If there’s one thing that a lot of people have a hard time understanding, that would be the fact that getting a home is very expensive. Sure, you can opt for a loan and stuff like that, but repaying it takes most of your life. And there are some cities where home ownership is even costlier, such as country capitals and so on.
Melbourne is one of the cities in the world that seem to have one of the best livability features. There isn’t a ton of pollution, you have plenty of jobs and overall you get some really good results. But the best part about all of this is that you can try to get a home here and enjoy all of these benefits for yourself. Yet here lies the problem.
Even if Melbourne has a very good livability note, the reality is that a lot of people just can’t get a home in here. There’s a reason for that, which is the fact that home prices have surged with around 140% in the past 15 years alone. Prices in Melbourne are higher when compared to most of the other cities in Australia, and the problem is that getting a home here is really expensive, to the point it can be very hard for you to cope with things like this.
Moreover, housing in Melbourne has become a speculative financial feature. People are trying to get a home only to resell it for a larger price. This goes to show the shortage of homes in Australia and how hard it can be for some people to get the ultimate set of results.
The issue is that most people that retire still have to deal with a mortgage, so the entire system is broken and it needs to be fixed as fast as possible. Something that obviously will take a lot of time to do, and it will definitely be a huge challenge to opt for something like this in the long run.
You also have the fact that people which buy a home for the first time can’t compete with investors that know the market and which are willing to pay more just to get a better return on investment. The capital gain taxed was halved in 1999, and this caught the attention of investors.
Right now, it’s a lot more challenging for people to buy a home in Melbourne, and since the price can be around $1 million Australian, it really goes to show that Melbourne and other cities may find themselves in a shortage of places to live in.
Will there be a solution for this? Time has shown that with the right approach and a lot of patience, everything can be fixed. But the situation seems rather dire here, so it may take a lot of time and effort to get the best possible experience. However, things will be worth it in the end, so handling all of this in a good manner might end up being very advantageous.
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