The Great Australian Dream ! ~?

[Shazzam]

Growing up in Australia I have heard so many people talk about their dreams of owning their own homes. For some reason in my country it is very important to own your own home. I have relatives in Ireland and they say that it is becoming important there too. For many years my uncle talked about the european system and said that it wasn't that important in europe (homeownership). That many properties were available with controlled rent in the 50's-60's through council projects and people felt secure with this.

With the price of real estate in Australia the way it is, I feel that it has become increasingly difficult especially for first home buyers to 'get their foot in the door.'

What do you think?

[vince90]

It’s the same here in Massachusetts, the real estate price jump up more than 100% in 3 years. However due to the mortgage rate has been lowest in 30 years and the rent is way too high, it attracts many people buying house during this time. It’s has been the best time for real estate business. Now rate is up and the price still up there, it will make extremely difficult for the first home buyers.

[Danyet]

Did you know that the rate of homeownership in Australia has always been far higher than in the USA?

[vince90]

Did you know that the rate of homeownership in Australia has always been far higher than in the USA?

Oh I didn’t know that! Do you know why? It must be price more reasonable in Australia than in USA.

[Danyet]

No I don't know why exactly. It would be interesting if Shazzam would research this phenomenom for us! Why is housing more affordable in Australia?

[MissLT]

Isn't the San Francisco Bay Area's price even higher than in Massachusetts, Vince?

[MissLT]

No I don't know why exactly. It would be interesting if Shazzam would research this phenomenom for us! Why is housing more affordable in Australia?

I thought the housing price goes with the economy.

[Shazzam]

Interest rates are determined by the economy. In Australia interest rate hikes do affect the real estate market in certain areas, however it is more a supply and demand situation. For example: some areas of Sydney are never affected by interest rate hikes because some of the beachside areas are very sought after hence they get huge prices for real estate. The government helps first home owners with grants and concessions to buy their first homes. This includes free stamp duty on their contracts for purchase.