Why the sky high housing market prices in Australia?

Question

Is it from the cost of materials? Are they importing everything? Are there plenty of contractors building?

I am a registered nurse. My husband is a residential building contractor and we want to migrate to Australia Will he find work? Does he need to test to get licensed? Is it easier to become a residential construction superintendent or subcontractor rather than building right away. Is there more building opportunities in the big cities or the suburb/rural areas.

Answer 1

Supply of Residential Lots to build upon is in short supply due to red tape. Lack of skilled workers in construction whilst demand to build houses was high a few years ago. Demand for housing to rent is greater than the available pool of vacant houses due to immigration of skilled workers.

But lately, Interest rates have stopped people from being able to afford a mortgage to purchase a house. A lot of investment houses (those that are usually rented out) are up for sale as investors now have to pay for losses on the stock exchange. All these factors have differing impacts upon the price of a house.

As for work. Both of you will have no problems. Have a look at http://www.gowestnow.wa.gov.au to see that!

Advise hubby to check out the house builders online, like Dale Alcock, Impressions, Ross North, BGC, Scott Park, Plunkett, AV Jennings, Commodore, etc to get an idea of what's going on here. and the Master Builders Association to find out about licensing.

Answer 2

The sky high housing prices in Australia are not because of the cost of materials. It's all because of the insanely unfair tax concessions which have attracted too many investors into the residential property market since the late nineties. And the government hasn't had the balls to do anything about the tax system to seriously deal with the problem of skyrocketing prices shutting first home buyers out of the market.

People who buy and sell residential property can get off scot free from paying tax on their profits by claiming the main residence exemption to capital gains tax when they live in the property, even for just a few months before using it as an investment property.

If they rent the property out, they can negative gear. That is, the interest and expenses are more than the rent and they can get a big annual tax breaks by offsetting their rental loss against their other income. But business losses are subject to quarantining and deferral.

And the banks have been willing to lend people fortunes beyond their means. In turn housing prices have increased when sellers and agents know people will pay the inflated prices because they can borrow so much and get all these tax breaks.

And even if they do have to pay capital gains tax, they only have to pay tax on half the profit if they owned the property for more than a year.

Wouldn't it be great if you only had to pay tax on half your wage if you had the job for more than a year? That's why the tax system is so inequitable and favours the wealthy who can afford to invest instead of working for a living. And the people who work for a living and just want a home for their family are stuffed.

It makes me SICK.

Property prices are on the decrease now. With less investors developing new residential properties, and increasing interest rates adding to more mortgagee default properties on the market ,now there are not as many jobs in construction as before. So I wish you luck.

Cheers :)

Answer 3

Australia's economy is booming and there is a serious shortage of skilled workers, particularly in nursing and building contractors, so you are in luck! However due to the high demand for housing and shortages of builders house prices are high. You will make up for it though with a good income.

You will both easily find work anywhere in Australia there are shortages everywhere, particularly anywhere near the mining areas, which are mainly in regional Western Australia, South Australia and Queensland.

I'm sorry I don't know about the licencing aspect. I think there is info about this at www.immi.gov.au

Most advertised jobs are available at www.seek.com.au or www.careerone.com.au to give you some ideas

Answer 4

In another 8 to 12 months most economies will be feeling a serious pinch. That means that you can expect any high housing costs to get significantly higher before the fall.

edit - Ok then , there will be no problems and a magic wand will make it all go away...is that what people want to hear?

Answer 5

We are screaming for qualified people in the building industry and nursing.

You and your husband will not be short of a job or lots of overtime if you are good and qualified.

I do not know why homes are so expensive but the land itself is expensive. In our local paper this week Northern Times or www.questnews.com.au it has a bit about Mango Hill and Griffin being named the fastest growing local areas in Australia in a recent Australian Bureau of Statistics report. Apparently betwen June 2006 and June 2007 the population went up 22 percent. There is an old area of Mango Hill but the new area has exploded in recent times.   Some of it is called "North Lakes". There is a big community there and lots of people I talk to at the shops  are from overseas.

I do not know the answer to your other questions.

Good luck.

Answer 6

Supply and demand controls house prices.

Most states have a licensing requirement for residential builders.  There are stringent requirements for insurance and you need a recognised trade qualification.  He does not need a licence if he is employed by a licensed builder.

At the moment Western Australia are having a bit of a building boom because of the resources boom.

Answer 7

I dont know....but I hope the government fixes this in at least 5 yrs.When I might be looking to buy my own home.