on Tuesday that “business liaison and various business surveys has indicated that there is now stronger upward pressure on labour costs”. Although he also noted that while “some firms are paying higher wages to attract and retain staff … there is still considerable inertia in the wages system”.
We know house prices are absurd – in New South Wales, the average home loan is more than seven times that of average male full-time earnings:But interest rates since November 2010 provided something of a buffer to falling affordability from rising house prices. Yes, saving for a deposit became a massive hurdle, but the mortgage repayments, at least, were not as bad as they might have been because rates kept being cut.
Because here’s the thing: if you had taken a loan out in January 1990 you did not pay 52% of your average weekly earnings on repayments for long – because interest rates fell. By contrast someone born in 1980 who took out a loan in 2010 was looking at spending 43% of male average full-time earnings repaying their $400,000 loan.
Interest rates in the U.S just went up by 0.5%, next scheduled rise in Australia should be interesting.
We need to start talking about the sustainability of renting in this country. Atm its - all own your own house or you're screwed. It needn't be that way. We are obsessed with property and could learn a lot from other countries
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