Aussies need to fork out big-time if they want to comfortably afford a home. (Source: Getty)
New research has revealed the salary you need to be earning in order to comfortably afford a house in Australia these days. The word “comfortable” relates to paying off your mortgage and still having 70 per cent or more of your wage leftover.
A poll of more than 7,600 Yahoo Finance readers found that a little more than half (52 per cent) are spending more than 40 per cent of their salaries on their mortgages. Investment and advisory group Jarden has crunched the numbers and discovered that a household would have to be pulling in $161,247 per year to avoid mortgage stress.
That’s a little more than 40 per cent higher than the average salary.
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Jarden has found that when you combine the average wage with the average house price across Australia, homeowners are forking out around 42.4 per cent of their pay.
It’s a massive increase since March 2020, when the same equation only required 24.1 per cent of your pay.
New figures from Mozo found Aussie house prices have soared by 51 per cent in the last five years, and a 20 per cent deposit has increased by $66,160 over the same period.
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It’s horror news for those living in Sydney.
The investment group found people in the New South Wales capital are spending 57.9 per cent of their wages on their mortgage.
That’s a huge jump from the 32.5 per cent that was recorded at the start of the decade.
You’d need to be earning $235,082 or more to comfortably service a home in the city.
But it’s even worse if you’re on the city’s median combined household income of $121,721.
Cotality found that if you’re pulling in that much money, then you’ll only be able to comfortably afford a home in 14 suburbs, or 2.2 per cent of the whole city.
Victoria’s capital is the most affordable, but it’s in the stress zone.
Melburnians are, on average, paying 36.6 per cent of their income to service their loan.
It’s a mixed bag in between:
Adelaide: 47.4 per
Brisbane: 44.8 per cent
Hobart: 40.5 per cent
Perth: 37 per cent
Considering there’s been a $66,000 boost in what a 20 per cent deposit looks like in Australia, you can imagine it takes a long time to save that amount of money.
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