Don't know how accurate this is, but if you earn less your pretty well stuffed in buying a house and how many people have $40,000 saved on this income. Not many I would have thought.
Annual income $80,000 less tax $19,850 = $60,150
assume 35% for house affordability repayment 35% of nett income = $21,052/12 months = $1,754 available
deposit of $40,000
30 years @ 9.75%
you can borrow $244,154
Question is where can you buy a house for $284,154 (out in the sticks)
with an interest rate of 7% you can borrow $303,639
