Good News: Increase in Property Value
Recent data from the Australian Bureau of Statistics (ABS) shows a significant increase in the total value of Australian dwellings. In the past quarter, the total value rose by $29 billion, reaching a new high of $10.7 trillion. However, this is only beneficial for those who already own property.
Bad News: Record High Housing Loans
The average new housing loan for owner-occupiers has reached a record high of $625,091. This amount represents 80% of the median Australian house price, which stands at $785,000.
Affordability Crisis
Servicing these large loans is becoming increasingly difficult. The average monthly salary after tax is $6,500, while the monthly mortgage repayment for the average loan is $4,355. This leaves only $500 per week for all other expenses if there is a single income earner.
Dual Income Families
For families with two full-time working adults, the financial situation is somewhat better. However, the high cost of child care, approximately $5,000, surpasses the mortgage costs, leaving just $873 per week for other essential expenses like utilities, food, and medical bills.
Conclusion
The current financial environment makes video/" title="home" data-wpil-keyword-doodle.com/c/1319305/2882942/32965" target="_blank" rel="nofollow">link="linked" data-wpil-monitor-id="2435">home ownership increasingly unattainable for average Australian families unless they earn significantly more than the average wage. The rising property values and record-high loan amounts are contributing to this growing affordability crisis.
