Many Brits dream of selling up and emigrating to Australia. A warmer climate, a better standard of living and good job opportunities attract thousands of Brits every year, but is Australia now becoming too expensive for people to live in?
The BBC has highlighted a number of reasons why buying property in Australia may no longer be as easy as it once was.
Australia has become ââ¬Ëridiculously expensiveââ¬â¢ in recent years
Over recent years the Australian dollar has been one of the strongest currencies in the world whilst property prices in Australia have risen sharply. These two factors mean that many Brits now simply cannot afford to buy property in Australia.
The BBC reports that ââ¬Ëanecdotal evidence abounds of Brits who would dearly love to emigrate, but have been put off by the soaring Aussie dollar and seemingly inexorably rising property prices. The oft-heard cry of visitors, that Australia has become ridiculously expensive, often finds an echo from the people who live here – Aussies and ex-pats alike.ââ¬â¢
Australian property ââ¬â overpriced or prices in line with income?
The Economist recently published a survey which showed that Australian property prices are the most overvalued in the world, and by as much as 56 per cent.
Whilst this figure may be excessive, most economists believe that the ratio between property rents and prices is out of line and believe that prices are around 30-40 per cent too high.
Some experts believe the Australian property market is a bubble that will burst. Gerard Minack of Morgan Stanley recently told ABC’s PM programme: ââ¬ÅWe’ve had 20 years where the Australian consumers have been willing to borrow more to buy an asset that they believe always goes up in value: the classic sign of an asset bubble.”
However, other experts believe that prices have simply risen in line with household earnings. Christopher Joye, a property market analyst with Rismark International, said: “The house price to income ratio is in line with its average over the last decade.”
