Just out of curiosity, I tabbed on a residential land sales tab on Seabreeze, with sale in the south east section of Perth, outher suburbs.
Was a little stunned at the small block sizes, but even more stunned at the price 
How young guns can ever get into own home at this prises is beyond comprehension.
Calculating, most range from over $700 - $1000 per square meter to purchase. 
Well OK, so thought, what's the different in infrastructure and development cost from residential, to Industrial. Not much apparently, some difference, but nothing to write home about.
So completed same calculation on square meter cost for industrial land, and surprise surprise, its down in the $100-$300 per.
Industrial lots are larger, so less lots to sell for same road size, water, power and infrastructure.
Residential have a significant number of more blocks in the same given area, so the cost to have those same "entry and exit" points will be higher, but no way could this account for the massive price per square meter variance.
Thoughts??
Thoughts? Same as before - baby boomers ability to negative gear investment properties made them rich and stuffed it for the next generations.
It now takes 3x longer to pay off the average house on the average wage, than it did back in the 1960's. That is really sad. Yes the avergae house is more flash than back then and the 'boomers blame the modern family desires - but not 3x more flash. Even the crappiest house on offer is a lot more expensive in relative terms than in the past.
We have the 3rd highest priced housing in the world. That is insane for a country that has so much land, privilege, opportunity....
You should not be able to negative gear investment properties any more than you can provision of food and water - the other basic necessities of life.
Greed has buggered housing.
Australian average house price ... $580,000
Australian average full time wage $58,000 ( after tax )
Interest (at say 5%) on $522,000 (factoring in you had the 10% deposit )
= $26,000 per annum
2 person household both on average wage combined income $116,000
Less your $26,000 interest
Left with $80,000 per annum almost $1500 per week
Admittedly there are other costs eg: stamp duty but the reality is buying your own home is not that hard
The problem with young people today is their wants exceed their means .....
They have to accept that they may not be able to afford a house where they want to live but may have to buy where they can afford.
Many also live with mum and dad in a nice house in a nice suburb and they want the same for their FIRST house.
Less big screen TVs, less nights out, less flash cars and a bit of saving goes a long way.
Select to expand quoteharry potter said..
Australian average house price ... $580,000
Will buy you a very old 2 bedroom in our area. Hang on, nope, not even close.
Select to expand quoteSailhack said...
^^^...and yet can buy about 2.5 very comfortable 3 bedroom brick houses here!
Frankston north maybe.
Pines estate bargain!!
Select to expand quoteharry potter said..
Australian average house price ... $580,000
Australian average full time wage $58,000 ( after tax )
Interest (at say 5%) on $522,000 (factoring in you had the 10% deposit )
= $26,000 per annum
2 person household both on average wage combined income $116,000
Less your $26,000 interest
Left with $80,000 per annum almost $1500 per week
Admittedly there are other costs eg: stamp duty but the reality is buying your own home is not that hard
The problem with young people today is their wants exceed their means .....
They have to accept that they may not be able to afford a house where they want to live but may have to buy where they can afford.
Many also live with mum and dad in a nice house in a nice suburb and they want the same for their FIRST house.
Less big screen TVs, less nights out, less flash cars and a bit of saving goes a long way.
WTF
$116K after tax is it? That's average and achievable? I don't see too many young families where they are both on the average wage, after kids the wife has not worked for 10yrs and I am on $100K pre-tax.
And then, it is IF you can save the $52K deposit is that right?
As an above average income earner I can maybe just afford an average house. Woopdy fkn doo.
The fact remains that it takes 3x longer to pay off than in our parent's day and that is a travesty.
Your last line is an insult to those of us who fell for the conventional "wisdom" of real estate agents an financial planners who said 'just buy anything, to get into the market, and show a repayment history.."
Yeah that goes well when you have something costing you a mint and you can't sell it to then buy a house........
It is not that easy, even if you only want a **** house in a **** suburb.
Then ignoring all that above - like I said - it takes 3x longer now. Why? Greed.
We live in the best prosperous nation in the world with tons of land, it should not be like that.
You wanna buy my block?
There are plenty of house and land packages less than 40min from Melbournes CBD that can be had for less than $350,000
These are brand new houses usually 3-4 bedroom with no stamp duty applicable.
www.realestate.com.au/house-and-land-packages/mernda-vic-3754/
www.realestate.com.au/new-homes/new-house+land-in-craigieburn,+vic+3064/list-1
www.realestate.com.au/new-homes/new-house+land-in-cranbourne,+vic+3977/list-1
There really is no excuse.... Young people can easily own their own home if they are prepared to sacrifice some of their WANTS and live where they can afford to.
^^^ Yay. Well, yay for those who didn't buy something simple (as you suggest) and it happened to be at the peak of the market, then get fkd and can't sell. it. Try buying a house on an average wage (one, not two wages) and $500 for fortnight outgoing on the block. Go on...
Perth houses have tripled in 13yrs. Have cars, bread, milk, fruit n veg, or even wages?
And like I said it takes 3x longer to pay off than in the 1960's or so
Fact is a record number of first homebuyers - even with the big grants - need mum n dad to put their house on the line so the young'uns can buy one of their own.
................. and that means something is wrong.
Love how you said "There really is no excuse" - yes that is right. In a land with so much land and physical resources there really is no excuse for our housing to be very nearly the least affordable in the world.
We need more states. With our limited number of capital cities, we're trying to cram an increasing population into too small an area.
Go for a drive across Europe, and you'll see how they fit so many people into smaller areas...the population is spread out. Their societies developed over centuries so they have lots of smaller established towns everywhere. For some reason, we are doing just the opposite, with dying country towns and everyone moving into the big smoke.
Select to expand quoteHarrow said...
We need more states.
Not necessarily - just more strategic focus on improving country 'cities' to make it more attractive for those pursuing good careers.
I live > 300kms from our capital city and have chosen to live here for many reasons including raising my family and work. Ambitious young achievers look at pursuing their careers in the capital cities - and rightly so.
If you are earning 100k a year and cant save 20k a year to put towards a deposit, there is something seriously wrong with your budgeting skills or are spending waaaay too much on beer, ciggies or fancy toys that aren't necessities, just to keep up with the Jones's.
The last generation did it tough to buy a house too ( some make it sound like they didn't) but I guess they weren't spending thousands each year on computers, internet, mobiles, coffee lattes etc. like most now do and call it "necessities in life" lol.
My mate and his missus just saved $18 000 last year towards their deposit, combined income of $70 000, by living simple, cutting out all non essentials ( pies, cafe coffee's, internet, home phone, only 1 mobile, cutting petrol costs etc.) Its all possible to buy a house, just depends how much you want it and if you have the mental strength to follow your goals,,,,, or love pies too much lol.
Select to expand quoteHarrow said..
We need more states. With our limited number of capital cities, we're trying to cram an increasing population into too small an area.
Go for a drive across Europe, and you'll see how they fit so many people into smaller areas...the population is spread out. Their societies developed over centuries so they have lots of smaller established towns everywhere. For some reason, we are doing just the opposite, with dying country towns and everyone moving into the big smoke.
Hey, that's my theory too! If we were like the USA we would be more spread out and each area would have its own need to have centralised services.
I think we need to build a new capital city on the border between each existing state, and start from there.
I think if Albury Wodonga had the same employment opportunities as Sydney, I would move there in a heartbeat.
Select to expand quotemineral1 said..
Just out of curiosity, I tabbed on a residential land sales tab on Seabreeze, with sale in the south east section of Perth, outher suburbs.
Was a little stunned at the small block sizes, but even more stunned at the price How young guns can ever get into own home at this prises is beyond comprehension.
Calculating, most range from over $700 - $1000 per square meter to purchase.
Well OK, so thought, what's the different in infrastructure and development cost from residential, to Industrial. Not much apparently, some difference, but nothing to write home about.
So completed same calculation on square meter cost for industrial land, and surprise surprise, its down in the $100-$300 per.
Industrial lots are larger, so less lots to sell for same road size, water, power and infrastructure.
Residential have a significant number of more blocks in the same given area, so the cost to have those same "entry and exit" points will be higher, but no way could this account for the massive price per square meter variance.
Thoughts??
You need to be careful buying raw (from the developer) industrial land.
A mate bought a block and his extra costs were over $50,000 because the water main was on the other side of the road. Fire regulations etc.
Newly developed residential land in Bundaberg is around $165/sq metre.
You can buy any number of timber homes on 1,000 sq metre blocks for $200,000 or less = $200/sq metre or less.
If the house is half decent it will rent for $250/week minimum. Go figure.
Select to expand quotecisco said..
Newly developed residential land in Bundaberg is around $165/sq metre.
You can buy any number of timber homes on 1,000 sq metre blocks for $200,000 or less = $200/sq metre or less.
If the house is half decent it will rent for $250/week minimum. Go figure.
Bundaberg = no work = no surf
Therefore **** place to live.
Its all relative.
In country Victoria you can purchase land for as little as $25,000 for half acre. But what does that get you?
A drive of over 40km each way each day to work, thats in excess of 400-500km per week with little comertition at the petrol station resulting in unleaded being up around atm $1.38 and averaging around $1.53 most days that makes it dam expensive just to get to and home from work.
What about wear and tear on cars? At 2000km + per month in travel, it doesnt take long before its time to service the car, and depending on how much travel the car has done, services can get dam expensive.
What about wages? Well with the cost of living being so high, you would expect wages to follow suit. Well it doesn't and is quite he opposite in that if you are lucky enough to find a job in rural australia then yoiu will find that unless you specialise and are top of the field with your expertise, then you will find yourself struggling on wages that are balanced at the very tip of being below the minimum wage line.
That reminds me 
anyone want to purchase a residential block stunning rural Victoria with spectacular mountain views, all for only $37.50 per square meter, it's priced for a quick sale.
Select to expand quoteBigwavedave said..cisco said..
Newly developed residential land in Bundaberg is around $165/sq metre.
You can buy any number of timber homes on 1,000 sq metre blocks for $200,000 or less = $200/sq metre or less.
If the house is half decent it will rent for $250/week minimum. Go figure.
Bundaberg = no work = no surf
Therefore **** place to live.
If one's priorities are working and surfing there is not much attraction.
If the priorities are sailing, fishing, comfortable climate, housing affordability, low cost of living and a laid back lifestyle it is a perfect place to live.
Not much in opportunities for young people though.
Select to expand quoteMark _australia said..
Why? Greed.
The word "greed" plays to the emotions really well, and you get to blame someone! [shakes fist at old people]
The reason Baby Boomers (and Generation X - shhhh) have invested so much into property is because, well, where else are you going to get a return? The stock market has been flat since before Baby Boomers' failing memory or Gen. X can even remember. And interest rates have been at record lows too. Factor in that you can highly gear property and the attraction is obvious. Yes, there are other investments people can make but it's mostly stocks and/or property.
People correctly chose property.
a $500,000 block of land of 500m2 in Karrinyup or Stirling is only $350,000 in USD
it used to $500,000 USD, so for any international investors, its a good time to buy up.
Select to expand quoteCrossStep said..
Its all relative.
In country Victoria you can purchase land for as little as $25,000 for half acre. But what does that get you?
A drive of over 40km each way each day to work, thats in excess of 400-500km per week with little comertition at the petrol station resulting in unleaded being up around atm $1.38 and averaging around $1.53 most days that makes it dam expensive just to get to and home from work.
What about wear and tear on cars? At 2000km + per month in travel, it doesnt take long before its time to service the car, and depending on how much travel the car has done, services can get dam expensive.
What about wages? Well with the cost of living being so high, you would expect wages to follow suit. Well it doesn't and is quite he opposite in that if you are lucky enough to find a job in rural australia then yoiu will find that unless you specialise and are top of the field with your expertise, then you will find yourself struggling on wages that are balanced at the very tip of being below the minimum wage line.
That reminds me anyone want to purchase a residential block stunning rural Victoria with spectacular mountain views, all for only $37.50 per square meter, it's priced for a quick sale.
That's your country Vic...here the wages are reasonably good with good employment opportunities, I filled up at the servo late last week for $1.12 (Diesel)...and my office is 1.5km walk from home whilst my kid's school is <1km from home.
1950's BV 3 bed house on 900m2 block with 2 living areas (although needing some work) with 'minor' views of a harbour & working port a block from hospital, 5min walk from main street for sale at $385k...
It's not all B&W, ie; 'high-priced' City or 'low-income' country - there are some sweet 'grey' areas in between if you look in the right places.
Also agree with cisco re; lifestyle. I haven't been to Bundy, but have a couple of mates that grew up there - sounds like a nice place to relax.
