What’s in a name?
There are some interesting place names in Australia – remember that song (by Slim Dusty I think) called I’ve been everywhere?
Places like Watanobbi, Humpty Doo, Rooty Hill and Lang Lang are just a few that spring to mind.
Finder.com.au rounded up some of the weirdest suburb names across Australia to compare the mortgage costs and household incomes required to dodge mortgage stress levels (that is, to spend less than 30% of your pre-taxable income on your mortgage repayments), within these areas.
Here’s Finder.com.au’s state-by-state pick of some obscurely-named suburbs and how much a mortgage costs there.
New South Wales (NSW)
|Suburb (NSW)||Loan Size||10% Deposit||Monthly Repayment||Yearly Repayment|
Voted as Australia’s “most unfortunate” region name, Watanobbi residents require a household income of $71,725.88 to stay below the mortgage stress threshold level of 30%.
Based on a median house price of $343,750, a 10% deposit on a home loan for a property in Watanobbi would set you back $34,375 for a $309,375.00 loan.
Named after a hill that featured several tree roots on Norfolk Island, the required income to manage mortgage stress within Rooty Hill is $102,450.64.
Based on a median house price of $491,000, a 10% deposit on a mortgage would cost $49,100 for a $441,900 loan.
Well-known among Australians due to its seemingly satirical name, Dunedoo” translates to “swan” in the local Indigenous language, and reflects the large number of swans within the lagoon districts.
For those living in Dundedoo, the required household income to bypass mortgage stress is $40,166.49. Based on an average property price of $192,5000, a 10% downpayment for a $173,250 mortgage would set you back $19,250.
Northern Territory (NT)
|Suburb (NT)||Loan Size||10% Deposit||Monthly Repayment||Yearly Repayment|
Named after the “Umpity Doo” station, to remain below mortgage stress in Humpty Doo, you need a combined household income of $133,957.87.
Based on median house price of $642,000, to complete a 10% deposit for a loan size of $577,800, you’d need to come up with $64,200.
You’d also need to commit to monthly mortgage repayments of $3,237.32.
It’s not quite the bee’s knees, but it’s close enough.
If you’re living in Bees Creek, you’ll need $128,324.12 to avoid mortgage stress.
With a median property price of $615,000, you’d need to budget for a 10% deposit of $61,500 for an average loan size of $553,500.
To live in Wagaman, you’d have to bring in $115,700.37 to evade mortgage stress. With an average house price of $554,500, you’d need to budget $55,450 for an average mortgage of $499,050.
|Suburb (QLD)||Loan Size||10% Deposit||Monthly Repayment||Yearly Repayment|
|Fig Tree Pocket||$787,500||$87,500||$4,412.23||$52,946.74|
Currimundi (we just can’t not think of curry..), or “place of flying foxes” requires residents to earn $91,809.13 to manage mortgage stress.
Using a median house price of $440,000, you’d need to budget $44,000 for a 10% deposit on an average mortgage of $396,000.
Fig Tree Pocket
As romantic as the name sounds, if you reside within Fig Tree Pocket, you’ll face hefty mortgage repayments.
To avoid mortgage stress, you would need a combined household income of $182,574.97 to dodge mortgage stress.
Based on an average property price of $875,000, you would need $87,500 for a 10% deposit on a loan size of $787,500.
Referred to by the locals as “Indro”, if you live in the “gully of leeches”, you would need to bring in $155,449.55 each year to sidestep mortgage stress.
With a median house price of $745,000, you would need to set aside $74,500 for an average mortgage amount of $670,500.
South Australia (SA)
|Suburb (SA)||Loan Size||10% Deposit||Monthly Repayment||Yearly Repayment|
Derived from a salt lake, Andamooka residents need an annual income of $20,448.40 to escape mortgage stress.
Based on a median house value of $98,000, you’d likely need to take out a home loan of $88,200.
Now, this is one of our favourites.
For Hectorville residents, you’d need to bring in an annual household income of $104,850.20 to dodge mortgage stress.
Using a median house price of $502,500, you would need to budget $50,250 for a 10% deposit for your lender for a loan size of $452,250.
It’s as close as we’ll get to a Simpsons reference.
If you’re thinking of settling down in Springfield, you’d need a household income of $345,849.16 to avoid mortgage stress.
To access finance you would need a 10% deposit of $165,750 for a loan of $1,491,750 based on a median house value of $1,657,500
|Suburb (TAS)||Loan Size||10% Deposit||Monthly Repayment||Yearly Repayment|
Locally known as ‘The Neck’, to remain below mortgage stress levels in Eaglehawk Neck, you’d need a household income of $53,468.39.
For a median house price of $256,250 this would translate to an average mortgage size of $230,625.
If you’re thinking of purchasing property in Punchbowl, you would need a household income of $44,130.98 to dodge mortgage stress.
With a median house value of $211,500, this would mean you’d have to budget $21,150 to complete a 20% deposit on a home loan.
To settle in Zeehan, you would need an annual income of $13,041.07 to avoid mortgage stress.
With an average house value of $62,500, you would likely take out a loan size of $56,250 to purchase property in this area.
|Suburb (VIC)||Loan Size||10% Deposit||Monthly Repayment||Yearly Repayment|
The name of this suburb may raise eyebrows for some (for safety concerns), but to finance property within Balaclava you need a combined household income of $193,007.83 to avoid mortgage stress levels.
With a median house price of $925,000 you would need to set aside $92,500 for a 10% deposit
Meaning “bush bush” or “clump of trees” in the local Aboriginal language, for those looking to call Lang Lang home, you need a household income of $63,275.27 to avoid mortgage stress.
Using a median house value of $303,250, you would need to cough up $30,325 for a 10% deposit.
If you want to settle down in Yallambie, you’ll need to bring in $120,949.35 to escape mortgage stress. For an average loan size of $521,690, you would need $57,966 to offer a 10% deposit for a mortgage.
Western Australia (WA)
|Suburb (WA)||Loan Size||10% Deposit||Monthly Repayment||Yearly Repayment|
Located on the northern most high feature of of Statham’s Quarry, residents of Gooseberry Hill need a household income of $158,579.41 to stay below mortgage stress.
Using a median house value of $760,000, we’ve worked out that you would need $76,000 for a 10% deposit on a $684,000 home loan.
If you want to call Kalamunda home, you’ll need an annual $133,540.55 to comfortably avoid mortgage stress.
Based on a median house price of $640,000 you would need genuine savings of $64,000 for a 10% deposit on a loan of $576,000.
Associated with its trademark of peppermint trees and while the name may entice you, be prepared to pay substantial mortgage costs in exchange for residing in one of Australia’s wealthiest suburbs.
You’ll need an annual pay cheque of $740,732.75 to dodge mortgage stress.
Drawing on a median house price of $3,550,000 you would need to save $355,000 for a 10% deposit on a loan of $3,195,000.
Originally published at www.finder.com.au
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.