But, what if you were better off buying a home overseas as an investment? Where would be the best place to look?
compiled data to evaluate disposable income to the cost of living, how much home prices have risen since 2015, the long term investment rating, average mortgage interest rates and percentage of homes owned.
So, here is a list of the best countries to buy a home if you’re looking offshore.
35 best countries for first home buyers
Out of the countries assessed Australia ranks 27th on the list of best places for first home buyers. Here is the complete list:
What makes Slovakia, Lithuania and Hungary great places to buy?
Slovakia has seen a recent housing boom, with property values increasing 148 per cent since 2015.
This shows a healthy demand of active home buyers, reflected by the higher ownership rate, Compare the Market said.
Although it’s difficult to predict how the housing market will fare in the coming years, Slovakia had a strong foundation for the residential market to develop prior to COVID-19.
Hungary’s 181 per cent increase in house prices indicates a fast growing housing market buoyed by favourable conditions, including:
low mortgage interest rates
high employment rates
In other words, the housing market is supported by a healthy economy in which homebuyers are actively purchasing properties.
And finally, demand in Lithuania’s housing market is moderately high with a purchase price increase of 147 per cent since 2015.
While the investment rating is lower than the other countries, the average Lithuanian spends 71.7 per cent of their disposable income on cost-of-living expenses – the lowest percentage out of every country.
With 28.3 per cent of their disposable income leftover, the average Lithuanian should be able to comfortably afford their cost-of-living expenses, and more.
How does Australia’s property market compare?
According to Compare the Market home prices in Australia has risen 116 per cent since 2015 but with an outright ownership rate of only 30 per cent.
This puts us behind other countries like Hungary (79 per cent) and Latvia (68 per cent) where outright ownership is much higher.
Additionally, Australia only ranks two out of five for long term investment - this may have something to do with soaring values, that may say are overpriced.