John Maher of Inside Property asks “If some young investors can establish portfolios of 5 or more properties by their mid 20′s is the housing affordability crisis in Australia everything it is cracked up to be?” The article suggests that peoples increased expectations are the issue whereas less than a generation ago people knew that you started small and worked your way up. “People have forgotten, or ignore, that the way to get to the finish is to begin at the start.”
I recently had a trip to Sydney to see “War of the Worlds” musical on stage (in the Acer Arena at the Olympic Village) a couple of days ago. This included a walk around Sydney’s historical “brick pit” . In the history of this facility, which produced the bricks to build Sydney’s houses for many years, the following facts are displayed- At that time a new home was £1,600 (pounds) and the average wage was £220 per year. That means that the average home , probably terraced brick, small and with an outside laundry and toilet, was costing nearly 8 times the average wage and only 30% owned their own. The average wage now is around $52,000 pa – 8 times that would be $416,000 and homes now are bigger, with ensuites, media rooms, garages, and air conditioning. So is this really so different? – Martin
Source: Realestate.com.au
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