AAH report highlights problem of high property prices
The problems facing prospective home loans customers as a result of high prices have been highlighted by Australians for Affordable Housing (AAH) in a new report.
It revealed that there are more than 740,000 renters and 380,000 people with mortgages who are struggling financially.
According to the study, those who want to purchase a home in Sydney require 8.1 times the average annual income in order to afford the median property in the area.
This is significantly higher than was recorded in 2001, when it was only 5.6 times higher.
New South Wales (NSW) was identified as an area of particular concern, with the report stating: "The NSW housing system is failing too many people. We need the NSW government to commit to working with federal and local governments to solve this crisis."
This comes after Delia Rickard, from Australian Securities and Investments Commission told the Sydney Morning Herald that consumer who start to struggle financially should talk to their lenders as soon as possible.
Have a question about home loans? Ask the money gurus at Mozo Answers.