While house prices in Victoria haven’t risen at the same rate as some Australian states, recent data from Canstar highlights the difficulty couples and single income buyers still face when trying to secure a big enough home loan to purchase a property.
With property price growth outpacing wage growth across the country and mortgage interest rates remaining high, Victoria’s couples and especially single-income buyers face quite a challenge.
Assuming a 30 year, owner-occupier, variable loan with a 20% deposit, couples each need to earn at least $114,000 p.a. in order to secure a loan for a home in Melbourne’s inner suburbs, while single buyers need an annual income of between $239K and $296K, the data showed.
Buyers are increasingly compromising on their preferred location in order to purchase a home, resorting to properties in outer suburbs and electing to make lengthy commutes to the CBD.
Melbourne’s outer west and south east suburbs offer more affordability. The Canstar data showed singles with a 20% deposit need an annual income of $122K to buy in Melbourne’s west, while couples on salaries of $63K each can also find a home in the west.
Buying in Melbourne’s south east suburbs will require a single income of $139K and a combined income of $144K for couples with a 20% deposit.
Purchasing smaller homes, apartments or villas is becoming commonplace, especially for first home buyers, while others are obtaining sizeable mortgages with third party help, either teaming up with additional family members as joint mortgage holders or securing private financial assistance, e.g. the bank of Mum and Dad, to make buying a home anywhere in Melbourne a possibility.
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By Wendy Chamberlain
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With a passion for all things real estate spanning 20 years, Wendy loves that her role as a Buyers and Sellers Advocate gives her buying and selling clients an experienced voice they can trust when it comes to negotiating to buy or sell something as important as their home or investment. Wendy considers it a privilege to be asked to help others realise such an important goal as home ownership and to be trusted with that honour. Get in touch today via www.chamberlainadvocates.com.au for a no obligation chat about how Wendy can work with you and help you save time and money to secure your new home sooner.