Canberra is the best location for people looking to buy or rent a property and still maintain an adequate disposable income, according to one comparison website.
The latest round of calculations from mozo.com.au – based on research by CoreLogic RP Data and the Australian Bureau of Statistics – shows the average after-tax salary and average mortgage repayment for each of Australia's capital cities.
Canberra came out on top, with the average monthly salary sitting at $5,651 and the average mortgage repayment at $2,380, with $3,271 left over to cover other expenses.
“Canberrans are parting with 42 per cent of their salary, leaving the rest for expenses and lifestyle such as dining out, travel or saving for a rainy day,” Mozo director Kirsty Lamont said.
Sydney was named the least “property- and lifestyle-friendly” city, with homeowners spending 63 per cent of their average monthly income on repayments, with just $1,895 left over.
“Big property prices mean big mortgages and Sydney and Melbourne are not only slapped with high repayments, they’re also among the world’s top 10 most expensive cities,” Ms Lamont said.
“So once you cover the cost of living, it doesn’t leave much left over for the fun stuff.”
Darwin and Melbourne homeowners both spend an average of 50 per cent of their monthly income on repayments, with those in Darwin left with $2,483 and those in Melbourne left with $2,387.
Brisbane and Adelaide homeowners hold onto $2,835 and $2,727 respectively, spending 43 per cent and 41 per cent of their average monthly income on repayments.
Perth and Hobart homeowners are spending 43 per cent and 36 per cent of their average monthly income on repayments, leaving them with $3,192 and $2,839 respectively.