NoCredit
23-11-2010, 03:02 PM
Worth a read:
Australian first home buyers today face an environment where houses prices, relative to incomes, are twice as expensive as those of their parents. The average house price in most capital cities is equivalent to more than seven years of average income (up from roughly three times income for the previous generation).
Several important factors (in addition to lack of land supply) are generally considered responsible for housing affordability issues in Australia. These include rapid population growth, irresponsible lending practices, and government tax policies. In particular, high immigration recently resulted in an Australian population growth rate of around 2% (roughly twice the global average).
Full article is here: Australian Property Bubble (http://ezinearticles.com/?Australian-Housing-Bubble&id=5350498)
Quite a balanced article. The author presents a good case for and against. I'm leaning towards an extended period of flat house prices (down a bit in real terms). If the government intervenes again it could easily go the other way.
Australian first home buyers today face an environment where houses prices, relative to incomes, are twice as expensive as those of their parents. The average house price in most capital cities is equivalent to more than seven years of average income (up from roughly three times income for the previous generation).
Several important factors (in addition to lack of land supply) are generally considered responsible for housing affordability issues in Australia. These include rapid population growth, irresponsible lending practices, and government tax policies. In particular, high immigration recently resulted in an Australian population growth rate of around 2% (roughly twice the global average).
Full article is here: Australian Property Bubble (http://ezinearticles.com/?Australian-Housing-Bubble&id=5350498)
Quite a balanced article. The author presents a good case for and against. I'm leaning towards an extended period of flat house prices (down a bit in real terms). If the government intervenes again it could easily go the other way.