For those interested in becoming wealthy So this youtube video applies to US market, however same strategy can and is used in oz. Pretty much buy and hold property. Not telling you how to suck eggs…. Just saying …..invest today…. is because there are several rising/booming markets, so you can increase equity in a very short timeframe… access equity and continue to buy property Warning…. for those not interested in US market…..Watch youtube Closer to the end is what matters I know not rocket science…. But you will be surprised how many will do nothing and miss today’s amazing opportunities in oz to build wealth I am not selling anything
I'm sure he'll be correct and predict the future. "The best sellers market in history" "may miss out on this window of opportunity"
Lol I do now Like me he is saying that we may be entering a period of high infaltion, and I add political instability. But if you look at house prices from the 70s they tell a different story than a lot of the "inflationaries". You can see house prices declined after the early 70s and did'nt recover for 20yrs. Not sure I'd be hoping for a repeat of the 70s if I was invested in housing. I know plenty that bought in the 70s, some a few. Inflation was good for the rent. It wasn't until mid to late 80s that their wealth jumped. Until then they all lived in old fibro houses or those square red split levels most not even having indoor stairs... The buying was relatively good for those having income. Problem is current wages are stalled. Maybe that's why the RBA has no intention of raising rates.
Do you have similar chart for % of income to pay an average mortgage- that would be interesting as well. I guess it’s getting worse over time but with lower rate, the change might not be as bad as house price / income ratio. Plus is that household income or single income because there are more likely 2 income since the 90s?
Yes but that’s exactly why I want to see if we have a chart that converts house price, mortgage, income into one chart to show the % of income to pay mortgage. I can’t work that out from interest rate chart. We know rates are now lower than before so relatively speaking properties are not as unaffordable as the price / income ratio suggests.
This is the biggest problem in todays society. Housing are treated like an investment. Don't get me wrong - I am getting wealthier from it. But I can see why it is causing such a stir in the media now. Truly this pandemic have shine a light on housing issues as much as climate change. The wealth creation is good, so is wealth destruction if you ill manage it. Invest today and grow wealth.
Found this for new mortgage - only last 6 years. Changed a fair bit in the last 12 months, but still not as high as 2008. This is from ANZ research for Q3, 2021. For Australian wide: Sydney is staggering though as below, but only back to 2017 with the current mortgage rate: However, if the mortgage rates are back up to 2018 level, and income hardly changes much then this housing cost as % of income will be much different.
Would be good That was my point …. We are in a low interest rate environment. I think in 80s hit 16-18% massive impact on affordability compared to today
The boom is global and is driven by government printing money. RBA keeping interest rates low. I fear though it will end in tears for many
Yes, that is true. Below is your home city (Perth) - clearly most affordable capital city currently if it is just based on this metric! So it depends on what you want to refer to support your point right? Question is if Perth will catch up to other cities.
Perth has 8% higher income than average in oz Perth has recently begun the upswing of a boom cycle. It will be dependent on how long this boom cycle lasts etc Many wont realise and hard to believe Perth’s median house price surpassed Syd for a couple of weeks in I think 2006/2007. This boom cycle went from 2001-2007.
If qld is about to go for boom 2.0 when the gates open what is driving the Perth market? Are you getting the riff raff from vic and nsw as well? Is there the same housing crisis over there? Not an area I look at so have no idea what the driving forces for it are.
I guess same reason all of Oz has been booming. My competition has been buyers from Syd and Melb We will hear today from Premier when WA borders open, I think Late Jan/Feb. Now things will get interesting. We need 55,000 workers, trade shortage, building boom Perth has strongest economy in Oz Perth median set to rocket in perfect storm
