limit reached?

Some interesting numbers.

Looking up the ABS website, average Australians total earnings is $78K... or $1,038 a week take home (after Super and Tax).

Looking up REIV average house in Melbourne is $569K, mortgage cost at todays interest rate of $801 per week

If the average person wants to buy an average house he has $240 pw to live on..

in the last 40 years, 20 of those years had a interest rate over 9%..

If the average person buys an average house today, at some point when interest rates hit 10% again (which it almost reached in 2007) he will now be paying $1,140 pw on his home loan.

But if he bought in 1976, 1986, or 1996 house prices were only 3.8 years wages for each of those years instead of todays 8.. which would be half the mortgage cost..

No wonder the economy in Australia is stuffed!