well ouzo if property was to go from 500k to 1 million thats an annual compound increase of about 7% every year
In order to buy a 1 million dollar property you need a single pre tax income of about 90k JUST to service the debt, nothing else and this is on a loan of 800k
so just to service this debt the average HOUSEHOLD income needs to have a compound increase of 4% per year during that period - note that I am now talking household income, not single person income any more
so this probably rules out the average public servant because they just dont get 4% pay increases per year
where this really falls apart though is the 200k deposit for the average home in 2020. I havent done the calculations but i suspect the number of years for the average household income to cobble together a 200k deposit is going to be a pretty long time
On top of all this financial pressure, marriage rates are going to need to increase so more single people can be become couple paying debt slaves (single income - household income) in order to buy this 1 million dollar home?
