HayesJupe's Blog

October 31, 2009

Housing stupidity… population stupidity – a whinge!

Filed under: Uncategorized — hayesjupe @ 4:47 am

So at the moment im undergoing the fun task of searching for a new house – and while there may be portions of the world,and their respective proeprty markets that are in the toilet – the Australian market is going the other way. Growth over the past 10 years for many of the suburbs in Adelaide remains in the range of 150%+ – and while im not sure what the firgures are over the past year – i would have thought they were significant.

This ofcourse has led me to look at the factors contributing to house price growth

1) Population growth

2) Greater proportion of single house purchasers (rather than familaies)

3) Larger families caused by Australia’s largest baby boom since the end of world war 2

4) Governments home builders grant which deposits up to $14k into the pocket of builders each time a consumer builds a new place

5) Real-estate scare mongering: such as reports being released that property prices will grow by 20% in the next 3 years etc… which in turn drives demand, and it becomes self fufilling

So dont get me wrong – all of the above pisses me off in a large way. The government propping up home builders by directly giving them at least $14000 extra profit per house – out of tax-payer pockets…. anyone who doesnt think thats nuts is fucked in the head. But then we come to the fun one – population growth.

So, if i’m to go along with our double-digit IQ politicians for a sec here – more people of working age are required to help support the older generation. So what happens when our current set of babies (which are in plague proportions!) also hits that age range ? Doesnt anyone see an unsustainable cycle ending in a big fucking mess here ?

I realise this is a very simplistic look at the issue as a whole, and that there are many more factors – but at the guts of it, increasing popluation now to pay for an aging population can never be a good long-term policy, as its fundamentally flawed by its very nature!

Now to all you lawyer type people out there, that like to take offence at someone expressing an opinion…. my nephews are cool… my mates kids are cool…. i wouldnt mind haing kids one day…. but i think that a government endorsed (and funded!) population explosion just isnt too bright!


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