Affordability Index
- Thread starter rambada
- Start date
Rambada
LBernham refers to such an index in this thread:
http://www.somersoft.com/forums/showthread.php?s=&threadid=11243
You may wish to PM LB.
MB
LBernham refers to such an index in this thread:
http://www.somersoft.com/forums/showthread.php?s=&threadid=11243
You may wish to PM LB.
MB
If I'm not mistaken, it refers to average monthly loan payments relative to average incomes.
Main drivers are interest rates and house prices.
If payments are over 30 or 35% of income, they are not affordable.
The index maps trends over time. Who keeps it? One of the banks or the Aust Buro of Stats IIRC.
One of my books (Fitzgerald's Seven Steps to Wealth?) talks about not buying at the peak of booms when affordability is bad. The other 70% of the time you can be in the market.
Peter
Main drivers are interest rates and house prices.
If payments are over 30 or 35% of income, they are not affordable.
The index maps trends over time. Who keeps it? One of the banks or the Aust Buro of Stats IIRC.
One of my books (Fitzgerald's Seven Steps to Wealth?) talks about not buying at the peak of booms when affordability is bad. The other 70% of the time you can be in the market.
Peter
