Buying Property Today
Vs Buying Property in 1990
“Young Australian’s can’t afford to buy property today because they're priced out of this overinflated market.” – A throwaway line these days, fuelled by fearful speculators and a lack of understanding and education.
Let’s look at the facts.
In 1990, the median house price in Sydney was $175,000, the average full-time wage was $30,000p.a and interest rates were a whopping 17%. If you were borrowing at an LVR of 90%, your yearly repayments then were $26,775. That accounts for 89% of the average wage!
Today the median house price in Sydney is $1million, the average full-time wage is $78,832p.a and interest rates are 4.5%. Not all of us are buying million dollar homes, but consider you’re borrowing 90%, your yearly repayments are $40,500. This accounts for 51% of the average wage!
Relatively speaking, a property is more affordable than ever. Yes, as Gen Y’s, we still have to come up with deposits, but you’ve got to get creative. Save money, talk to your parents, find equity; there’s more than one way to cook an egg.
Under 35 & want to learn more?
Send me an email (firstname.lastname@example.org), I’ll post you a copy of 7 Steps To Wealth.