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Australia’s most affordable suburbs near town or beach for first-time buyers on a budget of $ 400,000


Homes within a short drive of the beach or town remain affordable for first-time homebuyers on a budget of $ 400,000.

The Aussie mortgage broker recommends zip codes where borrowers can get a loan with a deposit of $ 40,000, the price of a new car, and not have trouble paying their bills with an average salary.

On the central coast, just over an hour’s drive north of Sydney, a person capable of working from home can still buy a house for $ 415,000 at Wyee in the Lake Macquarie area, according to data from CoreLogic. on October median prices.

They would only need $ 41,500 for a deposit of at least 10% if they were willing to pay the lender’s mortgage insurance.

Homes within a short drive of the beach or town remain affordable for first-time homebuyers on a budget of $ 400,000. Mortgage broker Aussie recommends postal codes where borrowers can get a loan with a deposit of $ 40,000, or the price of a new car, and not have a hard time paying their bills with an average salary (on the photo, an Australian map showing more affordable areas in purple)

The median price is also less than half the median Central Coast home price of $ 954,330, which would make it possible to buy something with a backyard in Woy Woy.

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

It’s also much less than the median Brisbane home price of $ 731,392.

North of Brisbane, in Deception Bay, mid-point house prices are still affordable at $ 425,250 – requiring a deposit of just $ 42,525.

In Sydney, someone with a budget of $ 400,000 who wants to be halfway to the city has to buy an apartment.

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

A borrower could buy with a 10% deposit of just $ 38,250.

On the central coast, just over an hour's drive north of Sydney, a person capable of working from home can still buy a house for $ 415,000 at Wyee in the Lake Macquarie region, according to CoreLogic data from 'October (in the photo, a house sold for $ 450,000)

On the Central Coast, just over an hour’s drive north of Sydney, a person capable of working from home can still buy a house for $ 415,000 at Wyee in the Lake Macquarie region, according to CoreLogic data from ‘October (in the photo, a house sold for $ 450,000)

Those looking for an affordable home in Sydney can try Box Hill, 50 miles northwest of the CBD, where the median home price is $ 611,500.

Brad Cramb, general manager of Aussie distribution, said stricter lending rules are forcing buyers to reconsider their choices.

Brad Cramb, general manager of Aussie distribution, said stricter lending rules are forcing buyers to reconsider their choices.

That’s less than half the median Sydney home price of $ 1.334 million, after an annual increase of 30.4%.

Someone only needs a 10% deposit of $ 61,150 to get a loan.

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

In Melbourne, the average price for a city apartment is only $ 426,750, with a deposit of $ 42,675 sufficient to secure a loan.

The median price of a St Kilda Beachfront apartment is $ 550,000 – requiring a 10% deposit of just $ 55,000.

The Australian Prudential Regulation Authority considers a debt-to-income ratio of six risky and, since November 1, has required lenders to assess the ability of borrowers to cope with a three percentage point hike in rates mortgage.

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

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

Brad Cramb, general manager of Aussie distribution, said stricter lending rules are forcing buyers to reconsider their choices.

Commonwealth Bank Forecasts For Home Prices

SYDNEY: 2021 (Up 27%); 2022: (6% increase); 2023 (12% decrease)

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

CANBERRA: 2021 (Up 26%); 2022 (up 7%); 2023 (down 10%)

BRISBANE: 2021 (Up 26%); 2022 (up 9%); 2023 (down 8%)

ADELAIDE: 2021 (Up 22%); 2022 (up 6%); 2023 (down 8%)

PERTH: 2021 (Up 13%); 2022 (3% increase); 2023 (9% decrease)

HOBART: 2021 (Up 29%); 2022 (up 5%); 2023 (12% decrease)

DARWIN: 2021 (Up 17%); 2022 (up 7%); 2023 (down 8%)

Source: Commonwealth Bank of Australia forecasts for dwellings or houses and units together

“With rising house prices and recent changes to APRA’s lending criteria creating concerns about housing affordability, we wanted to show homebuyers that there are still opportunities to enter. in the real estate market if you broaden your search for suburbs and adapt your thinking about how you might structure your mortgage, ”he said.

“You don’t always need a 20% down payment to buy a house. “

The Commonwealth Bank, a major shareholder in Aussie, predicts that Sydney house prices will rise 27% in 2021 before slowing to 6% in 2022 and plunging 12% in 2023.

Philip Lowe, the governor of the Reserve Bank of Australia, now indicates that the cash rate will be raised from a record low of 0.1% in 2023 instead of 2024 as previously promised.

But Commonwealth Bank Australian Economic Director Gareth Aird predicts that interest rates will now be hiked in November 2022, marking the first cash rate hike in 12 years.

“The Australian real estate market is in the twilight of an incredible boom that has been fueled by record mortgage rates,” he said.

Mr. Aird now predicts that the Reserve Bank will increase the cash rate to 1.25% by September 2023, a level unprecedented since mid-2019, which “is at the heart of our expectation of a price contraction. housing”.

If that prediction comes true, the RBA would hike rates five times, each time by 0.25 percentage points judging from previous moves.

In the year through October, home and apartment values ​​grew 21.6% nationally, marking the largest annual increase since the start of 1989.

By comparison, wages in the year ending September rose only 2.2 percent.

The national median real estate price of $ 686,339 is now so expensive that a person earning an average full-time salary of $ 90,329 owes the bank six times their salary, even with a 20% down payment.

In Sydney, someone with a budget of $ 400,000 who wants to be halfway through the city has to buy an apartment.  Lakemba, in the city's multicultural southwest, is half an hour by train from the city, and the median apartment price in October was just $ 382,500 - less than half the median unit price of Sydney from $ 837,262 (pictured a two bedroom unit on the market for $ 370,000 to $ 405,000)

In Sydney, someone with a budget of $ 400,000 who wants to be halfway through the city has to buy an apartment. Lakemba, in the city’s multicultural southwest, is half an hour by train from the city, and the median apartment price in October was just $ 382,500 – less than half the median unit price of Sydney from $ 837,262 (pictured a two bedroom unit on the market for $ 370,000 to $ 405,000)