Look at all the empty front yards in Australia! The owners could put in a few shipping containers, fit them out and rent them if they so desire. That would end the housing affordability crisis within 12 months. So why doesn't this happen? It is time for home ownership to entail some rights to the home owner. Instead, those rights have been taken by Local Government, and the result is what we see today.

Does anyone think that the excesses of Wollongong dont happen elsewhere in Australia? What is needed is a bit of people empowerment.

Dear David,

My dream used to be to live in a Victorian terrace in the inner city.

We ended up in a timber-home in the outer suburbs. My husband's parents helped us out financially with a deposit for the home - as a wedding present.

It took two incomes to keep up with the mortgage payments.

When our family increased - we sold the timber house and ended up in a larger brick-veneer home, but again in the outer-suburbs. We're still paying off the mortgage and because I've had to stop working due to health reasons - money's a bit tight.

What the future holds - who knows - we take things as they come. There's no guarantees these days - you do the best you can, and you cope. We've got friends who will never own their own homes - they've been renting all their lives.

My son and his wife have recently bought an apartment - which they're paying off.
It is in an inner city suburb, and they were extremely lucky to find what they wanted - at a price they could afford.

Perhaps apartments are where the future of home ownership lies?
Real Estate Agents are predicting a fall in the prices of homes and
apartments within the next couple of months as interest rates increase.

Pericles,

Apologies, I made myself very unclear.

In saying "Obviously, we've made choices that have affected our ability to buy in" I meant "buy in to the property market" — that is, I meant to infer all that you have painstakingly cut and pasted. We do, in fact, realise we can't buy where we live because of the choices we've made. The whole "shudder" thing was meant to be self-satire — obviously we sound like the kind of urban elites poncy types, which we're not — well, we're definitely urban and probably poncy, but certainly not elite.

But why, just by the way, do you think other people haven't had the career choices we've had? I certainly never had any particular advantages in education or career options, and neither did my husband. Neither of us come from rich families. Anyone can do what I do, as long as they're prepared to accept their kids aren't going to a private school.

Anyway, that aside, I also gave you the wrong impression that I wanted the government to take up the slack for me. I didn't mean that. I meant that Australian policy makers should look at the long-term renting models that they use in Europe and New York City. These don't discriminate between Aussie battlers or ponces like us — but the reality is for many people, the trauma of not owning a house is compounded by the insecurity of short leases and the relatively few rights renters have. I think we need a radical departure from constantly implementing programs to make home-ownership more affordable, which, frankly, is selling people a pipe dream. But it's a popular pipe dream. There are other alternatives to home ownership and I think we need to explore what they are.

A very topical issue David. SBS's Insight covered this topic only recently and is worth a read:
http://news.sbs.com.au/insight/out_of_reach__audience_comments_543488

Some of the ideas that arose included building cheaper community housing complexes (not slums) with shared access to a larger community garden areas. Another option was to make more land available sold direct to purchaser rather than via a property developer to keep the costs down.

It is certainly difficult for younger people these days who not only have to pay exhorbitant rents while they wait to buy but are probably paying off HECS at the same time.

I don't know what the answer is but it wouldn't hurt to look at cheaper housing in the inner and outer suburbs coupled with efficient public transport options.

One concern is if we start offering higher subsidies or raising the First Home Buyers rate it will only contribute to further rises (using the Ross Gittins argument which has some merit). The push for people to be self-funded in retirement has increased the purchase of investment properties and exacerbated the situation.

Good.. we are off to a useful start here.

I've one question that has been nagging me for a long time.

If the Coalition, which is supposed to be pro the big end of town, has now been relegated to the 'outer political suburbs'.. and Labor.. the workers party... is in... can anyone see sound economic reasons for NOT having a 'Peoples Bank' which offers affordable credit? (besides angry CBA,NAB,ANZ,WP share holders)
1/ Peoples bank.
2/ Freeze or punishment on house price rises.. somehow..for 3 yrs or so...(not an economist so stumbling here)

These things (bank) actually do work. Malaysia has the Bank BumiPutera, and it offers much better credit to all who can show they are not ethnic Chinese or Indian (to summarize it) Ethnic Malays and tribal people are able to use it.

Vanilla.. regarding your 'shudder' about outer suburbs :) ya caynt get much more outer than me.. I'm on the very edge.. but oh how sweet it is, with a buffer zone of tree'd land between me and 'them' and just a couple of minutes from Safeways and even Red Rooster is just over a km away. It's not bad really.

Some have mentioned 'inheritance' as a means of obtaining a home.. and I support this.

How do you all feel about the 'Italian Job'.. or pattern... I think they used to buy some land and a large house, plenty of bedrooms, and the whole extended family would live there, all chipping in, and when the time came for the son or daughter(s) to marry and move, Mum and Dad were able to help them.. presumably.. or.. they might have all stayed together.. a granny flat... some re-tooling of the interior to give privacy.. (does anyone know?)

Yep, I agree, it probably is harder for young couples to afford a home, but by the same token I wonder whether they are prepared to make the same sacrifices that certainly my parents made, and to some extent, I made. My first home was a two bedroom flat right at the end of the main runway at Heathrow and when the aircraft came in to land or take off, it killed conversation completely, but at least it was the first rung on the property ladder. No TV of course or any of the electronic gadgets that people seem to feel essential nowadays. No washing machine, dishwasher or that expensive item called a mobile phone. While I have one now, I can't imagine I have made more that 10 calls in the last three years. I still don't eat out, drink or smoke and my clothes cost about $50 a year from the op shops. I was brought up during world war two when my mother saved every piece of string and every paper bag. They knew the value of things having suffered two world wars and a depression.

When you are brought up under such circumstances, you make every dollar count and when I came to Australia 40 years ago, my wife and I bought a two bedroom weatherboard home that was 11 squares. Unable to afford any furniture except a bed, we sat on the floor to eat.

I believe that to some extent the modern couple have expectations that are too high. I now enjoy the sacrifices that I made in early years and although my income is still below the average wage, I don't owe any money and am able to enjoy a self funded retirement with everything I need. I am astounded by the way things are advertised from music, movies, entertainment, alcohol, cars etc., all of which young people consider absolutely essential for their enjoyment.

To be continued