Housing affordability plummets
Is The Age suffering from split personality disorder?
On page 8 of The Sunday Age (18.4.10) we read that house shopping is a “nightmare”, the market is “out of control” and that we are heading toward being a rental society where only the rich can afford to own a house.
As Maris Beck points out on the same page “In 1955, $7,000 bought a house. Now, it’s not even a deposit on a dream“.
Yet in the real estate section of the same issue we read of the “good year ahead”, the booming market and how “impressive” the price increases are.
Personally, I agree with page 8 and wish the spruikers of this “boom” would get lost. Any trend that pushes houses beyond the means of average people is a huge step backwards.
The only groups who profit mightily from high housing prices are banks (who get to write bigger mortgages), real estate agents (who get bigger commissions) and land speculators.
It’s time to re-regulate the banking industry and alter the taxation system to bring house prices comfortably back within our means.