Housing Affordability in Australia in 2017
We hear time and time again in the media that housing affordability in Australia is at an all time low and that young people should give up on their dream of taking the plunge into the property market and owning a home.
Yes there is some expensive property in Australia but it is simply not true to say buying property in Australia is unaffordable.
If you look outside of Sydney and Melbourne affordable housing is more than achievable, in fact in some suburbs, it can be cheaper to buy a property than it is to rent.
Major international cities like Sydney and Melbourne will always be relatively expensive places to live. But other Australian cities like Brisbane, Ipswich, the Gold Coast, Perth, Adelaide and Hobart offer city living without the housing price tags of Sydney and Melbourne.
Add to this the Generation Y trend of rentvesting and you can begin to see not only is property ownership attainable, it can be affordable. But you do need to do your research and be patient.
You may have heard older generations say you just need to get into the property market and then you will be on your way. To a certain extent they are correct.
Michael Yardney, director of Metropole Property Investment Strategists is reported as saying, “There is no reason why the large majority of investors who make an educated purchase in 2009, will not see the value of that property double within the next seven to 10 years.” (one full property cycle).
That is a pretty good capital gain and something you can’t achieve if you are renting.
A quick scan of the most affordable suburbs around Brisbane and the Gold Coast on realestate.com.au throw up some interesting insights.
Suburbs like Ellen Grove, Leichhardt, One Mile, Laidley, Slacks Creek, Goodna and Redbank Plains have average property prices of $350,000 or below, and well below in some cases. They are also still within commute distance to Brisbane, the Gold Coast or Ipswich.
That average price is over a million dollars less than the average $1,360,000 price tag in the Brisbane suburb of Ascot.
Buying property in Australia is affordable. So what do you do?
First thing you need to do is have a plan. Think about where you want to be in five, ten and fifteen years time. Think about the big picture things, like career, family, wealth, travel, love and community, because all of these things, and others can impact on what is important to you.
One thing is absolutely true.
Just because you buy in a more affordable suburb, doesn’t mean you have to spend the rest of your life there. You can use it as a stepping stone to achieving your other life goals, or use it as a way of upgrading to a more suitable home in the future.
Either way taking the property plunge isn’t always unaffordable and difficult.
If you are sick of renting and want to know how much you can borrow contact us today by filling out our contact form and one of our team will contact you.