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Date Published : Thursday, May 29, 2008
The Australian state of Queensland has been branded the most expensive for new home loans in a study.
The Real Estate Institute of Australia (REIA)'s Housing Affordability Report found people living in areas including Cairns and Brisbane on average use up more then 40 per cent of their weekly income on loan repayments.
Across the whole country in the March quarter, the percentage of household earnings used to pay the average home loan rose to 38 per cent - the highest in the REIA housing report's 22-year history.
New South Wales has traditionally been Australia's most expensive state but falls into second place on the REIA report with homeowners using 39.3 per cent of their household income on property repayments.
The report highlighted concerning trends in the rental market too.
Queenslanders currently need an average of 26.5 per cent of their salary to cover rent payments, higher again than the national average of 24.7 per cent
REIA president Noel Dyatt warns the situation could deteriorate further in the next few months.
He explains: "Without the additional housing stock urgently needed to address Australia's housing shortage, not only will home loan affordability suffer, but we can expect to see rental affordability reach new lows."
The Housing Affordability Report, released each quarter, is recognised as the most authoritative indicator of Australian housing affordability currently available. It incorporates data from all major lending institutions, the Australian Bureau of Statistics and Cannex Ltd.
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