Why is Real Estate in Australia Expensive?

Is Real Estate in Australia Really Expensive?.

Real Estate in Australia is not actually very expensive, when compared to wages.

However, most people just want to live in the best places, near the beaches etc., and that pushes up the prices for what they want.

When that happens the demand for property exceeds supply, and pushes the price up. Supply and Demand is a good thing to read up on.

How much is real estate land in Australia?.

Here is an example: 4,000 sqm, (43,000 sqft) for $157,000. (That’s under two years average wages*), And that is an hour from Brisbane CBD and just 5 minutes from shopping needs, Woolworths, Medical Centre, Child care, Cafe, etc.

How much is a House in Australia?.

A newish 4 bedroom house, two living rooms, double garage, on about 700sqm (7,500sqft) is around $250,000 ready to move in. (That’s under three years average wages*)

An example of travel time for that area: I drove my wife to the City on Friday, dropped her off, and came straight home. We left at 7:30am, and I was home by 9am. That’s 45 minutes each way, but way too much travel time for many people.

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The same house near a beach, or in the inner city, is about $750,000.

People can choose either $250,000 or $750,000. Why do they choose the $750,000? Because they decide that they can, or will, afford it, because they want to live in the best areas.

* The Australian Bureau of Statistics’ Average Weekly Earnings survey shows the Full-time adult average total earnings in November 2018 at $86,642.40 per year.

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