‘Really stretched’: Households on $500,000 a year can no longer afford their mortgages

Is this a problem with budget forecasting? How come you can have a high paying job and still find yourself in such situation? I am genuinely puzzled.

Extract: Chief executive of mortgage brokerage Shore Financial Theo Chambers describes a trend among young couples with combined household incomes of $400,000 to $500,000, a $2 million-plus mortgage in affluent areas of Sydney and two children at childcare.

“They can’t afford their home and they’re moving in with parents,” he said. “They bought at 2 per cent interest rates. They would have thought ‘we can easily afford a $3 million house in Bondi’.

Full article: https://www.theage.com.au/property/news/how-high-income-earners-are-coping-with-higher-interest-rates-20241218-p5kzc5.html