The Lazy Australian's Way to Become a Millionaire

The Lazy Australian's Way to Become a Millionaire

Become a member in the once exclusive millionaires' club in two steps:

1. Borrow half a million dollars each in a dual income family.
2. Purchase a property valued in excess of $1 million.

According to this The Age article there are no less than eight Melbourne suburbs where the median selling price is more than $1 million. The Real Estate Institute of Victoria adds "there were 2189 $1 million-plus sales in Victoria last year, compared with 531 in 2001."

What has driven the sale of these million-dollar homes?

Mr Jones, who is also chief executive of the Noel Jones group, says that the growth in property prices, coupled with the increasing number of households that now have two incomes funding a mortgage, has helped to spur the growth in the number of million-dollar homes.

"For somebody who has been living in a house for, say, 10 or 15 years, they would have built up a substantial equity," he says. "Now, with two incomes, they can probably afford to borrow half-a-million dollars which, all of a sudden, kicks people into a completely different price range when you add in the borrowing capacity of two people and the equity they would have built up."

"A million dollars isn't what it used to be," he says. "Anyone who calls themselves a millionaire and thinks they're rich is a fool. It doesn't get you that much."


I agree, but I think that anyone who borrows a million dollars and calls themselves a millionaire is an even bigger fool. That's the equivalent of a government borrowing from the World Bank and declaring their country debt free!

"It's frightening; a million dollars is going to be a one-bedroom flat in not so many years' time"

The future is already here, as there are plenty of $1 million dollar one bedroom apartments for sale in Sydney!

A million sure isn't a million anymore, but the real question is are these properties overpriced or a just a reflection of the strength in the marketplace? Are people trying to keep up with the (millionaire) Joneses?

Melbourne's millionaire suburbs:
1. Toorak $2.9 million
2. Canterbury $1.8m
3. Brighton $1.6m
4. Hawthorn East $1.3m
5. Middle Park $1.1m
Tied for 6th Armadale, Eaglemont, Elsternwick +$1m
Source: REIV March 2007 Quarterly Report

Posted by Lucas Ng