Homeownership is the Australian dream - and it seems that it’s becoming harder and harder to buy a home!
Those looking to enter the property market face a triple whammy of
- high prices,
- costly mortgages and
- lack of supply
making owning your own home deeply unaffordable, with little sign of relief on the horizon.
Mortgage rates soared from less than 3% to more than 6%.
For the median family buying the median home, mortgage payments doubled from roughly 14% of monthly household income in 2020 to nearly 29% in June, the highest since 1985!
And yet prices continue to rise!!
Why?
There are still buyers out there. They have very few options
- Each house needs just one buyer
- Lack of supply
- Rents increasing
- Net Migration
- Australia is the best place to live
- People feel secure if they own a home
A strong housing-market contributes to the well-being feeling of a person, family, city and nation.
The hope
Let’s hope the property continues to increase - and that our children will still be able to afford to become homeowners !
It sounds like inflation - and it feels like growth and growth is good?
What am I missing ?
I remember buying our house when property prices were at 17pc .
$200k sounded beyond affordable - yet we did it - and that property is now worth 10x -or $2m .
- property increased , interest rates reduced, wages stayed the same - property still affordable
- property increases , interest rates rise , wages stayed the same - how can people afford to buy?
A solution ?
- Maybe but to rent vs buy to live in - Australians become a nation of investors ?
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