I’m often asked which area in the bustling Sydney market is the best bet for first home buyers and I would suggest the more affordable Western Suburbs. You’ll save yourself from paying a mega mortgage and avoid living on cans of tuna just for the sake of owning an inner city pad, plus you’ll get more bang for your buck.
Let’s give you a good comparison: If you buy in a suburb like Rouse Hill, at the time of writing you could purchase a duplex with 3 bedrooms and 2 bathrooms for $755k. But take the same sort of duplex and move it to say, Alexandria that price will climb to a steep $1.2 million.
The real affordability issue comes when you calculate your repayments. Using the same above example and assuming you had a 10% deposit for either of these properties, a home loan with a 5% interest rate over 25 years would make your monthly repayments $3,972 for the Rouse Hill property or $6,314 in Alexandria. That’s over $2,000 more out of your piggy bank each month, which could go towards paying down your home loan or saving for your next investment.
For those first home buyers that are willing to compromise on location for value for money, check out my top picks for the best up and coming suburbs in Australia where you can buy for less than $500k:
Melbourne – Lockerbie
With 11,000 new houses being built in this northern belt of Melbourne, just 35km from the CBD, and housing 30,000 people, it will feature schools, parkland, a shopping complex and excellent transport links. As a guide, a new house and land package (3 bed, 2 bath) at the suburb the developer is modelling it off sets you back around $350,000.
Sydney – Parramatta North
Now one of Sydney’s fastest growing suburbs, Parramatta looks to grow even more with the building of 6,000 residences in the north of the suburb and a continuously expanding shopping and café scene. Currently, a newly built 1 bedroom apartment on Parramatta’s waterfront is on offer at $496,000.
Brisbane – Chermside
Only 15kms from the CBD this suburb in the north of Brisbane is next to skyrocketing Rocklea but without the flood risk. It also has great transport links, amenities and shopping centres. A newly renovated 2 bedroom home on a large block will cost around $459,000.
Adelaide – Brooklyn Park
Just 5kms from the CBD and close to the airport, Brooklyn Park is close to Harbour Town shopping centre and Torens Linear Park which boasts a cycle and walking path from the city to the sea. A brand new 4 bedroom, 2 bathroom house with parking is $399,000.
Perth – Joondana
Only 5kms from the CBD in the north of Perth is Joondana which has good road and rail links to the beach and CBD and access to a well-established café and restaurant strip on Main Street. A new 2 bedroom apartment will set you back $459,000.
If you’re a first home buyer who wants to have a chat about your home loan borrowing options, give me a buzz today on 13 6696 (MOZO) or put in an enquiry below.