Quote:
Originally Posted by zilo
17.5% versus 2.5% takes care of that.
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It was less than half that within 2 years. If you took out a 25yr loan in 1990, you would have had an average rate of around 7.5% or less.
Median Sydney price 1990 - $155k ($27k avg wage)
Median Sydney price 2020 - $1.1m ($67k avg wage)
A 7.5% average lifetime rate would take 48% of your average income. A 2.5% lifetime rate starting today would take 78% of your average income. Rates dont really have anywhere to go but up right now.... and with a recession coming, what do you suppose the prospects are for your typical FHB today?
A lot worse than yours were....