Young Sydneysiders may never realise the Great Australian Dream

A new report has found that an astounding one third of young Australians are unlikely to ever get out of the rental rat race and afford their own home.

Worse still, 70 per cent of young adults under the age of 35 in Sydney will never make it into the housing market.

The Homes for All report, released by the independent body the McKell Institute, makes a number of recommendations to rectify the ongoing housing affordability issues facing young Australians, including the abolishment of negative gearing incentives for property investors and untaxed capital gains on people’s principal place of residence.

One thing the report highlights is just how critical Sydney’s dwelling shortage is becoming.

This undersupply is having a direct impact on prices in the Harbour City, where it now takes nine times the median salary to buy a house; a steep rise from just three decades ago when it took three times the average wage to become a homeowner, and a rate that makes the likes of London and New York property markets look cheap.

Many experts and developers blame the convoluted State government planning processes for restricting the supply of accommodation in Sydney, with bureaucratic red tape making it nigh on impossible to obtain planning approval for new projects.

Additionally, the report says there are serious knock on effects occurring for tenants in Sydney, with rents rising four times faster than inflation and pushing low income renters into the outskirts of the city and further away from employment opportunities.

According to the McKell Institute, this in turn adds to pressure on public housing waiting lists.

Commenting on these recent findings, NSW Opposition Leader John Robertson said, “It’s time for bold thinking and honesty about the supply and demand factors that lock so many people out of housing.”

“… No parent wants a society where children are forced to rent for the rest of their lives or be forced interstate, separating them from their grandkids.”


icon-podcast-large

Subscribe & don’t miss a single episode of michael yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to michael yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Young Sydneysiders may never realise the Great Australian Dream' have 6 comments

  1. Avatar for Property Update

    August 25, 2012 Milly

    You can buy a castle in Europe for the price of a dog’s box in Australia, Don’t worry the mining boom is over due to global pressures and yes we are connected to the rest of the world.

    Reply

  2. Avatar for Property Update

    August 17, 2012 Winston

    Thats great greg, you help people renting to fund your no doubt lavish retirement, as they, the tenants struggle to pay their rent, which is most likey in Sydney to be 40-50% of there income, living in a city that continues become higher in cost of living with no or little gains in wages. least the banks are there to help with low interest credit cards, increasing national debt and making people relient on banks/credit and living in houses that they dont even own just to have a half decent life, they might as well be slaves…. but at least if they were slaves their owner would pay for all there medical, dental, clothes, food and travel expenses…. Thanks Greg! :)

    Reply

  3. Avatar for Property Update

    July 17, 2012 Greg

    I’m with Mike as far as house prices climbing.
    I get a little frustrated when people start talking about the effects negative gearing has.
    I like many other babyboomers, decided long ago to self fund my retirement through property and its benefits of negative gearing. My only other choice really was to invest my money in traditional superannuation products. Where would have that got me over the last several years? Superannuation is an effective form of investment encouraged by the federal goverment, mainly through attractive tax incentives. Negative gearing is another form of incentive introduced many years ago by the Goverment to encourage private investment in property, as the government can not afford to house everyone themselves. Why should I be punished (by the removal of negative gearing) for looking after my own retirement and providing housing for people the goverment cannot help?

    Reply

    • Avatar for Property Update

      July 17, 2012 Ray

      Totally agree with you on that Greg , a so called investment adviser told me to put my money into super
      several years back, clad i did’nt listen. Invested in property for the same reason as you .

      Reply

  4. Avatar for Property Update

    July 17, 2012 Mike

    20 years ago they were saying the same thing and more than likely they said this 100 years ago,
    Nothing will change, prices will rise, in another 15 years the average home will be $1 million instead of a few hundred thousand, but then the average wage will be a lot higher as well.
    Prices will go up forever and we will see bad times as well, but things will keep ticking

    Reply

    • Avatar for Property Update

      July 17, 2012 Michael Yardney

      You are right Mike. There is nothing new about this. History repeats itself

      Reply


Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!