The average Australian now can’t afford to buy a house in any city in the country – but a real estate veteran who was kicked out of school at 16 has some very practical tips

A tattooed multi-millionaire real estate agent has given his expert tips for young people looking to buy a home, as the average Australian can’t buy a home in any major city without mortgage stress.

An Australian earning an average full-time salary of $98,218 is already priced out of every capital market when it comes to being able to afford an average-priced home.

And they would need a staggering 67 percent wage increase to afford a home without mortgage stress.

New research from the Parliamentary Library, commissioned by the Greens, found that a borrower would need to earn $164,400, two-thirds more than the average salary.

Mortgage stress – where buyers have to cut back or save to pay bills – is said to occur when someone spends 30 percent or more of their wages (before taxes) on monthly mortgage payments.

But someone with an average wage who borrows up to 5.2 times their salary would spend 38 percent of their salary on paying off a mortgage, based on RateCity calculations.

And the only way to get below the 30 per mortgage stress level would require a homebuyer to earn at least $164,400 to comfortably afford an $825,923 home in a median-priced Australian city.

With a 20 per cent deposit, the homebuyer with the large pay package would borrow a more manageable amount of four times their salary, the Parliamentary Library research, based on CoreLogic data, revealed.

But property guru Adam Flynn says young people may be better off with mortgage stress than missing out on their own home.

The founder of Flynn Estate Agents – a 26-year real estate veteran who was kicked out of school at the age of 16 – said buying a house was crucial because it would only increase in value.

The man who started in the real estate industry at the age of 18 now has a real estate portfolio worth more than seven million dollars.

“Make the sacrifices now,” he told Daily Mail Australia.

‘So many times over the years I’ve heard, “Oh no, we’re not going to buy now because the market is out of control,” and five years later that person says, “Should have started five years ago.”

“It’s just a consistent theme, a conversation of people regretting not buying sooner.”

Max Chandler-Mather, the Greens’ housing spokesman, wants to abolish negative tax breaks for investors and landlords and the 50 percent capital gains tax credit.

“The only way we can solve this crisis is if Labor finally works with the Greens to phase out the huge tax breaks for property investors, such as negative gearing, which deprive millions of renters of the opportunity to buy a home,” he said. .

For Sydney, where the average house price is $1.4 million, a person would have to earn $293,578 to avoid mortgage street, putting him or her in the top 1.5 percent of income earners.

For Melbourne, with an average house price of $942,779, it would require a salary of $189,962, putting someone in the top 3.9 percent of income earners.

But Mr Flynn said someone had options to buy in Frankston North, a suburb 55km from Melbourne’s city centre, near a railway line and Port Phillip Bay – with an affordable average house price of $595,656.

The suburb, where Mr Flynn has an office, is also close to more expensive suburbs such as Frankston South, where the median price is $1.1 million.

“I think Frankston North is a sleeping giant,” he said.

‘You have a good infrastructure, you have a railway line, they are doing a complete renovation of the hospital.

‘The Frankston market will see a significant leap in the next five years – from a value-for-money proposition I would recommend Frankston North.’

Melbourne’s average house price increase of 4.4 per cent also lags other major capitals, but Mr Flynn said interest rate cuts and the return of residents from south-east Queensland would see the Victorian capital take off to take.

“The Melbourne market is one interest rate cutting off a boom,” he said.

But housing is still expensive overall, even in the more affordable capitals.

Brisbane, with a median price of $899,474, requires a salary of $178,090, putting someone in the top 4.6 percent of income earners.

It also takes a higher salary to buy the average-priced home in the smaller capital markets.

In Adelaide the price is $163,627, while the average house price is $779,914.

In Perth it takes a salary of $140,313 to buy a $718,560 house.

Hobart needs a salary of $148,948 to buy a $696,508 house.

Darwin, Australia’s most affordable market with a median price of $577,786, still requires a higher salary of $124,339.

In Canberra it takes a salary of $205,073 to buy a $967,671 house.

House prices in the capital rose 11 percent in the year to February, data from CoreLogic showed.

This happened even after the Reserve Bank raised interest rates for the thirteenth time in eighteen months in November to a twelve-year high of 4.35 percent.

House prices are rising even though banks cannot lend as much as population growth is at its highest level since the early 1950s, with a record 548,800 migrants moving to Australia in the year to September.

The Greens made no mention of population growth in their press release.

The only homes that are affordable for people with below-average incomes who want to avoid mortgage stress are homes in more remote capitals.

A salary of $94,981 would buy you an apartment in Perth, where $482,972 is the average price.

A wage level of $83,648 would purchase a Darwin unit, with $367,951 being the midpoint.

Mr Flynn warned young people against buying an apartment in a high-rise development hoping for added value.

“You’re never going to experience good capital growth with an apartment because there’s so much for people to choose from,” he said.

‘Maybe you have a reasonable return on the rent.

‘My advice is to always look for a house with a complete plot.’