Don't assume it is the same for the whole market based on your individual circumstance. It comes down to where you want to live/location.
There are some properties in suburbs which I know have rental of $400 per week / $20,800 per annum which cost $700,000 to purchase. There are also properties in different suburbs I know which have rental of $250 per week / $13,000 per annum however only cost $200,000. These are real suburbs which are less than 20kms apart. Both similar age, quality homes with similar accommodation levels and living area and on same size blocks. Only difference is location. One being a good suburb / top public school and another being a not so good suburb. A huge difference between a 3% yield which will not cover the cost of owning a home vs a 6.5% yield that will easily cover the cost of owning a home.
The point I am trying to make here is that the broker you are signing up with in some cases do not care whether or not you are over borrowing or will struggle with repayments down the line. They are more concern about lining up their pockets.
Also most first home buyers who were previously renters or living with dad/mum are not aware of some of the costs involve in owning a home. There have been misleading ads from builders / developers.
This is in response to
@convoy63 saying borrowers should take responsibility for what they borrow. Plenty of first home buyers have been given bad advise, in my personal opinion.
Anyways interesting to see if the RBA cuts the rate to 0 at the next meeting as there have been talks for further cuts. This will definitely be a positive to the asx and banking industry.
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