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In the late 1980s Australian interest rates were 17% so the repayments required were much higher on the same level of debt. However, your point in general stan
by sien 7y ago
In the late 1980s Australian interest rates were 17% so the repayments required were much higher on the same level of debt.
However, your point in general stands that houses in Australia are much more expensive than they were 30 years ago. But a better metric is the proportion of income required to pay for a house.
It's also worth noting for Australians and Americans that these housing cost issues are a global issues in many successful cities around the world.
Some cities and states have avoided these issues. In particular Texas in the US has seen huge growth and has managed to keep prices down.
- JMTQp8lwXL 7y agoYou could've just saved the 3x income and paid cash if you wanted. Today, it's a much longer path to use frugality to build up the pile of cash needed to buy a home outright.
- JauntyHatAngle 7y agoAnd indeed, buying a home outright would sometimes be impossible depending on when you started saving. E.g. If you tried saving to buy a house outright in the 00's in sydney, the cost of housing would increase faster than you could save.
- flukus 7y ago> In the late 1980s Australian interest rates were 17% so the repayments required were much higher on the same level of debt. Inflation was also in the >10% range (https://www.abs.gov.au/websitedbs/D3310114.nsf/home/ABS+Chief+Economist+-+70+Years+of+Inflation+in+Australia/$File/CPI+70+Years.svg https://www.abs.gov.au/websitedbs/D3310114.nsf/home/ABS+Chie...) so if your wage kept up with inflation and you could weather the high interest rates for a few years then your mortgage:income ratio shrunk very quickly.
- nunez 7y agoTell that to Austin and some areas in Dallas.