1 minute read

Real estate’s most useless statistic

Real estate’s most useless statistic

by Grace Ormsby | November 21, 2019 | 1 minute read

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.

Sold sign
Sold sign
by Grace Ormsby
November 21, 2019

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.”

Real estate’s most useless statistic
Sold sign
spi logo

Subscribe to get the latest news and updates - join a community of over 80,000 property investors.

Check this box to receive podcast updates

From the web

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.