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.

Australia’s Shrinking Lot Sizes — What It Means for You as an Investor

Developers are crunching lot sizes in Melbourne and Geelong housing estates to ensure new homes in the outer suburbs ‘remain affordable’ for first home buyers.

By Catherine Cashmore, Thursday, 07 October 2021

APRA Steps in to Do the RBA’s Dirty Work

In today’s Money Morning…demand isn’t the issue…RBA’s never-ending party…and hey, if property is more your thing, then there is always REITs…and more…

By Ryan Clarkson-Ledward, Thursday, 07 October 2021

China’s Fake Property Crisis

Compare that to Australia, where the Big Four banks have about 70% of their assets in mortgage loans. The property debt risk is arguably much higher in Australia than it is in China.

By Callum Newman, Monday, 04 October 2021

Will a Crackdown on High-Debt Home Loans Pop the Property Boom?

It can take up to 3–4 hours to get the same volume of people through a property as you would in a standard 30-minute open for inspection!

By Catherine Cashmore, Thursday, 30 September 2021

Piercing the Veil: Investing Tips for 2022

In today’s Money Morning…will a reckoning with the global debt complex happen this year?…here’s a tool to get a gauge on market sentiment…three massive investment themes for 2022…and more…

By Lachlann Tierney, Tuesday, 28 September 2021

Melburnians Fleeing the State Buyer Beware

If you’re a property buyer shopping in today’s market, you’ll be used to witnessing properties selling way above reserve. Seems like every other day there’s another great BBQ story of an auction result smashing all records.

By Catherine Cashmore, Thursday, 23 September 2021

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.