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Housing Affordability

Discussion in 'Real Estate' started by Simon Hampel, 3rd Aug, 2007.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    From the ABC

    Difference of Opinion - 02/08/2007: Why has housing become unaffordable? - Why has housing become unaffordable?

    http://mpegmedia.abc.net.au/tv/differenceofopinion/20070802_1.flv

    Difference of Opinion - 02/08/2007: What can governments do to make housing affordable? - What can governments do to make housing affordable?

    http://mpegmedia.abc.net.au/tv/differenceofopinion/20070802_2.flv

     
    Last edited: 17th Sep, 2016
  2. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    I watched this programme last night with much interest and two issues became clear:

    The advent of easy credit in the last 10yrs has helped to push up the housing market, with little thought (or care) to the actual individual's ability to repay loans. Blame everyone and everything from mortgage brokers flogging unsuitable loan products to lo doc loans and third class lenders.

    The ensuing rental crisis is real and tenants need to be better cared for in our current system. Solutions included longer leases to provide more security, more stringent vacation notice periods and tax breaks to those private investors who are willing to house lower income tenants.

    It was an insightful discussion, and I especially enjoyed listening to what Ross Gittins had to say. He was so spot on about his generation (baby boomers) being in the golden position of being able to influence price movements due to their high equity situation.