Your Footy Code and the Property Market

Graeme Salt

Once upon a time you were either wanted to live in a house or had to live in a unit – there was no common ground. If you could your own place it was a house. If you couldn’t you bought a unit; sometimes the real battlers could only afford to rent a unit.


 


It was the same with footy; you either liked rugby league or AFL. Normally, this was based around geography. You lived in NSW or QLD you liked League. For VIC, SA and WA it was AFL.


 


But in the late 80’s things started to change. Fitzroy moved to Brisbane, The Bloods became the Swans and the NRL opened up in Melbourne with The Storm. It was the same with property.


 


The YUPPY was affluent and, for lifestyle reasons, chose to live in an apartment rather than a house. These trends have got even stronger now so that there are many apartments that are more expensive than houses. As a result, the dirt cheap unit is increasingly a thing of the past – properties are congregating in the middle of the market. For example, according to RP Data, only 2.2 per cent of properties cost less than $200,000 and only 2 per cent of properties cost more than $2m.


 


Across the main capital cities the proportions of properties less than $200,000 were 1.7 per cent in Sydney and 1.5 per cent in Melbourne. Once solid working class areas like Pyrmont and Docklands are now full of designer apartments which are worth way more than a house in the burbs.


 


So, does that mean that if you have limited income you can’t get on the property ladder? Probably not. If you do your research, across a country of this size and with differing markets, you can always find an investment property even if you don’t want to live there. It’s no longer as compartmentalised as it used to be.


 


Once upon a time it was rare finding a Collingwood fan in Carlton. Now they are regularly seen interstate. Graeme Salt is a Sydney-based mortgage broker. For a no-obligations consultation, please contact him on 02 9922 5055