Australian Housing

When you read articles about Australian housing affordability, it is often comparing the single average adult wage to house prices, from generations ago.

The articles generally say something like, ‘a house was worth three times the annual average wage back in the sixties and is now worth 10 times the average wage. This shows housing has become unaffordable.’

You can’t compare the two because back in the sixties it was one wage bidding on real estate.

The state of Australian housing

The days of Dad going off to work, while Mum tends the children are long gone, just like the black and white TVs of that era.

It is now usually at least two incomes bidding on Australian real estate, land price has quickly factored that in. So you can’t compare the two figures.

These days you need to find historical figures for combined household income and compare the two.

When you do that you may find housing affordability hasn’t run away at all, but is simply keeping pace with wages.

Aussie Property Prices: The Marginal Idiot Rules

Interest rates are falling — and likely to fall further. This might help some of these struggling mortgage holders get out of arrears or be able to reduce their monthly payments. But it’ll also allow new borrowers to borrow more.

Property Market about to Bounce?

It looks like the powers that be are determined to get our property market shooting higher again sooner rather than later. We’ve had two interest rate cuts and now APRA has announced that banks can lend people more money based on the amount of money they earn currently.

It’s Been a Good Month for Property

If history is to repeat, property prices are likely to rise further in value, into a peak next decade. Study a little history and you’ll see how the boom/bust cycle repeats. It must repeat, because we never get to the underlying cause of the boom/bust cycle.

Play the Game and You Might Get Rich

I’m beginning to think Australia is just one giant game of Monopoly…Pass GO every fortnight or month, depending upon your employer, and receive $200.Try to buy up every Australian property in sight…even the cheap disgusting ones.Speculate on which side of the board you’d like to control...
Money Morning Australia