I was on a local FB private rental page, and someone started a discussion asking if anyone’s rent has gone up recently. I was quite shocked at some of the replies. A friend of mine posted their rent is going up $65 a week! They are a single mum on a low income. Someone else’s rent is going up $110 per week - though that then brings it to 330 a week, which is on the cheap side of what’s out there. It seemed like not long ago, housing in my city was quite affordable, and you can live and afford food and housing if on a low income. It was nothing like Melbourne or Sydney. I am just astounded at the cost of buying a house, and at the cost of renting. How are people on low incomes meant to survive these days?

Yep, house prices and rentals are insane around us. Our house has doubled in value in 6 years. Average price is around $600 a week and I’m a couple hours south of Sydney. I have no idea how people afford it either. There are hundreds of people at each open home, with so many local people facing homelessness as rentals are so hard to come by. So many people from out of area buying and choosing air bnb as a more financially rewarding investment down here. It’s shit.

We bought in dec last year, right now, houses in same area, a street away, same specs are selling for 50g more than what we paid. We wouldnt have been able to afford what we got with the market how it is right now

Looking at it in a big picture way, we also have a problem down the track which is never mentioned by the government when it’s trying to pretend the housing problem doesn’t exist, which is the fact is we haven’t set up our social support systems to take into account having larger and larger amounts of people retiring without their own homes. It’s not something that’s applied in super calculations. Neither is the fact we have more and more people now working in contract and casual roles retiring with less super. i would say at some point the pension system in Australia will look a lot different than it does now. I know personally, when I plan for retirement, I’m quite careful not to factor government pensions into any calculations. I think it will be a very different two tiered system than the one we have now. The government relies heavily on the bank of mum and dad as a solution for housing problems for now but when mum and dad couldn’t buy property either that stops being an option as well. I’m not sure what the solution is but it’s pretty frightening TBH.

Appreciating property prices have been sold to us sheep as a good thing “hey! You’re house doubled in value in 2 years, OMG you’re RICH!!!” um … yer you’re not ….. unless you can convert that property to cash and use that cash to buy something other than another property, it actually means nothing. And if that we’re the case, you probably should buy another property (or deposit on 2 and let the rent pay for itself) and this is how property and wealth hoarding starts and happens. It is not a good societal thing! What about those who do not own? Not everyone has a household income of greater then 200K. What about their and our kids? Do we really want our suburbs filled with lawyers and finance people? Just an inelegant smattering of thoughts here, but you get the gist of it

Its a crazy unfair system. My parents were never able to buy, so when I bought they couldnt help me. I’ve been fortunate (and saved hard/delayed holidays and such), but Im lucky enough to own a suitable home in a nice area now. My sister just bought in another state. We are both single, me with a child, both bought our properties for 500k. Property prices is one reason why I wont be having anymore kids and she isnt planning any. My compromise was a two bedroom house, rather than 3, and hopefuIly Ill be able to leave it to my daughter once I go. As mentioned though Im in financial services industry and while I dont earn anywhere near 200k, Im on a good wicket these days. My sister is nearly a lawyer working for Aussie gov. The rest of my family rents, house ownership is rare in our extended family, and these days completely out of reach.

People not having children or delaying children is another factor that is going to make a big difference later on. People get excited when they think less people means less pressure on resources, which is true, but wealthy countries factor in a certain number of tax payers into their long term planning as bringing in $$ to support infrastructure and social services. Counties like China and Japan are now facing the prospect of a rapidly ageing population and not enough tax payers to support the social services that they’ll need. There’s immigration of course but then they’ll still need housing, which they might not be able to afford, and support when they retire as well. Round and round it goes.

SatansWoman Not everyone who owns thinks they rich. Owning hasnt made us rich, but owning sure as hell will cut down our expenses (no mortgage on house) it also gives us something to borrow against if we need, means we cant be kicked out at drop of a hat. It makes us secure which is frankly all we care about. It gives dd a great leg up after we die, she can sell the place at a profit to what we paid or live in a nice house owing nothing but electricity and rates. For us thats more important than cash in hand/bank, cash can always be found, secure housing, not so much. Our income is nowhere near 200k, i work part time retail, DH is medically retired If we had the cash, id buy a business over a rental, no way would i want to deal with the crap the in laws did with tenants, i wouldnt even do airbnb

Housing cost in today's world

OnFire

I was on a local FB private rental page, and someone started a discussion asking if anyone’s rent ha...