Housing back to 'affordable'

... article in the Australian.

Frankly I find that hard to believe - they have a graph that predicts a sheer drop to early 1990 prices, but they give little rationale for it.

I just wouldn't bet on their conclusions...

http://www.news.com.au/money/property/australians-still-nurture-home-ownership-dream-despite-massive-hike-in-house-values/story-e6frfmd0-1226103146725

What these sorts of reports don't really mention is the cost of building and land has skyrocketed over the last couple of decades. Back in the 80s and earlier building contractors were paid cash. They didn't have toilets onsite, workers would piss behind the tree or whatever. There wasn't any OH&S regulations. Builders didn't have to put fences up all over the place. Superannuation wasn't an issue as well as workers compensation. Building codes not as complex.

Since that time all these sort of government regulations have come in. All this stuff costs builders and building contractors time and money. Building is now a very government regulated industry which means extra costs passed onto the customer.

At the same time local and state governments have put in place all sorts of levies such as footpath levies that raises the cost of building.

Meanwhile governments have passed on the cost of opening up land to developers who pass the costs onto the customer.

Also houses are becoming bigger and more luxurious. I'd imagine it would be quite difficult to get a small two or one bedroom house to be built by a project builder.
It would be interesting to see the cost of building an average 3 bedroom brick veneer house in the 70s compared to today.

No one is going to build a 70s brick veneer house today and probably rightly so. Unfortunately it seems that most modern houses are oversized for their block and for the family that lives in it. Plus they are not as well built as the older homes as they usually use softwood frames and have questionable styling practices such as high box gutters which overflow into the wall instead of outside the house.

and cut throat profits. it amuses me when the bsa release media telling people due to the downturn you will get very good costings for building projects.

but in reality, contractors are losing money as soon as they step out of the car so they cut corners. like a tiler can buy glue for up to say $40 or $15 a bag. if they have been screwed which bag are they going to buy.this also applies to trade practises.

the bsa has a huge list of complaints they are struggling to cope with due mainly to cut throat competition for jobs by contractors and supplier imo- i reall don't have an answer for that one. lots of insurance payouts too. so thats going to add to costs.

the red tape, fees, forms, codes, new monthly regulations to comply and item completion certificates that use to be a engineer and roof trusses report now can number up to 15 to 20 and big stick waving add to costs. a small builder would need to stay a home one day a week to keep up with it all. now that,s a additional cost. i have absolutely no confidence in the bsa or state goverment- they have no idea of the reality for the domestic house building industry. i'm sure they think builders are taking $50 grand plus profits on basic lower cost houses

if you did complied with every single regulation and safty requirement you wouldn't get a contract and thats a fact. theres the stress if some do gooding goverment man decides he's got your number

geez its a house not a high rise.

stop giving building numbers to people that aren't at least trade.

not much can be done to stop spiraling materail costs, but the goverments can be doing a lot more instead of treating the housing industry as a cash cow
every interview i've read with builders states red tape as the main issue.

some major changes have to be implemented before houses become affordable- recession or no recession

It as affordable, IF , you do the homework ,plan correctly, prepare yourself for Hard work that is involved.it can be fun as well, satisfaction knowing what you can do without forking out the big bucks!

I built this 7 yrs ago, total cost including 10mtr pool and paving, AND land, was $255,000.









I know costs have increased dramaticly since then , but I have done the maths on my next house and , should I should have it locked up, not painted , no gardens or paving, for $210,000, that will do me for now

nice, well done. in 2000 i built a highset home for a client at $116,000. however costings spiraled pretty quickly in qld soon after

There was an interesting research published last year, involving some 8 major cities in the world, regarding this 'phenomenon'. Seemed serious then, and certainly more detailed than the "don't worry, you will afford houses in 10 years" thing we saw yesterday.

Conclusion was: direct correlation between divorce rate and said observation.
Rationale was (still from memory, too lazy to chase article) that when one splits, a 5-bedroom large house, say, becomes a 5- plus a 4-, should the missus keep the old abode. Or if not then a 4- and a 4-. In either case, both parents often need to accommodate the same number of kids, only a part-time basis. And/or both parents wanting to maintain lifestyle, i.e. house, they were accustomed to.

This logic was accentuated for reconstituted families, or whatever the hell they're PC-called nowadays, as the number of children, hence the size required, could be even greater.

It's a charming society we live in.

miko, most tradies are going mining because of the lack or construction and the rates/price for any work around are back to the nineties. i was looking at item on on of those links right up the top which is relevent i think
Developer of sydney Posted at 4:54 PM Today

im a developer and we recently wanted to build some "affordable housing" near transport (train and bus stops) it was near a big shopping centre.. the MAJOR problem is, people do not want this form of housing to be built next to them (NIMBY)..when the local residents get vocal about it, they start going to the media, getting petitions signed, they start to rally the local councillors, then the council listens to them, council then refuse the DA.. THAT IS THE PROBLEM!! council will not allow us developers to build affordable housing!


Read more: http://www.news.com.au/money/property/australians-still-nurture-home-ownership-dream-despite-massive-hike-in-house-values/story-e6frfmd0-1226103146725#ixzz1TOctykz7

what suburb ?

I would hazard a guess somewhere out towards an outer metro area suburb .

A mate of mine, builds granny flats. Self Contained houses for $90k Complete. Rents in Sydney are ridiculous. People are renting them out for about $350k per week.

Great investment if you ask me, if i had the spare land on my block I would give it a go.

Someone In Texas Just Paid $16 For A Foreclosed Home Worth $300,000

Read more: www.businessinsider.com.au/how-to-buy-a-foreclosed-texan-home-worth-300000-for-16-2011-7?r=US&IR=T

or watch

www.kens5.com/home/Man-pays-16-for-300000-house-under-little-known-Texas-law-125713608.html

$ 570,00 and it"s yours

Mariners Cove , Mandurah,

^^^ yeah the windsurfing sux here, and the surf is worse than perth too. better stay away

Well it did last season anyway.

so ive heard. dont know where they were though. i had a great one