Low Wage Growth Continues

Wage growth falls to fresh record low, construction work weakens

6345.0 - Wage Price Index, Australia, Dec 2015

Surely this has to transfer over to property at some stage!?

 

already has...why has Sydney slowed...why has cheaper locations picked up...if wage growth was high, then a lot (more) of people would still be buying Sydney and Melbourne.

 

This popped up yesterday on my twitter feed -

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I haven't read it (a bit thin on the ground for time atm), but for anyone inclined to read the article from which that image came, please see here.

 

I can see the rationale behind it.

In 2008, I was earning $45,000pa and was able to secure a $330,000 loan for a $345,000 property. Interest payments were around the $1,800 per month mark

Fast forward to 2016 and with an income of $110,000, I can borrow $900,000 with payments of around the $4,250 per month mark.

This very closely follows Sydney's median house price

I think the issue comes down to the saving of a deposit rather than being able to make the repayments.

 

Actually it's a blessing in disguise. It allows businesses to hire more staff. That explains why the unemployment rate is better than expected.

 

That along with underemployment.

 

Rental growth rates continue to show their weakest performance since 1996