Rate hike could price home buyers out of Qld 72 suburbs

Queensland homebuyers could have dozens of suburbs wiped from their property search if interest rates rise again, with new analysis revealing how quickly another Reserve Bank hike would erode borrowing power. Households earning about $166,900 a year — the estimated income needed to support Queensland’s average home loan — could be priced out of 34 suburbs across the state following a 0.25 percentage point rate rise on Tuesday. This property at 13 Reed Court, Caboolture, is on the market for offers over $949,000. A second hike of the same size — as expected before Christmas — would more than double the impact, pushing 72 suburbs beyond their reach across the house and unit markets. The analysis of ABS Census and Wage Index figures shows a household on $166,889 currently has an estimated borrowing capacity of $751,000, supporting a purchase price of about $901,200. A quarter-point rate rise would cut borrowing capacity to about $731,400 and the potential purchase price to $881,600 — a reduction of almost $20,000. This property at 20 Railway Tce, Murarrie, is on the market for offers over $1.175m. QLD SUBURBS WHERE YOU WON’T AFFORD TO BUY A HOUSE AFTER RATE RISE Suburb Median sale pri...