News
HOME AFFORDABILITY 'DRAMATICALLY BETTER THAN FIVE YEARS AGO By Jessica Irvine
May 20, 2009 smh.com.au
A TYPICAL home is worth a little over four times the average household's annual after-tax income, down from almost six times five years ago, Reserve Bank figures show. Strong growth in incomes and a period of more sluggish median house price growth are working in the interests of would-be home buyers. "This is a dramatically better picture on Australia's housing affordability," the chief economist at UBS, Scott Haslem, said.But housing still remains expensive by historic standards. In the 1980s, it took just three times the average annual disposable income to afford a median priced home. Australia remains one of the least affordable countries in the world. In Canada the multiple is less than four. In the United States it has remained at about three times annual disposable income for the past two decades and precipitous house price falls in some areas of the US has reduced this even further. The governor of the Reserve Bank, Glenn Stevens, said yesterday that the gradual improvement in affordability suggested Australian house prices were not heading for the same large price falls witnessed in other countries. "In Australia's case, the ratio of the median dwelling price to average household income has declined quite noticeably since 2003, without a very large absolute decline in housing prices. "This is evidence for at least the possibility that these adjustments can take place over reasonably lengthy periods and without being terribly disruptive to the economy." Also working in favour of prospective home buyers has been the drop in mortgage interest rates to their lowest since the 1960s. Mr Stevens said this had already delivered a significant boost to household spending power. "I don't have much doubt that certainly for the household sector, this is an expansionary setting of policy." While economists have begun to speculate that this could be the low point for rates, Mr Stevens held open the possibility of further small interest rate cuts if needed to boost consumer confidence. "That is obviously a factor to keep in mind in the month-to-month tactical decisions."
House & Land Packages
Longbeach Estate is proud to announce the release of its exclusive House & Land Packages! Featuring a contemporary 3 bedroom home with polished timber floors, ultra modern kitchen and expansive decks ideal for outdoor living, the packages are available for just $367,000 on lots ranging from 603sqm to 1,085sqm in size. Call Vic Milevsky now on 0418 216 507 to secure your dream home today!
A Rare Gem
Eurobodalla Shire is no exception when it comes to scarcity of land; 38% is national parks, 32% state forests, 3% Crown land, 4% rivers and estuaries, and 20% private freehold (12% rural and 8% coastal). Of the 8% coastal, factors such as bushfire hazard, buffers around wetlands, flood-prone areas, scenic protection and fauna habitat corridors leave only about 4% of land available for building on - making Longbeach Estate a desirable coastal location at an affordable price.
The Government's guide to home buying
In order to make the home buying process a little smoother, the Australian Government has released the Buyer's Guide, a step-by-step look at the process of choosing a new home. The Guide also features explanations of what you should be looking for in a new home, as well as the most important questions to ask. To view the Guide, click here.
Five local must-dos
1. Take a cruise on the beautiful Clyde River
2. Check out the national parks – whether from a lookout perch or by getting among it with a bushwalk
3. Learn how to surf, dive or kayak in the crystal clear water
4. Try the local seafood…Clyde River oysters are famous
5. Visit the historic towns of Nelligen and Mogo
Eurobodalla’s Clyde River – known as Bhundoo to the local Aboriginal people – has the cleanest, least polluted waters of any major river in eastern Australia.
Rising in rugged coastal ranges in the hinterland behind Ulladulla, the river winds 125km south through three National Parks and 10 State Forests before flowing out into a wide, navigable estuary where it provides a picture-perfect playground for boating, fishing, water skiing and other aquatic pursuits, before reaching the Pacific Ocean at Batemans Bay.
The area also features the famous landmarks Pigeon House and The Castle, overlooking the Monolith Valley.
Hidden in the river’s middle stage are breathtakingly beautiful swimming holes frequented by locals on hot summer days and platypus and native bass throughout the year.
The Clyde is one of the last major rivers in eastern Australia that remains undammed. Only five per cent of this area has been cleared – a remarkably small amount by Australian standards.
The estuary is also home to some of the best oysters in the world – the famous Sydney Rock Oysters.
Limited supply, high demand
Almost 20 per cent of the nation now lives on the coast, and another surge towards waterside living is expected when baby boomers retire.
“The baby boomers represent the biggest group in the Australian population,” says Alan Stokes, Executive Director of the National Sea Change Task Force. “We’re expecting that as they retire, at least over that period of 10-15 years, there will be an additional 1 million people moving to coastal areas around Australia in every state.”