PUBLISHED: 04:01 GMT, 24 March 2024 | UPDATED: 09:54 GMT, 24 March 2024
A tattooed, multi-millionaire real estate agent has given his expert tips for young people hoping to buy a home, as the average Australian is locked out of buying a house in any major city without being in mortgage stress.
An Australian earning an average, full-time salary of $98,218 is already priced out of every capital city market when it comes to being able to afford a median-priced house.
And they would need a staggering 67 per cent pay rise to be able to afford a house without suffering mortgage stress.
New research from the Parliamentary Library, commissioned by the Greens, found a borrower would need to earn $164,400, two-thirds more than the average salary.
Mortgage stress - where buyers have to cut costs or dip into savings to pay bills - is said to kick in when someone spends 30 per cent or more of their pay before tax on monthly mortgage repayments.
A tattooed real estate agent has given tips to young people hoping to buy a home with the average Australian worker can now no longer afford to buy a house in any major city without being in mortgage stress
But someone on the average wage borrowing the maximum 5.2 times their salary would be spending 38 per cent of their pay on servicing a mortgage, based on RateCity calculations.
And the only way that can come down below the 30 per mortgage stress level would require a home buyer to be earning at least $164,400 to comfortably afford a median-priced $825,923 house in an Australian city.
With a 20 per cent deposit the home buyer on the big pay packet would be borrowing a more manageable four times their pay, the Parliamentary Library research revealed, drawing on CoreLogic data.
But property guru Adam Flynn says young people might be better off suffering mortgage stress than missing out on snapping up their own home.
The Flynn Estate Agents founder - a 26-year real estate veteran who was kicked out of school at 16 - said buying a house was vital as it would only go up in value.
The man who started in real estate when he turned 18 now has a property portfolio worth more than $7million.
'Make the sacrifices now,' he told Daily Mail Australia.
'Over the years, I've heard so many times, "Oh, no, we're not going to buy now because the market's out of control" and then five years later, that person's saying, "Should have entered five years ago".
'It's just a consistent theme, conversation of people with regret that they didn't buy earlier.'
Max Chandler-Mather, the housing spokesman for the Greens, wants to scrap negative gearing tax breaks for investor landlords and the 50 per cent capital gains tax discount.
'The only way we are going to fix this crisis is if Labor finally works with the Greens to phase out the massive tax handouts for property investors, like negative gearing, that are denying millions of renters the chance to buy a home,' he said.
For Sydney, where the median house price is $1.4million, someone would need to earn $293,578 to avoid mortgage street - putting them in the top 1.5 per cent of income earners.
For Melbourne, with a median house price of $942,779, a $189,962 salary would be needed - putting someone among the top 3.9 per cent of income earners.
Flynn Estate Agents founder Adam Flynn, a 26-year real estate veteran who was kicked out of school at 16, said younger people were better off putting up with mortgage stress when they were young, rather than missing out on buying a house that would go up in value
But new research from the Parliamentary Library, commissioned by the Greens, found a borrower would need to earn significantly more - or $164,400 - to avoid being in mortgage stress (pictured is the party's housing spokesman Max Chandler-Mather in front of Prime Minister Anthony Albanese)
But Mr Flynn said someone had options buying in Frankston North, a suburb 55km from Melbourne's city centre, that is near a train line and Port Phillip Bay - with an affordable median house price of $595,656.
The suburb, where Mr Flynn has an office, is also near more expensive suburbs like Frankston South, where the mid-point price is $1.1million.
'I think Frankston North is a sleeping giant,' he said.
'You've got good infrastructure, you've got a train line, they're doing a complete overhaul of the hospital.
'The Frankston market place, over the next five years, is going to jump up significantly - from a value-for-money proposition, I'd be recommending Frankston North.'
Melbourne's median house price increase of 4.4 per cent has also lagged behind the other major state capitals but Mr Flynn said rate cuts and the return of residents from south-east Queensland would see the Victorian capital take off.
'The Melbourne market is one interest rate cut off a boom,' he said.
But Mr Flynn said someone had options buying in Frankston North, a suburb 55km from Melbourne's city centre, that is near a train line and Port Phillip Bay - with an affordable median house price of $595,656
The housing spokesman for the Greens tweeted the astronomical salaries needed, as his party campaigns to scrap negative gearing tax breaks for investor landlords and scrap the 50 per cent capital gains tax discount
But housing in general is still expensive, even in more affordable capital cities.
For Brisbane, with a mid-point price of $899,474, a $178,090 salary is needed - putting someone among the top 4.6 per cent of income earners.
A higher salary is also needed to buy the median-priced house in smaller capital city markets.
In Adelaide, it's $163,627 where the mid-point house price is $779,914.
In Perth, a $140,313 salary is needed to buy a $718,560 house.
Hobart requires a $148,948 salary to buy a $696,508 house.
Darwin, Australia's most affordable market with a mid-point price of $577,786, still requires a higher salary of $124,339.
In Canberra, a $205,073 salary is needed to buy a $967,671 house.
Capital city house prices surged by 11 per cent in the year to February, CoreLogic data showed.
This occurred even after the Reserve Bank in November raised interest rates for the 13th time in 18 months to a 12-year high of 4.35 per cent.
House prices are rising, even though banks can't lend as much because population growth is at the highest level since the early 1950s, with a record 548,800 migrants moving to Australia in the year to September.
The Greens made no mention of population growth in their media release.
The only properties affordable for below-average income earners wanting to avoid mortgage stress are units in more remote capital cities.
A $94,981 salary would buy an apartment in Perth where $482,972 is the median price.
An $83,648 pay level would buy a Darwin unit, where $367,951 is the mid-point.
Mr Flynn cautioned young people against buying a unit in a high rise development hoping for a capital gain.
'An apartment, you've never going to experience good capital growth because there are so many for people to choose from,' he said.
'You might experience a reasonable return in regards to rent.
'My advice is to always be looking to buy a house on a full-size
allotment.
Bali's Current Hottest Real Estate Markets
"Bali is Hawaii 30 years ago"
Three months ago Lawrence predicted 2024 would be the most explosive year yet for the Bali's real estate market, especially on its popular East Coast in or near the first Resort Area in Bali, Sanur .
"2024 the most explosive year yet"
"Sanur not Snore Anymore"
According to Wikipedia. Sanur pronounced sah-noor) is a coastal stretch of beach east of Denpasar in southeast Bali (about a 30-minute drive from Ngurah Rai International Airport)For the 26 years he lived in Sanur it was called "Snore" because it attracted Seniors and Baby Boomers to quiet lifestyle, famous beach and inexpensive cost of living.
Recently Bali has been showered with accolades in 2023 ,& 2024 snagging titles like "Second Best Destination in the World,"
This translates to one thing, a tourism boom, and with it, a surge in rental income.
Remember his saying, "Bali real estate demand is directly proportional to tourist demand".
"Bali real estate demand is directly proportional to tourist demand"
The fuel for Sanur's coming Real Estate firestorm: 2,000 to 3,000 New Employees:
The massive Bali International Hospital is set to open its doors, bringing with it a wave of medical professionals and support staff seeking comfortable digs.Where will Doctors, Medical Technicians, and Support Staff Live?
5 - Star Hotel 1,000 Staff ?
The swanky new Meru hotel will need a place for its team to call home, injecting further demand into the market.New Icon Mall - 300 to 500 Employees:
Talk about a lucrative demographic!
So, where will all these new residents live? Sanur and its suburbs, of course.
Here are Lawrence's predictions on the three most sought-after areas of the East Coast, perhaps all of Bali in the next 12 -24 months.
#1 Area With Most Demand
This is due to the growing popularity of the area as a tourist destination and the increasing number of businesses and medical facilities moving in.
No Room at the Inn:
Just as Mary and Joesph found in Bethlehem just before Jesus was born recently there is no rooms in any of our inns.Unfortunately, there is not much available housing in these areas, as they are mostly commercial and hotels.
However, there are a few options for those who are looking to buy or lease a home in this sought-after location.
Bali Emerald Apartments:
They are perfect for those who are looking for a modern and stylish home in a great location.
PT. Bali Luxury Villas Start at $228,888.
For those who need more space, we also have a few award-winning Bali Luxury Villas available for sale.
They are perfect for those who are looking for a luxurious and spacious home in a quiet and peaceful location.
Bali Luxury Villas and Apartments are located within a short eight minute walking distance to Sanur's famous white sand beach.
They are also close to a variety of restaurants, shops, and bars.
If you are interested in buying a home in one of the most sought-after areas in Bali, we encourage you to contact them today.
They will be happy to help you find the perfect home for your needs.
#2 Area - Demand
While many eyes are on Sanur for the upcoming Bali International Hospital, savvy investors might find hidden gems close by.
This area, conveniently located within 1-10 kilometers of the hospital, offers several advantages:
Affordability: Escape the higher property prices of Sanur and capitalize on this area's lower costs.
High-Caliber Community:
Bali Paradise Beach Estates already boasts residents such as major Developers and Hotel owners plus, an A-listed couple, two doctors, and other successful individuals. This creates a desirable and dynamic community for future residents.
Beyond Borders, Beyond Expectations:
Remember: This area provides a unique opportunity to live well, invest wisely, and be part of a thriving community just steps away from the Bally International Hospital. Don't miss out on discovering this hidden gem beyond the borders of Sanur!
Brand New Luxury Retirement Villas:
# 3 Area Most Demand
Beyond the Bypass: Uncovering Renon & East Denpasar's Potential
While past development left some concerns – smaller plots, lower construction standards, and bumpy roads – change is afoot.
Infrastructure upgrades are on the horizon, promising a brighter future for the area.
But here's the real draw: prices here are significantly lower than the popular East Side, making it a prime location for savvy investors.
Envision it – owning a sprawling property, hundreds of square meters of opportunity! Build two or three stunning villas, keep one for yourself, and sell the others to recoup your investment, essentially securing your dream home for free.
Intrigued? We'd love to be your guides! Let us unveil hidden gems waiting to be unearthed in Renon & E Denpasar.
This area isn't just about a bargain; it's about embracing potential, about shaping your own Bali paradise.
Ready to ride the Bali East Coast wave?
So, pack your bags, your sense of adventure, and your investment savvy, because Sanur and its suburbs are about to become the real estate El Dorado of Bali.
Remember, this is just the beginning. We will keep you updated on all the sizzling developments in the East Coast real estate scene, so stay tuned for more insider tips and insights.
In the meantime, start browsing Best Bali Real Estate Listings – the future of Bali's real estate is bright, and Sanur is its shining star.
P.S. Don't forget to share this post with your fellow real estate enthusiasts! Let's spread the word about Sanur's golden future.
Schedule Your Personalized Viewing Today.
Contact us today to schedule a personalized viewing.
For information or inspection in English contact the Baby Boomer, President, Lawrence by Telephone or WhatsApp at +628123814014.
For information or inspection in Bahasa Indonesia contact the President's Spouse, a Licensed Indonesian Notaris, Azizah at +62 811-3864-993
ABOUT US:
Together with her partner and spouse Lawrence who has 50 years of Real Estate Experience, 20 Years of which is in Bali they own and operate award-winning 20-year-old Pt. Bali Affordable Lifestyles International ( PT. B.A.L.I. ).
Indulge in the pinnacle of luxury and efficiency with this esteemed team of over 70 professional staff, proudly offering an array of services for Buying, Selling, Leasing, and Renting Asian Real Estate.
For an unprecedented ten years running, they have been awarded the Certificate of Excellence and the Hall of Fame Award from the esteemed TripAdvisor, cementing their place among the top 2% of hotels and villas listed worldwide.
With clients all over the globe singing their praises, they are indisputably one of Asia's most renowned travel and real estate investment experts.
TESTIMONIAL:
"Honesty and professionalism are everything when you're dealing with real estate but when you can also find the most knowledgeable people to advise you and help you with what you need, why go anywhere else...Hands down the best in Bali!"Bo B, UNITED STATES- 2022
Keep up to date with the latest news and views on Bali and the world, all while reveling in their exceptional offering of the Best Bali Real Estate Blogs & Facebook Posts.
For more information on these exquisite properties, schedule an inspection, or request further information today by contacting us.
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