Unveiled: Australia's cheapest suburbs
With affordability being such a hot topic of late, a new report from CoreLogic RP Data on the most affordable suburbs in every capital city was timely, says property expert John McGrath, even though many are on the outskirts.
In fact, in the case of NSW, four out of the top five cheapest suburbs are actually on the Central Coast, which is increasingly being seen as an extension of metro Sydney and becoming a popular choice for first home buyers willing to commute, McGrath wrote in his Switzer blog.
"However, these lists do remind us that there are affordable locations in or very close to every capital city," he says.
"Here’s another angle on the whole affordability debate. Prices aren’t going to change (at least not much) but there are things you can do yourself to improve your own ‘affordability’."
The best possible thing to do is take advantage of historically low interest rates, he advises. The interest on your home mortgage will always be your greatest expense as a first home owner, so low interest rates can make a huge difference. For further security and sleep-at-night comfort, lock in those rates with a fixed loan for 3-5 years.
Another option could be considering a second job.
"Think outside the square about what else you could do – maybe from home, to pick up some extra cash to contribute to your deposit. Alternatively, if you feel you deserve a pay rise at work, ask for one!
"Just be prepared to explain why you deserve it."
Compromise on property type
Consider an apartment, townhouse or villa over a house; and
If you really want a house, consider buying an original home that you can renovate over time
Talk to a broker who can shop around for you, as lenders have vastly different criteria for assessing borrowing power – in some cases, the amount lenders are willing to give to the same candidate can vary by tens of thousands of dollars
Compromise on your desired location
Look at areas immediately surrounding your target suburb – you might be surprised how much less you’ll pay just next door; and
Consider cheaper suburbs in the same city that offer a similar lifestyle. For example, if you enjoy living close to the beach, do some research on other beach areas. For example, compare these median prices for one bedroom apartments in these popular Sydney beach suburbs:
- Bondi $740,000
- Manly $656,500
- Dee Why $550,000
- Cronulla $480,000
Source: realestate.com.au
What is probably most notable here is the $100,000-plus difference between Manly and Dee Why. These are both Northern Beaches suburbs with their own beaches and established shopping and dining precincts and they’re only 10-15 minutes apart by car.
Cheapest capital city suburbs (Houses)
New South Wales
Spencer (Gosford area) $342,372
San Remo (Wyong area) $371,669
Mannering Park (Wyong area) $390,821
Victoria
Melton (Melton area) $265,335
Melton South (Melton area) $280,966
Millgrove (Yarra Ranges) $294,664
Queensland
Russell Island (Redland area) $225,655
Dinmore (Ipswich area) $227,512
Leichhardt (Ipswich area) $227,658
South Australia
Davoren Park (Playford area) $179,954
Elizabeth North (Playford area) $180,191
Smithfield Plains (Playford area) $192,237
Western Australia
Medina (Kwinana area) $276,935
Calista (Kwinana area) $308,061
Parmelia (Kwinana area) $309,380
Tasmania
Herdsmans Cove (Brighton area) $137,724
Gagebrook (Brighton area) $140,650
Clarendon Vale (Clarence area) $154,642
Northern Territory
Moulden (Palmerston area) $465,257
Gray (Palmerston area) $492,119
Woodroffe (Palmerston area) $511,911
ACT
Charnwood (ACT) $400,119
Ngunnawal (ACT) $435,859
Holt (ACT) $442,124
*Source: CoreLogic RP Data – only suburbs with at least 10 sales over the 12 months to January 2016 are included