Property prices cause pain
Analysis reveals average-income earners finding fewer homes within their reach
AN ANALYSIS of median prices and lending rates has revealed those living on the average NSW salary of about $83,000 would only be able to afford a typical house in just one of Sydney’s 600 suburbs – Willmot.
This is if buyers take out a 10 per cent deposit and want to avoid spending more than 30 per cent of their income on mortgage repayments, the lending threshold most banks prefer.
The Finder.com.au research also shows buying opportunities have shrunk for even higher income earners.
Those on $100,000 a year can now only afford an average-priced detached house in 17 suburbs.
At the other end of the market, an average house in Point Piper – Sydney’s priciest suburb – requires a salary of more than $1.5 million.
Finder.com.au money expert Bessie Hassan said middle-income home buyers had such limited affordable housing options because wages growth had lagged far behind the pace of property price increases in recent years.
The average price of a Syd- ney house has climbed 44 per cent since 2013, a jump of roughly $275,000, while wages had remained largely static.
The rate increases suggest Willmot will soon lose its status as the only suburb affordable for average wage earners.
“The average earner is going to be completely priced out of Sydney this year,” Ms Hassan said.
Electrician Luke Greco, 22, is one of the few firsthome buyers to get into the market this year.
And he said he had to make sacrifices to do so.
Mr Greco lived with his parents while saving to buy a block of land in Jordan Springs near Penrith, where he will build a house next year. “It wasn’t easy. I worked all around the country to help save,” he said.