3 ms·
In Australia they have it worse, interest and charges on your mortgage are tax deductible (in Australia this is called negative gearing, even to the point of ex
by tankenmate 10y ago
In Australia they have it worse, interest and charges on your mortgage are tax deductible (in Australia this is called negative gearing, even to the point of excluding all other types of negative gearing); it only encourages mum and dad investors to overpay for properties. That added with absent foreign owners looking to park assets overseas out of reach of their local governments.
Sydney in particular is heavily affected, in the 5 years to Dec 2016 house prices in Sydney rose 70%, wages 13%. A month ago HuffPo reported that the median house price in Sydney was AUD 805k, and the median wage is AUD 80k; a 10 time multiplier. These days in Sydney if you haven't been able to afford a deposit / mortgage on a house before you are 40 you'll never be able to afford one.