Melbpom Posted May 19, 2017 Share Posted May 19, 2017 Just out of interest I took a look at the first house we bought in 1989 for a grand total of $137,000. With the wonders of internet, you can look up anything. So at the time the average weekly wage was $26,000 and interest rates went high as 17%. So with a very basic calculation 90% of one wage covered the interest bill. Today the same house is estimated at being worth between $690,000 and $870,000 so let's take an average of $780,000 (bit of a stretch considering it's a rental now). Take an average weekly wage of $60,000 and interest rates of 5%. Again by the same basic calculation 65% of one wage covers the interest bill. Basically it's never easy. Quote Link to comment Share on other sites More sharing options...
Melli Posted May 19, 2017 Share Posted May 19, 2017 Nice weekly wage thatSent from my iPhone using PomsinOz Quote Link to comment Share on other sites More sharing options...
newjez Posted May 19, 2017 Share Posted May 19, 2017 19 minutes ago, Melbpom said: Just out of interest I took a look at the first house we bought in 1989 for a grand total of $137,000. With the wonders of internet, you can look up anything. So at the time the average weekly wage was $26,000 and interest rates went high as 17%. So with a very basic calculation 90% of one wage covered the interest bill. Today the same house is estimated at being worth between $690,000 and $870,000 so let's take an average of $780,000 (bit of a stretch considering it's a rental now). Take an average weekly wage of $60,000 and interest rates of 5%. Again by the same basic calculation 65% of one wage covers the interest bill. Basically it's never easy. That was a particularly nasty period - I was quite young - but I remember my parents hanging on for dear life. I don't think they were that high for that long though? Quote Link to comment Share on other sites More sharing options...
ytboy Posted May 20, 2017 Share Posted May 20, 2017 Nice weekly wage thatSent from my iPhone using PomsinOzYou're right, I'm in the wrong job! [emoji6]Sent using Poms in Oz mobile app Quote Link to comment Share on other sites More sharing options...
Parley Posted May 20, 2017 Share Posted May 20, 2017 Why is it a house price crisis and not a low wage crisis ? 1 Quote Link to comment Share on other sites More sharing options...
Skani Posted May 20, 2017 Share Posted May 20, 2017 12 hours ago, newjez said: That was a particularly nasty period - I was quite young - but I remember my parents hanging on for dear life. I don't think they were that high for that long though? We bought our current house in 1989 with a variable interest rate of 17.9%. In 1996 we were still paying 10.8%. I think it dropped below 10% in '97. (This was in Oz). Quote Link to comment Share on other sites More sharing options...
newjez Posted May 20, 2017 Share Posted May 20, 2017 1 hour ago, Parley said: Why is it a house price crisis and not a low wage crisis ? Could even be a currency crisis. Quote Link to comment Share on other sites More sharing options...
newjez Posted May 20, 2017 Share Posted May 20, 2017 58 minutes ago, Skani said: We bought our current house in 1989 with a variable interest rate of 17.9%. In 1996 we were still paying 10.8%. I think it dropped below 10% in '97. (This was in Oz). Yes I think you are right. Low rates have only been a phenomenon for the last twenty years. God knows what would happen if they rose again. Quote Link to comment Share on other sites More sharing options...
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