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Affording a house gets even harder

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Sydney and Melbourne’s housing markets are becoming even more expensive, as income spent on mortgage repayments soars to a near decade high, rating agency Moody’s has found.
 
Record-low interest rates have assisted with offsetting the increase in property prices across most of the country outside of Sydney and Melbourne , reports The Australian.
 
The rating agency measures the average share of income needed to make monthly mortgage repayments.  
 
Moody’s found that an average of 27% of an Australian household’s income is required to make home loan repayments, which is the same figure for 2014. But homeowners need a whopping 35.1% of their income to afford a space in Sydney, up from last year’s 32.8%.
 
The figure is also higher than the 10-year average for the city.
 
Melbourne homes, meanwhile, also require a higher portion of a household’s income this year. From last year’s 27.5%, the money needed to be spent on average by a single household is now 28.2%. 
 

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