I know, I know another "affordability" thread
But seriously I am interested to find out whether we can reach a 'general consensus' on what makes property in Australia affordable or unaffordable.
It seems there are some on here that are happy to keep moving the yardstick as time goes on, so I wonder just how far that yardstick has to go before we all agree that housing is unaffordable in Australia.
Obviously one contributing factor which has allowed us to move the measuring stick is the availability of credit. But should we really be basing affordability on a factor which can easily change... what happens if we get 10% interest rates and lack of buyers sees prices fall dramatically, does that mean the housing was unaffordable to begin with or did it become that way once the interest rates moved? Do we need to factor in available LVRs, interest rates and such into a calculation that tells us whether property is affordable or can we rely on a more conventional measure, such as household income vs prices?
It seems like some users think housing is affordable as long as there is someone that can pay for a house, even if they have to go interest only on the mortgage, swap their car for a pushbike, eat two minute noodles for breakfast lunch and dinner, never go out, sell the flatscreen TV and give up all other financial liberties just to do it...
But seriously I am interested to find out whether we can reach a 'general consensus' on what makes property in Australia affordable or unaffordable.
It seems there are some on here that are happy to keep moving the yardstick as time goes on, so I wonder just how far that yardstick has to go before we all agree that housing is unaffordable in Australia.
Obviously one contributing factor which has allowed us to move the measuring stick is the availability of credit. But should we really be basing affordability on a factor which can easily change... what happens if we get 10% interest rates and lack of buyers sees prices fall dramatically, does that mean the housing was unaffordable to begin with or did it become that way once the interest rates moved? Do we need to factor in available LVRs, interest rates and such into a calculation that tells us whether property is affordable or can we rely on a more conventional measure, such as household income vs prices?
It seems like some users think housing is affordable as long as there is someone that can pay for a house, even if they have to go interest only on the mortgage, swap their car for a pushbike, eat two minute noodles for breakfast lunch and dinner, never go out, sell the flatscreen TV and give up all other financial liberties just to do it...