$170K family priced out of Perth

[redwing]

Really?

Or just Media Hype / making a statement

Academic can only afford to live in a "far-flung, car only" suburb

A US academic who turned down a $170,000 job in Perth because he could only afford to live in a "far-flung, car only" suburb has reignited debate over housing affordability and urban sprawl.

John Renne said that to become professor of sustainable cities at Curtin University would mean sacrificing his family's quality of life because they could not afford to live in a desirable suburb near the city and transport.

Damian Collins mentions the below, I agree re "unrealistic expectations" ,however I'm not sure that more infill will make housing more affordable?

Damian Collins, managing director of property consultants Momentum Wealth, said Dr Renne might have had "unrealistic expectations" but housing density was a problem State and local governments should do more about. "In terms of getting house prices more affordable, we absolutely need more infill," he said.

 

[DaveM]

OH NOES I CANT AFFORD TO LIVE IN AN EXPENSIVE SUBURB

Him and 99% of the population. Tears tears tears.

 

[TMNT]

What a loserrrrrrrrrrrrrrrr

 

[sanj]

It isn't as simple as that. Look at his job title, he would have the ability to live in many cities in the world as his knowledge is transferable. Quite simply the numbers didn't stack up for him.

That doesn't mean he couldn't have done it of course, it just sounds like it didn't make sense to him commercially

He's correct though, after tax, Medicare levy, paying for school fees etc (I'm guessing he's on 457) there actually wouldn't be a hell of a lot left over if he wanted to buy in a blue chip suburb.

The argument can be made he should set his sights lower but the simple fact is why should he if he can live a better lifestyle in another city?

 

[MTR]

Sorry, maybe a silly question, but what would his price range for a property be?? I am not good at maths, considering income of $170K serviceability?

 

[cimbom]

I don't know anything about property prices in Perth but if he is a professor of sustainability, then it'd make sense that he wouldn't want to live in suburban sprawl and is probably against it on many levels. I certainly wouldn't want to live anywhere where I was forced to own a car and there were no other transportation options available. He also presumably has the qualifications and experience to choose from many cities in which to work anyway so good on him.

 

[boeman]

For blue chip property, he is probably correct.

Take home pay of $2200 a week if on Australian Resident tax levels. If he buys for a million he is going to lose half of it to a mortgage, then livings costs...

 

[cimbom]

I'm guessing he could borrow up to $1 million maybe?

 

[sanj]

For blue chip property, he is probably correct.

Take home pay of $2200 a week if on Australian Resident tax levels. If he buys for a million he is going to lose half of it to a mortgage, then livings costs...

Exactly. Still doable but it may not make sense for him to do so.

Of course if he wanted to live in the boring suburbs he'd have lots more options but as someone who personally never would live there I can understand his resistance to it

 

[MTR]

.

The argument can be made he should set his sights lower but the simple fact is why should he if he can live a better lifestyle in another city?

I guess it really depends, areas mentioned in article entry level are possibly 1.2M+ depending on location etc.

However, there are many affordable areas that are not blue chip but only 8-10 km from city that were not listed, some that come to mind... Morley, Bayswater, Embleton, Bassendean. Good infrastructure, close to transport, OK not trendy, wait a couple of years???

I guess he would not consider Girrawheen

 

[sanj]

I guess it really depends, areas mentioned in article entry level are possibly 1.2M+ depending on location etc.

However, there are many affordable areas that are not blue chip but only 8-10 km from city that were not listed, some that come to mind... Morley, Bayswater, Embleton, Bassendean. Good infrastructure, close to transport, OK not trendy, wait a couple of years???

I guess he would not consider Girrawheen

But if he can afford to live in the equivalent of your leedys and Mt lawleys in other cities can you blame him for not wanting to live in Morley in Perth?

 

[boeman]

Barely doable if on top of that he needs a family car, education for 1 or more children and then most likely the tax implications.

Like you said, hard lifestyle adjustment if he is living a blue chip lifestyle elsewhere. Combined me and my girlfriend make more than that (and as a result pay less tax) and live in Marangaroo and drive modest cars.... But that is our choice since we are young and starting out and don't really need/want that inner city dream home yet.

Exactly. Still doable but it may not make sense for him to do so.

Of course if he wanted to live in the boring suburbs he'd have lots more options but as someone who personally never would live there I can understand his resistance to it

 

[D.T.]

Cry me a ****ing river

 

[sanj]

Cry me a ****ing river

Thanks for the valuable insight

 

[D.T.]

Thanks for the valuable insight

Thanks for the valuable, accurate, and totally not sensationalized article.

 

[Corey Batt]

Considering he is a foreign academic, what's wrong with renting in a blue chip area? He can certainly afford it.

Someone just trying to cause a stir.

 

[sanj]

Considering he is a foreign academic, what's wrong with renting in a blue chip area? He can certainly afford it.

Someone just trying to cause a stir.

There's certainly an element of wanting to cause a stir and I think it's a good thing if it promotes discussion. He is highly qualified to discuss such matters surely?

 

[MTR]

Barely doable if on top of that he needs a family car, education for 1 or more children and then most likely the tax implications.

Like you said, hard lifestyle adjustment if he is living a blue chip lifestyle elsewhere. Combined me and my girlfriend make more than that (and as a result pay less tax) and live in Marangaroo and drive modest cars.... But that is our choice since we are young and starting out and don't really need/want that inner city dream home yet.

I have some nice little villas coming on the market soon, Spearwood is close to Freo one of the areas on this list, would this do OK, enough of the joke, I know, only onto my second coffee this morning.

 

[Corey Batt]

There's certainly an element of wanting to cause a stir and I think it's a good thing if it promotes discussion. He is highly qualified to discuss such matters surely?

Still stirring nonetheless. You have someone with a fairly average household income looking to purchase in a top 10% suburb and wonders why he can't find something in his pre-defined acceptable price range. That's not an indepth look at housing affordability, that's pure absurdity. Simple supply and demand dictates that to afford to enter a premium market you must face premium pricing.

I'd have a lot more sympathy for his arguments if he was complaining that in comparison to other markets, an outer suburb property in Perth is unaffordable.

And once again, with such a transient occupation and nature as seen by his history, where is the benefit of home ownership in comparison to renting? Lots of rentals which are more than affordable for him in his desired areas - funny that.

 

[cimbom]

170k household income is nowhere near the "average" - it's probably close to triple the average. In most cities in the world, even quite expensive ones, you wouldn't need to compromise to the degree of living in the middle of nowhere on that income.