Who else has noticed that the gap between house prices and income ratio is getting wider and wider by the day?
It’s not so much a secret anymore that we’ve entered an era where the majority of the population cannot buy a home and are being pushed out of certain areas because they cannot afford to live there anymore, even if they’ve spent their entire lives there.
Byron Bay is a prime example. Once a sleepy beach side hippy area, now, home to some of Hollywood’s elite such as Chris Hemsworth and Zac Efron. In fact, in 2019, it surpassed Sydney as the most expensive city in Australia.
And now properties prices across Australia are more than five times the household disposable income and is set to climb higher as the market continues to boom and wage growth remains stagnant.
The Reserve Bank modelling shows that housing values have gone from less and three times disposable household incomes in the mid 1990’s to more than 5.5 times today.
EY Oceanic Chief Economist, Jo Masters said that “both are part for the equation and in the past year have sort of moved in the wrong direction. House prices have accelerated, and on the other side, wage growth has decelerated. Even in the June quarter when unemployment was falling, there was very anaemic wage growth.”
So, if you’re feeling like there’s no way out and you can’t buy your family home, then get in touch with our team who are helping investors just like you, create a personalised strategy to buy your home faster!
Our goal is to help as many people as possible, create a future of financial freedom for themselves and their loved ones so get in contact on 1300 522 562 or email firstname.lastname@example.org
When considering an investment property with positive cashflow, it is important to make sure it is suitable for your specific financial goals and objectives. Remember to do your due diligence and if you need advice; JR Prosperity Partners can help you decide if this is the best strategy for you.