A recent article has highlighted that, in reality, property is more affordable now than that it was thirty years ago.
Housing affordability depends so much more on purchase price. Interest rates are an incredibly important factor, as if rental yield, rental vacancy rates, income and lending policies.
As can be seen from the above table, the percentage of an average person’s income needed to meet the mortgage repayments has actually come down over time. Of course, the sweet spot was around 1995-2000; alas, we often only know the sweet spots in retrospect. It's certainly more affordable to buy now compared with 1990.
Melissa Maimann is a licenced Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.