Oz’s most expensive state is…?

A new report has revealed the identity of Australia most expensive State…

Data from The Deposit Power/Real Estate Institute of Australia March quarter 2008 Housing Affordability report has found the average Queensland homeowner paid 40.5 per cent of their household income towards home loan repayments in the last quarter - the highest percentage across the nation.

Nationally, the percentage of household income used to pay the average home loan has risen to the highest level in the REIA's 22-year history of recording housing affordability data, with homeowners dishing out 38 per cent of their income towards repayments.

REIA president Noel Dyatt said Queensland's reputation as the nation's "boom state" was hiding a myriad of struggling homeowners: "While in some ways you have got the perception that you're untouchable because of the wealth of the state, these figures show there are still a lot of people out there who don't see the direct benefit of that wealth when it comes to meeting their mortgage repayments”.

Real Estate Institute of Queensland managing director Dan Molloy added: “Mounting speculation interest rates will continue to rise this year and could further impact on affordability throughout the state. Housing affordability is an increasing problem across the state and has locked thousands of would-be first home buyers out of the market”.