Join Australia's most dynamic and respected property investment community

Low Wage Growth Continues

Discussion in 'Property Market Economics' started by 2FAST4U, 24th Feb, 2016.

  1. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    915
    Location:
    Adelaide
  2. JDP1

    JDP1 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    2,839
    Location:
    Brisbane
  3. MarkB

    MarkB Some guy on the internet Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    180
    Location:
    The screen you are reading.
    This popped up yesterday on my twitter feed -

    [​IMG]

    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.
     
    Hodor, Toon, HUGH72 and 2 others like this.
  4. lynchy

    lynchy Well-Known Member

    Joined:
    15th Sep, 2015
    Posts:
    78
    Location:
    Perth, Melbourne, Sydney
    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.
     
  5. Waterboy

    Waterboy Well-Known Member

    Joined:
    29th Aug, 2015
    Posts:
    326
    Location:
    Sydney
    Actually it's a blessing in disguise. It allows businesses to hire more staff. That explains why the unemployment rate is better than expected.
     
  6. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    915
    Location:
    Adelaide
    That along with underemployment.
     
  7. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    915
    Location:
    Adelaide