How big is the average home loan in Australia?
In October 1975, the average home loan taken out in Australia was just $17,400. Forty years later, a typical home buyer is borrowing $382,400.
Australian Bureau of Statistics (ABS) figures demonstrate how rapidly house prices have accelerated over the last forty years. Here's how the average home loan size has changed during that time:
Those figures might sound low, but remember the average covers both expensive capital city and cheaper regional areas, and new builds as well as purchases of existing properties. And of course average wages also rise over that period, which means that affordability isn't necessarily impacted at the same rate.
You can check out the average figures for each state and territory in this interactive infographic:
In 2015 NSW and Victoria have the highest figures, but that hasn't always been the case. Back in 1975 the biggest average was for the Northern Territory ($21,600). Tasmania has consistently had the lowest average, moving from $15,900 in 1975 to $236,400 in 2015.
The key lesson here? Property prices rise over time, so the earlier you get started, the better. Check out our guide to getting started in property investment while you're young to learn more.
Source: ABS Picture: Shutterstock