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.

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...

Why an Interest Rate Cut Won’t Save Property Prices

What’s really driving down the prices of property right now is a post-Royal Commission crunch in credit availability.It’s not that the banks don’t have money to lend. It’s that they’re constrained by a new-found focus on ‘responsible lending’.

What We Can Learn from Japan’s Property Market

Back in the 1980s, Japan went through a period of record low interest rates that fuelled an asset bubble to record highs…sound familiar? The bubble pushed the stock market and real estate prices to new heights…and then it burst in 1992. It was devastating.

The Special Structure of Real Estate Investment Trusts

REITs need to have the bulk of their assets and income connected to investments in real estate. They must invest at least 75% of total assets in real estate and cash. They need to derive 75% of gross income from sources related to real estate, including rent.
Money Morning Australia