The salary you need to buy a home in ev­ery Aus­tralian city

Wangaratta Chronicle - North East Property Guide - - PROPERTY GUIDE - Writ­ten by | realestat­e­ in ACT

The last few years have seen house prices sky­rocket and wages stag­nate – so what does that mean for hous­ing af­ford­abil­ity?

In this ar­ti­cle, we re­veal the salary your house­hold needs to be earn­ing to buy a home in each Aus­tralian cap­i­tal city right now – and some of these fig­ures may sur­prise you.

Note: We’ve made these cal­cu­la­tions based on the me­dian dwelling value for each cap­i­tal city, us­ing data from CoreLogic. These ex­am­ples as­sume the buyer has paid a de­posit of

20 per cent of the pur­chase price, so has not in­curred any lenders mort­gage in­sur­ance, and has paid all costs as­so­ci­ated with the loan (such as es­tab­lish­ment fees) and any gov­ern­ment fees and charges (such as stamp duty) up­front.

The mort­gage re­pay­ments are there­fore based on a prin­ci­pal and in­ter­est loan of 80 per cent of the me­dian dwelling value for the city, with an in­ter­est rate of 4.5 per cent, over a 30 year term. The re­quired house­hold to­tal salary has been de­ter­mined based on the as­sump­tion that the re­pay­ments on the loan should not ex­ceed 30 per cent of your gross in­come, in or­der to re­main af­ford­able.

Syd­ney – $141,000pa

In Syd­ney, the me­dian dwelling value is cur­rently $870,554, so you’ll need to save a whop­ping $174,110 for your de­posit. This will leave you with $696,444 to bor­row, and your monthly re­pay­ments will be $3529. You’ll need to be earn­ing around $141,000 per year to make this an af­ford­able op­tion.

Mel­bourne – $116,000pa

A de­posit on the av­er­age Mel­bourne prop­erty val­ued at $716,774 will re­quire a $143,354 de­posit, giv­ing you a mort­gage of $573,420. The re­pay­ments on this loan would be $2905 per month, af­ford­able for some­one earn­ing up­wards of $116,000

Can­berra – $95,000pa

A de­posit of $117,573 will nab you a prop­erty in our na­tion’s cap­i­tal, leav­ing you with a mort­gage of $470,293 on a prop­erty val­ued at the cur­rent Can­berra me­dian of $587,867. If you’re earn­ing $95,000 per year you should be able to af­ford the monthly re­pay­ments of $2383.

Bris­bane – $80,000pa

You’ll need a touch un­der $100,000 for a 20 per cent de­posit on a Bris­bane home – the me­dian dwelling value here is cur­rently $495,242. Each month, you’ll be pay­ing $2007 on your mort­gage of $396,193, which would be 30 per cent of your in­come if you were earn­ing $80,000 per year.

Perth – $75,000pa

With a me­dian dwelling price of $461,149, you’re look­ing at a de­posit of $92,229 to avoid pay­ing LMI if you buy in Perth. You’ll be left with a mort­gage of $368,919, on which you’ll re­pay $1869 each month, and need to be earn­ing close to $75,000 per year to make this af­ford­able.

Ade­laide – $71,000pa

The me­dian prop­erty price in the City of Churches is sit­ting at $439,215, so if you can come up with a de­posit of $87,843 your mort­gage will amount to around $315,000. For some­one earn­ing $71,000 in Ade­laide, this is an af­ford­able home loan, with re­pay­ments to­talling $1780 per month.

Ho­bart $70,000pa

An $87,379 de­posit could see you se­cure a home in Ho­bart, where the me­dian price is cur­rently $436,899. Your mort­gage re­pay­ments will be $1771 per month on a loan of $349,519, man­age­able if you’re bring­ing in a salary of $70,000 per an­num.

Dar­win – $70,000pa

If you’re on the hunt for a prop­erty in Dar­win, where the me­dian price is $433,309, your de­posit will need to be a touch over $86,000. On your mort­gage of $346,647 you’ll be re­pay­ing $1756 each month, and need to earn around $70,000 per year in in­come.

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