Business - Business - theage.au 

Business - Business - theage.au

Home loan affordability across Australia improved slightly in the March quarter of 2006 from the preceding quarter. but was worse than a year ago. according to a report by the Real Estate Institute of Australia.
The report found that average loan repayments consumed 31.9 per cent of median weekly family income. That is an improvement of 0.4 of a percentage point from the December quarter. but a deterioration of 0.5 of a percentage point from the same time a year ago.
"Although house prices are not rising as dramatically now as in previous years in most cities. home buyers still have to borrow large sums of money to enter the market."
The average size of a first-home buyer's loan in the March quarter was $223. according to the REIA report. which would require monthly repayments of about $1520.
According to the REIA. first-time buyers made up 19.1 per cent of all those who borrowed to buy a home in April 2006. That is an improvement from the previous three years but down from the average of 21.8 per cent between 1991 and 2002.
The report also found that from the December quarter of 2005 to the March quarter of this year. affordability improved for home buyers in NSW. Queensland and the ACT.





Real Estate