Today I was looking around for content for my blog and stumbled across the video posted yesterday by the ABC. The video stated that least affordable houses in the world are in Queensland’s sunshine coast, where the median price is 9.6 times average income, second is Honolulu, then the Gold Coast followed by Vancouver and Sydney. 7 of the top 15 least affordable cities are in Australia and they are all less affordable then New York and London.
If you want to see the video check the link to abc website: http://www.abc.net.au/news/video/2009/10/04/2704254.htm
you will proably find that in these type of areas there is a lot of "future investment" that goes on – people on high incomes in other postcodes with little personal debt buying into these suburbs for retirement – incomes are only relevant to areas and can distort real investment in a partiular area
On the Least afforable list and I think we are the highest paying tax country as well….?
In singapore, apparantly they have a flat tax rate of 10%, everyone pays the 10% and thats it….therefore no need for accountants and many other professions..
further to jazamites comment dont forget many well heeled expats coming home on big salaries buying high end property skewing avarage prices across these areas in total, these areas are not expensive relative to similar property in similar locations worldwide.
Hi Daniel,
I think the use of 'x times average income' is misleading. For example, when my parents bought the family home in 1983, they paid $83,000, and dad's income was about $18,000 a year. This works out at 4.6 times income. Mum wasn't working, so dad's salary was the sole income.
When my wife and I bought our house last year, we paid $400k. My income was about $65k, so the house was 6.15 times income. However, my wife's income was about $80k, so the house purchase was 2.75 x household income.
The reasons why the cost of housing has gone up compared to average incomes are many, but one fundamental reason is that now, often BOTH partners are working, and can therefore spend more on a house.
If we compared housing prices over the years to average HOUSEHOLD income, the variance wouldn't be as great.
To take another slant on the housing crisis – maybe Australians don't get paid enough. If we all earnt more, then housing (if prices remained stable) would be more affordable.
Let me put another slant on it. Australia is actually one of the nicest places on the planet to live. We have no war, amenities and public utilities are arguably as good as anywhere else and we enjoy a warm climate and relaxed lifestyle. Folks the rest of the world values this, we just take it for granted. Yes Australia is the least affordable place to buy a house, but thats what happens when you live in paradise.
Try Hongkong and Japan…
It is incredible expensive compared to household income
stop whinging.. working hard!!!!Least affordable versus most affordable.
So if the Gold coast is the least affordable spot, which is the most affordable? Albania? Cuba? Zimbabwe?The concept of "affordability" is a concept invented by politician to tickle people's fancy and is absolutely meaningless to anyone who entertains the idea of being a RE investor or any sort of investor for that matter.
Why don't we try to introduce the concept of shares affordability?
Lets try…. Google comes to mind as the "least affordable" Shame on Google!Please guys at Google do your best to make shares more affordable. Make a few wrong moves so that I can buy a couple of dozen since my income is not just up to it yet. Of course after I buy can you please make the price go up again?
Most affordable shares? Telstra of course you guessed right! Our mexican hero, true to his calling has done the right thing for the people and brought the company to its knees in order for you an me to have affordable shares. Now that is my kind of Hero!!!Come on guys, be serious, until we live in a democratic western country the price is the consequence of offer and demand and some tinkering at the edges by wannabe socialist politicians. That's it.
Affordability…you have to love them! I want to live in the least affordable place on earth…Of course! and you do to, you just don't know it yet.
PS
Actually I know the most affordable place on earth. It's Fiji right now.
The natives who have taken the government by force, have altered the constitution and brought down the age of retirement to age 50. So they have retired legally all the government officials who are/were in it's vast majority Indians ant put them on $3000 a year. Since they can not survive they have put their house on the market. So 3000 nice properties on the market what do you think has done to the affordability? Wow, you can buy a 200k house for 50k or less. Now that is real social engineering and lateral thinking at its best. Pity the tourists have all left and the good houses have been broken in by the natives who now squat in them.
But it is affordable I concede.
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