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Are we in the midst of a housing bubble? Are house costs set to skyrocket additional? Are we set to become a nation of renters? Is the Australian house marketplace headed for a big crash?
With so many varied opinions getting debated continually online and in print you could forgive Australians for becoming paralysed by indecision. That’s not the case even though – our adore affair with house continues unabated.
According to the Australian Bureau of Statistics (ABS), residence ownership rates in Australia have been fairly continuous for at least half a century, at approximately 70%.
But whilst ownership rates may be continual, cost isn’t, with the real cost of acquiring into the marketplace increasing drastically more rapidly than inflation more than the past 20 years or so.
The Reserve Bank of Australia (RBA) advises that as at August this year, Australians owed practically $ 916 billion on owner-occupier housing – plus an additional $ 468 billion on investor housing. Those 2 amounts combined are the equivalent of about $ 58,000 for every person presently living in Australia.
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