Mark Bouris, Sydney Property Market, Melbourne: Real Estate Advice From A Businessman

Mortgage entrepreneur Mark Bouris has direct advice for budding young homeowners: don’t bother – at least until you’re older.

The median house price in Australia has jumped more than 20% in just one year, putting the dream of home ownership beyond the reach of many young people as property values ​​climb at a pace not seen since 1989.

Home values ​​in some areas soar by a third in just one year, making it impossible for even above-average incomes to buy a home with a backyard unless they are buying into the part of a dual-income couple.

But Mr Bouris, the founder of Wizard Home Loans, said there was no reason to rush into the market as it is actually more affordable to rent a nice home than to buy one.

Buying a property is a huge investment that Mr Bouris hopes young buyers have fully considered, depending on their circumstances in life.

Entrepreneur Mark Bouris (pictured) said house prices were rising faster than young people could save for their deposits as the median house price in Australia rose 21.6% to 686,000 dollars in the 12 months to October 2021.

House prices keep rising in Australia

SYDNEY: Up 30.4% to $1,333,767

MELBOURNE: Up 19.5% to $972,659

BRISBANE: Up 24.8% to $731,392

ADELAIDE: Up 22.5% to $591,558

PERTH: Up 16.7% to $550,044

HOBART: Up 27.2% to $726,955

DARWIN: Up 17.1% to $567,056

CANBERRA: Up to 29% at $985,040

Source: CoreLogic data on median house price increases in the year to October 2021

“If you’re in your twenties, I don’t think you should be like, like I was like, ‘oh, I have to go house hunting,'” he said.

“I don’t think young people today should be so prescriptive on any particular avenue, they should be open to whatever they think is a good idea.

“BUT, I would also say don’t spend (your money) on stupid bullshit. Either bank it, invest it, buy it in real estate, or put it in a business – that’s an investment for me.

In the year to October, the median house price in Australia jumped 21.6% to $686,339, with new CoreLogic data showing the fastest annual increase since the beginning of 1989.

This means that someone buying a typical home, with a 20% mortgage deposit factored in, would owe the bank $549,071.

For the first time ever, a full-time worker earning an average salary of $90,329 would be in mortgage trouble to pay for a typical Australian home.

The Australian Prudential Regulation Authority considers a debt to income ratio of six or more to be mortgage stress where someone would struggle to pay their bills.

Mr Bouris said young people should try to escape the traditional mentality of buying a house early if that’s not what they really want to do.

Mr Bouris (Picture: TikTok) said young people should have the freedom to choose whether buying is something they want to do when they want to do it and added that it can be cheaper to rent than to buy a similar property.

Mr Bouris (Picture: TikTok) said young people should have the freedom to choose whether buying is something they want to do when they want to do it and added that it can be cheaper to rent than to buy a similar property.

‘You know all that stuff about “I gotta buy a house [and] settle in, ‘there’s plenty of time to do that,’ he said in his TikTok video.

“It’s actually cheaper to rent a good house today than to buy it.

“The rate at which you need to save money to be able to buy a property is hard to achieve, given the rate at which house prices are rising, so you need to think of another way to earn money.

“You also have to think about what stage of [your] life do [you] want to have this security?

‘Do you want to 20 or 30, or do [you] want to live [your] live experiences, then buy a place when [you’re] 40?’

“I just don’t think you should break your ass to get this stuff.”

The median house price in Sydney has climbed 30.4% year-on-year to $1.334 million.

To avoid being a mortgage stress, with a 20% deposit taken into account, a borrower must earn $178,000 per year.

As homes rise in value, as bosses allow more people to work from home, apartment values ​​have not risen to the same extent, some one-bedroom units in high-rise towers do having not increased in value despite a hot property market.

Penny D. Jackson