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Sam Saggers, Is housing becoming too expensive in Australia?
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Sam Saggers, Positive Real Estate, Is housing becoming too expensive in Australia?
Australia today has a small workforce, it has a small population, it has a large land mass and actually a high cost of labour and a high cost to build property. So people often say to me, "Are we in a property bubble because housing is so expensive?". If you look at any urbanised country around the world particularly it's driven by affordable labour forces - cheap labour essentially. Cheap labour can deliver less expensive house prices. Today house prices in Australia are as affordable as they have been in years. In fact wages have kept up with house price growth. Today the average 24 year old person out in Sydney is making well in excess of $60 000. When I was 24, some 20 years ago, I was making $24 000. So wages have grown, house prices have grown. There's absolutely no bubble. Don't believe the fear paralysis out in the market. Get out there and go shopping and buy your dream property.