Your Property News May 2023

When it comes to buying and owning property, a common dinner table conversation is who has/had it worse – Baby Boomers or Millennials?

Our friends at Empire Legal have very kindly done the analysis comparing the two groups. For clarity baby boomers are those born between 1946 and 1964 and millennials are those born between 1981 and 1996.

The median dwelling value in 1990 was $106,565 and in 2023 it is $702,136 – an increase of $595,571 over 33 years or $18,047.60 per year.

A 20% deposit in 1990 amounted to approx. $21,313 compared to $140,427 in 2023. Based on 15% of average weekly earnings, it would take 5 years to save for a deposit in 1990 compared to 10 years in 2023. In 1990 the mortgage rate was approx. 17% versus 5.5% in 2023.

In 1990 the weekly mortgage payment was $280 compared to $732 in 2023. In 1990 the full time adult average weekly earnings was $525 compared to $1,807 in 2023. Or the portion of weekly income allocated to paying off your mortgage was 53.3% in 1990 versus 40.5% in 2023.

Whilst the median dwelling value may be high currently, the above figures show that baby boomers had it harder with higher interest rates, lower income and thus a greater portion of the weekly income going to mortgage repayments.

Whilst Easter, the school holidays and the public holidays have been a little disruptive with many buyers away, our market is performing strongly. Stock levels are still very low. Buyers are active and have little choice. The apartment market is very strong – high number of properties on the market coupled with strong sales due to the affordability of apartments compare to houses in the inner north. As one real estate commentator recently said – you marry the house and date the interest rate.

As at the 30 April 2023, Core Logic shows that the Brisbane home value index was down 9.2% year on year. Sydney was down 10.7% and Melbourne was down 8.9%. Adelaide and Perth showed a slight increase year on year. The percent change month on month saw the Brisbane home value index was in positive territory of 0.5%, Sydney up 1.3% and Melbourne up 0.1%.

If you are seeking views with the perfect north-eastern orientation, we encourage you to view 42 Towers Street, Ascot. This 3-level home offers immeasurable family lifestyle appeal all within walking distance to elite schools, green spaces, public transport, local restaurants, and the various amenities.

Is it time to upsize, downsize, invest, or enjoy an easier lifestyle? We are partnering with a number of sellers seeking to achieve their property goals. Let us match you with your dream home. For a discrete discussion, let’s talk.

Amanda
Amanda Butler – Principal
0438 767 439

In our Clients words

Awesome and Rewarding

Amanda and her team made our purchase very easy and we learned a lot of thins in the process. She made herself available at all times and answered all our queries that we had. We will see you again Amanda!

Carlos + Julie Ann – Zillmere