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Home ownership almost out of reach



Moreton Investor, Home ownership, Housing affordability, Property Management, Real estate Moreton, Mortgage Broker Moreton, Moreton property market,Moreton property prices

Many young Australians have a dream of one day owning their own home, however this dream is fast turning into a nightmare for some.

Moreton Investor, Home ownership, Housing affordability, Property Management, Real estate Moreton, Mortgage Broker Moreton, Moreton property market,Moreton property prices

Homeowners no doubt cheered the news this week that capital city home prices rose 10 per cent last year.

But for Generation Rent, we just shrug our shoulders. It seems a period of below average house price growth, in which we would slowly cobble together that deposit, was just too much to ask for.

The hurdle has been raised, yet again.

Prices in Sydney and Perth are now back at record highs. Sydney house prices soared by 14.5 per cent last year, followed by Perth 9.9 per cent, Melbourne 8.5 per cent, Brisbane 5.1 per cent, Canberra 3.5 per cent, Darwin 3.3 per cent, Adelaide 2.8 per cent and Hobart 2.2 per cent.

Melbourne prices are now only 0.7 per cent below their peak, Adelaide 2.4 per cent, while Brisbane prices are still behind 6.6 per cent and Hobart 12 per cent.

At the national level however, the 9.8 per cent growth in home prices last year was the biggest annual rise since 2009. That was during the depths of the global financial crisis when the Rudd government unleashed its stimulus package, including a doubling of the first homebuyers grant which sent prices soaring by 14 per cent.

Really, it should just be called the first home sellers grant, because all that money does is push up prices.

When economic uncertainty threatens, policy makers have realised that nothing bucks up the Aussie national spirit like higher house prices – no matter the cost for would-be first time buyers.

The Reserve Bank is at it again, dropping its official cash rate to its lowest since 1959 in an attempt to revive lagging household spirits.

Reserve Bank governor Glenn Stevens has weighed the risks, and decided the risk of unleashing a housing bubble is less than the risk of rising joblessness and a slowing economy if rates are not cut.

You might think lower interest rates are good for borrowers, but the higher house prices that result only make the hurdle for homeownership that much higher.

Once again, first home buyers are the sacrificial lamb sent to slaughter.

Why should we care? We should care because our housing system risks entrenching deep inequalities of wealth in our society and undermining the “fair-go” for all.

Rich kids will always have rich parents to help them up on to the property ladder. But what about the rest?

We are breeding a generation of housing haves and have nots.

I have previously written in favour of renting. Or rather, against the perception that renting is evil.

Rent money may be dead money, but so too is interest paid to a bank. Either way, you’re going to pay for your housing.

If you rent and save additional income, you’re essentially doing the same thing as paying interest on a loan and paying off your principal.

Except that our tax system heavily rewards home ownership.

Capital gains made on your family home are tax free, whereas interest earned on money sitting in the bank is taxed at your full tax rate.

Assuming you can afford the deposit – a huge assumption – and assuming that house prices and bank deposits returned about the same annual growth, you’d be better off in property, simply because of these tax breaks.

Of course, negative gearing only adds fuel to the fiery attraction of housing as an investment.

And so our dream of homeownership is deliberately stoked by federal tax policies that only serve to inflate prices even further.

Other levels of government also wear blame for the unaffordable state of Australian housing.

Cash strapped state governments load property purchases up with expensive stamp duties. Local councils, too, add their own fees and charges on new developments.

State governments fail miserably in their responsibility to provide adequate public transport to new housing areas, putting a premium on well-located land.

And local governments, who ultimately approve new developments, are hopelessly captured by the interests of NIMBY (Not in my backyard) existing homeowners and ratepayers.

There’s no easy way to unscramble our housing mess. Abolishing stamp duty – a tax on moving – and replacing it with a broad based land tax – based on the wealth stored in a property – would be a good start.

Policies to force greater urban infill and higher density housing along established transport routes would also help.

It’s time we thought harder about how to relieve the housing affordability crisis, or for generations of young Australians the dream of homeownership will remain just that: a dream.


Original article published at by Jessica Irvine, National Economics Editor, News Limited Network 5/1/2014

Market Place

Revealed: These are the hottest suburbs in Brisbane for 2019



Revealed These are the hottest suburbs in Brisbane for 2019
Revealed These are the hottest suburbs in Brisbane for 2019

THE hottest suburbs in Brisbane have been revealed amid signs of “uplift” for the city’s housing market, according to a leading national property analyst.

THE hottest suburbs in Brisbane have been revealed amid signs of “uplift” for the city’s housing market, according to a leading national property analyst.

THE hottest growth suburbs in Brisbane have been revealed amid signs of “uplift” for the city’s housing market, according to a leading national property analyst.

Terry Ryder of Hotspotting has released his latest Price Predictor Index, which tracks rising sales in suburbs across the country and identifies the places likely to deliver strong price growth in the near future.

The index found 33 suburbs in Brisbane were “rising steadily”, with the strongest market being the affordable Moreton Bay region.

Revealed These are the hottest suburbs in Brisbane

“The Brisbane market is showing signs of uplift, with more growth suburbs emerging in the latest survey,” Mr Ryder said.

In fact, Moreton Bay is the second strongest growth market in the country — eclipsed only by Port Adelaide — with 10 suburbs classified as “rising steadily”.

These include Clontarf and Woody Point, which have seen increases in sales activity.

Mr Ryder said the suburbs’ drawcards included affordable prices, new rail links, a soon to completed new university campus and a bayside lifestyle.

Revealed These are the hottest suburbs in Brisbane 2019

The second highest ranked market after Moreton Bay is Brisbane south, which has eight rising markets — many surprise contenders as they have beaten bluechips to take out the top spots where prices are expected to outperform.

Those suburbs are Mt Gravatt East, Corinda, Forest Lake, Mansfield, Oxley, Parkinson and Sunnybank Hills.

Most of these fit into Brisbane’s “middle market”, with median house prices in the range from $650,000 to $800,000.

Revealed These are the hottest suburbs

The number of growth suburbs in Brisbane’s north have risen from four to seven in the latest survey, with rising demand occurring in Alderley, Bald Hills, Brighton, Geebung, Gordon Park, Newmarket and Stafford Heights.

Across the state, Clinton in the Gladstone region is the top growth suburb in Queensland, while Emerald in central Queensland, Kearneys Spring in Toowoomba, Little Mountain on the Sunshine Coast and Torquay in Hervey Bay also make the list.

Brisbane’s south, Mackay and Moreton Bay are among the national top 10 regions with the highest number of growth suburbs.

Revealed These are the hottest suburbs in Brisbane for the year 2019

But when it comes to consistent sales growth, one Queensland suburb has taken out the top spot in the country — Mountain Creek on the Sunshine Coast.

The suburb, with a median home price of $635,000, has sold between 90 and 110 homes in each quarter over the past four years.

Its median house price has increased 10.5 per cent in just the past 12 months.

“Most property buyers are seeking growth and in the search for rising prices there’s a tendency to undervalue the consistent markets,” Mr Ryder said.

“These places represent safety for buyers because markets like this are likely to maintain

steady price levels — but these markets also deliver good growth.”

Revealed These are the hottest suburbs in Brisbane in the year 2019



Alexandra Hills

Bald Hills

Banksia Beach


Bray Park







Forest Lake


Gordon Park

Heritage Park





Mt Gravatt East







Stafford Heights


Sunnybank Hills

Woody Point

Wynnum West

(Source: The Price Predictor Index)

Originally published as Brisbane’s hottest suburbs revealed


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Market Place

Queensland Attracts UK Property Seekers



Queensland Attracts UK Property Seekers

Research by showed that searches for property in Queensland climbed by nearly a third in December compared to the same period in the previous year. This was driven largely by British people who are flocking to one of the most populous states in the country, according to a report by

The study found that property searches originating from the UK increased 31%, with the Sunshine Coast suburbs of Noosa Heads, Buderim and Mooloolaba as popular picks among potential buyers.

New Farm, Redcliffe and North Lakes, meanwhile, topped the list of the most in-demand suburbs in Brisbane.

Nerida Conisbee, chief economist, said Queensland, specifically its beachside properties, held the top spot in terms of total search activity among UK property seekers.

“The Hemsworth impact seems to be impacting the view of Byron Bay with this the most searched by UK property seekers in December 2018 — the number tripling from December 2017,” she said.

Universal Buyers Agents Director Darren Piper said that the chaos surrounding Brexit in Britain was enticing overseas buyers to explore the Australian property market.

“House prices in London have fallen for the fifth quarter in a row. It’s natural for investors to look for safe havens in times of uncertainty,” he said.

Australia’s property market has consistently grown over the past decade, with homes in Sydney, Brisbane and Melbourne reaching record prices.

“It’s the perfect time for people to get their foot in the door and it’s a great time as a homeowner to explore your options, maybe make a move or stay the course,” said Piper.



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Market Place

Labor Unveils $6.6bn Affordable Housing Plan to Build 250,000 New Homes



Labor Unveils $6.6bn Affordable Housing Plan

Labor has announced a ten-year plan to build 250,000 new homes across Australia, including 20,000 during its first term in government if it wins the election.

The $6.6 billion investment would see 250,000 new homes for low income and working families, key workers such as nurses, police, carers and teachers and women over 55, the fastest emerging group of Australians at risk of homelessness.

Subsidies of $8,500 per year would be offered to investors building new homes in return for cheaper rent for eligible tenants.

Opposition leader Bill Shorten unveiled the multibillion-dollar plan in his address yesterday at Labor’s three-day national conference in Adelaide.

“Building more affordable housing is infrastructure policy. It is cities policy. It is jobs and productivity policy,” he said.

The plan would see a family paying the national rental average save up to $92 each week.

“When you provide an affordable home for hard-working people, you give them the level playing-field and fair start they need,” he said.

Shorten said Labor would work with the states and territories, local councils, and community housing providers to make sure the rollout of homes were built “where they’re needed most” and would “go to the people who need them most”.

“Not foreign investors, nor international students.”

Affordable Housing Plan

The new homes would be accessible for all ages and for people with a disability, with Shorten describing the new homes as “more energy efficient, meaning lower power bills”, also offering a rental discount of 20 per cent.

Describing Labor as a “party of home ownership, and a party of affordable housing and community housing”, Shorten used the speech as an opportunity to call on industry super to “step up” and invest in affordable housing projects.

And of course, the opposition leader touched upon the hotly debated campaign election issue: negative gearing.

“This is a boost for renters and for the liveability of our growing suburbs… Alongside our plans to make negative gearing fairer, it will drive a boom in construction jobs and apprenticeships,” Shorten said.

A recent report published by the Australian Housing and Urban Research Institute (AHURI) found Australia needed to triple its social housing by 2036, faced with a shortfall of 433,000 social housing dwellings.

Labor Unveils $6.6bn Affordable Housing Plan to Build 250,000 New Homes

Property industry bodies welcome Labor’s announcement

Property Council chief executive Ken Morrison welcomed the incentives, but said they are “no substitute” for the supply of housing which is funded by 2.1 million property investors, “including those who access negative gearing”.

Housing affordability remains a critical issue for many Australians, an issue Morrison says is often overshadowed in the media by Melbourne and Sydney’s cooling markets.

“It makes sense to harness the investment capacity of the private sector to deliver affordable housing,” Morrison said.

“Labor’s incentives for investors to deliver affordable housing will make a contribution to meeting that need while also providing a boost to our construction industry, a key driver of economic activity.”

Planning schemes, land supply, and property taxes, which make up around 25 per cent of the cost of a new house are all part of the housing affordability mix, Morrison added, “there is no single ‘silver bullet’ solution”.

Urban Taskforce chief executive Chris Johnson said many different approaches are needed to tackle the hugely complex housing affordability issue.

“State and territory governments still have a responsibility to ensure that enough appropriately-zoned land is available in inner-ring suburbs to ensure sufficient housing supply,” Johnson said.

“Infrastructure levies must be kept under control to ensure that these do not add to the cost of housing production.”



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