This Important Statisic Can Help You Minimise Your Risk In Australian Property

https://www.youtube.com/watch?v=njO9BjfjXtM

Given what is happening in the world at the moment and how turbulent things are it's important to look at ways to minimise your risk if you're looking to invest in property.

One data point is the dwelling value to income ratio and in this episode we look at how this may present risk factors or may present opportunity and lower risk.

Advanced Suburb Research Course

Recommended Videos:

Core Logic's March 2020 Update: https://www.youtube.com/watch?v=KAcy6IvYaeY

Transcription:

Ryan 0:00given what is happening in the world at the moment and how turbulent things are if you're looking to take advantage of these times if you're looking to pick up a great investment during these times i do think it's really important that you look at ways to minimize your risk given the volatility that's in the market at the moment so in this episode i'm going to talk about the dwelling value to income ratio so how expensive is a property in a city compared to how much people actually earn per year and look at that and how that may present risk factors or may actually present opportunity and lower risk so hey i'm ryan from onproperty helping you achieve financial freedom and it is no surprise to a lot of people out there that australia and sydney and melbourne in particular arranges some as some of the most expensive cities to live in in the world now if you think of sydney you think of okay the biggest cities in the world the most affluent sydney cities in the world do you think of sydney do you think in melbourne i guess in australia we see ourselves as small players on the global market but looking at sydney here as the second most expensive city in the world compared to hong kong looking at melbourne here as number five and you start to see other cities like los angeles and san francisco and london is that so but do we really belong in this list there's another thing here of the 10 most least affordable cities and again you've got melbourne here number four and sydney here at number three you then got canada their markets going crazy and then you've got hong kong which is extremely expensive because of huge population limited land size availability and the way that policy works that governments rent out land to developers and so very expensive in hong kong do we really have a place here on this list and i've recently been watching core logics monthly update if you haven't checked it out you really should i'll link it up down below and i often do videos kind of talking about the monthly update and where we're at but what i wanted to go through is some of the data and some of the trend lines that we can see here and how this may affect your risk and where you may want to invest so instantly we can see here sydney and melbourne are the highest on the list with the name being 8.5 times dwelling value to income ratio so what that means is how much do people earn on average per year and how many multiples of that is required in order to buy a property so in sydney what's the average income per year 8.5 times that or eight and a half years income is how expensive it is to buy a house melbourne 7.4 hobarts 6.5 adelaide 6.1 brisbane is 5.9 and darlin all the way down here at 3.4 so you can start to pull some really interesting information from this firstly you look at the cities on this list what i would personally expect is this to go from top to bottom in order of the most populous cities and the ones where people earned the most money so you think sydney that makes sense melbourne then you would expect brisbane to be next however next we have hobart which is quite a small city much much smaller than brisbane but hobart is actually less affordable than brisbane why is that great question w...