Not a lot of commentary on this post.
Thank goddess I can hear many of you say.
Below is a table showing how much we earn by household and also as a median figure by state and territory.
When it comes to how much a household earns per annum, some 59% (for Australia) comes from wages and salary.
Another 14% from property income; 10% from business income; 8% from superannuation and 10% is received as cash benefits.
These are gross results.
And how much a household earns depends on the age of the people living in the household, work type, profession, business/investment activity and reliance on government assistance.
Younger households generally only have wages or salaries in the household income pot.
The table also shows the median dwelling price as of September this year and also the ratio of dwelling price by total household income and wages/salary income only.
My take is that a dwelling ratio over 6 times household income has entered the unaffordable range.
Gone are the days when three or four times household income applies.
That was the standard measure when the earth was flat, you had to bank with the same joint for like ever and visit the bank manager with your priest and then still beg for the brass.
Also, interest rates, more often than not, were in double digits.
And whilst getting a home loan is much easier today affording a home is not, especially when you are starting out.
Okay, chill, the graph below shows how much this has deteriorated for the young.
It also shows that for most older households buying a home isn’t that expensive, again relative to total household income.
But if you need to get a loan and you are over 55 years old well get ready for another colonoscopy and this one is likely to be far more evasive.
While we were overseas – and to travel we too had to bend over – a local asked me to describe the Australian housing market.
Total household has increased by 2% since 2019 (last five years); wages and salary by household is up 6% and the median dwelling price across Oz rose 50%.
Some of you will no doubt use this to push home buying. And well with results like this few could really fault you.
