have you ever seen the bank criteria for lending... its easy, just go to any bank web site...they all have a calculator...so you can enter your details
at westpac... I put in the calculations for one wage earner, with 2 dependants...(a wife and i child) net after tax wage each month, is $4000 (assuming a gross wage of $60,000 pa) with no credit cards or other committments... the answer, they would lend him $120178
Then I did the same and added a joint borrower, the spouse with her net wage of $2000 per month, or around 30,000 gross pa with 2 dependents...they will lend $373985
another scenario...this time with same income for 2, but 3 dependants...it drops $30,000 to $344162
again with 4 dependants, drops another $30,000 again to #314340 the banks have a built in model of normal costs for living, food etc for each family size
so its not a one size fits all, try it for youself
the posters on here that say housing is too expensive for one wage earner, with a spouse and kids is right...that scenario went out in the 40's
thats why, the women have been in the workforce since the war years after 1940... thats now 72 years...
you can see the banks will lend about $120000 for the low income earner....on just one wage..
so one will either need a higher wage themselves, or send the wife to work, to borrow ..for a house near the 400-450 mark, with a substantial deposit
double income families have been the norm for so long.... it will not change, and revert to a sole income earner on a low income...nor will house prices adapt to cater for same...
I wonder how much research and knowledge some posters have...I assume most have been there and done that, ie know the real ins and outs of getting a loan, and the criteria...but it does make me wonder...sometimes, if they have done any research at all...
the net income after tax, is close...not exact ..since we are talking scenarios...or thereabouts for this example
