Chances are that if you’ve just bought a house are or are considering buying one, you’re probably losing a lot of sleep about how crazy, fuck-off, nightmarishly expensive the whole ordeal is. If that’s the case, then figures released today by The International Monetary Fund confirm that house prices in Australia are exactly as ludicrous as you thought. In fact, we have the third highest house price-to-income ratio in the world.
The IMF’s Global Housing Watch tracks developments in housing prices around the developed world, and found that prices have risen consistently over the last two years. In terms of house price-to-income, the only places you’d be less lucky to try and enter the housing market are Canada and Belgium. House prices in Australia are soaring, while the nation is currently in a period of weakening wage growth, so this all makes total sense, but it’s still a bit glum for those yet to climb on the property ladder.
The figures suggest that in the current economy, renting makes more financial sense than buying. Various sources say that when the price-to-rent ratio – that’s the price of a house divided by annual rent – is greater than 20, renting is the preferable option. The price-to-rent ratio in Australia is currently 54. That’s probably of little to no comfort to you if you’re currently paying off some other bastard’s mortgage.
In summary then, having a roof over your head has never been more stressful and expensive! Aussie Aussie Aus…ah, fuck it.
via IMF Global Housing Watch
Photo: Quinn Rooney via Getty Images
