CAIRNS’ median house price is about nine times the median local income, putting its first home buyers ahead of most Aussies trying to get a foot onto the property ladder.
This figure is lower than the national average of 12 times pre-tax income and lower than the Greater Brisbane average of 11.
Corelogic data for the year to September revealed the median house price in Cairns was $414,000 while Australian Bureau of Statistics data for the 2015-16 financial year showed the median income was $46,190 a year.
In March, the Australian Prudential Regulation Authority (APRA) suggested lenders limit their loans to six times a borrower’s income.
In Cairns this would mean an average maximum loan of $277,140, suggesting a single homebuyer would first need to save an average of $136,860 for their deposit.
Alternatively, with a 20 per cent deposit, they would need to earn at least $55,200 a year to meet the APRA requirements for a home loan.
Home ownership would be more easily achieved by a couple earning two incomes.
Nationally, the median house price was $567,650 and the median income was $47,692 so a typical single homebuyer would need a $281,498 deposit or, with a 20 per cent deposit, a buyer would need to earn at least $75,686 a year.
In the year to June, this was about the average full-time salary for an industrial designer ($76,313), child welfare, youth and family services worker ($75,509), insurance broker ($76,518), pharmacy worker ($74,584) or fitter and turner ($74,547), national SEEK job ad data showed.
Sheldon Realty principal Paul Sheldon said Cairns was a “great place to put your money”.
“If it wasn’t for the Reserve Bank and the government putting pressure on lending criteria, Cairns would be having a mini boom right now,” he said.
“The second half of the year, after the federal election, we could see some increase in prices, but rental vacancy rates are remaining below 2 per cent to it is a great place for investors.”
Courtney and Tristan Cabello bought a Trinity Park home last year after comparing what their hard-earned money could get them in the Far North versus their hometown of Melbourne.
“We can’t get the same lifestyle or property in Melbourne,” Mrs Cabello said.
“We bought a house in Melbourne four years ago and moved to Cairns about three years ago, for my husband, who is a pilot, to gain more experience.
“It was only meant to be a two year plan but we fell in love with Cairns, looked at what we could buy and decided to stay here a little bit longer.”
New ABS data revealed Aussies were increasingly taking on a second job or starting a business on the side to help supplement their income.
There were 39,500 more jobs in the Australian economy in the September quarter than in the June quarter, and almost half of these (15,900) were filled by people who had at least one other job.
Career expert and founder of Change Meridian Michelle Gibbings said the key to establishing a successful “side hustle” was to be realistic and practical.
“Assess if there is a market and whether you are going to be able to make money from your hobby,” she said.
“Work out how much time you have to devote to setting up your side hustle, and set a schedule and lock out time in your diary to devote to it.
“Set yourself some clear goals and milestones as to what you want to achieve by when.
“This also includes considering how much money you are willing to invest in getting your idea off the ground.”
This article was first published in www.realestate.com.au. Here is the link to the original article: https://www.realestate.com.au/news/cairns-real-estate-more-affordable-than-the-rest-of-australia/