In 1970 I bought my first house at Coogee, waterfront, for $14,000. I had to put down $5,000 deposit. I sold it 20 months later for $19,000 and then bought a 1950's double brick home right on top of the hill behind the RSL club for $27,000. This house had been sold for $19,000 less than two years before. At that time Sydney property prices were increasing at a rate that made it impossible for a young couple on average wages (say a clerk and a typist) to pay rent on a modest flat and save for a deposit on a block of land or a house. Their savings went backwards in comparison to house prices going up ,up, up.
Banks then wanted substantial deposits. My wife worked in the CBC bank and says it was normal then for a borrower to be asked for 20% and up deposit. sometimes as much as 33% for a higher risk loan. Recently banks have been lending on 5% deposit.
Edit-Then in 1975 we bought a house in Norman Park, Brisbane for $28,500. The bank wanted $8,000 deposit. They would not take into account my commission earnings, roughly 40% of my earnings, my fringe benefits of a full private use company car and fully paid home 'phone, or my wife's salary. We paid it off in 5 years.
The problem with Sydney house prices is that Sydney has restricted land area being hemmed in by mountains and water. If you don't want to or can't afford to pay $2,000,000 for a house in Randwick ($1,500,000 buys you a renovator's delight in Randwick) or Chatswood then the cheaper alternative is to go west and south 40 miles from the CBD to Penrith /Emu Plains, Camden, Campbelltown or further. You then spend your life commuting. Even at the suburbs of Mt. Druitt like Wilmott house prices have skyrocketed. Ten years ago these were welfare slums full of bogans and ferals. Now even at Willmott houses sell for $500,000
By the way, the Coogee waterfront house is now valued at $3,000,000+. Sigh!
