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Australian Housing Market

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.

IDP Education [ASX:IEL] Drops as Immigration Caps Bite

By Charlie Ormond, Thursday, 06 June 2024

Shares in IDP Education tumbled today as the extent of the immigration caps was finally felt in their latest trading update.

Will China Fears Shake You Out?

China’s Property Woes Continue

By Charlie Ormond, Saturday, 18 November 2023

China’s ailing property market has been in a slow meltdown for the past two years. But the seeds of its downfall started long before.

Interest Rate Hike on Cup Day? Don’t Bet Your House On It

By Charlie Ormond, Saturday, 04 November 2023

Reading any financial media in the past week would make you think that a rate rise next week is inevitable, so why is the market still thinking there is a 50/50 chance?

Markets Haven’t Bottomed Yet | What’s Not Priced In

By Kiryll Prakapenka, Friday, 03 November 2023

Markets are not at a capitulation low yet. Don’t be surprised by further falls.

Housing market analysis

The Truth About Australia’s Housing Shortage

By Nick Hubble, Friday, 03 November 2023

Under Net Zero rules, governments must design and abide by plans to reach Net Zero over the coming decades. This means all other policies are subjected to that constraint.

The End of an Era and a New Beginning – What’s Next for the Land Cycle Investor

By Catherine Cashmore, Friday, 27 October 2023

Land cycle expert Catherine Cashmore reflects on her past forecasts for real estate cycles.

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Email: support@fattail.com.au

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

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