DESPITE property prices softening in most Australian cities this year, you still need to earn a mammoth salary to buy a home.
New data shows that would-be buyers have to rake in the big bucks — in some cases six figures — to avoid experiencing mortgage stress.
“Mortgage stress is when 30 per cent or more of your pre-tax income is going towards loan repayments,” Sally Tindall, RateCity.com.au research director, explained.
“Everyone has bills to pay, mouths to feed and kids to educate. People are struggling to make ends meet as it is. When your mortgage repayments tip over that 30 per cent mark, it means you’ll struggle to have spare cash to get you through month-on-month.”
Based on the median house prices in each capital city and the upfront costs required, RateCity.com.au has calculated the annual income needed to purchase either a house or unit.
ANNUAL SALARY REQUIRED TO AVOID MORTGAGE STRESS
Sydney: $161,859 (house) and $121,026 (unit)
Melbourne: $131,830 (house) and $92,280 (unit)
Canberra: $109,624 (house) and $71,528 (unit)
Brisbane: $87,343 (house) and $62,011 (unit)
Adelaide: $75,556 (house) and $53,220 (unit)
Darwin: $82,282 (house) and $50,356 (unit)
Perth: $78,088 (house) and $64,026 (unit)
Hobart: $74,076 (house) and $58,561 (unit)
