Australia's housing market is continuing to surge. According to new data, the total value of housing stock has shot-up another $200 billion; and average loan sizes are at record highs. As Alan Kohler explains, it paints a grim picture for people on the average wage looking to buy the home at the average price.
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00:00In the past fortnight, the ABS has had some good news and bad news about housing.
00:07First the good news.
00:09The total value of all Australian dwellings increased in the past quarter by $209 billion
00:15to $10.7 trillion.
00:16Of course, it's only good news if you've got a little piece of that $10 trillion, otherwise
00:22it's bad news.
00:24The other bad news is that the average new housing loan for owner-occupiers is a record
00:28high $625,791.
00:29Now that's exactly 80% of the median Australian house price of $785,556, which is the most
00:40you can borrow for a house, and that makes sense.
00:43It'll take 14 years to save a 20% deposit for that average place, if you're on the average
00:48wage and can save 15% of your salary, that is.
00:5220 years ago it was 6 years, and that was kind of doable, but 14?
00:57Forget it.
00:58Unless you've got parents who can, and will, help you, but then you've got to service that
01:03average loan, and unless you earn more than the average wage, you can't.
01:08That is, Australia is now in a situation where the average family can't afford an average
01:13house.
01:14$6,500, that's the average monthly salary after tax, following the tax cuts that kick
01:20in on July the 1st.
01:22$4,353, that's the monthly repayments on that average mortgage.
01:28$500, that's what you've got left per week, if you're on your own.
01:33If there's two of you working full time, you're okay, but better not have two kids.
01:37$5,000, that's roughly the cost of childcare, which is more than the mortgage.
01:43$873, and that's how much you have left per week for utilities, food, and medical, and
01:50everything else.
01:51It's not enough.
01:53Home ownership is no longer possible in Australia unless you earn much more than the average
01:58wage.