According to a report by News Corp Australia on November 7, Australians need to almost double their average full-time salary to afford a house, and the pain will only intensify after the Reserve Bank of Australia raised the cash rate again.
The latest Finder research shows that in order to afford the average mortgage payment for a house in Australia, a minimum household income of $182,000 is needed; for a unit, it is about $130,000.
According to the Australian Bureau of Statistics, the average full-time salary in Australia is nearly $96,000, which means homeowners need to dig deep into their wallets to afford their mortgage payments.
Graham Cooke, head of consumer research at Finder, said the prospect of owning a home becomes increasingly slim for first-home buyers trying to enter the market.
“People are trying to buy property beyond their normal financial means. While it’s not impossible, there are a lot of things for those aspiring to become homeowners to think twice about.”
The Reserve Bank of Australia on Tuesday changed the official cash rate It increased another 25 basis points to 4.35%. The latest interest rate hike means that to afford an average house now requires an annual salary of at least $182,000.
Finder data shows that people who want to buy a detached house in Sydney need an average annual household income of $261,773 to comfortably pay the mortgage; in Melbourne, the annual household income needs to be $171,235. Meanwhile, in Brisbane, the minimum household income required to buy a house is $155,489; in Canberra, it’s $186,980.
Cooke said the RBA’s latest decision would cause more pain for homeowners. “Mortgage holders are already in a tough spot, and the last thing they want to see is another blow from the Reserve Bank of Australia,” he said. “Compared with April last year, Australians with a mortgage of A$590,000 are now paying more per month That’s about $1345 more to pay.” “That’s a huge extra expense, especially when almost every other cost of living is also rising.”
First Home Buyers – We Can Help
Nevertheless, there are different established schemes specially designed to help first-home buyers purchase property faster and with smaller amount of down payment, such as the Homebuyer Fund, First-Home Guarantee, and stamp duty concession in Victoria, aiming to minimise the financial difficulty to purchase a home for first-home buyers.
However, different requirements apply to different schemes, consult with us to check your eligibility, and we are confident to assist you in utilising all eligible schemes to make your first home purchase easier.
Source: Finder, ABS, News Corp Australia, jinriaozhou.com.au