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Old 16-05-2021, 02:32 PM   #1426
T3rminator
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Join Date: Jul 2005
Location: Melbourne
Posts: 6,844
Default Re: Australia housing bubble

Quote:
Originally Posted by leesa View Post
Yet even the local factory worker could afford to buy a house and stay at the factory for 30 years. Besides, that rate was temporary. My point was that most young people today would jump at the chance to buy property back then given the income/house ratio. There's just no comparison that housing today is as accessible as it was back then.
Agree with this statement. Dad was a warehouse manager and mum was a teacher back in the days, I have no freaken idea how they managed the repayments when interests were in the mid teens. Its not like we were living scantly either.....2 cars, overseas trip every 2nd year etc...

Having said that, data actually shows that whilst income to price ration has soared, the actual % of income spent on housing costs hasn't actually grown that much.

For example:
In 94-95, 4.6% of households spend 50% of their income on housing costs.
In 2019, that number 5.5%.

https://www.aihw.gov.au/reports/aust...-affordability
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