It would take an Australian in the most common job decades to save up a down payment for the average house. (Source: Getty)
Australians in the country’s most common professions can’t afford to buy a home without financial stress, with new analysis revealing that childcare workers could take until 2055 – a staggering 31 years – to save up for a down payment.
If you could get a mortgage today, you’d be paying 92 per cent of your income of $61,300 to repay the average $742,000 home, according to Parliamentary Library analysis published by the Greens, based on Australian Taxation Office wages, Reserve Bank lending and CoreLogic house price data.
A nurse making $112,900 a year would need until 2035 to save up for a down payment, which would require them to spend half their salary on a mortgage today. Even an accountant, the top-paid occupation at $144,800, would need until 2031 to save up for a down payment or spend 39% of their salary on a mortgage.
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Greens housing spokesman Max Chandler-Mather said millions were “losing out under Australia’s broken housing system” because renters were facing long wait times to receive the keys to their homes.
“Millions of renters are caught in a cruel trap, stuck paying exorbitant rent payments that put them decades away from saving for a home and completely unable to afford a mortgage, even if they are able to get one,” Chandler Mather said.
The Greens are calling on the government to phase out tax breaks for property investors. The capital gains tax cut halves the tax on profits made when selling a property that has been held for more than 12 months.
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“For too many Australians, the dream of home ownership is dead, shattered by Labor and Liberal tax subsidies for property investors,” Ms Chandler Mather said.
The story continues
Sales assistants, Australia’s most common occupation, may “never” be able to save up a down payment for a home because house prices are rising faster than wages, data shows. On an income of $62,600, it would take them more than 42 years to save up a down payment.
How long does it take a worker to save up a deposit?
Here’s how long it would take to save up a 20 per cent down payment for the top 10 most common professions in Australia, based on the average salary for each occupation.
Accountant ($144,800): 7 years
Elementary school teacher ($105,000): 12 years
Truck driver ($93,800): 14 years
Nurse ($112,900): 11 years
Retail Store Manager ($81,000): 18 years
General Clerk ($84,200): 17 years
Elderly and Disabled Caregivers ($79,000): 19 years
Receptionist ($67,800): 28 years
Child Caretaker ($61,300): 31 years
Sales Assistant (General) ($62,600): Age 42 and over
How much is a property deposit in Australia?
This data is based on saving for a down payment on the average Australian home, but prices could be higher depending on where you live in Australia.
According to the latest data from Domain, Sydney buyers now need to save $332,000 for a 20 per cent down payment on the average home in the city – $125,424 more than they needed just five years ago.
The amount needed to buy the average home in Melbourne has risen by $48,549 to $213,761, while Brisbane buyers will need an additional $81,498 on top of a $195,293 down payment.
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