Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Tuesday, 16 August 2016

Mortgage repayment burdens

HIA research note:

"With the exception of Sydney, the mortgage repayment burden is lower than its 15-year average in all capital cities and affordability is more favourable than its 20-year average in four capital cities (Brisbane, Adelaide, Perth and Hobart).

Overall, the environment of very low borrowing costs means that home purchase affordability is currently quite favourable in most markets in comparison with the last 15 years."

Source: HIA

Well, yes, assuming low interest rates are locked in for the decade ahead - which seems increasingly likely - however, life would seem infinitely brighter if nominal wages growth started to pick up again.

On that note, the wage price index for Q2 2016 is due out on Wednesday morning, so stay tuned for my detailed analysis of those figures.