A mortgage on $325k is still approx. $625 per week, plus rates, plus water plus insurance, plus strata - and I'm sure QLD is a lovely place to live but $350k in Sydney buys you a 1 bedroom unit if your lucky !
I have never had a bank in this economy lend under 10% unless you have equity in another home
Usually there is discounting too so atleast 6% below asking price .
However, saving for a deposit and the other associated costs of buying a property is most likely the problem with some people - and not all banks will lend for less than 10%.
(Banks used to give out home loans like candy but that is no longer the case these days!)
I currently rent, but do have savings for a deposit to buy a place. I choose not to right now, as the house prices are very inflated in Sydney and I just don't think it is worth it...
Perth isn't much better as the list price is just indicative. They might actually want 100k more.
Not to mention the fact that moving to just any area where you can get cheap housing is not doable for so many people - your child's school's, your work, excess fuel costs if you live too far away etc... we live over 40km away from DH's work to be close to my sons school. Fuel Costs us over $150 a week. If we were then to move in another direction, towards the cheaper areas, it's still a huge drive to DH's work plus then I'd have to drive further hence use more fuel to do school drop off and pick ups - we'd be up around $200 a week fuel. That's half of what my rent costs.
This discussion could go around in circles forever, yes owning a home is certainly attainable for many people, certainly some people who are renting would be able to buy. But not everyone is able to, and the naive view that it's attainable for everyone is really quite funny.
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Australians seem to have an obsession with property, there are other ways to invest. Buying property is not the best option for everyone, even those that can afford to. If that's what suits you and you want to work towards it then great but honestly it is not the only way. Many places in Europe most people rent their entire lives. They have better renting terms there which is probably something which needs to be considered here.
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