I think what most people are forgetting is that in earlier years the banks calculated servicability on ONE income. The male of the household was the income earner while the female stayed at home and looked after the house and kids.
These days serviceability is calculated on BOTH incomes now that we have equality of the sexes. If you go back to those charts above (sorry, I didn't copy them) you will find that in 2010, the ratio compared to wages is 7.8% if you only use ONE wage. Yet if you use two wages for the same property the stats look a whole lot different, making property affordable again.
Then if you move to the outer suburbs where property is a whole lot cheaper again you find out that it is amazingly EASY for people to afford their own home.
Sheesh, I'm on the outer fringes of Sydney. If you have two income earners on the average wage, then there is no reason why you can't have it payed off in record time. Problem is that many of the youngsters just don't think they should have to move outside of where they grew up.
Suck it up, I say.
These days serviceability is calculated on BOTH incomes now that we have equality of the sexes. If you go back to those charts above (sorry, I didn't copy them) you will find that in 2010, the ratio compared to wages is 7.8% if you only use ONE wage. Yet if you use two wages for the same property the stats look a whole lot different, making property affordable again.
Then if you move to the outer suburbs where property is a whole lot cheaper again you find out that it is amazingly EASY for people to afford their own home.
Sheesh, I'm on the outer fringes of Sydney. If you have two income earners on the average wage, then there is no reason why you can't have it payed off in record time. Problem is that many of the youngsters just don't think they should have to move outside of where they grew up.
Suck it up, I say.