an ageing population that needs to retire. If the value of their biggest asset goes up when they sell it to downsize, they have more dollars to fund their retirement. These baby boomers are also likely to be investors, and taking away the tax breaks that come along with speculating on the housing market would inevitably lead to backlash on election day. You have to ask, if those being duped are too naive to complain, and those profiteering are too valuable to upset, is housing affordability a problem for our politicians, or a gift? I'm tired of the subsequent lack of enforcement of regulation in the real estate industry. I'm tired of the sharks and the spruikers and the snake oil salesmen. I'm tired of the media coverage of this issue that consistently goes to these same people for ''expert comment'', and I'm sick of reading about how the market is about to ''pick up'' and that ''now is the time to buy''. I'm outraged when I read the occasional report that goes so far as to make the argument that those of us that belong to Generation Y (the renting generation) are too greedy and lazy to know what's good for us. The irony of such a statement is not lost on me. I'm saddened that both my girlfriend and I will have no choice but to work well into our 30s so we can squirrel together a deposit for that two-bedroom dive she's so sure is just around the corner. I'm saddened we are being made to delay starting a family, when it's all she wants. And I'm saddened that so many people who are approaching retirement will react to this with a ''cry me a river'' statement, when they know full well they never had it this tough. I'm tired, and I want to rest my head on a pillow on a bed in a home my optimistic girlfriend and I can call our own. I'm tired. And we haven't even had kids yet. Tom Whitty is a TV producer and freelance writer. Read more: http://www.smh.com.au/comment/sick-and-tired-of-chasing-dreams-of-finding-a-home-20130404-2h9i4.html#ixzz2Ph5uQ4mH There are thousands of young people in the UK that feel like that now. ---------- Post added 07-04-2013 at 15:23 ---------- High house prices are putting off couples from having children [The New Statesman, 28 August 2012] 35 years old: average age first time buyers expect to join housing ladder House prices to stay in doldrums for 2013, estate agents predict [The Guardian, Wednesday 19 December 2012] The problem is simple: house prices are too high. The current insane prices might not have seemed such a problem back in 2007: LINK ‘Prosperity was illusion created by global credit bubble' In these years of deleveraging, we are returning to the kind of borrowing practices that we once considered normal. And these are not compatible with the kind of mentalist prices being asked for houses now. To those homeowners who are trying to sell their properties round about now: Q: Could you afford to pay the price you're asking for your house if you were buying it today? And if not, WHY DO YOU EXPECT OTHER PEOPLE TO? Oh, but I forgot. "I'm not giving it away". What's the matter, 100% profit not enough for you? I can’t see us getting out of the rental trap for years, it’s not easy saving the deposit and the saving we do have are making nothing in the bank, we both work and will have to put off marriage and kids for years. Link to comment Share on other sites More sharing options...
GoLdFInGeR Posted April 7, 2013 Share Posted April 7, 2013 I remember finding it quite tough when I was trying to kit out my first underground bunker. You've just got to put in some effort. Link to comment Share on other sites More sharing options...
Anna B Posted April 7, 2013 Share Posted April 7, 2013 I think an awful lot of people are tired and depressed at the moment, there doesn't seem a lot to look forward to at the moment does there? I believe there are a lot of very nice flats standing empty because they are simply too expensive to rent or buy, and loads of people needing homes but unable to afford them. So much for market forces... Surely this calls for some kind of rent control? I wouldn't dismiss a run down terrace house, they can be quite cheap to do up (and fun)and make very cosy homes. They are just as big as some new houses, especially if they have an attic and a cellar. 40 years ago, when I first got married, this was all we could afford. We didn't expect to be able to walk into something new and nice in a nice area. We did eventually work our way up to something better, but I still have very happy memories of my little terrace. I was also brought up in a council house and have happy memories of that too. We will be looking to downsize in the future, possibly into sheltered accommodation. There's some lovely places out there, but the irony is we can't afford them... Link to comment Share on other sites More sharing options...
GoLdFInGeR Posted April 7, 2013 Share Posted April 7, 2013 Surely this calls for some kind of rent control? Probably the single scariest phrase I've ever seen in bold. Link to comment Share on other sites More sharing options...
Anna B Posted April 7, 2013 Share Posted April 7, 2013 Probably the single scariest phrase I've ever seen in bold. Why is that...? Link to comment Share on other sites More sharing options...
GoLdFInGeR Posted April 7, 2013 Share Posted April 7, 2013 Why is that...? Because rent control would destroy the private rental market. That wouldn't be good. Link to comment Share on other sites More sharing options...
Anna B Posted April 7, 2013 Share Posted April 7, 2013 Because rent control would destroy the private rental market. That wouldn't be good. But wouldn't it make houses affordable, thus reducing the homeless? Link to comment Share on other sites More sharing options...
GoLdFInGeR Posted April 7, 2013 Share Posted April 7, 2013 But wouldn't it make houses affordable, thus reducing the homeless? Well not really, private sector landlords don't / can't rent their properties to the homeless or the unemployed. The ones that do would have to cease doing so if rent control was enforced. Link to comment Share on other sites More sharing options...
MrSmith Posted April 7, 2013 Author Share Posted April 7, 2013 Well not really, private sector landlords don't / can't rent their properties to the homeless or the unemployed. The ones that do would have to cease doing so if rent control was enforced. Why can't they rent to the homeless and unemployed and why would they have to stop if rent control was enforced. Link to comment Share on other sites More sharing options...
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