Australian income to property price ratio rises
Article by Mozo
New research by AMP Natsem has shown that the ratio between the average after-tax incomes and the value of property in Australia is increasing, which could make it more difficult for Aussies to secure home loans.
According to the organisation's Income and Wealth Report, property in the country has been getting less and less affordable over the past decade.
Currently the ratio between income and property prices is 7.3 – far higher than the 4.7 recorded in 2001.
AMP Financial Services Managing Director Craig Meller said: "Buying a home and paying off the mortgage is putting Australians under considerable stress."
However, he added that Australians have not been deterred by the discrepancy between earnings and property values and they are making long-term sacrifices in order to secure a home loan and get their feet on the property ladder.
Recently, Mortgage Choice claimed that Generation Y Aussies are considering investment property purchases for their first real estate acquisition.
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