Home values have been on the rise, but according to the Real Estate Institute of Australia (REIA), housing has become affordable.
Based on the report, all states and territories have shown favorable results in terms of allocating a certain percentage of their income for loan repayments, currently at 29.8%, down by 1.2% for the September quarter.
The Australian Capital Territory has the most gains, as it only allocates 19.8% of their income for mortgage repayments. New South Wales was above the threshold at 33.8%, yet this has been an improvement from September last year where 37% was allocated for loans. This is impressive as housing is becoming more affordable as the state posted a growth rate of 9.1%.
All the other states are pegged between 25 – 30% in loan allocations.
Read more about this on the Smart Property Investment website.