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Housing (un)affordability in Australia - the case for going tiny.

Alexandria Joy - Thursday, February 22, 2018

Australia is growing and changing - economically, socially and environmentally . Census data highlights aspects of this transition and suggests key challenges to overcome and issues to address.

We are at a critical juncture – a time to debate about the nation's growth and future. A time to think smarter and act more decisively.

As a property investor for over 20 years in the low to mid range residential market I am saddened to see the continuing decline of housing affordability in our "lucky country.” Not only am I beginning to be squeezed out of purchasing houses for investment myself as affordability goes down and competition and prices go up, I am am also seeing an increase in tenant distress and lack of supply and availability of clean, affordable, decent housing at the lower end of the market.

This week I attended the Hunter Research Foundation Centre's Hunter Economic Breakfast focusing specificially on housing affordability (or un-affordability to be precise) where the picture painted was gloomy and heralded a need for a clear strategy and decisive action by both politicians, businesses and private investors if we are to turn around this downward trend.

At the breakfast, Greg Budworth from Compass Housing shared that:

·      In the decade after the Second World War, state and federal governments combined on the biggest building boom in Australian history. 

·      Over a 10 year period they built more than 670,000 houses, providing affordable homes for generations of Australians. 

"70 years later Australia is in the grip of a housing crisis that is undermining living standards and threatening future prosperity." Greg Budworth

Research backs this up. The 14th Annual Demographia International Housing Affordability Survey: 2018 Rating Middle-Income Housing Affordability covers 293 metropolitan housing markets in nine countries including Australia, Canada, China, Ireland, Japan, New Zealand, Singapore, the United Kingdom and the United States. Findings from the research include that there are 28 severely unaffordable major housing markets, including 13 in the United States, 5 in Australia and one in New Zealand and China.

Virtually all the severely unaffordable major housing markets covered in the Survey have restrictive land use regulation, usually urban containment policy. Urban containment seeks to severely limit or prohibit new housing development on and beyond the urban fringe. A typical strategy is to impose an "urban growth boundary" which is associated with higher land prices for land on which development is allowed. This leads to higher house prices, a lower standard of living and increased poverty. Housing affordability is likely to worsen even more unless there is regulatory reform that restores competitive land markets on the urban fringe.

In her impressive book, The Life and Death of Great American Cities, Jane Jacobs said "...a metropolitan economy, if it is working well, is constantly transforming many poor people into middle-class people..." Yet, urban containment policy has been associated with more expensive housing, which has lowered the standard of living, increased poverty and stunted economic growth.

Historically, the Median Multiple has been remarkably similar among six surveyed nations, with median house prices from 2.0 to 3.0 times median household incomes (Australia, Canada, Ireland, New Zealand, the United Kingdom and the United States). Housing affordability remained generally within this range until the late 1980s or late 1990s in each of these nations (Figure 2).15 In recent decades, house prices have escalated far above household incomes in many parts of the world. In some metropolitan markets house prices have doubled, tripled or even quadrupled relative to household income.

Sydney is again Australia’s least affordable market, with a Median Multiple of 12.9, and ranks second worst overall, trailing Hong Kong. Melbourne has a Median Multiple of 9.9 and is the fifth least affordable major housing market internationally.

But what does this all mean for us living day to day down under?

It means despite living in the wide brown land that we are experiencing increased mortgage stress, tenant distress and urban containment restricting urban sprawl pushing house and rent prices up and up. Basically demand will continue to exceed supply and if this is not reversed or slowed, worsened housing affordability is likely.

Unless we beat the urban containment restrictions by reversing our increasingly larger and larger homes and instead begin going tiny and mobile.

Imagine a house with no fixed address and the ability to live debt-free, with utility bills as low as $10 a month. It’s not just a dream it’s a reality in many countries around the world and it’s a movement about to become the new alternative to decades of mortgage repayments here in Australia as well.

As a property investor, opulent minimalist and futurist I thought I would put the trend to the test and build and live in a tiny house myself as a form of an experiment and to get a feel for it’s validity as an option for tackling housing unaffordability here in Oz.

Why go tiny?

·      freedom from debt

·      moveable location and travel

·      minimal environmental impact

·      the opportunity to live simply and consume less.

For me it’s not about cramming my old life into a smaller space. It’s become a quest for life, expansion and freedom and been more about redesigning my life based around my values and a vision.

My experiment – initially for around 6-12 months, is rethinking living and trialling a way for people to see a new way to consume less as well as ponder how we as humans relate to the rest of the planet as many indigenous cultures have done for centuries before us.

“Tiny living opens up a way for me to radically rethink the way I live, the way I consume, the way I work, and ultimately how our I relate to the land and mother nature." Heidi Alexandra Joy

I can’t wait to explore this wide brown land on wheels, house in tow. Follow my journey at The_Joy_Box on Instagram and Facebook.

My hope upon returning is that I will have a case for this becoming a business or social enterprise opportunity to help mum and dad home owners buy an investment that will earn an income and in doing so provide affordable housing for someone in need and pay off their own motgage sooner. A win win as it should lessen tennant and mortagage distress.

Source http://www.demographia.com/dhi.pdf

Brendan Burchard Masterclass demonstrates How to Identify, Package, Market and Drive Your Expertise

Alexandria Joy - Sunday, June 08, 2014

My favourite nuggets of wisdom from the day

Last week I attended the event How to Identify, Package, Market and Drive Your Expertise Master Class in Sydney at Luna Park in the Big Top and after posting this photo on Facebook:

I had several friends and clients send me messages asking how it was, who the speakers were and what did I learn.

Always keen for an opportunity to sharpen the saw, and I had attended this event in particular to see Brendan Burchard in person after observing his internet success. I came away from the event with my wallet intact (no I didn’t fall for any of the limited number of seats act now sales pitches) but my notebook full. Surprisingly for a pitch-fest style event (we all gotta eat) I found that I did have some really great takeaways and nuggets of wisdom in my notepad from the day.

Below I've included a quick takeaway from each of the speakers on the day. (For my full seven pages of notes leave your name and email below and I'll happily send you a full copy of my notes.)

Speaker 1 – Scott Harris from Australia - Developing the Psychology behind Your Success

Scott suggested you need to:

1 - Become an expert in your life - really understand yourself, your strengths, weaknesses, habits and beliefs
2 - Invite some experts into your life - surround yourself with smart people who have been there before so you don't have to recreate the wheel and can replicate their systems.

Speaker 2 - KERWIN RAE from Australia  - The 5 Pillars of a fast growth Expert empire
Keys to Getting the Basics Down
  • Simplify
  • Streamline (know the things that don’t matter)
  • Automate
  • Immerse

Speaker 3 - ANDY HARRINGTON [UK] - Promoting Yourself as the Authority in Your Subject

Five Areas to be an extraordinary speaker:
  • IMPACT – break people’s pattern en masse.
  • INFORM – a message that informs people without overwhelming them.  
  • INSPIRE – more people emotionally by changing their state.
  • INFLUENCE – move them into action.
  • INCOME – too many poor coaches and consultants and authors.

Speaker 4 - BRENDON BURCHARD [USA] - Positioning yourself as an Expert on any topic area
  • “Experts are always students first.” Brendan Burchard.  If you’re waiting for someone to tell you, you’re a divine being, well here it is “you’re good to go.”.
  • You don’t have energy or confidence, you generate it.
  • It’s about adult learning – you just have to apply the science to it.
  • You can teach any topic to anyone whenever you decide to.
  • You just need to believe and decide to start.
Thanks to a post a US friend Jennifer Bourn shared recently from the Copyblogger’s Authority Intensive 2014 that I found really interesting, I figured I would get my fabulous assistant Claire to type up my notes of the best bits, the quotables, and the action items — so you can benefit from the most notable content shared too.
To access my full simply click on this link and leave your full name and email. Enjoy! 

I hope this post and my full notes helped you provide you with some of the best bits without the pitch fest parts in between!

How about you? Did you attend the event in the Big Top? What did you think? Did one of the nuggets of wisdom listed above speak to you or catch your attention? Or did you think it was all just too much hype and sell, sell, sell at the back of the room? I’d love to hear your thoughts in the comments below!


Your Pay Reflects Your Personality Type

Alexandria Joy - Monday, February 10, 2014

Want to know why you can’t seem to breakthrough your current income level? According to a study conducted by CareerAssessmentSite.com, your personality has a significant impact on your earning potential.

Is Your Personality Holding You Back?

Before we jump into self-diagnosis mode, let’s first get real about the benefits of understanding how personality impacts your performance, career opportunities, and earning potential.

When managing a thriving business, we leverage organisational strengths to ensure continual growth and profits. We also shine the spotlight on the organisation’s weaknesses to tighten up ship and minimise unnecessary costs (in terms of resources, time, or money). Continuous improvement is a common movement in the business arena, but not so much when it comes to personal or employee growth.

If businesses are run by… people… how could you ever blossom your organisation into its full potential if your people don’t develop and grow?

Just like in business, being aware of your personal strengths allows you to make full use of those to your advantage. Likewise, understanding your weaknesses will allow you to work on them, or if needed, stop you from fighting a never ending battle by delegating things to people who excel at whatever it is that you suck at.

When you focus on your strengths and continue to stretch and build that muscle on a daily basis, you end up stepping up into your full potential. As an aside, you’ll also position yourself as a guru in your area of expertise. You’ll stop struggling and you’ll have better clarity in how to build your career.

What Personality Type Earns The Most?

Busting to know aren’t you?!) Studies show that people with a pragmatic approach to life and business out earn all other types. They are excellent custodians of money, see criticism as an opportunity to expand, and set goals and take daily action to achieve them.

One the flipside, these people sometimes seem controlling and intimidating. Their ability to make decisions and act quickly may come across as impulsive.

What’s Your Personality Type?

You can read more about the different personality types tested in the study here.

Or, you can contact us at UQ Power to help you uncover your personality type, how you can leverage your UQ Power (your unique strengths) and how to go about addressing your weaknesses.

Our Founder and CEO, Heidi Alexandra Pollard is a certified Myers-Briggs facilitator who can help you to discover and bring out your UQ Power. All you have to do is fill out this form and we’ll start the process for you.

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