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Housing Australia

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Wizard
Super Contributor
I was digging through some numbers. I dont understand why housing is so expensive in Australia. They got land 6 times more than here and population 3 times less yet they live in small apartments in the cities! They earn twice what we do but spend 5 times more on housing! Cant imagine the materials are that expensive so the construction industry should be making a fortune!! I see in New Zealand next door things get better though. http://tinyurl.com/ogaqq6k
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14 REPLIES 14
potter
Contributor
Labour costs and not everybody stays in small appartments in the city
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SimonPB
Valued Contributor
most of the land is desert ..
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THRESHOLD
Super Contributor
Socialist - so labour (builders) earn wages which are up there with proper salaries. The STRONG ozzie dollar is forcing prices up too. A huge influx of foreigners from RSA, NZ, England etc. - so there is a critical shortage of housing in the major urban areas.
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klapka
Super Contributor
Aussie city prices are amongst the highest in the World but there are always those who can make bearish predictions. Some that prices will drop up to 60% over the next few years.
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SimonPB
Valued Contributor
actually asians ..
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THRESHOLD
Super Contributor
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suki
Super Contributor
the habitable land is smaller than ours. most of it is by the coast line. Supply Vs Demand. ever hear the word they use? "Backddor?"
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Wizard
Super Contributor
Gauteng climate is not too different to that of the aussie outback. We live nice and comfortable and I see in the USA as well. Maybe high labour costs is indeed the problem. But I think they never got their act together.
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THRESHOLD
Super Contributor
You cannot compare - their demand is based on external factors. You need look no further than Cape Town for a demonstration of this effect. They offer a secure socio-economic environment. Furthermore:- the cost of ownership must be measured against a multitude of factors including: (1) base currency income per head (2) job security (the beta of the bond world,) (3) certainty of related costs (eg rates,) (4) prevailing interest rates and (5) importantly - availability of bond costs for offset against your personal income tax and (6) (perhaps most importantly) - the certainty of secure tenure. I am pretty sure that you will find that our property is amongst the most expensive in the world when assessed competently.
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THRESHOLD
Super Contributor
The Gauteng climate is STUNNING. About the best in the world. The Ozzie outback is hideous. Places like Melbourne have a nice climate - sort of "Cape-town-ish" - and the property prices show this.
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Harathke
Regular Contributor
While New Zealand housing prices might be a little lower than Oz, New Zealand food is ridiculously expensive! They have to import basically everything except mutton..
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Wizard
Super Contributor
I spend a bit of time on research this morning and uncovered a financial structure which doesnÂ’t look all too stable in my opinion in OZ. I think the biggest reasons there for the inflated prices there are the mortgage financing related to property and taxation stimulus on property ownership. I provide 2 links. The one is a proposal for a current property bubble and the other an interesting element that may be fuelling it. http://en.wikipedia.org/wiki/Australian_property_bubble http://en.wikipedia.org/wiki/Negative_gearing_(Australia)
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Wizard
Super Contributor
Besides mutton cheese is also cheap. LOL. If you are a smoker and want to quit there is no better place. Packet of 20 is 4 times more expensive!!! http://www.numbeo.com/cost-of-living/compare_countries_result.jsp?country1=South+Africa&country2=New...
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THRESHOLD
Super Contributor
Well - in theory - all property is in a bubble since the future of general "employment" is in question. In South Africa there is the issue of ownership.... I'd sooner settle for a good old fashioned bubble any day.
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