WHAT WILL HIGH HOUSE PRICES AND STAGNANT WAGES MEAN?
-January 2021 Sydney house price was $872,000; start of June it is $970,000.
-a jump of almost $100,000 in a matter of months
YET in Ryde it jumped $300,000 from December to January 2021! In a matter of weeks … was this where it started?
–however banks are beginning to withdraw the cheapest of their very-cheap mortgage rates; the fixed four-year rates of below 2 per cent
-three-year rates have barely moved; the RBA has promised to hold the three-year bond rate constant at 0.1 per cent
BE AWARE …
-homes were cheaper until the end of the 1990s; typically cost between two and three times household after-tax income
.over time the loan was easier to pay off
.because during the 90s wages and house prices were climbing
-homes now cost closer to five times after-tax income
-the number of homeowners at retirement who are still paying off mortgages has doubled
IS this why some banks ask for details of your Super before granting a loan?
HOW will borrowers overcome this? How can we get WAGES Growth?
… Join a Union!
Paying off a mortgage used to be easier than it looked. High house prices and stagnant wages have changed that reality