Could Captain Kirk afford to live in Sydney?

Font size :
This week was the 50th anniversary of classic sci-fi franchise Star Trek. In the original show (and various movie tie-ins), the intrepid crew of the Enterprise boldly goes where no one has gone before, exploring the far reaches of the galaxy. But could it be that Captain Kirk spent so much time in space because he simply couldn’t afford to live on Earth anymore?

In the world of Star Trek, Kirk lived in San Francisco – where Starfleet was headquartered – when he wasn’t off on a five-year mission. With San Francisco home prices already in the stratosphere, would Kirk do any better moving to Sydney? The team thought we should crunch the numbers and find out.

The current median home price in San Francisco is about US$1.1 million, according to Zillow. Sydney’s home prices are slightly better right now – about $1.02 million, according to Domain. But it’s got a higher appreciation rate – about 13.1% year over year in June, according to Your Investment Property.  

So let’s assume a worst-case scenario for James T. Kirk, homebuyer – the Kobayashi Maru of homebuying, if you will. That means no major housing collapses, economic meltdowns or other catastrophes between now and then. We’re going to assume Sydney homes are going to keep increasing in value by 13.1% every year between now and then.

Captain Kirk should be leaving for his mission about 250 years from now: in 2266. He’s got a desk job in San Francisco 16 years later, in 2282. So let’s assume he bought his house in 2280. Let’s further assume that he purchased a home with a middle-of-the-road price – about $1.02 million in 2016 Sydney.

So what’s the damage? If prices keep appreciating at 13.1%, an average home there would set Kirk back by … well, let’s just say it’s more money than is currently in circulation on the entire planet. Many, many times more.

Specifically: $132 quintillion. That’s a number so large it’s usually expressed in scientific notation.

So what would a mortgage on that cost?  Again, has crunched the numbers for you – and he might need a payrise. A big one.

First, let’s assume a deposit of 20% – an affordable $26.4 quintillion. Let’s also assume a fixed rate of 3.62% over a 30-year repayment period. Kirk would be looking at a monthly payment of $603.8 quadrillion. And with the interest on the mortgage, his modest home would end up costing him $217 quintillion. All things considered, Captain Kirk might be better off moving back to his home state of Iowa, where the average home would only set him back by US$85 million in 2280.

At any event, now we may know why Kirk was so famously irate when Khan trapped him on the Genesis planet – he may have been worried about missing his mortgage payment.

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

CBA unveils new repayment simulator CBA unveils new repayment simulator

The simulator will show customers the differences between different types of repayments Read more

How to tell when a housing market is cooling How to tell when a housing market is cooling You need to check clearance rates, listings, and the price gap, among other factors ... Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Sep 26, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
  • How much do you want to borrow?
  • How much deposit do you have?
  • How much is your house worth?
  • How much do you still owe on your mortgage?
  • What type of mortgage do you have?

  • How much is your new home?
  • How much do you want to borrow?
  • How soon do you want a mortgage?
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords