How much you need to earn to buy in every QLD suburb

Households in nearly 400 Queensland suburbs now need to earn more than $100,000 after tax a year to live and pay the mortgage, with affordability nationally the ‘worst on record’. SEARCH THE INTERACTIVE

Households in nearly 400 Queensland suburbs now need to pocket more than $100,000 after tax a year to pay the mortgage and make ends meet, with affordability nationally the ‘worst on record’.

But if you think that sobering figure will slow price growth in the sought-after Sunshine State, think again.

There is still “room to grow”, according to the experts.

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Brisbane’s prestige suburbs feature high on the list for interstate buyers, with prices soaring. Picture: NCA NewsWire / John Gass

Exclusive research by Finder and CoreLogic has revealed a whopping 391 suburbs across Queensland now require a household income over $100,000 - and that’s after tax.

Sixty-five of those suburbs require a household after tax income of more than $200,000 a year, with all located in the red-hot southeast corner.

CoreLogic research director Tim Lawless said housing affordability across the country was the worst on record.

“The gap between income and prices has never been this large,” he said. “It’s a cumulative phenomenon that’s getting worse over time.”

This five bedroom residence at 7 Davidson Tce, Teneriffe, could be yours for an offer over $4.8m

Housing costs grew annually at double the rate of wage increases over the past 10 years and a typical Aussie home was now close to eight times the annual median household income, Mr Lawless said.

This was unprecedented, and meant first homebuyers faced more barriers to get into the market than their parents – even those who bought in the late 1980s when interest rates were 17 per cent, the analyst said.

“It’s the transactional costs that are the hardest,” Mr Lawless said, adding that the biggest challenge for buyers was coming up with the high sums needed for deposits and stamp duty.

Top of the wallet-draining list in Queensland was Teneriffe, with households there needing to pocket a staggering $365,189 after tax.

The inner Brisbane suburb was closely followed by Sunshine Beach, where house values soared 27.2 per cent in the 12 months to December.

The average household in the coveted Sunshine Coast enclave needs to take home $350,154.

Mermaid Beach on the Gold Coast came in third spot, with owners needing to pocket $342,728 a year, or $28,561 after tax each month.

Offering three bedrooms, this luxe unit at 2/1 Stevens Street, Sunshine Beach is $4.5m

Rounding out the top five suburbs where homeowners need to make a motzah were Ascot and Hamilton in inner Brisbane.

Ray White New Farm principal Matt Lancashire, whos sells across many of Brisbane’s prestige suburbs, said even he was shocked by the amount of take home pay needed to buy into some suburbs.

But he added that many of those same suburbs were home to wealthy individuals.

“There are still options in many of these prestige suburbs that would suit a lot of budgets, you just might have to adjust your expectations,” he said, adding that units might be the more budget-friendly option.

“And if you are comparing these suburbs to similar ones in Sydney and Melbourne, they are still incredibly undervalued.”

Ray White’s Matt Lancashire says Brisbane is still undervalued compared to Sydney and Melbourne

Queensland house values in many suburbs experienced phenomenal growth during the pandemic property boom, with sellers benefiting from an influx of cashed-up interstate and expat buyers.

Median house values at Ninderry on the Sunshine Coast recorded the biggest increase in the 12 months to December – up a whopping 51.6 per cent to $1,242,217.

There, the average loan is $993,774, with households needing to earn $177,392 after tax each year to service a 30-year mortgage with an assumed variable interest rate of 3.45 per cent, according to the research.

It was followed by Mermaid Beach, where house values rose 50.1 per cent over the same period to just over $2.4 million.

This classic beach house at 7 Atlantic Avenue, Mermaid Beach, is listed for offers over $1.79m

There are now 176 suburbs across Queensland with median house values in excess of $1 million, the data revealed.

But at the other end of the spectrum is Monto, Blackwater, Mount Morgan and Collinsville, where a household would need to pocket around $20,000 or less in take home pay each year.

Up north in the Cairns region, Port Douglas households need to generate the greatest after tax wealth – $124,200 – while those sitting pretty can be found in Goondi Bend ($31,356).

Households in Townsville’s blue chip suburb Castle Hill need to earn $138,908 after tax, while those in Ingham need just $22,873.

On the Gold and Sunshine Coasts, which have been swamped by cashed-up interstate buyers, and expats, the difference in the amount needed after tax was fourfold.

The Gold Coast has been a magnet for cashed-up interstate buyers and returning expats. Supplied

On the Sunny Coast, the amount needed after tax ranged from $350,154 (Sunshine Beach) to $90,272 (Kenilworth).

It was similar on the Gold Coast – $342,728 at Mermaid Beach compared to $93,156 at Pimpama.

The after tax income comparison was even more stark across the Greater Brisbane region, ranging from over $365,189 in Teneriffe to just $43,371 at Toogoolawah in Ipswich.

Mr Lawless said that affordability in Brisbane and Adelaide was deteriorating, but it was still not as stretched as in the larger capitals.

“Prices in these markets still have plenty of room to grow and could outperform pricier cities because they are more accessible,” Mr Lawless said.

“There will be a lot of focus on housing affordability politically this year (due to the election) but there is no silver bullet in terms of a solution.”

Finder’s senior money editor Sarah Megginson said the economic environment had prompted many people to buy beyond their means.

“Interest rates are at an all-time low, but they’ll need to rise at some point, and unfortunately this means some Aussies are at risk of defaulting on their home loans,” she said.

“Ideally you don’t want to spend more than 30 per cent of your salary on home loan repayments, but it’s good to give yourself a buffer for when rates inevitably rise.”

Originally published as How much you need to earn to buy in every QLD suburb