Think this should be qualified to: Cheap houses near major...

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Koeln

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26/10/14

15:49

Post #: 14183103
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Originally posted by malaga ↑

The golden age of cheap housing in Australia has gone forever. The days of leaving school at 16 working in a factory and buying a house with your new hairdresser wife have gone. The days of buying the quarter acre block within walking distance of the beach for $100k have gone. Unless we have a catastrophic event the days of cheap housing will never return.
Why SUPPLY AND DEMAND. More and more people are living in the cities, Perth's population is forecast to double to 4 million in the next 40 years. More demand means those with money will buy the best bits and the poor either rent or move further and further out and down the scale. There may be cycles of prices going up and prices going down but if you think prices can go back to 1980 then dream on. Yes some will struggle, yes many will never live their dreams, yes some will bust their guts paying off huge mortgages and make sacrifices. Some will also thrive and accumulate many properties and do well.
Thats the way it is.

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Think this should be qualified to:
Cheap houses near major cities are gone forever. This is due to the simple fact that land to build them can't be supplied. The infrastructure required to commute ever increasing distances is not keeping at the same pace as major cities currently spread.
Note as well, that the same is not true for apartments which are being built at ever increasing numbers. IMO there is no shortage of supply for apartments. Taking this into consideration,
I do think we will see many more people living in higher density buildings. Maybe we will see a trend to build more 2-3 bedroom properly sized apartments than the shoeboxes currently build for investors.
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