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by PebblesHD
2517 days ago
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Every time this topic comes up I come back to some basic maths. My parents were, in the late 70s and early 80s, able to buy a detached house in a suburb reasonably near public transport to the CBD on their combined teachers salaries with a mortgage repayment at around 35% of their wages. My partner and I are, on paper at least, earning multiples of that even accounting for official inflation figures and we’re left renting around twice as far away from the city for around the same portion of income. At some point the realisation has to occur that a house 50 miles from anything is not worth $1m and the only reason they can currently sell for that is existing home owners can leverage that asset to buy them. There will eventually be no more existing home owners to sell to and the market should logically come back to sanity, or at least I very much hope it will. That or I’ll be moving my family to a more affordable location overseas creating the same effect for their own first home buyers as I take up a property that would have been used by a local. What happens after a few cycles of that I wonder... |
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