Is there a correlation between property price and education/income

Is there any correlation between where one lives, and ones level of education and personal income?

i.e. given the house prices in Sydney, would those with a higher income (and therefore higher level of educational attainment/leading to well paid careers) live closer to Sydney CBD?

 

I personally dont believe formal education level has anything to do with ones income level. Example of this is look at all the millionaires/billionaires who have dropped out of school and have gone on to achieve great success.

 

Generally, I would say that a better education level will provide better employment/income opportunities.

But of course; there are very smart people who have no money, and very average smarts folks with lots of money.

Generally, higher income/more professionally educated folks will throng together in the same postcodes, and vice versa.

 

I think you could safely say that eduction does give people higher earning potential, but it has to be the right sort of education, this doesn't necessarily mean education that's formally recognised.

The billionaire that dropped out of uni isn't uneducated, they've simply focused their education efforts to the best effect. They're definitely not uneducated.

Some of the highest paying jobs are certain sales roles, Real Estate sales would be a good example. There's people in this job that are extraordinarily successful but they struggled in high school. They're not rocket scientists, but they are damn good sales people and this is a skill that they spend time developing.

 

There is a trend. Higher levels of education tend to produce higher income earners, but it's not a hard and fast rule as Rixter pointed out.

 

As pointed out education level is aimed towards getting a JOB (Just Over Broke).. and as you know a JOB income alone does not get one ahead in life.

 

In general yes, but as mentioned above it's not a hard and fast rule.

In fact some types of education can lead you in the wrong direction (teach you to over analyse, leading to analysis paralysis), and to become too risk adverse ("hey I just spent 10 years doing a double masters and a PHD, I can't risk all of that! My next move has to be safe, safe, safe").

Also a lot of formal education doesn't teach you "street" maths and "street" economics. I learned the basics of compound interest etc at school, but I never had an opportunity to use it in a realistic context until I started investing. A lot of formulas etc just aren't applicable in the real world.

 

I disagree with this.

On a personal level im completely with you, i dropped out of my degree and my brother didnt complte his either. another good mate who's a multi millionaire before 30 did the same.

on a general scale though, people who have completed degrees do earn more than those who have simply completed year 12. there will always be exceptions to the rule but in general it holds true.

there are some pretty extensive comparisons done here, have a look http://www.abc.net.au/news/2014-05-...ings-and-unemployment-claim-overblown/5446462

Basically based on different methodology etc at the very least graduates earn 37% more over their lifetimes than those with year 12 education. some put the figure much higher. generally graduates have lower unemployment rates too.

the link above uses 3 or 4 different methodologies and every single one points to graduates earning a fair bit more.

 

well said, can't agree more. however, good job does provide a good starting point.

 

Two mentors in my life.
Father in law - Net worth 10's of millions, Year 9 education.
Best friend from high school - Company turnover $1million per month. Year 12 education.

I'm a firm believer that going to school and getting a formal education only teaches you to make a living.
In order to become wealthy you need to get out there and learn that for yourself.

 

There is definitely a correlation as below
Average weekly earnings by Level of highest educational attainment:

from http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/6278.0Main+Features12005?OpenDocument

If you download the datacube from there and play around you could even see how many people break those moulds.

 

Hmm anyone know why my image broke? I linked the image URL and can see it in preview/edit?

 

I think the smart people don't live in Sydney!

 

In the word of Jim Rohn "Formal education will make you a living; self-education will make you a fortune.".

 

Definitely a link between price & income - the checkout chick generally can't afford the freight in Potts Point or Toorak whereas the barrister or company director can afford Mt Dreaded or Frankston or Elizabeth but would prefer to be surrounded by like minded people.

 

While I agree in general that a higher level of education may lead to better paying jobs, it doesn't mean these people are better at allocating thier income to be better off than someone on a lower level of income or formal education.

Keeping up with the jones's usually means a higher income just gets spent on more "stuff and things"

 

Most important correlation in my mind is between:

relentless focus/commitment/hard work and achieving massive success.

 

Sometimes!

One would assume, from your post, that the wealthy would all gravitate towards the City, but that is far from true. I live in Western Sydney. I know quite a few people who are 'very well off', and, of course, I know people from the other spectrum. I find that people have different needs & wants. Some will choose a lifestyle property, near to family & friends, and commute. Others carve out a living in their local community, while others choose to live near the CBD & their workplace, but don't be mislead to believe that ALL high income jobs are found in the CBD.

I would also not assume that all wealthy people have a high level of formal education.

 

Exactly. Generally the higher the education attainment the higher the income. There are exceptions though because ultimately income is a derivative of supply and demand, which is why a prostitute would make more money than an architect for example.

It's the same for properties. Yes there might be doctors and lawyers who live in low socio-economic areas because they like the area or have connections with it etc., but those people are generally outliers.