Massive consumer debt bubbles and policies that have encouraged real estate speculation have brought Canada and Australia to a similar tipping point as two of the most over-valued property markets in the world relative to rents and income.
When households can’t or don’t wish to crush themselves with unsustainable debt, more cost-effective living ideas–like multi-generational sharing and moving to cheaper areas–are needed. This, along with policy changes that stop enabling and incentivizing speculation, will help to bring shelter costs back down to affordable levels. 60 Minutes Australia examines the issue in this segment.
These days the great Australian dream of home ownership has been replaced with the great Australian whinge that for most people, it’s no longer possible. What’s left is the great Australian divide between the haves and the have-nots. The reason why buying a home is so expensive seemingly defies the rules of economics, but the reality means it’s cheaper to call Paris or New York home instead of Sydney or Melbourne. Want-to-be home owners might be down, but they’re not out and as you’ll see, there are ways to turn dilemma into opportunity. Here is a direct video link.
