But one factor that usually isn’t moveable is your budget.
So let’s narrow it down. Based on your income, just how much of the property market can you afford? In other words, how much choice do you really have?
Of course we’d all love an endless budget, but too many options can lead to ‘analysis paralysis’. Being clear on your budget up front and looking at suburbs and properties you can afford is the first step to becoming a homeowner sooner.
CoreLogic has worked with some clever number crunching from the Australian National University to determine how big a slice of Australia’s property pie your income could buy from.
- In the lowest 25th percentile earning a weekly income of $905 you can afford to choose from up to 17.6 per cent of all Australian dwellings. This is based on properties that fall under the price threshold of $376,041.
- Middle income earners in the 50th percentile – earning $1,654 a week – can afford properties within 57.1 per cent of the market. Based on a property price threshold of $685,723.
- High income earners in the 75th percentile – earning $2,670 a week – could purchase at least 85.1 per cent of the properties for sale. Based on a price threshold of $1,144,715.
The borrowing capacity was calculated using a 30 year loan term, 2.44 per cent interest, a 20 per cent deposit and repayments based on 30 per cent of your income.
If all those numbers seem a bit much to digest, the short story is this: start your property search by talking to an independent mortgage broker so you begin with a realistic budget and find your home sooner.
There’s also a silver lining if you’re buying in Brissie – we’re a very affordable city so your search might be easier than you think!
Ready to buy? Contact us for a chat or view our current listings for sale.
