What property can you buy with the average salary?

September 12, 2018

We all know that some cities and states are more affordable than others when it comes to buying property and if you are on the search, it may start to feel like you’ll never find a property you can afford. What $500,000 might buy you in Melbourne is completely different to what $500,000 could get you in Adelaide or Hobart; and regional areas face the same comparison – $500,000 in a regional NSW town is going to stretch a lot further than $500,000 in Sydney.

According to the Australian Bureau of Statistics’ Average Weekly Earning Survey for May 2018, the average full time weekly total earning is  $1653 prior to tax – which is $82,956 annually prior to tax. For our purposes, we’re going to assume the below:

  • You earn the average annual salary of $82,956 prior to tax
  • You already have, or you are willing to save a deposit of 20%
  • You have monthly living expenses of $3000 including rent, fuel, food, utilities and entertainment
  • You have no other loans or credit cards to pay off

Man looking at his finances before buying propertyUsing a basic mortgage calculator over 25 years, and at 5 per cent interest, you could afford:

  • $308,000 if single
  • $825,000 if in a couple, both earning the average income above with expenses of $4500/month

Of course, these figures aren’t going to match up with everyone’s income, so before you start looking for property, jump online to a basic mortgage calculator and find out what you can afford. You need to consider interest rate rises and whether you could afford an extra $100 to $200 per week should interest rates rise.

You will also need to take into consideration the costs of owning a property including rates, water, strata fees (if applicable), maintenance and insurance. PropCalc is a great place to start to work out the ownership costs on a property to determine if you can afford to purchase it.

Now that you can see how much (roughly) you are able to spend, let’s take a look at some of the properties your money will buy you in our capital cities.

Sydney

Purchasing on a single income – Apartment in Ultimo

Purchasing on a single income – Apartment in Liverpool

House in Blacktown
House in Blacktown

Purchasing on a dual income –  Apartment in Sydney

Purchasing on a dual income – House in Blacktown

Melbourne

Purchasing on a single income –  Apartment in Melbourne CBD

Purchasing on a single income – Apartment in Frankston

Purchasing on a dual income –  Apartment in Melbourne CBD

Purchasing on a dual income –  House in Highton

Brisbane

Purchasing on a single income –  Apartment in Woolloongabba

Purchasing on a single income –  Townhouse in Cleveland

Apartment in Woolloongabba
Apartment in Woolloongabba

Purchasing on a dual income –   House in Woolloongabba

Purchasing on a dual income – House in North Lakes

Adelaide

Purchasing on a single income –  Apartment in Adelaide CBD

Purchasing on a single income – Villa in Salisbury

Purchasing on a dual income –  House in Payneham South

Purchasing on a dual income – House in North Brighton

Perth

Purchasing on a single income –  Apartment in Perth CBD

Purchasing on a single income – Unit in Midland

Purchasing on a dual income –  House in Wembley

Apartment in East Perth
Apartment in East Perth

Purchasing on a dual income – Apartment in East Perth

Hobart

Purchasing on a single income – Unit in New Town

Purchasing on a single income –  Unit in Mount Nelson

Purchasing on a dual income –   House in South Hobart

Purchasing on a dual income – House in Bellerive

Darwin

Purchasing on a single income – Unit in Darwin

Purchasing on a single income –  Unit in Nightcliff

Purchasing on a dual income –  House in Stuart Park

Purchasing on a dual income – House in Lyons

There’s no doubt that buying in a capital city may be out of reach for some people. When you start looking at regional areas, there is certainly a difference in what your money can buy compared to the city. Whether you head to the coast, or stay inland, there’s a good bet your money will stretch further in regional areas.

Regional NSW

Purchasing on a single income – House in Muswellbrook

Purchasing on a dual income – House in Yamba

Regional Victoria

Purchasing on a single income – House in Heywood

House in Heywood
House in Heywood

Purchasing on a dual income – House in Inverloch

Regional QLD

Purchasing on a single income – Townhouse in Zilzie

Purchasing on a dual income – House in Preston

Regional South Australia 

Purchasing on a single income – House in Murray Bridge

Purchasing on a dual income – Townhouse in Robe

Regional WA

Purchasing on a single income – Unit in Broome

House in Margaret River
House in Margaret River

Purchasing on a dual income – House in Margaret River

Regional Tasmania

Purchasing on a single income – House in Havenview

Purchasing on a dual income –  House in Sisters Beach

Regional Northern Territory

Purchasing on a single income – Unit in Alice Springs

Purchasing on a dual income – House in Desert Springs

There are plenty of properties out there for sale and if you are prepared to move further out of the city or take a sea (or tree) change to regional areas, you’ll find your money will stretch further. If you’re considering purchasing a home, homesales.com.au offer an easy way to search for properties within your budget, and with the PropCalc function, you can easily work out the approximate cost of a property on a week to week basis.

 

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