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How much you need to earn in each state to be able to afford a property

Terrifying map shows exactly how much you need to earn in each state to be able to afford to buy a property – and the amount doubles from least to most

  • Data shows the salary needed to buy the average property in each capital city 
  • Sydneysiders need to earn the most followed by Canberra and Melbourne 
  • The government is also expanding three first home-buyer schemes from July 1 

As Australia’s property market rebounds to record highs after Covid downturns, new data has revealed how much you need to earn to buy the average house in each capital city. 

Perhaps unsurprisingly those looking to buy in Sydney will need to be earning the most at nearly $140,000 a year, followed next by Canberra at more than $107,000 and then Melbourne at more than $106,000. 

Finance expert Effie Zahos told Today that the numbers – crunched by Canstar using CoreLogic data – represent what someone would need to earn to buy a mid-price point property without causing mortgage stress. 

A map (pictured) showing the salary Australians need to earn to buy a mid-price point property in each capital city (source: Canstar and CoreLogic) 

Financial expert Effie Zahos said the government has introduced expanded first homebuyer schemes but Australian's should beware as household debt is at record highs (stock image)

Financial expert Effie Zahos said the government has introduced expanded first homebuyer schemes but Australian’s should beware as household debt is at record highs (stock image)

Ms Zahos said while the pre-tax salaries aren’t completely wild, they assume a buyer has already paid a 20 per cent deposit. 

‘It seems doable to a certain extent. But the big thing here is the deposit of 20 per cent. So in Sydney you need almost $200,000 dollars to buy that property,’ Ms Zahos said. 

‘This assumes also that you have no other expenses. You’re earning that income pretax. You have no other credit cards or car loans. And you already have the deposit amount.’  

Ms Zahos said three expanded government schemes are also being introduced on July 1 to help first home buyers.  

But she warned ‘buyer beware’ when accessing the funds saying with household debts at record high levels, those getting mortgages need to be sure they can afford them long term. 

Those looking to buy a property in Melbourne (pictured is Keyborough) need to earn more than $106,000 to buy a mid-market property

Those looking to buy a property in Melbourne (pictured is Keyborough) need to earn more than $106,000 to buy a mid-market property

Housing Minister Michael Sukkar said this week the First Home Loan Deposit Scheme, New Home Guarantee program and Family Home Guarantee will be expanded from July 1.

While home ownership is beyond the reach of an increasing number of Australians, Mr Sukkar says 30,000 buyers have already been helped into the market via government initiatives.

The current budget will also support market access for single parents with dependants, subject to the passage of Family Home Guarantee legislation, he says.

From next month, an extra 10,000 guarantees will be made available to eligible single parent families under the scheme to build a new home or purchase an existing one with a deposit of as little as 2 per cent.

‘We know how difficult it can be to buy a new home or re-enter the housing market and that saving a deposit is the hardest part of getting into home ownership,’ Mr Sukkar said in a statement on Saturday.

Those browsing to buy a house in Sydney (pictured is Allambie Heights) need to earn nearly $140,000 a year to purchase a house at the mid-point of the market

Those browsing to buy a house in Sydney (pictured is Allambie Heights) need to earn nearly $140,000 a year to purchase a house at the mid-point of the market

‘That’s why the Morrison government has established the new Family Home Guarantee, which recognises the challenge of saving for a deposit is that much more difficult when you are a single parent with children.’

He said 30,000 new places are being made available in total for applicants to the schemes from July 1.

The New Home Guarantee was launched last October as a temporary expansion of the First Home Loan Deposit Scheme.

The program will provide an additional 10,000 places for first home buyers seeking to build or buy a new home with a five per cent deposit and a construction commencement within 12 months. 

Read more at DailyMail.co.uk