One of the most useless statistics in real estate for those looking to jump on the property ladder for the first time is the median house price, an expert has flagged.
Propertyology’s managing director, Simon Pressley, has acknowledged that the cost to buy a house in this country varies drastically depending on where you look: “From $100,000 in outback Australia, to circa $380,000 in wonderful Armidale and $6 million in Vaucluse.”
In a similar vein, he said a household income will range from $30,000 to several million dollars.
“One of the most useless statistics in real estate is the ‘median house price’ – or median household debt – to ‘household income’ ratio,” he said.
It led him to advise: “When it comes to housing affordability, the most relevant statistic is the house price that an individual household income can afford.”
“Just ask any bank!”
Mr Pressley offered up five non-traditional ways that Australians can purchase property.
But he also noted that “there are more opportunities than most realise”.
Those who live in Australia’s more expensive cities naturally need a bigger deposit if they want to buy an owner-occupier property in that expensive city, but the expert said: “That’s their choice.”
“Those with a genuine interest in exploring the best long-term option for them to acquire real estate will start by considering 100 per cent of their options before making the biggest financial decision of their life.”