A family with up to $1.25 million to spend on a home just 10 months have seen their borrowing capacities plummet, with many now unable to afford a home in 229 Queensland suburbs.
Analysis by Canstar shows that buyers with a gross annual income of $151,500 and 20 per cent deposit in April last year could have borrowed $1 million and had a maximum purchase price of $1.25 million.
But after nine aggressive rate hikes by the RBA, with the official cash rate now at 3.35 per cent, the highest in a decade, that borrowing power has crashed to $744,000, with a maximum purchase price of $930,000.
That equates to a $256,000 hit to the family budget.
Suburbs now excluded from their budgets include Castle Hill in Townsville, Worongary on the Gold Coast, Peregian Springs on the Sunshine Coast and in Brisbane, suburbs such as Corinda, Enoggera, Newport, Cannon Hill, Brookwater, Holland Park and Fairfield,
For buyers with a maximum purchase of $937,500 (borrowing capacity of $750,000) in April last year, their budget has slipped by $192,000, knocking many out of the race for houses in places like Salisbury, Parkwood, Southport, Albany Creek, Everton Hills, Shailer Park, Oxley and Upper Caboolture.
So what can you buy now?
MAXIMUM PURCHASE POWER – $930,000
1. 21 Margery Street, Thornlands: Offers over $900,000
2. 9 Bundgee Court, Mudgeeraba: Offers over $900,000
3. 24 Corbett Street, Enoggera: Offers over $905,000
4. 43 Enbrook Street, Bracken Ridge: Offers over $900,000
5. 32a Rainbird Court, Palmwoods: Offers over $897,000
MAXIMUM PURCHASE POWER – $697,500
1. 15 Reilly Road, Nambour: $659,000
2. 2 Dancer Street, Collingwood Park: $650,000+
3. 53-59 Francis Close, Kooralbyn: $679,000
4. 23 Hodel St, Hermit Park: Offers over $650,000
5. 38 Kangaloon Street, Jindalee: $680,000
Article source: www.realestate.com.au