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

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A tattooed, multi-millionaire real estate agent has given his expert tips for young people hoping to buy a home, as the average Australian is locked out of buying a house in any major city without being in mortgage stress.

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

And they would need a staggering 67 per cent pay rise to be able to afford a house without suffering mortgage stress. 

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

Mortgage stress – where buyers have to cut costs or dip into savings to pay bills – is said to kick in when someone spends 30 per cent or more of their pay before tax on monthly mortgage repayments.

A tattooed real estate agent has given tips to young people hoping to buy a home with the average Australian worker can now no longer afford to buy a house in any major city without being in mortgage stress

The average Australian worker can now no longer afford to buy a house in any major city without being in mortgage stress, new research shows (pictured is a Melbourne auction)

But someone on the average wage borrowing the maximum 5.2 times their salary would be spending 38 per cent of their pay on servicing a mortgage, based on RateCity calculations.

And the only way that can come down below the 30 per mortgage stress level would require a home buyer to be earning at least $164,400 to comfortably afford a median-priced $825,923 house in an Australian city.

With a 20 per cent deposit the home buyer on the big pay packet would be borrowing a more manageable four times their pay, the Parliamentary Library research revealed, drawing on CoreLogic data.

But property guru Adam Flynn says young people might be better off suffering mortgage stress than missing out on snapping up their own home. 

The Flynn Estate Agents founder – a 26-year real estate veteran who was kicked out of school at 16 – said buying a house was vital as it would only go up in value.

The man who started in real estate when he turned 18 now has a property portfolio worth more than $7million

‘Make the sacrifices now,’ he told Daily Mail Australia.

‘Over the years, I’ve heard so many times, “Oh, no, we’re not going to buy now because the market’s out of control” and then five years later, that person’s saying, “Should have entered five years ago”.

‘It’s just a consistent theme, conversation of people with regret that they didn’t buy earlier.’ 

Max Chandler-Mather, the housing spokesman for the Greens, wants to scrap negative gearing tax breaks for investor landlords and the 50 per cent capital gains tax discount.

‘The only way we are going to fix this crisis is if Labor finally works with the Greens to phase out the massive tax handouts for property investors, like negative gearing, that are denying millions of renters the chance to buy a home,’ he said.

For Sydney, where the median house price is $1.4million, someone would need to earn $293,578 to avoid mortgage street – putting them in the top 1.5 per cent of income earners. 

For Melbourne, with a median house price of $942,779, a $189,962 salary would be needed – putting someone among the top 3.9 per cent of income earners.

Flynn Estate Agents founder Adam Flynn, a 26-year real estate veteran who was kicked out of school at 16, said younger people were better off putting up with mortgage stress when they were young, rather than missing out on buying a house that would go up in value

But new research from the Parliamentary Library, commissioned by the Greens, found a borrower would need to earn significantly more – or $164,400 – to avoid being in mortgage stress (pictured is the party’s housing spokesman Max Chandler-Mather in front of Prime Minister Anthony Albanese)

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

The suburb, where Mr Flynn has an office, is also near more expensive suburbs like Frankston South, where the mid-point price is $1.1million.  

‘I think Frankston North is a sleeping giant,’ he said.

‘You’ve got good infrastructure, you’ve got a train line, they’re doing a complete overhaul of the hospital.

‘The Frankston market place, over the next five years, is going to jump up significantly – from a value-for-money proposition, I’d be recommending Frankston North.’

Melbourne’s median house price increase of 4.4 per cent has also lagged behind the other major state capitals but Mr Flynn said rate cuts and the return of residents from south-east Queensland would see the Victorian capital take off. 

‘The Melbourne market is one interest rate cut off a boom,’ he said. 

But Mr Flynn said someone had options buying in Frankston North, a suburb 55km from Melbourne’s city centre, that is near a train line and Port Phillip Bay – with an affordable median house price of $595,656

The housing spokesman for the Greens tweeted the astronomical salaries needed, as his party campaigns to scrap negative gearing tax breaks for investor landlords and scrap the 50 per cent capital gains tax discount

But housing in general is still expensive, even in more affordable capital cities.

For Brisbane, with a mid-point price of $899,474, a $178,090 salary is needed – putting someone among the top 4.6 per cent of income earners.

A higher salary is also needed to buy the median-priced house in smaller capital city markets.

In Adelaide, it’s $163,627 where the mid-point house price is $779,914.

In Perth, a $140,313 salary is needed to buy a $718,560 house.

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

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

In Canberra, a $205,073 salary is needed to buy a $967,671 house.

Capital city house prices surged by 11 per cent in the year to February, CoreLogic data showed.

This occurred even after the Reserve Bank in November raised interest rates for the 13th time in 18 months to a 12-year high of 4.35 per cent. 

House prices are rising, even though banks can’t lend as much because population growth is at the 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 media release. 

The only properties affordable for below-average income earners wanting to avoid mortgage stress are units in more remote capital cities.

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

An $83,648 pay level would buy a Darwin unit, where $367,951 is the mid-point.

Mr Flynn cautioned young people against buying a unit in a high rise development hoping for a capital gain.

‘An apartment, you’ve never going to experience good capital growth because there are so many for people to choose from,’ he said.

‘You might experience a reasonable return in regards to rent.

‘My advice is to always be looking to buy a house on a full-size allotment.’