News: What's What

Think you’ll never own your own property?

Think you’ll never own your own property? 1024 678 Fox & Hare

Many people in their late 20s or 30s reach out to Fox & Hare with the belief that they will never be able to afford their own home or investment property. After exploring this a little further and catching up with Kellie Landrey, Principle Buyer at Scoutable, property expert and all round top gal, it became apparent that we haven’t been assessing affordability accurately. Kellie shared with us the below table put together by the Property Investment Professionals of Australia (PIPA) looking at the annual average loan size, interest rates, loan repayments and wages. Their research suggests that mortgages are more affordable today than they were in 1990.

In 1990, it would require 48.1% of the average annual wage to pay off the average home loan of $66,300 due to the high variable interest rate of 17%. While the average home loan size has grown substantially to $389,000 in 2018, the standard variable rate is just 5.1% (or less) resulting in repayments of 40.9% of the average annual wage.

Let’s think about what that actually means… While property prices are still going up in some areas these numbers tell us that the struggle to get into the property market has more to do with people scraping together an initial deposit rather the buyer’s ability to service the loan.

Your dream of property ownership can become a reality but like some people need personal trainers, others need wealth coaches. If you feel like you’re saving but never going to get the property of your dreams, keen to learn about government incentives for first home buyers or want to ensure the money you work hard for is working hard for you, we’d love to hear from you.

Book in a quick chat.