Prop­erty prices cause pain

Anal­y­sis re­veals av­er­age-in­come earn­ers find­ing fewer homes within their reach

Mt Druitt - St Mary's Standard (East) - - NEWS - Ai­den Devine

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 Fin­ 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.

Fin­ 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.

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