Housing affordability remains an issue however, there are still options for the price sensitive purchaser… they just need to target areas further away from the CBD. Housing finance data released last week showed that across the country non first time buyers in New South Wales had the greatest average loan size at $315,400 and Tasmanian’s were taking out the smallest average loans at $194,000. It is extremely rare that anyone would be receiving a 100% loan so for the purposes of the following analysis we have assumed that borrowers have a 10% deposit, therefore they are borrowing 90% of the total value of the loan. Based on this assumption we can determine their borrowing power which indicates how much the purchaser could have potentially purchased a property for.
On average, purchasers in New South Wales demonstrated the greatest buying power, spending on average $350,444 and Tasmania purchasers had the least amount of buying power at $216,556. This outcome is to be expected and reflects the characteristics of these markets with New South Wales having the most expensive property market and Tasmania the most affordable.
Filed under: General Stuff, Home Loans & Mortgages, affordability, home loan, housing, property
