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How much Aussies need to be earning to afford a house

Vanguard One

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Australia's housing boom is causing a surge in property prices, pushing many suburbs into the million dollar club.

As prices soar, so to have concerns about affordability.

Today finance expert Effie Zahos broke down how much owners need to be earning to jump on the property ladder, without causing mortgage stress.

1624343424546.png

Canstar crunched the numbers - this is what you need to be earning to afford the median house and unit price across the capitals. (Today)


While Zahos said the numbers seem "doable", she pointed out it assumes you've paid a 20 per cent deposit beforehand.

"This is how much money you would need, your salary pretax to buy the medium dwelling in that capital city," she said, indicating to the graphic above.

"It seems doable to a certain extent. But the big thing here is the deposit of 20 per cent. In Sydney you need almost $200,000 dollars to buy that property.

"So in Brisbane you're income is a bit less than you need. The medium dwelling value in Brisbane is $574,000, but again your deposit is over that $114,000 mark.

"This assumes also that you have no other expenses...you're earning that income pretax. You have no other credit cards or car loans to get this house and you've got 20 per cent deposit."

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Zahos also warned homebuyers to be wary of Government-led loan schemes. (AAP) (AAP)


While schemes such as the Federal Government's First Home Loan Deposit Scheme are out there, Zahos warned "buyers beware".

"We are looking at a situation where we've got record household debts," she said.

"Yes, you can get in here and the government will guarantee these properties because you avoid lenders mortgage insurance under these schemes. You have to able to afford this not just now and later."

To see the full segment, please watch the interview at the top of the page.

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

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313ghazi

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What is the average salary in Australia?
According to Google its 60k.

The metric to look at is how many times the average salary is the average house.
 

Vanguard One

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What is the average salary in Australia?
According to Google its 60k.

The metric to look at is how many times the average salary is the average house.
Yeah, the average salary in Australia is $60k.

How much do Australians spend on rent? This is rent per week.

CityMedian rentRent as percentage of salary
Sydney$53030.66%
Sydney$52530.37%
Melbourne$43025.75%
Melbourne$42025.15%

Average grocery bill in Australia


Aussie households spend on average $140 per week on groceries, according to Canstar Blue’s latest survey of supermarket shoppers. This equates to about $560 a month or $6,720 a year. The average weekly spend for larger households of five or more people is roughly $215, with the majority of this spent on staple or everyday food items.

Here’s what most Aussies buy in their weekly food, as found in our survey:

  • Fruit/vegetables: 69%
  • Dairy/eggs: 61%
  • Bakery items (i.e. bread): 55%
  • Meat/seafood/deli items: 55%
  • Pantry items (i.e. rice, pasta, cooking oil, etc): 54%
  • Frozen foods: 46%
Average grocery bill by state

This table shows the average weekly grocery bill across Australian states, based on a Canstar Blue survey of more than 2,600 households (of all sizes).


StateAverage weekly grocery bill
Western Australia$136
Queensland$139
South Australia$139
Tasmania$140
New South Wales$141
Victoria$142
Northern Territory$161

 

313ghazi

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Just had a quick look online and there is quite a bit of disparity in average house prices with the big cities being a lot more expensive. If you want to buy in Sydney/Melbourne you're looking at 10 times your salary.

That's ridiculously expensive.
I thought Australia was affordable!
 

Vanguard One

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Just had a quick look online and there is quite a bit of disparity in average house prices with the big cities being a lot more expensive. If you want to buy in Sydney/Melbourne you're looking at 10 times your salary.

That's ridiculously expensive.
I thought Australia was affordable!
Australia is a very expensive place to live, not affordable at all, but the quality of live is amazing, 4 of the top 10 cities in the world are in Australia.

The government actually cares about it's citizens, for example if the footpath is broken in front of your house all you have to do is call the council or email them and it will be repaired the same day or the next day.
 
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