First-Time Home Buyers Dealt Yet Another Devastating Blow
First-time home buyers have been dealt yet another devastating blow as figures reveal how it is "near impossible" for single people to get a foot on the property ladder.
The survey, conducted by realestate.com.au, showed that 63 per cent of Sydneysiders were unable to buy simply because they were doing so alone.
Further data revealed that, in order to buy the cheapest Sydney unit within 30 km of the CBD, solo buyers required an annual income of at least $90,000 on a mortgage of $420,000.
Moving to within 10 km of the CBD raised that salary requirement to $130,000 for a $635,000 unit.
These calculations are based on the assumption that the homeowner wouldn't want to spend more than a third of their annual income on mortgage repayments, and don't take into account the added expense of saving for a deposit.
"Buying a home in Sydney is hard enough on two incomes but for single people, it's just not realistic so they are being locked out of the biggest vehicle for wealth creation," demographer Mark McCrindle said.
"Singles don't enjoy the same economies of scale as couples so their living expenses don't come to half that of couples, it's usually more.
"When singles can't save deposits they are left out of the economic benefits of home ownership."