mortgage deposit

PHOTO: The situation is so bad global credit ratings agency Moody’s Investors Service predicted housing affordability would ‘continue to worsen’ in 2022 (pictured is a stock image)

  • Credit ratings agency Moody’s Investors Service worried about affordability
  • Sydney’s median house price rose by 28.9 per cent in a year to $1.312million
  • Someone earning average salary of $90,329 would take 14 years to save deposit

Australian real estate is now so expensive it takes more than 14 years for an average worker to scrape together a mortgage deposit for a typical Sydney house.

The situation is so bad global credit ratings agency Moody’s Investors Service predicted housing affordability would  ‘continue to worsen’ in 2022.

During the past year, Sydney’s median house prices has surged by 28.9 per cent to $1.312million, CoreLogic data for September 2021 showed.

A worker earning an average, full-time salary of $90,329, saving up a fifth of their pay, would take 14 years and six months just to accumulate the required 20 per cent mortgage deposit.

And by the time someone saved up the required $262,328 deposit, house prices would have kept on rising.

Australian real estate is now so expensive it takes more than 14 years just to scrape together a mortgage deposit for a typical Sydney house. During the past year, Sydney's median house prices has surged by 28.9 per cent to $1.312million, CoreLogic data for September 2021 showed (pictured is a house on the market in that price range at Box Hill in Sydney's north west)

Australian real estate is now so expensive it takes more than 14 years just to scrape together a mortgage deposit for a typical Sydney house. During the past year, Sydney’s median house prices has surged by 28.9 per cent to $1.312million, CoreLogic data for September 2021 showed (pictured is a house on the market in that price range at Box Hill in Sydney’s north west)

Even then, this potential borrower paying off $1.049million would still have debt that was 11.6 times their income.

The Australian Prudential Regulation Authority, the banking regulator, considers someone to be in mortgage stress if they have a debt-to-income ratio of six.

Australian annual house price surges

SYDNEY: Up 28.9 per cent to $1,311,641

MELBOURNE: Up 18 per cent to  $962,250

BRISBANE: Up 22.2 per cent to $709,136

ADELAIDE: Up 21.4 per cent to $575,949

PERTH: Up 18.5 per cent to  $548,351

HOBART: Up 25.8 per cent to $704,321

DARWIN: Up 18.5 per cent to $563,357

CANBERRA: Up 28 per cent to $956,119

Source: CoreLogic Home Value Index median house price data annual increases in September 2021 

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