Nuggs Bunny
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- #701
A big driver in the change is how much the banks have been willing to lend and how they've been willing to do it, ie. 20% deposits are basically no more than a suggestion these days and you could buy that median priced house with 10% or 5% with a surety from your parents. It's just so incredibly easy to get finance these days, even after the royal commission.Why do these comparisons always come back to 'not everyone'?
If you find the point in the last 100 years where the ratio between median house price and median income was at its lowest, I'll find you someone who couldn't afford to buy a house then.
https://mccrindle.com.au/insights/blog/40-years-of-change-1975-to-today/
Repayments on an $680,000 loan (assuming you can find a $170,000 20% deposit) with a low low interest rate of 3.5% would be about $3000 a month, or $36k per year - which is nearly 2/3 of the net salary of your median $72k income earner. Sure that person could afford to move out to Mt Druitt or something (where the median is still high and the average person living there earns much less than the median wage) but where does that leave the below median/average income earners? People seem to think it's fine if everyone gets shunted down a rung on the pecking order.