• 0 Posts
  • 40 Comments
Joined 1 year ago
cake
Cake day: June 15th, 2023

help-circle












  • Housing is considered affordable if it’s repayments and maintenance is 30% of your income.

    So a median income in your area should see a median house price at around that. I did a bit of maths and it’s around a 4x multiplier given current interest rates in my area.

    Also consider that everyone needs a home, so median is not the cheapest available.

    In my suburb the multiplier last year was 7.5x, and I just did a check and the cheapest available housing listed is 6.5x

    So you are totally right, there needs to be a massive shift


  • There’s no reason why buying or selling a house needs to be any harder than renting a house. The default should be owning your home and paying it off. Just like the default is owning your car. Sure, you rent a car on holidays or if you need something very short term, but you buy a car if you need it more than that.

    So there are two things we need to do:

    Through taxation make multiple dwelling ownership a thing of the past. Plus ban all corporate ownership of residential houses. The only exception to this rule is new builds until they are sold to a private buyer.

    Transferability- if you need to move and buy a new house, your old property goes into a no reserve auction pool run by the government. This same pool is probably where you get that new house you are looking for.

    Together these should bring the market down to sane levels and also create greater variability in house values - really prestigious properties will continue to sell for more, but bog standard suburban sprawl would be affordable and we would no longer need rentals.