Cant Afford a House? Here in Aussie the average wage is $72 800 per year. But remember – the average (ie. the mean) gives a misleading impression about what the typical worker earns. It is pushed upwards by the large salaries of a small number of very high income earners. The median gives a more accurate sense of the typical worker’s wages. If you earn the median salary, your wage is in the middle of the distribution – it’s higher than 50% of workers and lower than the other 50%. Among full-time workers, the median was $57 400 in August 2011, which is the most recent figure. Even this figure, though, is a little higher than the typical worker’s wage. That’s because it doesn’t include the 3.5 million people who work part time. When you bring them into the fold, the average wage drops to $56 300, and the median drops to $46 900. Now thats not enough to buy an average house which is around $400,000. The average wage earner is paying to live- rent power food transport etc so his chance of savings is low. The banks require around a 10% deposit and anyone trying to save $40000 on the average wage knows that hard work. Then when you do buy your house its costing you $25000 a year in interest (profit to the bank) rates and insurance . The price of property had risen not because of demand but the supply of money which the banks get from abroad - its easy money for them. The problem as I see it is the government are failing to use their rubber stamp to re zone land under their control which they could then produce finished homes for the person who wants to own a home at a price of $165000. Better- our government could borrow money at 1-2% interest therefore could provide affordable mortgages to the home buyer who simply wants a roof over their head. At repayments of say $200 a week that would mke it easier for families- see the property paid off quicker than the current bank /price option - and stimulate the building industry creating millions of jobs. Now whats wrong with this plan ? Dont say it will create buyers who will speculate these homes because its easy to place caviets in the title to prevent that. Political Party? I have been thinking I may set up a political party driving at this one issue- housing for the average person - your thoughts ?
Posted on: Wed, 23 Oct 2013 00:15:58 +0000