SO, GUESS WE’RE MOVING OUT OF SYDNEY?

When it comes to Sydney’s property market we think the economy and inflation are our enemies, to some extent it is the main reason for the cost of living increasing however some factors, we contribute to them ourselves. The rural and suburban areas far from the city were once more favoured over the outskirts of the CBD. Today we see the opposite in trends, but who really is living near the city and consuming houses which at one stage millennials and young adults could have afford. The future leaders and influencers of the country are finding it difficult to move out of their childhood homes and start living the independent lifestyle. Heck not only young individuals, but pretty much anyone who wasn’t left with a dowry. Many people are travelling over an hour on overcrowded public transport for work, then to realize their average paying salary will not last them more than a night out.

Rising cost of property is not the only reason as to why millennials cannot buy houses, Michael Yardney claims there are four contributing factors which are making life a ‘living hell’, not literally, well maybe.

1. In the past banks have made investing and obtaining loans very easy by offering cheap credit.

2. People are investing in the Australian real estate market, rather than living in the house they buy.

And the last two, my particular favourites and what needs to be changed:

3. “It’s been noted that many empty nesters still reside in large homes in well-to-do areas, but many of their bedrooms are sitting empty.” Retired Australians with only one or two individuals in their big houses.

4. The last one is the impact on our property market, foreign ownership. Yes they have money but why not sell to hard-working Australians who have saved for ten plus years.

Australian Senator, Sam Dastyari confronts the issue concerning Sydney’s property market. His short video below highlights how much little $1 million actually buys you in Sydney.

$1 million in Sydney

Beside from the fact that most of his concerns are true, the video copped a wide amount of backlash. Why? MP Tim Wilson claims “The last thing you want is a senator, of whatever political stripe, coming along and sneering at your choices and the fact that you’re actually investing in your own future.” Dastyari defends himself, wrong to interpret the video as anything other than a cry for reform”. The reason why other senators and groups are ‘disappointed’ with the video is because it’s all true.

He doesn’t dance around the issue, but rather cuts to the chase and provides the real facts of the crisis without intentionally offending anyway. Those who believe the issue is non existent, need to cut back on the $4 lattes and avo on toast and stop living in their own bubble.

One of ANU’s associate professors, used twitter to highlight Sydney’s housing crisis.

ABS house price release

“House prices in Australia are again increasing rapidly in Sydney and Melbourne in spite of record low wages growth and a relatively weak employment market,” Phillips told The Huffington Post Australia.

Sourceable’s Chris Johnson believes there are a number of initiatives that are able to speed up Sydney’s housing supply. Johnson has been able to name a number of key actions, these include:

  1. Fast track housing projects caught up in Sydney’s planning system.
  2. Government owned land should be used to build significant amounts of affordable housing.
  3. The NSW Affordable Rental Housing State Environmental Planning Policy to enable 40,000 new affordable homes over 10 years.
  4. Remove restrictive zoning in centres and industrial land that stop new housing.

The government must implement a number of policies and procedures to prevent the property crisis from further developing. The planning department says Sydney needs 147,000 new homes by 2019 just to keep pace with current population growth. Daniel Mookhey writes “We need to examine just who is buying Sydney’s homes, the power they wield, and how we can transfer some of it to working people — especially first-home buyers.”

This is not an issue that will be resolved by itself, help the Australian citizens before selling to foreigners. When one of the basic human rights, shelter is being challenged in a developed country, it becomes a significant issue that the government must combat and make a priority.