New research reveals buying a place to live is twice as hard as it was 30 years ago; however for those who manage to get on the property ladder it is all good news from there.
A comparison between cost of living in 1984 and 2014 by finder.com.au has revealed the average property value is eight times higher than 30 years ago.
The upside for those entering the property market is they can expect the average property of $580,000 to be worth $4.6 million in another 30 years time, based on current trends.
“It’s a good time to buy property before prices rise further,” says finder.com.au money expert, Michelle Hutchison. “As the Reserve Bank Survey shows that another cash rate cut is on the cards within the next few months, which is likely to fuel property prices.”
The study showed the average mortgage size for Baby Boomers was just twice the price of their average income in 1984. Whereas today, it is four times the price. The average income to mortgage repayments was 23% in 1984 compared to 29% in 2014.
“Even if it takes you another five years to save for a deposit, it’s worth getting into the property market when you can if you compare it to the past 30 years of returns,” she said.
And imagine if you could replicate this and purchase a few investment properties as well as your own home.. This could potentially see you soaring financially above the rest of the population