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The salary you need to buy a home

Discussion in 'General Property Chat' started by MTR, 10th Oct, 2016.

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  1. MTR

    MTR Well-Known Member Premium Member

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    Thought it would be interesting to post this and compare with US

    Australia (August 2015), (Alex Herber)
    Figures may be a little out of whack due to increase/decrease of property prices from Aug 2015 to date....

    upload_2016-10-10_8-42-35.png



    USA - 2016

    upload_2016-10-10_8-41-58.png
     
  2. Ouchmyknees

    Ouchmyknees Well-Known Member

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    San Fran and Seaetle are the only cities in the States that are comparable to the life style of Melbourne in my opinion.
    AUD 75,400 = USD 57,200, how lucky we are!
     
  3. jins13

    jins13 Well-Known Member

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    Very interesting figures! I am a strong believer in working a 2nd job and finding opportunities to save money in your younger years when you are able to do this than later on in the twilight years.
     
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  4. hash_investor

    hash_investor Well-Known Member

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    no wonder prices are too high in Aus...
     
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  5. 2FAST4U

    2FAST4U Well-Known Member

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    I was looking at Baltimore and couldn't believe how cheap some of the houses are. Getting rent out of the tenants would be another thing though...
     
  6. MTR

    MTR Well-Known Member Premium Member

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    San Fran
    Salary you need to buy a home: $161,948
    • Average annual wage: $66,900
    • Average home price: $885,600
    • Monthly mortgage payment: $3,779
    • Mortgage rate: 3.77% (jumbo rate)
    You’d need to earn well into the six figures to afford the typical house in the Bay Area, HSH.com found, and homes are only getting more expensive. Prices in the second quarter of 2016 were up 9.52% from the same time in 2015. You’d need $177,120 to put 20% down on an $885,600 home. A 10% down payment equals $88,560, but your income would need to be $196,363 to comfortably afford the payments.
     
  7. Biz

    Biz Well-Known Member

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    is this assuming the salary is needed to service 80% of the purchase price as that portion would be the loan amount?
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    They're not though?
     
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  9. MTR

    MTR Well-Known Member Premium Member

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    Why so?
     
  10. D.T.

    D.T. Adelaide Property Manager Business Member

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    Yep Baltimore has some rough neighborhoods, especially in those bottom end price brackets. Puts Elizabeth to shame :p
     
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  11. Biz

    Biz Well-Known Member

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    Go and watch the Wire.
     
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  12. MTR

    MTR Well-Known Member Premium Member

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    OK, I have not seen this movie.
    I have never considered Baltimore, so I don't know this market.

    I was told in 2011 that I was nuts buying in Atlanta, and yes many undesirable areas/streets, when you understand what and where to buy then you reduce your risk, no different to buying real estate anywhere, get it wrong and you will lose money.

    BTW I would not touch Detroit, even if it is a rising market.
     
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  13. hash_investor

    hash_investor Well-Known Member

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    Some people would call you nuts for buying beyond parramatta :) perspectives ...
     
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  14. MTR

    MTR Well-Known Member Premium Member

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    Here is the breakdown guys as of August 2015, wow, Sydney median is now over $1,000,000 and I think Melb is around $700,000

    Just making it a tad harder to buy

    Sydney
    Median house price: $900,000
    Salary required: $106,000

    Hobart
    Median house price: $347,000
    Salary required: $49,000

    Adelaide
    Median house price: $430,000
    Salary required: $57,100

    Brisbane
    Median house price: $487,000
    Salary required: $62,900

    Perth
    Median house price: $525,000
    Salary required: $66,500
     
  15. Leo2413

    Leo2413 Well-Known Member Premium Member

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    You need more than a salary, you need savings. Many people have the salary but no savings.
     
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  16. 2FAST4U

    2FAST4U Well-Known Member

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    Yep. There are areas of Baltimore where 30% of the residents are locked up in jail. The city has half the population of Adelaide and has over 300 homicides a year- makes Elizabeth look like paradise.
     
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  17. JDP1

    JDP1 Well-Known Member

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    Yup..the American struggle streets make Australian struggle streets look like darling point etc.
     
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  18. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    Max borrowings assuming no other debt would be circa 375k so with a 20% deposit you could pull off a 450k purchase price as a first home buyer on 66.5k salary as a single.
     
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  19. Whitecat

    Whitecat Well-Known Member

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    Agree this is a very common barrier
     
  20. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    There are some non genuine savings and low deposit options available so in many circumstances its possible to purchase with no or very little deposit and of course conditions apply.
     
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