|That table reveals the median rent in 1981 to have been about $46 a week. Definitely less than $49 a week.
The median house price in 1981 was $54,550 (Stapledon) and the standard variable mortgage rate was between 11.5% and 12.5%, say 12%.
So the interest cost on the median house in 1981 was $126 a week.
Therefore the interest cost for a median house in 1981 was 2.7 times the median rent.
What is the median house interest cost to median rent ratio today?
Residex say the median rent for Australia is $355 a week for houses and $350 a week for units.
The interest cost for a median house now is therefore 1.9 times the median rent compared to 2.7 times the median rent 30 years ago.
Compared to rents, houses are now much more affordable than 30 years ago. Interest costs were nearly 3 times rent in 1981 compared to less than twice rent now. find a domain . Those of you waiting for interest costs to be less than renting (in year one) may have a long wait.
|Housing costs unchanged since 1994
Article written by Strindberg