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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.

China and Australia Tensions - Trade Relations - Trade Tariffs

And Then Came 2020… Impact of China Relations on the Aussie Economy

Dear Reader, It all began eight years and four prime ministers ago. Then Prime Minister Julia Gillard said China’s telecommunications company Huawei wasn’t allowed to be part of our NBN infrastructure, under the guise of national security. Then last year, we got up China’s nose a little more. We booted China out of building a subsea […]

By Fat Tail Daily, Friday, 11 September 2020

Propped Up Property Market - Property Investing Australia

Propped Up Property: The Rules Have Changed…Did You Get the Memo?

Dear Reader, In 1904 Elizabeth Magie patented a clever board game of her own creation. She called it The Landlord’s Game. The game pretty much mimicked life. There was money, banks, deeds, jail…you could even make a wage. Yep, you probably guessed it. Her game later turned into what we know today as Monopoly. The […]

By Selva Freigedo, Wednesday, 19 August 2020

Aussie Property Price Collapse - Australia Housing Market Crash

Could This Trigger an Aussie Property Price Collapse?

Australia’s economy has always a been a simple yet resilient one. We’re a commodity exporter. The wealth generated from this sector trickles down through jobs, tax revenues, superannuation, and property…

By Ryan Dinse, Monday, 27 July 2020

Debt Bomb

Higher House Prices Are Just More Debt

Nothing is so permanent as a temporary government program, Milton Friedman once said. And he should know, as President Reagan’s economic advisor.

By Nick Hubble, Saturday, 25 July 2020

Aussie Big Four Banks in Trouble - ASX Bank Stocks

When Mercy Turns to Malice: The Big Four Bank’s Ticking Time Bomb

It is as clear as day that the Aussie big four banks can’t keep up this farce. Pushing back the loan holiday wasn’t what they wanted, but it was what they had to do. Their kindness has become their biggest weakness…

By Ryan Clarkson-Ledward, Thursday, 09 July 2020

COVID-19 Lockdown - Victoria Under Lockdown, Banks Extend Mortgage Holiday

Five Million in Lockdown and Nearly One Million Question Marks for Banks

Yesterday, well, I’m sure you know what happened. The state of Victoria is back to square one again. And today, the Big Four announced that they would extend the six-month repayment holiday by a further four…

By Lachlann Tierney, Wednesday, 08 July 2020

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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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