Core Logic Housing Affordability Report

https://www.corelogic.com.au/reports/CL_Housing-Affordability-Dec_2016.pdf

 

Wow! Perth is more affordable than Adelaide according to the metrics.

 

Median household income in Perth is 90k compared to Adelaide's, which is only 66k. I wonder how they derived their figures and what their sample size was though?

 

Dunno. That is quite a difference though, isn't it?

This is what the report says:

The four measures utilised by CoreLogic are outlined below. Each measure relies on median dwelling prices and rental rates calculated by CoreLogic, median household incomes which have been modelled by the Australian National University (ANU) and the cost of debt (we have used the average discounted variable mortgage rate).​

 

Yeah the median household incomes for all cities seem low.



Obviously the average income is going to be higher than the median; however, with the core logic figures the only city that had a median household income above 100k was Canberra. I was also surprised that Brisbane had a higher median household income than Melbourne according to the corelogic data. Nevertheless it's interesting data.

 

6306.0 - Employee Earnings and Hours, Australia, May 2016

"The average weekly total cash earnings of all employees was highest in the Australian Capital Territory($1,461.90). The average weekly total cash earnings of all employees was lowest in Tasmania ($1,041.00) and South Australia ($1,077.00)".

 

I am a bit suspect of corelogic's er....logic. some of their numbers have been a little suspect recently.

I am sure that I'm not alone on this....

 

Brisbane is particularly affordable given income levels. I am looking forward to Brisbanites getting pushed a bit to compete in a rising market. There is scope there when looking at what Sydney and Melbourne home buyers had to do.

 

Would someone please think of the Millennials?!!

Inner city punters spending up to 77 per cent of their income on rent - realestate.com.au

Finding these figures hard to believe, nobody would pay 77% of their income just to rent. I've lived in 3 of those suburbs and rent was 20-35% of my pretty average income.

 

Share housing. Believe it

 

Cost of living in Sydney is terrible.
https://forums.whirlpool.net.au/forum-replies.cfm?t=2599900
Most punters believe unless you're on at least 100k it's not worth living in Sydney. Having lived in Sydney in the past I can't say I disagree with them.

 

I think that is a fair comment to say about Sydney. But in your young 'hungry' years one can double-dip to get ahead. By this I mean, work your way up the ladder in your professional career to that 6-figute income level, WHILST doubly spending those 5 or so years as you work your way up, cutting costs and saving money on that high salary via:

- Share housing (hey, at 24 or whatever this is the best time of your life to do this - and have some fun in the process!) You can cut what can be a 30%-of-pay "lifr expense" down to say 10-12% or so. The difference of course can go into your investing efforts
- Being less of a greedy little consumerist piggy. I mean: you DONT need a new phone with every model-release. Not EVERY meal has to be a meal out. Everyday products dont NEED to be branded labels. I.e. White King bleach is double the price of home brand. Just buy the home brand it is bleach, for Batman's sakes..
- Have a savings plan and stick to it
- Learn to appreciate nature and other free entertainment sources. Seriously, an afternoon with a packed picnic at botanical gardens for two can be a much more romantic and memorable date-day for 2 (talking say $20 of homemade sandwiches/snacks and $10 of transport/train tickets) than some overcrowded, noisy, rudely-serviced romance mood-killer 'on trend' restaurant to impress your date where a meal for two and drinks sets you back $80), or 'Netflix and Chill' dates versus 'gold class and popcorn combo for $100 for two' dates etc.
- A handful of camping trips instead of a $5K Europe / Americas / Asia bender every other year etc.

In 3-5 years of these mild/modest cutbacks whilst share-housing and career building; this is where I personally changed my entire future financial security 'destiny'.

 

Ps the Netflix and Chill reference was intentional. A home environment is mych more conducive to the chill factor than a cinema!

 

Another report, June 2012 vs. June 2017 visual price changes images by suburb for all capital cities

https://www.propertyvalue.com.au/ne...n-sydney-n-melbourne-over-the-past-5-years/23

 

Corelogic stats show Brisbane month on month changes for both houses and units are now down for July. Looks like Brisbane is getting more affordable as investor buying is being crimped by lending changes.