Aussie Housing Affordabilty

StevieJ

If you think your finances are stretched in the UK, check out what the poor old Aussie will have to pay :eek:

http://www.propertyoz.com.au/library/Top%2010%202008%20residential.pdf

Yakubu22

I cant believe anyone could afford 94% of their salary just on their mortgage. That's impossible surely without hitting major financial strife in the near future?

Generali

Yakubu22 wrote: »

I cant believe anyone could afford 94% of their salary just on their mortgage. That's impossible surely without hitting major financial strife in the near future?

Well something is clearly very odd about these numbers. If you are spending 94% of your income on the mortgage you'd struggle to make the rates bill let alone maintain the place, eat, pay the electric bill, petrol etc.....

StevieJ - any idea how the figures were arrived at?

StevieJ

No idea, I was waiting for you to put some flesh on the bones.

Generali

StevieJ wrote: »

No idea, I was waiting for you to put some flesh on the bones.

The only thing I can think is that they have used something like cost of servicing a 90 or 100% mortgage compared to average local wages. Unfortunately as they don't attach a methodology it's hard to say.

It would make sense for the Gold Coast as many buyers there aren't locals AIUI, they're rich people from Sydney, Melbourne (and to a lesser extent Brisbane) buying second homes.

That would make sense with the figures as property prices have been high in Aus in recent years although have come down in most although not all areas. Prices in Sydney are down about 8% from the peak on average and I suspect have some way further to fall once the First Home Owners Grant is cut back - I read at the weekend (in the Sun Herald if you want to look up the article) that houses under $500,000 (on which FTBs pay no stamp as well as getting the FHOG) have risen on average by $60,000 since the FHOG was extended. FTBs are paying an extra $60k to get an extra $7 or $14k in grant!!!

chewmylegoff

Generali wrote: »

Well something is clearly very odd about these numbers. If you are spending 94% of your income on the mortgage you'd struggle to make the rates bill let alone maintain the place, eat, pay the electric bill, petrol etc.....

StevieJ - any idea how the figures were arrived at?

this smacks of % of average local salary spent on a new mortgage on an average house.

would explain the 94% figure on the gold coast where a lot of properties are beachside flats in new developments sold to people who live in cities.

also the difference between renting and buying doesn't really seem to make much sense.

edit: you said it already. damn you.

Generali

chewmylegoff wrote: »

edit: you said it already. damn you.

Gotta be quick on this board (although less so these days).