Buying a house can be risky behaviour
Australians are engaging in increasingly risky behaviour because they are seduced by the dream of home ownership said Professor Wilson-Evered, director of research at Relationship Australia Queensland. “Many Australians will do almost anything to purchase a home,” said Sydney University anthropologist Stephen Juan. “They will often take out loans far beyond their ability to repay them.”
The average loan size for first-home buyers was $285,000 in January, up one third over five years, while average full time weekly earnings increased 21 per cent. Home prices are expected to increase between 8 and 12 per cent this year after jumping 13.6 per cent in 2009. Mortgage repayments are up about $200 a month on an average $300,000, 25-year loan since the Reserve Bank's rate-rise cycle began in October. Another $200 per month in repayments is expected by the end of 2010.
Source: Sydney Morning Herald