I am addressing cost of living today versus back in the 1970s and 80s where the income to house price ratio was a lot lower than today. I am also addressing the change in concept of what constitutes rich/well off today compared to the 1970s and 1980s - remember the concept bracket creep. More and more average Australians are getting pushed up into higher tax brackets because the tax brackets are not indexed by inflation. We now have a very distorted concept of well off/rich IMO
From the above, that is exactly my point. I presume you, like me, bought your home decades ago so when you own your own home rich is a very different concept for you today.
The definition of rich too me is disposable income after your cost of living expenses for keeping a job (which includes mortgage payments/your rent/child care costs etc etc). I too know people who earn a heap and back in my time I would define as rich but given the shift in the income to house price ratio (and other costs associated with kids and tertiary education costs) are struggling.
See above. Politics is redefining class warfare to include income earners who are in essence middle class but earning incomes above $120,000 a year.
Back in the 1970s and 1980s, despite interest rates been high, the income to house price ratio was around 4 and more importantly wages growth was strong - you could pay a house of relatively quickly, not like today and despite interest rates been lower than yesteryear.
Today, for affordability the old concept of a house with a backyard is also gone - unaffordable for most so choices in housing have also changed.
