Shock income you need to earn to buy a house in Brisbane

Buyers looking to purchase an average-priced house in Brisbane now need to earn a shocking six figure salary, with just one suburb inside 12km of the CBD still in their budget. LIST

38 Heaton Street, Rocklea, is priced at $539,000. The suburb is the last remaining affordable place to buy a house within 12km of Brisbane CBD.

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Buyers looking to purchase an average-priced house in Brisbane now need to earn a combined income of over $155,000, with just one suburb inside 12km of the CBD within their budget.

Latest analysis by Finder has found that in the last six months alone, there was a $10,000 jump in the income needed to afford an average Brisbane home valued around $790,000 in November.

In July the combined income needed for an average-priced house was $145,602, jumping to $155,489 in November – growing faster than most salaries though it was outpaced by a $27,000 increase in Brisbane’s median house price.

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This classic house at 56 Darnley Street, Rocklea, is priced at $520,000.

This is one of the few remaining houses in the early $500,000s so close to the Brisbane CBD.

An analysis of Brisbane suburbs that fall within the $790,000 price range found only one suburb remains within 12km of the CBD – Rocklea – where monthly mortgage repayments would come in at $2,504 a month (or $578 a week). Finder calculations show the suburb was affordable for someone with $100,000 income, but the data also assumed a year’s worth of that income was put into a 20 per cent loan deposit ($104,413).

Archerfield (13.7km from CBD) and Boondall (15.4km) were also among suburbs closest to the city centre that were still affordable for those with a $155,000-plus income level.

Finder personal finance expert Sarah Megginson said in the last 12 to 18 months, Brisbane house prices had accelerated to Melbourne levels.

“The gap between Brisbane and Melbourne is much less now than it’s ever been before, but they’re not necessarily earning Melbourne wages so it’s become less affordable for people to buy a home.”

Finder personal finance expert Sarah Megginson says Brisbane is seeing Melbourne style prices but salaries are not necessarily at Melbourne levels.

She said “we’ve always had affordability struggles, but it has become more unaffordable every year that has passed and it’s more difficult for people to get their foot in the door”.

According to Finder analysis, to buy a mid-range unit in Brisbane, buyers needed an average income of $99,001, though the Queensland figure was higher at $103,779. In the regions, the income needed to buy a median priced house was $2,400 less than Brisbane, coming in at $153,067.

All up 20 Brisbane suburbs remain priced below the $790,000 median, according to PropTrack data, seven of which were in the east including Hemmant, Capalaba and Alexandra Hills as well as four island zones.

Four northside suburbs were also on the list – Bracken Ridge, Bald Hills, Zillmere and Fitzgibbon – two more in the south – Forest Lake and Acacia Ridge, and another four in the western suburbs: Jamboree Heights, Riverhills, Oxley and Darra.

Only 20 Brisbane suburbs are priced below the $790,000 mark, only one of which was within 12km of the CBD, with prices soaring elsewhere amid a pandemic boom.

SEE THE LATEST PROPTRACK HOME PRICE INDEX

For households earning less than $100,000, there were still four suburbs affordable for them in Brisbane, all of which are offshore: Russell Island (median house price $337,000), Lamb Island ($355,000), Macleay Island ($420,000) and Coochiemudlo Island ($485,000).

On Russell Island, it is possible to use less than 30 per cent of income for home loan repayments on a salary of $67,847, Finder calculations show. Repayments were assessed at $1,621 a month – assuming the buyer paid almost a year’s salary ($67,600) for a 20 per cent home loan deposit.

The Finder calculations were based on the median home price from the last 12 months, the current average variable home loan interest rate, an 80 per cent loan to value ratio with a 20 per cent deposit, and 30 per cent of gross income as the threshold for mortgage stress.

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