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Daily Mail
3 days ago
- Business
- Daily Mail
Why that home you could afford in 2018 is now a fantasy - with Aussies urged to buy now before it's too late
The average Aussie can no longer afford the typical big city house they could seven years ago after property price rises soared at triple the pace of wages. Record-low interest rates during Covid followed by record-high immigration levels have caused house prices to climb by double-digit figures in some years. Across Australia, prices have surged by 56 per cent since 2018 but in Brisbane, house values have soared by 86 per cent and almost doubled in Adelaide. By comparison, overall wages have increased by just 18.6 per cent - or a third the level of property price increases. Finder personal finance expert Sarah Megginson said entry level prices were only likely to keep soaring, despite the high levels of mortgage stress. 'Demand – especially in affordable markets – is expected to surge, which could potentially push entry-level prices even higher and squeeze first home buyers further,' she said. Back in 2018, Australia's middle home price covering houses and units stood at $532,327, CoreLogic data showed. With a 20 per cent deposit, the average, full-time worker earning $83,486 was at a pinch able to get a loan and borrow five times their salary before tax. Seven years later, Australia's median home price now stands at $831,288. Someone earning the new average, full-time salary of $102,742 with the equivalent deposit would now have to borrow 6.5 times their income - putting them in the severe mortgage stress territory. The banks are reluctant to lend a prospective borrower more than five times their pay, with the Reserve Bank's two rate cuts in 2025, so far, hardly undoing the 13 increases in 2022 and 2023. The 3.85 per cent cash rate is the lowest since June 2023 but is still a far cry from the Covid record low of 0.1 per cent. Lower interest rates increase borrowing capacity, but they also put up house prices. Sydney, Australia's most expensive property market with the biggest inflow of overseas migration, has seen its mid-point house price climb by 49 per cent since mid-2018, with prices rising from $998,270 to $1.486million. But in Brisbane, house prices have soared by a whopping 85.7 per cent from $538,693 to just over $1million in a city with a large influx of interstate migration. Record-low interest rates during Covid followed by record-high immigration levels caused house prices to climb by double-digit figures during some years (pictured is a Sydney auction) Perth prices have soared by 69 per cent from $481,612 to $813,810, in another city with strong population growth from other parts of Australia. Adelaide house prices have almost doubled, surging by 89.3 per cent from $465,992 to $882,157. Melbourne, however, is the exception to other major capital city markets with its mid-point house price climbing by just 15.6 per cent from $813,064 to $939,965. This was the only big capital city where house prices increased at a pace slower than wages growth. What if I'm single? Single Australians earning the average wage were able to buy the median-priced house in most capital cities, except Sydney and Melbourne, less than a decade ago. But that's dramatically changed with only working couples now having a chance in most capital city markets. A Finder analysis revealed South Australia has seen the biggest decline since 2017, going from having 85 per cent of suburbs being affordable for singles to 19 per cent. The ratio in Western Australia has fallen from 67 per cent to just 17 per cent. In Queensland, it's plunged from 66 per cent to 19 per cent. New South Wales, which was an overpriced market eight years ago, saw the proportion of affordable suburbs fall from 40 per cent to 11 per cent. Despite weak price growth in Melbourne, the proportion of affordable suburbs in Victoria had declined from 50 per cent to just 16 per cent. 'Buying a home is harder than ever, especially if you're trying to do it on your own without a partner or family member,' Ms Megginson said. 'First home buyers are not expecting to step into a mansion for their first property, but even those with realistic expectations are shocked that even entry-level homes carry eye-watering price tags.'
Newsweek
16-06-2025
- Business
- Newsweek
Greg Abbott To Sign Texas Property Tax Bill: What To Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Texas Governor Greg Abbott is expected to sign new legislation offering property tax relief to homeowners in the state struggling with rising bills, on Monday. If endorsed by voters in November, the measures pushed forward by the GOP-led Texas legislature would significantly lower the cost of homeownership for millions of Lone Star State residents, including seniors and disabled owners, at a cost of over $3 billion. It would also dramatically slash revenues for local governments funding crucial public services, which the state would have to make up for. Why Do Texas Lawmakers And Abbott Want To Cut Property Taxes? While the Lone Star State is known for its relatively low tax environment, homeowners actually pay some of the highest property taxes in the country. These are levied by local governments and used for funding schools, streets, roads, police and fire protection. The governing body of each of these local governments sets its own tax rate based on a property's appraised value. But property taxes all across the U.S. have surged in step with home values since the pandemic, when historically low mortgage rates sparked a homebuying frenzy which had its epicenter in some of the country's most affordable states, including Texas. Between 2019 and 2023 alone, median property taxes in the Lone Star State rose by 26 percent, according to data by Cotality, formerly CoreLogic. Gov. Greg Abbott speaks during a bill signing in the State Capitol on April 23, 2025, in Austin, Texas. Gov. Greg Abbott speaks during a bill signing in the State Capitol on April 23, 2025, in Austin, of 2025, Texas homeowners are paying the seventh-highest property taxes in the nation, according to SmartAsset, at an effective rate of 1.63 percent. That is a lot higher than the national average, which stands at 0.90 percent, with the typical Texas homeowner paying $3,872 annually in property taxes. Abbott has long been trying to lower the property tax burden on Texas homeowners, signing in 2023 what was then the largest property tax cut in the state's history at $18 billion. But that intervention barely helped the many homeowners struggling with rising bills, and the Republican governor called for lowering property taxes as a priority during this year's legislative session. What Is In The New Package Of Property Tax Cuts? The package of property tax cuts that Abbott is expected to sign on Monday at the Robson Ranch clubhouse in Denton includes two bills recently passed by the Texas House and Senate that would back two constitutional amendments. One bill, SB 4, would raise the existing homestead exemption from $100,000 to $140,000 for all homeowners, while the other, SB 23, would raise it to $200,000 for those with disabilities or those aged 65 and above. "You've always heard that mantra, 'I don't want to rent my home—after it's paid for — from my school district,' " Lt. Gov. Dan Patrick said after the two bills passed the Texas legislature. "Well, seniors, to the average senior out there, you're never going to have to do that again." SB includes a provision guaranteeing school districts would not lose funding due to the lower property taxes, trying to answer criticism that the cuts would harm public services. It would be up to the state to raise the difference—which is estimated at $3.5 billion. What Happens After Abbott Signs The Legislation? In order to implement the constitutional amendments approved by the legislation, voters would have to back the homestead exemption hikes in November. Texas Senator Paul Bettencourt, R-Houston, who introduced the legislation, will be attending the signing ceremony on Monday. He said that he hopes there will be a "record turnout by the public" to get these tax cuts "enshrined" in the Texas constitution. Newsweek contacted Abbott's office and Bettencourt's office for comment by email on Monday morning.
Herald Sun
14-06-2025
- Business
- Herald Sun
Why this renovated Rowville home fetched $1.2m
The Rowville family home that sold for $1.2005m, more than $100k above the top of its price guide. A Rowville family who spent nearly a decade shaping their dream home have sold it for $1.2005m, more than $100,000 above the top of its price guide. Vendors Mary and Nick Nikos's renovated three-bedroom home had $1m-$1.1m price hopes, but strong interest throughout the campaign translated into fierce competition on auction day. Buxton Oakleigh auctioneer and director Peter Gigis said four bidders fought it out after the home was declared on the market at $1.1m, with offers climbing in $10,000 and $4000 increments before narrowing to final $500 bids. RELATED: Shock twist in Australia's property market 'Be realistic': Melb buyers warned Melb suburbs where units save you $1m CoreLogic records show the couple purchased 2 Moama Place for $630,000 in 2015, and overhauled it with a focus on family functionality and warm, timeless design. Their favourite addition? The open-plan kitchen, which Mary described as the 'heart of the home' , a space that once held more than 40 people during family events. The original kitchen before renovation, now transformed into a warm, open-plan entertainer's hub described as the 'heart of the home.' The renovated open-plan kitchen that once hosted 40 guests and helped seal the $1.2m sale, featuring Bosch appliances and oak floors. 'We've had babies take their first steps here, we've hosted huge gatherings, it's full of memories,' she said. 'It's bittersweet, but with baby number four on the way, it's time to start the next chapter.' The home backs directly on to Waterford Valley Golf Course and features solid American Oak floors, Bosch appliances, underfloor bathroom heating, solar panels, and a 48sq m shed with a kitchenette and toilet, ideal for the perfect mancave, trades or home business use. The backyard before landscaping and upgrades, now replaced with a manicured family-friendly space backing onto Waterford Valley Golf Course. The upgraded exterior with shed, solar panels and direct golf course access a lifestyle combo that drew fierce auction interest for the Melbourne southeast home. PropTrack data shows Rowville's median house price has climbed 5.2 per cent in the past year to $970,000, with family homes in quiet courts continuing to attract strong buyer demand. Mr Gigis said Rowville's balance of green space, schools and family-friendly infrastructure was continuing to fuel confidence among upsizers and long-term owner-occupiers. The stylish bathroom includes underfloor heating, just one of many high-end touches that appealed to owner-occupiers. The 48sq m shed with kitchenette and toilet, ideal for a man cave, trades, or home business use, adding serious buyer appeal. 'This wasn't an investor property,' Mr Gigis said. 'It was a genuine family home in a cul-de-sac with golf course views. Those sorts of homes are getting harder to find and buyers know it.' The lounge area pre-renovation, now a modern, light-filled family space with a fireplace and oak flooring. The revamped living room with fireplace, perfect for family gatherings part of a renovation focused on warmth and functionality. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: Bachelor couple eyeing $6m+ payday Aussie NBA legend set for huge $4m move $32m Mill deal reveals major players' interest
Sydney Morning Herald
13-06-2025
- Business
- Sydney Morning Herald
In some Sydney suburbs, house prices just rose $200,000 in three months
A handful of Sydney's inner-west suburbs have recorded the strongest house price growth over the past three months, data shows. North Strathfield topped a list of 10 suburbs by rising 8.9 per cent, or $211,255, to a median house price of $2,583,539 on Cotality (formerly CoreLogic) data for the three months to the end of May. It was followed by Rodd Point, up 7 per cent ($203,121); Abbotsford, up 6.9 per cent to $220,147; and Concord West, up 6.3 per cent to $168,158. The top 10 list included pockets of North Sydney and Hornsby, the inner city, the south-west, the eastern suburbs and the Central Coast. Experts attributed the price rises to a limited supply in tightly held suburbs, as well as new infrastructure and rezoning plans by the NSW government that intend to speed up construction and increase density around transport hubs. Transport-oriented developments (TODs) will deliver up to 31,855 new homes – including 3348 for affordable housing – on the north shore and in the city's inner west and south-west. The Homebush TOD precinct includes about 200 hectares between the Sydney and Parramatta CBDs. Rezoning will allow residential, commercial and recreational land use near four railway stations – Homebush, North Strathfield, Strathfield and Concord West – and a future metro station at North Strathfield. Cotality head of Australian research Eliza Owen said North Strathfield, Rodd Point, Abbotsford and Concord West were in the higher price bracket for the inner west and were marked for significant development.
The Age
13-06-2025
- Business
- The Age
In some Sydney suburbs, house prices just rose $200,000 in three months
A handful of Sydney's inner-west suburbs have recorded the strongest house price growth over the past three months, data shows. North Strathfield topped a list of 10 suburbs by rising 8.9 per cent, or $211,255, to a median house price of $2,583,539 on Cotality (formerly CoreLogic) data for the three months to the end of May. It was followed by Rodd Point, up 7 per cent ($203,121); Abbotsford, up 6.9 per cent to $220,147; and Concord West, up 6.3 per cent to $168,158. The top 10 list included pockets of North Sydney and Hornsby, the inner city, the south-west, the eastern suburbs and the Central Coast. Experts attributed the price rises to a limited supply in tightly held suburbs, as well as new infrastructure and rezoning plans by the NSW government that intend to speed up construction and increase density around transport hubs. Transport-oriented developments (TODs) will deliver up to 31,855 new homes – including 3348 for affordable housing – on the north shore and in the city's inner west and south-west. The Homebush TOD precinct includes about 200 hectares between the Sydney and Parramatta CBDs. Rezoning will allow residential, commercial and recreational land use near four railway stations – Homebush, North Strathfield, Strathfield and Concord West – and a future metro station at North Strathfield. Cotality head of Australian research Eliza Owen said North Strathfield, Rodd Point, Abbotsford and Concord West were in the higher price bracket for the inner west and were marked for significant development.
