The price of buying and maintaining Carlton property is likely to be on the rise, but what can be done to rectify the issue? The latest Adelaide Bank/REIA Housing Affordability Report shows affordability is now at its lowest level since the December quarter of 2012.
Figures from the final three months of last year show around 32.4 per cent of the average family's income is spent on mortgage payments, and for renters it's just 24.6 per cent. Increasing supply could be just what the market needs to become more affordable again, said President of the Real Estate Institute of Australia (REIA) Neville Sanders.
"Declining housing affordability highlights the importance of addressing the supply side issue of affordability," acknowledged Mr Sanders.
"Supply is constrained by a number of longstanding challenges including regulatory and zoning constraints and cost structures including taxing of building."
Concerns have been raised over what impact the abolition of negative gearing would have on the wider property market. The Real Estate Institute of Victoria (REIV) is among the groups to have expressed just how much of an effect it could have on affordability.
Discouraging investors from entering the Australian property market would lead to a fall in rental supply, forcing up prices for anyone who can't afford a home of their own. With Melbourne's population rising, this is not something that would be easy to overcome.
The city's vacancy rate is already low and putting a halt to negative gearing could be just what's needed to send the market into disarray.
Ray White Brunswick can lend you a hand whether you're renting or buying property in Carlton. We have many years of experience in the local market and are here to help you every step of the way.