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Agents and lenders around Australia are finding that young families are borrowing $1million as the norm’ due to increased income and house prices. After our string of events covering, increasing wealth - with Anthony Bell and strategies for buying and selling in today’s market - with buyers’ agent, Rich Harvey, we found that perhaps there’s more to house prices than what we see. This exert from a recent Daily Telegraph article tells more:
“Paying off a mortgage is easier today than it was 26 years ago, even though Sydney’s average home price is more than seven times higher. This is the astonishing finding of new BIS Shrapnel research that shows meeting standard mortgage repayments in 1989 required almost half the average household’s income, while today it requires just over a third.
Current homebuyers are also spending less of their income on mortgage repayments than they did the last time Sydney had a housing boom in 2004.
Back then, repaying the average mortgage required 40.9 per cent of household income.
The findings shed new light on recent concerns about the affordability of housing, showing that while housing costs remain high, they are more affordable than in times past.
BIS Shrapnel analyst Angie Zigomanis explained that housing affordability has mirrored not just house price increases, but rises and falls in the interest rate…”
Today’s buyer is smarter with their money to ensure they not only secure the home of their dreams, but the lifestyle to go with it. For more information on current market prices, or if you’d like to attend one of our upcoming events to see how you can borrow smarter, please feel free to contact me or visit our office.
Keeping our clients one step ahead of the auction gavel…
(For the whole story, visit http://www.dailytelegraph.com.au)
“Paying off a mortgage is easier today than it was 26 years ago, even though Sydney’s average home price is more than seven times higher. This is the astonishing finding of new BIS Shrapnel research that shows meeting standard mortgage repayments in 1989 required almost half the average household’s income, while today it requires just over a third.
Current homebuyers are also spending less of their income on mortgage repayments than they did the last time Sydney had a housing boom in 2004.
Back then, repaying the average mortgage required 40.9 per cent of household income.
The findings shed new light on recent concerns about the affordability of housing, showing that while housing costs remain high, they are more affordable than in times past.
BIS Shrapnel analyst Angie Zigomanis explained that housing affordability has mirrored not just house price increases, but rises and falls in the interest rate…”
Today’s buyer is smarter with their money to ensure they not only secure the home of their dreams, but the lifestyle to go with it. For more information on current market prices, or if you’d like to attend one of our upcoming events to see how you can borrow smarter, please feel free to contact me or visit our office.
Keeping our clients one step ahead of the auction gavel…
(For the whole story, visit http://www.dailytelegraph.com.au)
The fact that the mortgages are so much bigger and the deposit impossible to find for more and more first home buyers seems to have escaped most of these " experts ".
I don't have any links to the Daily Telegraph or BIS Shrapnel as both websites take forever to load on my ancient Mac.
Stewie