Why are Australians still Homeless?

The past year me and my better half have trawled through countless real estate websites looking for the perfect place to call our home and spent most of our weekends going to auctions only to find properties are selling for over $100,000 more than expected. So it’s no wonder thousands of Australians are struggling to find that dream home that won’t cost them an arm, a leg and possibly a left kidney.

Recent figures show the median price of a home in Melbourne has risen to an all time high of $500,000. In spite of this the Reserve Bank of Australia is not concerned and expects house prices to climb even further! (there goes that kidney)

The RBA has based its predictions on both current and forecasted global economic growth, increased immigration and population growth, and 'substantial competition' from the recent mining boom which have led to the majority of improved household incomes.

Given the cost of housing in Australia, Australians are spending a greater proportion of their income on housing than ever before. However, we can still call ourselves the "Lucky Country" as compared to let's say America, Australians spend substantially less on other necessities of life such as Healthcare, and in the end it is the health of yourself and your family that is more important.

Happy Savings!

Dave Kaplan