News

Costs rise to own and rent

COSTS RISE: Affordability has decline for renters and owners.
COSTS RISE: Affordability has decline for renters and owners. Jupiterimages

HOUSING affordability is again in the spotlight, following the release of research examining the costs of owning and renting a home.

Housing affordability declined across all Australian states in the December quarter of 2016, with New South Wales remaining the least affordable state or territory for homebuyers, according to the Real Estate Institute of Australia.

The Adelaide Bank/REIA Housing Affordability Report saw the proportion of income required to meet loan repayments rise to 30.4%, an increase of 0.9 percentage points over the quarter but a decrease of 1.9 percentage points compared to the corresponding quarter of 2015.

REIA President Malcolm Gunning said historically low interest rates and modestly rising incomes were unable to offset the increasing size of mortgages resulting in the rise in the proportion of the median family income required to meet average monthly loan repayments.

"Over the December quarter, affordability declined in all states with New South Wales the least affordable, while Tasmania had the smallest average loan size,” Mr Gunning said.

The report doesn't just look at the cost of owning a home; the cost of renting a home is also well researched, at the the report shows rents also rising during the last three months of last year.

"Rental affordability also declined during the fourth quarter of 2016 with the proportion of median family income required to meet rent payments increasing 0.2 percentage points to 24.4%,” Mr Gunning said.

"Whilst rental affordability declined for the quarter, for the 12 months to December it improved. Since mid 2012 rental affordability has been showing a trend improvement reflecting the pick up in investment in housing from the end of 2011.”

There was also some good news for first home buyers in the report; with their numbers up across the board.

"First homebuyers now make up 13.8% of total owner occupied housing,” Mr Gunning said.

"This rate has been dropping steadily over the past 5 years yet seems to have stabilised over the past 12 months. However, the size of the average loan for first home buyers increased by 1.3% over the December quarter to $323,633, but below the peak in the December quarter 2015.”

Mr Gunning said while the modest increase in first home buyers is welcome news, the increase in the average loan size is concerning.

"If this trend continues, then the proportion of first home buyers in the market will continue at low rates.”

LJ Hooker CEO Grant Harrod believes more can be done to address housing affordability, starting with stamp duty.

"LJ Hooker conducted a survey of more than 2,600 property owners which found that stamp duty was a major factor in the decision making process for those looking to sell and buy property,” he said.

"The survey found that 51% of home owners that received an appraisal by a real estate agent but did not subsequently list their property for sale, would, in fact, do so if stamp duty was lower. This figure rose to 61% if stamp duty was abolished altogether.”

My Harrod said the numbers highlight the choke-hold the current stamp duty tax has on the secondary market; Australians families would like to sell, move and relocate but cannot afford the cost of transacting.

"According to our data the reduction or removal of stamp duty will see more properties come onto the market, which in turn will help balance the current supply and demand

issue.”

Mr Harrod said the regionalisation and decentralisation of government services and businesses would also go a long way to aiding affordability.

"With more than 90% of the Australian population living in a capital there is a need to incentivise businesses to relocate, or start-up, some or all, of their business in our major and minor regional centres,” he said.

"This regionalisation will boost the economies of these smaller regions and provide employees access to more affordable housing in these areas. It will also elevate some stress and demand on infrastructure, services and housing in capital cities.”

But Mr Harrod said solving housing affordability is not a one-step process.

"Nor is there one bandaid answer; instead, state and federal governments should work together to look at a number of solutions which could eleviate housing stress, so our children's children will be able to afford property in all the major cities across Australia.”

Topics:  housing affordability nsw real eastate reiq



Rising property prices kick market into gear

Coffs Harbour is one of NSW's growth areas.

Coffs Harbour's growth leads to rising property prices

A man of league and much more

SUPER COACH: For Barrett rugby League is a passion.

Community champion on the sidelines of local footy

Live music and entertainment

COUNTRY STYLE: Amber Lawrence and Catherine Britt will perform at the Sawtell RSL.

Country music to dance music, take your pick from what's on offer.

Local Partners

Nation's farmers to tour Northern Rivers jersey dairy farms

DAIRY farmers from across the country will flock to Lismore today for the four-day, annual Jersey Australia Conference.


What to expect at Birds of Tokyo's Ipswich gig

The band will perform at the Racehorse Hotel on Friday.

BAND member Glen Sarangapany talks music, pub grub and doing shoeys

Petula Clark delighted to sing live for Australian fans

STILL TOURING: English singer Petula Clark is coming to Queensland.

English star Petula Clark still puts on a great show, even at 84.

Do you really know your road rules?

Cars travel around the roundabout at Villiers and Fitzroy Street. Photo Adam Hourigan / The Daily Examiner

List of the top 10 most misunderstood road rules in NSW.

Police confirm dead after explosions at Ariana Grande concert

An explosion has been reported at Manchester near an Ariana Grande concert.

Seven Year Switch: The boner to end all boners

Johnny’s outraged over claims he has a cracked boner.

She gulps. Her face says it all.

Bay to star in Hollywood shark thriller ‘Cage Dive’

Cage Dive, written and directed by Gerald Rascionato, is now screening in the United States of America. It had scenes filmed in Hervey Bay.

And our visiting humpback whales also make appearance.

Celebrity sex tapes: Where does all that money go?

Basically, did Paris and Kim earn fortunes from their videos?

Cher, 71, and Celine Dion wow world at Billboard Awards

“I’m 71 yesterday and I can do a five-minute plank, OK.”

Judah's return to The Voice stage is a knockout

Judah Kelly performs during his knockout round on The Voice.

QUEENSLAND singer nails Adele hit.

WIN acquires rights to Southern Cross Media television

WIN network coverage

Changes to take effect at end of the month

One of Maryborough's most historic homes is still for sale

FULL OF HISTORY: Trisha Moulds is owner of the historic Tinana state known as Rosehill. The beautiful home is currently for sale.

It has been the scene of both joy and tragedies over the years.

The face of the Sunshine Coast's overpriced rental crisis

Alyx Wilson had to rent a $385 unit in Currimundi because the market was too competitive for cheaper rental housing. She is now renting a room from friends who own a house in Currimundi, and says its much more affordable.

Young people feel the strain in competitive, expensive rental market

WATCH: Take a tour of a tradie's dream home

5a Bruce Hiskens Court, Norman Gardens, going for $720,000. INSET: Lea Taylor.

Huge block with potential for anything

REVEALED: Where it's cheaper to pay off a mortgage than rent

6/190 Ewing Rd, Woodridge, is listed for offers $215,000. Picture: realestate.com.au

Brisbane suburbs where it is cheaper to buy than rent

Close to everything, yet blissfully private

SNEAK PEEK: This private and elevated Coffs Harbour home is on the cover of this week's Real Estate Property Guide.

The Real Estate Property Guide is online now.

Ready to SELL your property?

Post Your Ad Here!