Sydney residential property is at its most affordable level since August 2009, data from Onthehouse Holdings Limited has revealed.
Owners are paying off their mortgages at a median rate of 45.36 per cent of their after-tax income for houses, and 32.71 per cent for units, data show.
The onthehouse.com.au affordability indicator is based on the proportion of income the average household will need to make mortgage payments in their suburb.
The data showed that units remain substantially more affordable for Sydney residents, with Blair Athol, Minto and Leumeah as Sydney’s most affordable suburbs, at 29.65 per cent, 27.58 per cent and 28.07 per cent respectively of their after-tax income spent on home loans.
Meanwhile, Paddington, Alexandria and Mosman are the most affordable inner-city suburbs relative to residents’ income, with owners paying 29.65 per cent, 34.14 per cent, and 35.05 per cent respectively.
Michael Fredericks, founder and CEO of Onthehouse Holdings, said affordability hasn’t been better for a number of years.
“The lowering of the cash rate to 2.75 per cent by the RBA and the relatively static levels of property prices are helping homeowners and increasing affordability for those wanting to get into the market," he said.
“In fact, our data indicates affordability in Sydney is at its most favourable level in four years.”