Source: Canberra Times, 2 August 1950.
“This can’t go on” – reports the Canberra Times.
Home-building costs are moving the price of houses beyond the means of the average purchaser.
A home sold a dozen years ago has seen an increase in value of 209 per cent.
As a generally accepted though unproven safe economic limit, the average home purchaser should spend no more than 2.5 times their average annual earnings on a home.
As such, only a man with an above average salary can purchase a medium-sized dwelling.
The current situation is leading to a lopsided economy.
The country finds itself in a serious situation.
It can’t go on…
The article goes on to discuss the rent controls that were in place in Australia until the mid-1950s, with properties falling into decay since rent returns were too low to encourage investors to repair them.
Laments the Canberra Times, the system has spent a decade cutting down tall poppies instead of encouraging the “short buds” to flower by means of self-help.
Advantages should be “weighted to the thrifty, instead of the unthrifty”.
Basically the 1950s version of avocadogate with archaic language.
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.