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Debt Sentence For Homebuyers

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Debt sentence for homebuyers


February 18, 2006

THE Sydney property market has become so expensive that most young couples will never pay off their mortgage within their lifetime.

And housing affordability has plunged to the same dire level as during the recession, with crippling prices now matching the punishing 17 per cent interest rates of the late 1980s as an obstacle to ownership.

Housing Industry Association research -- prepared exclusively for The Saturday Daily Telegraph -- paints a grim picture for aspiring homebuyers.

Experts believe that if you have not staked your spot in the Sydney housing market by now, you will never own a home here in your lifetime.

The warning came as Reserve Bank chief Ian Macfarlane said the next move in interest rates would be up.

In Sydney, house prices are now nine times household income, creating a generation priced out of the Australian dream.

The cost of buying a home in Sydney is now $518,000, far outstripping other cities. The average annual salary in Sydney is $61,000.

Housing Industry Association NSW executive director Wayne Gersbach said low interest rates were no help to young homebuyers.

"An average Sydney home is as unaffordable now as it was back in the late '80s when interest rates reached 17 per cent," he said.

Australian Consumers Association finance analyst............

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thats only an 8x salary multiple, they shouldnt worry prices can only go up from here.... :P

A couple i know in london bought a flat over a year ago for 240k, there first property... he is on 25->30k... (however he bought it with his girlfriend).. However if you do the av salary to price calculation its even more expensive than london.

Edited by moosetea

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