The salary you need to buy a home

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....





USA - 2016

 

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!

 

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.

 

no wonder prices are too high in Aus...

 

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...

 

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.

 

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

 

They're not though?

 

Why so?

 

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

 

Go and watch the Wire.

 

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.

 

Some people would call you nuts for buying beyond parramatta perspectives ...

 

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

 

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

 

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.

 

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

 

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.

 

Agree this is a very common barrier

 

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.