Salary Of $200k “Not Enough” To Buy In Sydney
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High property prices and interest rates are hitting Sydney-siders hard, with new modelling showing that a worker with a salary of $150,000 a year couldn’t afford to buy a house in over 97 per cent of Sydney suburbs.
Of the 569 suburbs analysed, a single income of $150,000 could afford to buy a house in only 13 suburbs.
The statistics were slightly better for those thinking of purchasing a unit- with $150k getting you a home in 122 of the 316 suburbs analysed.
For dual income couples, both on $150,000 per year, it’s still difficult to afford a house, being priced out of nearly half of Sydney suburbs.
Even two incomes of $300,ooo each isn’t enough to get a house in some places, with Concord, Balgowlah, Warrawee and Chatswood some of the most expensive suburbs.
Based on Canstar modelling, the research assumes a single worker on $150,000 could borrow $612,000 and, with a 20 per cent deposit of $153,000, would have a maximum budget of $765,000 at auction.
Salary alone not enough to become a homeowner
The reality of the property market is that even those earning an above average salary still cannot afford to get on the property ladder without help.
“The high income of $150,000 still provides access to a surprisingly low proportion of markets, particularly for singles, particularly for the house market,” said Eliza Owen, head of Australian research at CoreLogic.
“Even very high-income Australians are facing being priced out of certain markets … It doesn’t matter if you’re on a very high wage, the housing market is more intergenerational wealth game at this stage.”
Many homeowners are only able to buy after accepting help from family or selling an investment property, making ownership all the more difficult for those without wealthy backgrounds.
Mortgage broker Aaron Christie-David told the Sydney Morning Herald that some people receive gifts of guarantees from family, buy further away and commute or work from home, while others buy an investment property and rent.
“It’s very quickly that high income now dissipates … actually, to live in Sydney, I’d say $250,000 is a minimum.”
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