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Australia's housing boom is causing a surge in property prices, pushing many suburbs into the million dollar club.
As prices soar, so to have concerns about affordability.
Today finance expert Effie Zahos broke down how much owners need to be earning to jump on the property ladder, without causing mortgage stress.
Canstar crunched the numbers - this is what you need to be earning to afford the median house and unit price across the capitals. (Today)
While Zahos said the numbers seem "doable", she pointed out it assumes you've paid a 20 per cent deposit beforehand.
"This is how much money you would need, your salary pretax to buy the medium dwelling in that capital city," she said, indicating to the graphic above.
"It seems doable to a certain extent. But the big thing here is the deposit of 20 per cent. In Sydney you need almost $200,000 dollars to buy that property.
"So in Brisbane you're income is a bit less than you need. The medium dwelling value in Brisbane is $574,000, but again your deposit is over that $114,000 mark.
"This assumes also that you have no other expenses...you're earning that income pretax. You have no other credit cards or car loans to get this house and you've got 20 per cent deposit."
Zahos also warned homebuyers to be wary of Government-led loan schemes. (AAP) (AAP)
While schemes such as the Federal Government's First Home Loan Deposit Scheme are out there, Zahos warned "buyers beware".
"We are looking at a situation where we've got record household debts," she said.
"Yes, you can get in here and the government will guarantee these properties because you avoid lenders mortgage insurance under these schemes. You have to able to afford this not just now and later."
To see the full segment, please watch the interview at the top of the page.
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
Join the Today show family and give yourself the chance to win great prizes by signing up to our weekly newsletter, delivered straight to your inbox every Wednesday with a special message from Karl and Ally. You can sign up for free here.
9now.nine.com.au
As prices soar, so to have concerns about affordability.
Today finance expert Effie Zahos broke down how much owners need to be earning to jump on the property ladder, without causing mortgage stress.
Canstar crunched the numbers - this is what you need to be earning to afford the median house and unit price across the capitals. (Today)
While Zahos said the numbers seem "doable", she pointed out it assumes you've paid a 20 per cent deposit beforehand.
"This is how much money you would need, your salary pretax to buy the medium dwelling in that capital city," she said, indicating to the graphic above.
"It seems doable to a certain extent. But the big thing here is the deposit of 20 per cent. In Sydney you need almost $200,000 dollars to buy that property.
"So in Brisbane you're income is a bit less than you need. The medium dwelling value in Brisbane is $574,000, but again your deposit is over that $114,000 mark.
"This assumes also that you have no other expenses...you're earning that income pretax. You have no other credit cards or car loans to get this house and you've got 20 per cent deposit."
Zahos also warned homebuyers to be wary of Government-led loan schemes. (AAP) (AAP)
While schemes such as the Federal Government's First Home Loan Deposit Scheme are out there, Zahos warned "buyers beware".
"We are looking at a situation where we've got record household debts," she said.
"Yes, you can get in here and the government will guarantee these properties because you avoid lenders mortgage insurance under these schemes. You have to able to afford this not just now and later."
To see the full segment, please watch the interview at the top of the page.
The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.
Join the Today show family and give yourself the chance to win great prizes by signing up to our weekly newsletter, delivered straight to your inbox every Wednesday with a special message from Karl and Ally. You can sign up for free here.
How much Aussies need to be earning to afford a house
9now.nine.com.au
