in the crap, page-79

Lots of talk about ratios, so here's a REAL set of figures to add to the mix. Bought my house in Melbourne's eastern suburbs in 1983 for $87k. My salary at the time was $19k per annum. Ratio there was about 4.5:1 (rounding the numbers to $90k and $20k respectively)

Fast forward 28 years and my 26 year old son earns $60k per annum (medical professional). Multiply by 4.5 = $270k - in Melbourne's eastern suburbs - er no! Would maybe buy a block of land? Median house price in this area $550k+ which is around 9 times his salary. That's twice as big a ratio of his salary as mine was in 1983.

It's a tough one alright.
Thanks