Australia’s most affordable suburbs near the city or beach for first-time homebuyers on a $400,000 budget

Homes a short drive from the beach or town are still affordable for first home buyers on a $400,000 budget.

Mortgage broker Aussie recommends zip codes where borrowers can get a loan with a $40,000 down payment, or the price of a new car, and have no trouble paying their bills on an average salary.

On the Central Coast, just over an hour’s drive north of Sydney, someone who can work from home can still buy a home for $415,000 in Wyee in the Lake Macquarie area, CoreLogic data on median prices for October shows. .

They would only need $41,500 for a minimum 10 percent down payment if they were willing to pay the lender’s mortgage insurance.

Homes a short drive from the beach or town are still affordable for first home buyers on a $400,000 budget. Mortgage broker Aussie recommends zip codes where borrowers can get a loan with a $40,000 down payment, or the price of a new car, and not struggle to pay their bills on an average salary (shown is an Australian map with more affordable areas in purple )

The average price is also less than half the average house price of $954,330 on the Central Coast, which would buy you something with a backyard at Woy Woy.

In Brisbane, the median home price in Acacia Ridge, just 9 miles south of the city, is $452,500, requiring a down payment of just $45,250.

This is also significantly less than Brisbane’s average home price of $731,392.

In Sydney, someone on a budget of $400,000 who wants to be a medium distance from the city must buy an apartment.

Lakemba, in the city’s multicultural southwest, is half an hour by train from the city and the average price of an apartment in October was just $382,500 – or less than half the average unit price of $837,262 in Sydney .

A borrower could buy with a 10 percent down payment of just $38,250.

On the Central Coast, just over an hour's drive north of Sydney, someone who can work from home can still buy a home for $415,000 in Wyee in the Lake Macquarie area, CoreLogic data for October found (pictured is a house that sold for $450,000)

On the Central Coast, just over an hour’s drive north of Sydney, someone who can work from home can still buy a home for $415,000 in Wyee in the Lake Macquarie area, CoreLogic data for October found (pictured is a house that sold for $450,000)

Those looking for an affordable home in Sydney should try Box Hill, 50km northwest of the central business district, where the median home price is $611,500.

Brad Cramb, Aussie's Chief Executive of Distribution, said stricter lending rules meant buyers had to rethink their choices

Brad Cramb, Aussie’s Chief Executive of Distribution, said stricter lending rules meant buyers had to rethink their choices

That’s less than half of Sydney’s median home price of $1,334 million, after a 30.4 percent year-on-year increase.

Someone just needs a 10 percent down payment of $61,150 to get a loan.

With a 20 percent down payment, a borrower with an average full-time salary of $90,329 can borrow $489,200 and avoid getting into mortgage stress.

In Melbourne, the average price for a city apartment is just $426,750, with a $42,675 down payment being enough to get a loan.

The median price for a St Kilda beachfront apartment is $550,000 – requiring a 10 percent down payment of just $55,000.

The Australian Prudential Regulation Authority considers a debt-to-income ratio of six risky and, since Nov. 1, has required lenders to assess a borrower’s ability to deal with a three percentage point rise in mortgage rates.

In Brisbane, the median home price in Acacia Ridge, just 9 miles south of the city, is $452,500 - requiring a down payment of just $45,250 (shown is a home that sold for $450,000)

In Brisbane, the median home price in Acacia Ridge, just 9 miles south of the city, is $452,500 – requiring a down payment of just $45,250 (shown is a home that sold for $450,000)

Brad Cramb, Aussie’s Chief Executive of Distribution, said stricter lending rules meant buyers had to rethink their choices.

Commonwealth Bank House Price Predictions

SYDNEY: 2021 (up 27 percent); 2022: (increase of 6 percent); 2023 (12 percent down)

MELBOURNE: 2021 (17 percent increase); 2022 (8 percent increase); 2023 (10 percent down)

CANBERRAE: 2021 (increase of 26 percent); 2022 (7 percent increase); 2023 (10 percent down)

BRISBANE: 2021 (increase of 26 percent); 2022 (9 percent increase); 2023 (8 percent down)

ADELAIDE: 2021 (Up to 22 percent); 2022 (6 percent increase); 2023 (8 percent down)

PERTH: 2021 (increase of 13 percent); 2022 (up 3 percent); 2023 (9 percent lower)

HOBART: 2021 (29% increase); 2022 (5 percent increase); 2023 (12 percent down)

DARWIN: 2021 (17 percent increase); 2022 (7 percent increase); 2023 (8 percent down)

Source: Commonwealth Bank of Australia Forecasts for Homes or Houses and Units Combined

“With rising real estate prices and recent changes in APRA’s lending criteria causing some concerns about housing affordability, we wanted to show homebuyers that there are still opportunities to enter the real estate market if you expand your search for suburbs and change your thinking about how do you structure your home loan,” he said.

“You don’t always have to have a 20 percent down to buy a house.”

The Commonwealth Bank, a major shareholder of Aussie, predicts that property prices in Sydney will rise 27 percent in 2021, slow to 6 percent in 2022 and fall 12 percent in 2023.

Philip Lowe, the governor of the Reserve Bank of Australia, has now indicated that spot interest rates will be raised from a record low of 0.1 percent in 2023 instead of 2024 as previously promised.

But Gareth Aird, Commonwealth Bank’s Australian economics chief, predicts interest rates will now be raised in November 2022, marking the first cash rate hike in 12 years.

“The Australian housing market is in the twilight of an incredible boom fueled by record low mortgage rates,” he said.

Mr Aird now predicts that the Reserve Bank will raise the spot rate to 1.25 percent by September 2023, a level unprecedented since mid-2019 and “at the core of our expectation that house prices will contract”.

Should that prediction come true, the RBA would raise interest rates five times, each time by 0.25 percentage points, judging by previous moves.

In the year to October, home and apartment values ​​rose 21.6 percent nationwide, the strongest annual increase since early 1989.

In comparison, in the year to September, wages rose by just 2.2 percent.

The median national real estate price of $686,339 is now so dear that someone making an average full-time salary of $90,329 would owe the bank six times their salary, even with a 20 percent down payment.

In Sydney, someone on a budget of $400,000 who wants to be a medium distance from the city must buy an apartment.  Lakemba, in the city's multicultural southwest, is a half-hour train ride from the city, and the average price of an apartment in October was just $382,500 - or less than half the Sydney average unit price of $837,262 (pictured is a unit on the market for $370,000 to $405,000)

In Sydney, someone on a budget of $400,000 who wants to be a medium distance from the city must buy an apartment. Lakemba, in the city’s multicultural southwest, is a half-hour train ride from the city, and the average price of an apartment in October was just $382,500 – or less than half the Sydney average unit price of $837,262 (pictured is a unit on the market for $370,000 to $405,000)

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