Australian Housing Crisis
Issues Facing The Housing Industry (A Brief Summery)
Negative Gearing
Presently there is a big issue for first homebuyers as they compete with property investors for homes.
Inflation
Even in the 21st century there is still a big issue facing every industry in every country in the world, inflation. That is, the constant rising of prices is an unrelenting problem in everyone’s mind.
Inadequate Work Force and Unemployment
In the recent Federal Budget, there was an expectation of unemployment to rise by 4-5% in the next few years. In an addition to unemployment, the meagre workforce of homebuilders and architects greatly reduces the supply of new home need by the population
Population Boom
A higher standard of living along with the influx of new migrants adds a great number of people who need homes.
Inescapable Interest Rate Rises
In the recent years, the Reserve bank of Australia has had to raise interest rate 12 consecutive times. The interest rate now stands at a crippling 9%.
Escalation In Housing Demand
As a result of the population boom, the demand for new homes has significantly increased. This rise in demand has ultimately resulted in the increase of prices.
Infrastructure
Australia has a very spread out pulpous and the current infrastructure is just starting to show signs of not being able to keep up with the shear amount of new cars.
Issues Facing The Housing Industry (A More In Depth View)
Inflation
The steady rise of prices has inevitably put more strain on families. As price of food and other necessities such as fuel rise, the average working class family is finding it harder to survive. The Rudd government has done its best to curb inflation, but it’s still early days and things do take time to take effect. In the mean time, families are force to restrict their expenditure...
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