news

Living costs demand change in property prices

By webmaster

Australian property prices may see a correction over the coming years as the cost of living continues to soar, Yellow Brick Road chairman Mark Bouris has claimed.

Speaking to Smart Property Investment, Mr Bouris said any corrections in house prices would be based on the growing cost of living.

“It is very easy to say that there will be a correction but this is not because houses are too expensive but mainly due to the affordability issue,” he said.

Mr Bouris said the rising cost of living was leaving Australians with very little cash to spare.

“Say you were earning $150,000 in October 2009, after tax and your mortgage expenses, compared to today, you would have half the amount of money in your pocket,” he said.

“In today’s market after you make all your weekly payments, mortgage repayments, household bills, groceries and school fees you have half of what you had in 2009, so you are actually worse off today than you were during the GFC.”

Mr Bouris said the Reserve Bank needed to hold fire on monetary policy, with the prospect of higher interest rates “ridiculous”.

"Australian families are doing it tough right now,” he said.

“The news reports that the banking and mining sectors are recording record profits, yet the people I speak with in the street are struggling. Middle Australia, the engine room of our country, is being ignored and small businesses are closing down around us.”

Living costs demand change in property prices
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%