here is the answer at 7% growth the average house price in ten years would be 944k
average wage grows by 5 % in ten years time 97k
repayments on 944 k are 76k a year .. that 97k is pre tax .
ok so your saying richer people will move into the area to maintain price growth .where are these riches coming from .
the public debt in australia is now approaching 200% .its has to be paid back and we cant mow each others lawn forever and sell each other ever increasing houses . we need to get the country back to producing something .when the piper comes a calling things will shock people
I think there may be more to the story here. Don't forget that over the next 10 years the population of a large Australian city will grow - in the exmaple of Melbourne it will grow by a lot, perhaps a million or more. This means a lot more people living in Melbourne, meaning that nice inner suburb now represents a smaller percentage of the overall housing pie. Because it's nice, and well located, there will be more people trying to buy into that suburb, and the richest people will 'win'. Remember, with growing population and a healthy economy, there will be more wealthy humans. But no extra properties in your nice inner suburb.
As such, the price rises, and rises, and rises. Even though the median and/or average doesn't change much, properties in that nice inner suburb rise the the ranks of desirability.