The Australian Cities Most Friendly to First-Time Homebuyers

| January 28, 2013

The rising cost of property and most other things has encouraged Australians to forego the dream of a house on a patch of grass in the countryside, and instead consider homes closer to cities. Affordability trumps all other considerations. Peter Hobbs, the Communications Manager of Metro Property Development of Brisbane, said that research had proved that people now favour smaller, cheaper apartments. People seeking a new home in Australia would be well-advised to visit the website, homesales, which assists thousands of people with the process of home buying, every day.

Home sales and buying in australia market

There was once a time when first-time homebuyers could afford properties in the new sub-divisions of the outer suburbs of such cities as Sydney, Melbourne and Southeast Queensland, however a recently-released study has shown this to no longer be the case. It found that only 30 percent of lots in new sub-divisions were affordable to first-time homebuyers earning the average income. One co-author of the study was Dr Bob Birrell, a population expert from Monash University, who said that some areas remained affordable, such as Perth. Sydney is the least affordable area of Australia, and Dr Birrell said it was “in a class of its own.”

Affordability in Home sales & Buying

Buyers trying to find Sydney real estate may have a tough time as the situation there will only worsen. BIS Shrapnel, an organisation that analyses the property industry and makes forecasts, said that median house prices will increase by 17 percent over the next three years, from $640,000 to $750,000 because demand outstrips supply. On a brighter note, the government of NSW introduced a New Home Grant scheme, where a grant of $5,000 is given for properties worth as much as $65,000. $200 million will be spent on road and sewage infrastructure in the Northwest and Southwest of the city in an attempt to lure increased development to those areas.

Recently, property prices in Melbourne have fallen marginally, by 2.2 percent between September of 2011 and 2012. Prices can be from 20 to 45 percent lower than in Sydney. With prices falling, population growing by around four percent a year and a lack of new developments, a person contemplating the purchase of a house should not delay. Transport connections are good. Brisbane, Australia’s third-largest city, is experiencing a renaissance after the worst flooding in decades left $400 million of damage in its wake last year, affecting 22,000 homes. The state’s premier said that rebuilding would reach “post-war proportions.” Between 2011 and 2012, the number of first-time homebuyers in

Brisbane’s state of Queensland increased by 30 percent, and perhaps these people are on to something. First Home Owner Grants are available. It is best for a person to choose a home on the side of the river where they work. The Housing Industry Association rates Australian cities in terms of the affordability of housing. The lower the rating, the less affordable is housing. Hobart in Tasmania was the most affordable, with a rating of 71.9, which Adelaide came second, with 59.4.

David Airey, the president of the Real Estate Institute of Western Australia, highlighted the attractions of Perth’s southern suburb of Orelia. Prices there rose by 12.8 percent in 2012, but the median price of $313,000 is well below Perth’s median of $475,000. Airey said that people were coming to realise that Orelia has great freeway access, is a short drive from the railway station, and has much native bush, mature trees and well-kept parks. The transport situation makes Orelia more appealing than the rest of Perth. Airey said that Orelia was particularly attractive to first-time homebuyers seeking an existing rather than new home. Perth has what has been called a Mediterranean climate, with hot and dry summers and relatively cool and wet winters.

Broker Marketing Services provides a list entitled, Australia’s cheapest suburbs for first-time homebuyers and investors.

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Category: For sale, property outlook, Property sector

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