Hot tip just because the purchase price is 12 times someones annual income doesn't mean that's how much they borrowed, a lot of equity in the market from people selling existing property and then buying something bigger or closer to the city. Also very few first home buyers would be looking at places in the median range anyway.
We are building at the moment. 3 bedroom Terrace, all landscaping included, oak timber floor, 40mm ceasor stone kitchen loaded with stainless steel appliances including dishwasher, marble vanity in the bathrooms (x 2), premium quality carper etc all for $550k. That is plenty for a first home buyer. Sure it's a hour commute to the CBD but I know places that are much closer geographically & more expensive that the commute takes just as long anyway.
So $550k is not that hard for 2 people earning the average income. Lets also factor in zero stamp duty for our purchase and a $15k FHOG and it's looking even more attractive. Take away our deposit and the mortgage repayments are less than what we'd be paying in rent for an inferior property in the same area and we are working towards paying off an asset.
Stuff is expensive but you can still get into the market if you actually want to.
