Saturday, July 14, 2007

Federal Economy Works Well

Originally uploaded by Sydney Weasel
Lots of lies reported recently about Federal economic handling being below par, however, the truth is that even unaffordable housing for families is a myth .. for the federal sector.

1 comment:

Anonymous said...

Unaffordable housing 'a myth'
By George Megalogenis
HOME ownership rates for the mainstream family - a couple with dependent children under 15 - have improved over the past 10 years despite the doubling of property prices in that time.

New census data supplied to the Weekend Australian yesterday challenges the conventional wisdom that housing has become less affordable for this pivotal group.

The home ownership rate for young families has edged up in each of the past two censuses.

Since 1996 the combined movement has seen the benchmark rise from 78.3 per cent in 1996 to 79.6 per cent last year.

Surprisingly, NSW, Victoria and Queensland all reported back-to-back increases - busting another urban myth about the Sydney market.

The ownership rate measures both those with mortgages, and those who already own their homes outright - the way the Reserve Bank prefers to look at the issue.

The numbers contain a double edge for the Coalition in the genuine battler electorates where home ownership rates for young families are below the national average of 79.6 per cent.

The Government holds 14 seats in this bracket that could fall to Labor with swings of up to 6.5 per cent.

These stretch from the Townsville-based Herbert to the rural Tasmanian division of Braddon.

The Opposition needs a net gain of 16 seats to rule in its own right.

Of these 14 vulnerable coalition seats, 10 are either in provincial areas or in the bush, which might say more about the incomes of the families concerned than it does about property prices they face.

The remaining four seats are in capital cities: Brisbane's Bonner and Moreton, Perth's Stirling and Darwin's Solomon.

Kevin Rudd will hold a summit later this month to discuss proposals to help first-time buyers.

The Opposition Leader primarily blames the four interest rate rises since the last federal election for lower affordability.

John Howard has replied that the Labor states are to blame because they are holding back on land release in the outer suburbs.

But the census suggests both sides are tilting at shadows.

If ownership rates for young families are rising, not falling at a state and national level, what is the community's real concern?

One explanation is that young families need both the father and mother working to get a foothold in the market.

The doubling of property prices has coincided with the rise of dual-income households over the past 10 years.

Another is that prices have been falling in Sydney's west.

Also, people feel more anxious about the debts they are taking on, even if they can cover them.