12 Real Estate myths, busted.
The topic of Australia and real estate seems inseparable at the moment. Everyone you know seems to be analysing the property bubble, investing in multiple houses or simply struggling to afford their own place to live in without having to sell a kidney or liver. The writer over at http://rationalradical.me/ put together a handy cheat sheet involving 12 real estate myths for your next barbecue or dinner party that might involve a conversation about real estate.
To give you a sense of what is presented, here is the rundown of a myth by the writer:
- Myth — Being more frugal and lowering expectations is all you need to do to afford a house.
- False Implication — Put down the iPhone and overseas holidays for a minute, and that $200,000 deposit will be a cinch — prices are 10 x incomes because iPhones…
- Marketed Fear — If you don’t accept a falling down house or 10 square metre dog box 50 kms from where you work, you are spoilt and lazy and deserve nothing.
- Real World — Housing has never been less affordable, and crucially, average house prices are at record highs compared with disposable income.
- Actual Consequences — It doesn’t matter how many iPhones a young person doesn’t buy, prices at 10 x incomes are three times less affordable than long term historical trends.
- Corrected Mythology — Being more patient and dispelling Fear of Missing Out is all you need to do to afford a house. Endless price growth is the only expectation that needs lowering.
If you are familiar with the above scenario, you are not alone. What is your opinion on it? The writer also touches on other commonly discussed topics such as the stability of interest rates, government support and the strength of the Australian economy.
The entire cheat sheet can be found over here at: