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The Minimum Salary Needed To Buy A House in Australia

According to news.com.au, the MINIMUM you need to earn in order to pay a mortgage in the majority of Australia's capital cities is a whopping SIX FIGURES. 

In order to avoid mortgage stress and comfortably service a home loan, homebuyers will need to be earning $100,000 plus to buy in five of the eight capital cities of Australia. 

After crunching the numbers on home loan repayments, broker Mortgage Choice calculated the bare minimum a household needs to earn in each capital city in order to fit the bill. 

Sydney was Australia's priciest capital city (no surprises there) where the median house price for the greater metropolitan area is $840,000 and residents need to be putting at least $154,482 a year before tax.

To get a unit in Sydney, couples would need to pocket a huge $115,000 annually. 

In Melbourne, the median house price is lower at $575,000 meaning the annual household income would have to be more that $104,666 to avoid mortgage stress. For units that combined salary drops to $86,436. 

Mortgage stress usually hits when households are spending more that 30 percent of their combined earnings on paying off the home loan. 

Sydney

House: Minimum household income — $154,482 ($840,000 median price)

Unit: Minimum household income — $115,862 ($630,000)

Canberra

House: Minimum household income — $106,666 ($580,000)

Unit: Minimum household Income — $76,689 ($417,000)

Darwin

House: Minimum household income — $105,792 ($575,250)

Unit: Minimum household income — $84,597 ($460,000)

Melbourne

House: Minimum household income — $104,643 ($569,000)

Unit: Minimum household income — $86,436 ($470,000)

Perth

House: Minimum household income — $101,149 ($550,000)

Unit: Minimum household income — $80,000 ($435,000)

Brisbane

House: Minimum household income — $89,655 ($487,500)

Unit: Minimum household income — $73,011 ($397,000)

Adelaide

House: Minimum household income — $77,241 ($420,000)

Unit: Minimum household income — $62,528 ($340,000)

Hobart

House: Minimum household income — $64,827 ($352,500)

Unit: Minimum household income — $50,574 ($275,000)

Source: news.com.au

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